Lyft maintains end-2021 profitability goal
Lyft said today that cuts had put the company on track to reach its goal of becoming profitable on an adjusted basis by the end of 2021, even as its revenue fell 61 per cent.
Quarterly revenue fell to $339.3m, as the pandemic crushed demand for ride-hailing services in North America.
The ride-hailing app said the number of active drivers on its services dropped by 60 per cent to 8.69m in the three months ended June.
Overall, Lyft recorded a $437.1m net loss in the quarter.
Lyft in April said it was making cuts to pay and laid off nearly 1,000 employees, or 17 per cent of its workforce, in an effort to reduce costs.
Unlike its larger rival Uber, which operates in 69 countries, Lyft only offers rides in the US and Canada.
It comes as Uber and Lyft may be forced to shut down their ride-hailing operations in California if a court ruling that blocks the firms from classifying its drivers as independent contractors goes into effect.
A California judge on Monday granted the state’s request for a preliminary injunction blocking Uber and Lyft from classifying their drivers as independent contractors rather than employees.
Uber said today the shutdown would irreparably harm Uber and the people who rely on its rides operations to generate income.