Lyft’s ride-hailing business is starting to claw its way out of a deep hole

Lyft’s ride-hailing business is starting to claw its way out of a deep hole

Lyft continues to wrestle to usher in cash amid rising case numbers of COVID-19 within the US. The ride-hailing firm misplaced $495 million over the past three months, with its adjusted internet revenues down 48 p.c yr over yr.

Its ride-hailing is considerably smaller than it was final yr. This quarter, Lyft reported having 12.5 million lively riders, in contrast to 22.3 million within the third quarter of 2019 — a drop of 44 p.c. It’s a deep hole, however Lyft is starting to claw its way out. The firm’s ridership has been steadily rising over the course of the yr: this quarter’s quantity is 44 p.c enchancment over Q2.

Lyft introduced in practically $500 million in income this quarter, versus $956 million within the third quarter of 2019. It was a regular enchancment of 47 p.c over the second quarter of 2020, when Lyft solely made $339 million. Lyft’s losses had been primarily flat this quarter compared to Q3 of 2019: $495 million versus $463.5 million.

Amid all that purple ink there was one constructive observe for Lyft. The passage of Proposition 22 in California was an apparent win for the corporate which, together with Uber and DoorDash, spent over $200 million to push for its approval. The poll measure exempts Lyft from a state legislation requiring it to classify its drivers as staff.

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