US ride sharing company, Lyft, is considering selling its bike and scooter business as David Risher, the company’s new CEO, attempts steer the company’s efforts towards its core offering.
Lyft reported that it had received strong interest in its bikes and scooters business, “it’s only logical for Lyft to listen to credible proposals and explore strategic partners and options in several forms to serve more riders in more cities,” the company said in a statement on the 24th July.
“We expect this part of the business to continue to be a meaningful part of Lyft’s offering now and into the future,” it added.
Risher has made a series of fundamental changes at the company since he took over as Lyft’s CEO in April 2023.
Since taking the job, Risher has lowered prices for customers, conducted mass layoffs with the aim of halving the company’s costs, reversed the company policy on flexible work pay, obliging employees to come into the office, and hired a new chief financial officer.
Lyft experienced a drop in its market share in April 2023, losing out to Uber as it did not keep pace with adding new features and bonuses, something Risher has introduced since.
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The new CEO’s shake-up seems to be paying off as market-share gains saw Lyft’s stock rise more than 19% since his appointment was announced March 2023, according to the Wall Street Journal.
However, Lyft continues to face tough competition in the transport sector, with Uber’s stock rising 54% between March and July 2023, the Wall Street Journal reported.
Lyft’s accumulation of long term debt is further hampering the firm’s progress.
According to research analyst GlobalData, at the end of 2022, the company had long-term debt of $8bn compared to $6bn in 2021.