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Lyft (NASDAQ: LYFT)
Q3 2024 Earnings Call
Nov 06, 2024, 5:00 p.m. ET

Key Takeaways from Lyft’s Strong Third Quarter

• Prepared Remarks
• Questions and Answers
• Call Participants

Opening Remarks

Operator

Good afternoon, and welcome to the Lyft third quarter 2024 earnings call. Participants are in listen-only mode to avoid background noise. Later, we will have a question-and-answer session with instructions provided at that time. [Operator instructions] This call is being recorded.

Now, I will hand over the conference to Aurelien Nolf, Vice President of Financial Planning and Analysis and Investor Relations. You may begin.

Company Overview

Aurelien Nolf — Vice President, Financial Planning and Analysis and Investor Relations

Thank you. Welcome to Lyft’s earnings call for Q3 2024. Today, we have our CEO, David Risher; and our CFO, Erin Brewer. Forward-looking statements will be made regarding our business strategy, partnerships, financial results, and guidance.

These projections involve risks and uncertainties that could affect actual outcomes. Detailed factors are outlined in our earnings materials and SEC filings. We provide this advisory to clarify that all forward-looking statements are based on our beliefs as of today, without obligation to update except as legally required. Today, we will also cover customer metrics.

Customer Engagement and Financial Insights

In rideshare, Lyft recognizes both drivers and riders as customers. Non-GAAP financial measures will also be discussed, and reconciliations of historical GAAP results can be found in our earnings materials on the IR website. I will now pass the call to David.

CEO Address: Building Momentum Through Innovation

David Risher — Chief Executive Officer

Thank you, Aurelien. Good afternoon, and thank you for joining us today. Our team executed effectively on our strategic plan, enabling a remarkable third quarter, serving over 2 million riders daily. Erin will provide specifics on our quarterly performance. A North Carolina driver summed it up well, noting that Lyft offers superior transparency and better compensation per ride compared to competitors.

As we shared during our Investor Day, our focus is on our customers. Our recent innovations, progress with Lyft Media, and significant partnerships have contributed to our growth. One of our standout initiatives is the introduction of Price Lock, aimed at commuters who make up nearly half of our weekday rides. By the end of September, over 200,000 active passes were purchased, with riders taking an average of four additional rides monthly since signing up.

This initiative not only benefits riders but also enhances predictability for drivers. Overall, this approach has proven effective, and we continue to solicit feedback to improve the Price Lock experience.

Strategic Changes: Tackling Pricing Challenges

Our continual focus on rider experience led to a significant 40% decrease in Prime Time pricing year over year and 20% quarter on quarter. This reduction has fostered ride growth and increased market share, especially noted in Chicago where we experienced substantial improvements.

We remain committed to turning rideshare’s most disliked aspect—surge pricing—into a competitive advantage, a strategy that has yielded encouraging results in Q3.

Recently, we announced enhancements aimed at improving driver experiences. Drivers can now receive increased earnings if they face delays greater than five minutes for rides. Additionally, we display estimated earnings per hour for acceptance transparency, valuable for drivers, particularly those with electric vehicles who can now select rides within their battery range.

This year alone, we launched 33 new products and features, showcasing our dedication to meeting driver and rider needs. Consequently, we see record driver metrics, including hours worked, surpassing previous all-time highs. Drivers favoring Lyft over competitors has also surged by 12 percentage points.

Record Growth Across Metrics

At our Investor Day in June, we projected driver-hour growth to align with business growth, and current trends indicate we are ahead of that goal. Rider engagement mirrored this trend with record highs in active riders and rides taken, including commutes exceeding pre-pandemic levels.

Ride frequency—average rides per rider—has also increased significantly, showcasing our growing user engagement.

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Lyft’s Q3 Results Show Sustained Growth Amid Strategic Partnerships

Lyft is continuing its upward trend, growing for the seventh consecutive quarter. This steady growth aligns with the company’s long-term goals. An increase in bike and scooter rides has contributed to this success, leading to record numbers in quarterly rides during Q3.

