Ridesharing

Lyft Rides Up In May From April But Still Down 70 Pct YOY

While Lyft's ride counts are rising from the worst parts of the pandemic, they’re still down 70 percent from a year ago, CNBC reported.

Lyft's ridership, affected as other such companies have been by the pandemic, was up 26 percent in May compared to April, a regulatory filing said.

These numbers are among the first companies have offered as states have begun to reopen after the worst of the pandemic.

If the June ride-share levels are comparable to May's, Lyft said it doesn't think the adjusted EBITDA rates will exceed $325 million, CNBC reported, noting that the previous estimate was that the rates wouldn't exceed $360 million.

In the wake of Lyft's filing, shares rose by 4 percent in after-hours trading.

Lyft found itself at a disadvantage to Uber in the beginning of the pandemic; Uber already had a grocery delivery app as that form of retail became the norm while people stayed inside to avoid the virus, different from Lyft's narrower focus as a transportation hub. That focus proved something of a detriment as ride-share demand decreased drastically while people stayed indoors.

Lyft created its grocery delivery app to meet the rising demand for those services. The service could be used to help in providing food for businesses, government entities, nonprofit groups and health care organizations, the company said.

Lyft's ridership was up 3 percent in the first quarter of the year, even as the pandemic hit during that quarter. But in April, as people in the West settled into quarantine, that number fell by 75 percent. The company's revenues spiked 23 percent, going from $776 million last year to $955 million this year.

Co-founder and CEO Logan Green predicted that Lyft's cost-saving procedures would eventually have it coming out at an advantage after the pandemic.

But even as the company tries to survive the pandemic, some of its workers have had trouble accessing unemployment benefits. A lawsuit was filed by several Uber and Lyft drivers against New York City, alleging that their unemployment payments had been difficult and remained unpaid.

——————————

NEW PYMNTS STUDY: ACCELERATING THE REAL-TIME PAYMENTS DEMAND CURVE – NOVEMBER 2020

About: Accelerating The Real-Time Payments Demand Curve:What Banks Need To Know About What Consumers Want And Need, PYMNTS  examines consumers’ understanding of real-time payments and the methods they use for different types of payments. The report explores consumers’ interest in real-time payments and their willingness to switch to financial institutions that offer such capabilities.

TRENDING RIGHT NOW