Lyft Slashes Jobs, Scales Back Bikes and Scooters in Efficiency Push

Ride-hailing company Lyft announced another round of layoffs on Wednesday, as reported by the Wall Street Journal, this time targeting its bikes and scooters division. The move comes as CEO David Risher continues his efforts to streamline operations and boost profitability at the Uber rival.

While Lyft will maintain its bikes and scooters in major markets like New York, Chicago, and San Francisco (where it doesn't own the fleets), the company will eliminate its company-owned, dockless operations in other cities. This includes Washington, D.C., with Lyft exploring alternative options for Denver.

Lyft emphasized that riders remain enthusiastic about its bikes and scooters, and that the company anticipates this part of the business will remain significant. However, the focus will shift away from company-owned, dockless operations.

This latest round of cuts will impact 1% of Lyft's workforce, resulting in charges between $34 million and $46 million, primarily recorded in the third quarter. Despite the layoffs, Lyft projects that these cost-cutting measures will ultimately boost its adjusted earnings by $20 million by the end of 2025.

Lyft's move to cut costs follows its first-ever quarterly profit, announced earlier this month. While record ridership for its bikes and scooters in key markets contributed to the milestone, the company acknowledges the seasonal nature of this business and its higher maintenance costs compared to its core ride-hailing operations.

Last year, Lyft explored the possibility of selling its bikes division or securing an investment partner to inject capital. The company had acquired a bike-rental operation in 2018, and the bikes have proven popular in various US cities, including New York, where Lyft owns Citi Bike.

The company stated that it had 2,945 office employees at the end of 2023.