Looking Ahead: Expansion in Canada

Lyft is focused on expansion, particularly in Canada, where the company is currently onboarding drivers in Winnipeg. At present, around 12% of Canadians have used Lyft, and the company anticipates welcoming Winnipeg riders soon.

Enhancements to Lyft Media

Lyft Media is evolving into a powerful advertising platform. Recent enhancements focus on measuring campaign performance better. Collaborations with brands like Foursquare now help track foot traffic to physical stores. Meanwhile, NCSolutions offers insights into brand loyalty, and Kochava measures digital outcomes such as app installs and purchases. Overall, in-app ads on Lyft Media surged nearly threefold year over year in Q3.

Strategic Partnerships to Drive Growth

Lyft is proud of its solid foundation in rideshare. By concentrating on on-demand mobility, Lyft is dedicated to improving the experience for both drivers and riders. This strategy includes partnerships with leading companies in various sectors. For food delivery, Lyft has teamed up with DoorDash.

Through the new alliance, DashPass subscribers gain compelling reasons to choose Lyft. Customers are encouraged to link their accounts to enjoy discounts with friends or on late-night snacks. Moreover, Lyft has announced ambitious plans to bring autonomous vehicles to millions by partnering with Mobileye, Nexar, and May Mobility.

Autonomous Vehicles: A Bright Future

The partnership with Mobileye will enable all vehicles equipped with their self-driving tech to access Lyft’s rideshare platform. This advantage will streamline access for both small and large fleet operators to Lyft’s network of riders. Through the collaboration with Nexar, Lyft leverages its vast network alongside intelligent video telematics to accelerate how autonomous vehicles learn.

Next year, Lyft riders in Atlanta will benefit from the autonomous vehicles provided by May Mobility. These partnerships are vital, showcasing Lyft’s commitment to becoming the go-to platform for stakeholders in the autonomous vehicle sector. Lyft envisions a future where human drivers and AVs coexist in a seamless transport network.

Lyft’s Purpose-Driven Approach

Before concluding, it’s vital to highlight Lyft’s foundational purpose. The team is deeply passionate about making an impact, which is a significant reason why consumers choose Lyft over competitors. Research indicates that organizations with a strong sense of purpose achieve returns that outperform the S&P 500. Lyft’s mission is to “serve and connect.”

To reiterate, the purpose is to serve and connect. The goal is to provide exceptional service to drivers and riders while fostering in-person connections in an increasingly virtual world. Lyft consistently gains riders and drivers, showcasing a preference for its services. Competition exists, but Lyft is also competing against personal vehicles and even people’s couches.

Erin Brewer: Update on Financial Performance

Erin Brewer — Chief Financial Officer

Thank you, David. Good afternoon, everyone, and thank you for joining us today. I’m looking forward to updating you on our Q3 performance, insurance renewals, capital allocation, and a more optimistic outlook for 2024. Let’s dive into the quarter’s specifics.

As a reminder, all income statement figures are non-GAAP, excluding select items noted in our earnings materials. In Q3, gross bookings surpassed $4.1 billion, marking a 16% increase from the previous year, with double-digit growth in both rideshare and bike/scooter segments. Demand was robust, resulting in a 9% rise in active riders and a 6% increase in ride frequency, largely fueled by our success in Canada and back-to-school efforts.

While demand exceeded our expectations, the gross bookings per ride and the decrease in prime time were predictable. Addressing the variability in prime time helps resolve rider concerns, ultimately making Lyft a more attractive option.

For the quarter, revenue reached over $1.5 billion, reflecting a year-over-year growth of 32%. We also experienced revenue margin expansion both year-over-year and sequentially, indicating improved efficiency. Our focus remains on enhancing per-ride efficiency, leading to a 17% decrease in incentive expenses on a per-ride basis compared to last year.

Operating expenses were $602 million, equating to 14.7% of gross bookings, which included investments aimed at boosting rider engagement. Q3’s adjusted EBITDA stood at $107 million, representing 2.6% of gross bookings. This figure benefited from a one-time $14 million tax accrual waiver.

Our GAAP net loss for the quarter was $12.4 million, which factored in $36 million related to restructuring in our bikes and scooters division, now referred to as Lyft Urban Solutions. We concluded the third quarter with a strong cash position, highlighted by almost $1.9 billion in unrestricted cash and investments, while generating $243 million in free cash flow.

For the trailing twelve months, free cash flow exceeded $641 million, bolstered by higher insurance reserves related to increased ride volumes and reduced cash payments.

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Lyft Updates on Growth Strategy and Financial Outlook

Capital Allocation Strategy Prioritized

In discussing capital allocation, we emphasize our current strategy, which revolves around three major areas. Firstly, it’s essential for our scaled marketplace to keep sufficient liquidity for operations and adhere to our existing financial covenants. Secondly, we are focusing on investing in profitable growth.

Our initiatives include developing partnerships and enhancing our advertising technology platform, both vital to our long-term growth strategy. Lastly, we are committed to increasing shareholder returns, with an initial focus on managing dilution. After our restructuring last year, we observed improvements in stock-based compensation dilution and maintain our commitment for 2024 stock-based compensation to be around $340 million. To build on this, starting later this month, we plan to use our improved cash position to switch to net share settlement for addressing tax withholding on all employer-restricted stock units.

Reducing Dilution through Cash Strategy

This adjustment will lessen the number of shares issued in the market upon vesting. For 2025, we anticipate using approximately $100 million of our cash balance, which would aim to decrease dilution by about two percentage points compared to our previous tax withholding method. This cash utilization will be recorded in the financing section of our statement of cash flows starting in the fourth quarter of 2024.

Guidance Highlights for Fourth Quarter

Our outlook for Q4 includes effects from the DoorDash partnership and the renewal of our third-party insurance agreements. As noted during our Investor Day, partnerships are key to our growth strategy, and we are eager about collaborating with another category leader. In the fourth quarter, we will invest in the launch, aiming to enhance services for both Lyft riders and DashPass members across the U.S. Our experience shows that while broad consumer adoption takes time, we remain committed to keeping our stakeholders updated.

Additionally, the renewal of our third-party insurance agreements demonstrates our efforts to manage the rising costs through innovative products and safety initiatives. We project that the cost of revenue for Q4 will increase by roughly $50 million quarter-over-quarter, reflecting our renewals effective October 1st. This is a notable advancement compared to last year’s cost increases, thanks to the multiyear strategy discussed during our Investor Day. Furthermore, last year we transitioned some agreements to a biannual cycle, which helps mitigate disruptive financial impacts.

Improved Financial Projections for 2024

For the fourth quarter of 2024, we expect gross bookings to grow by approximately 15% to 17% year-over-year, translating to around $4.28 billion to $4.35 billion. We anticipate adjusted EBITDA in the range of $100 million to $105 million, with an adjusted EBITDA margin of about 2.3% to 2.4% of gross bookings. For the entire year of 2024, we are optimistic and now project rides growth in the mid-teens year-over-year, with gross bookings increasing by roughly 17% year-over-year. We expect an adjusted EBITDA margin as a percentage of gross bookings to be around 2.3%, up from a previous outlook of 2.1%, with free cash flow anticipated to exceed $650 million.

2024 marks the beginning of our multiyear plan outlined at our Investor Day in June. Through a sharp focus on customer satisfaction and operational excellence, we are committed to meeting all our objectives and making significant progress toward our long-term goals. With that, I will conclude our prepared remarks. Operator, we are now ready for questions.

Questions & Answers:

Operator

Thank you. We will now begin the question-and-answer session. [Operator instructions] We ask that you limit yourself to one question, and for any additional questions, please requeue. Our first question comes from Doug Anmuth with JPMorgan.

Please go ahead.

Doug Anmuth — Analyst

Thank you for taking my questions. I have two—one for David and one for Erin. David, can you discuss the benefits of reduced prime time and surge pricing on the platform? How has this affected ride volumes through frequency and retention? I recall you mentioning improved conversion rates.

David Risher — Chief Executive Officer

Definitely. To start, we’ve significantly reduced prime time costs, decreasing them by 40% year-over-year, which is encouraging. In markets where we’ve targeted these reductions, we see a positive relationship with ride growth. For example, Chicago and Boston have both benefited from these changes. It’s similar to Starbucks eliminating extra fees—customers appreciate clarity and consistency.

Frequency of use also hinges on great service. When we provide better experiences, it naturally encourages more rides. Initiatives like price lock help support this too. Overall, we are pleased with the progress, including a slight uptick in conversion rates, which has improved by about 0.1 percentage points.

Now, Erin?

Erin Brewer — Chief Financial Officer

Thanks, Doug. Regarding free cash flow, we are proud of the team’s performance in driving operating efficiency and improving margins. Our low capital expenditure profile means a significant portion of adjusted EBITDA translates into cash flow. Recent higher insurance accruals are linked to exceeding growth expectations. Additionally, we’re experiencing a decrease in cash payout due to longer resolution periods for these expenses, with payouts typically spread over seven years. This strategic approach is designed to enhance our financial sustainability and capacity for future growth.

Lyft’s Path to Growth: Strategic Partnerships and Autonomous Vehicles at the Forefront

Financial outcomes from recent claims and future projections shape Lyft’s strategy in the evolving rideshare landscape.

Current Financial Landscape

According to Lyft, most payout claims are stemming from the 2021 to 2023 timeframe, a period marked by lower ride volumes. Consequently, this has led to reduced cash outflows. As for the future, the near-term phase of the company’s Long Range Plan (LRP) suggests that while adjusted EBITDA conversion is likely to be above 90% in 2025, it may not reach the heightened levels expected for 2024. Over the years, Lyft anticipates a more balanced approach to insurance-related accruals and cash payments.

Growth Prospects from New Partnerships

Doug Anmuth — Analyst

Thank you for the insights.

Eric Sheridan — Analyst

Thanks for taking my call. I have a two-part question regarding your partnerships, specifically with DoorDash and autonomous vehicle (AV) companies. How do you foresee these collaborations impacting rider demand and overall growth? Additionally, could you provide an update on your view regarding the potential of AVs to enhance your growth and margins?

David Risher — Chief Executive Officer

Those are excellent questions, Eric. Let’s dive into the partnerships first. DoorDash has approximately 18 million DashPass holders globally, a substantial user base. While some of these users may also use Lyft services, it’s crucial to view this as a chance for rider acquisition. We aim to create a customer-friendly experience that drives both ride and delivery demand. Although partnerships take time, we’re optimistic about the early signs of engagement from riders linking their accounts.

Regarding autonomous vehicles, it’s essential to understand their potential. While currently limited in scale and primarily expensive, AVs can nonetheless expand our total addressable market by introducing diverse riding experiences. Our aim is to become the preferred partner for AV stakeholders, be it original equipment manufacturers or technology providers. Increasing asset utilization remains a priority, which is akin to managing an airplane or a restaurant—keeping them busy generates revenue.

Three Pillars for AV Integration

Our approach is built on three key pillars. First, we focus on demand generation. With 40 million active riders and two rides per user daily, we stand strong in the market.

The second pillar centers around marketplace management. With 1.4 million drivers relying on our platform, maintaining their needs—such as onboarding, insurance, and timely matching with riders—presents operational complexity that we excel in handling.

Lastly, our third pillar is fleet utilization, a nuanced area that requires diligent management of asset maintenance and operation. Our Flexdrive subsidiary plays a vital role here, expertly managing a substantial number of vehicles. Our in-house capabilities lend us a distinctive edge over competitors, achieving an impressive 90% utilization rate, which is recognized as industry-leading.

In conclusion, our journey with AVs is promising, merging traditional rides with technology-driven solutions to cater to evolving customer preferences.

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Lyft’s Strategic Direction: Insights on Price Lock and Autonomous Vehicles

CEO David Risher Discusses Market Rollout and Future Trends

In a recent call to stakeholders, Lyft’s CEO, David Risher, shared insights about the company’s newly launched Price Lock program and its observations on autonomous driving trends in San Francisco. The conversation highlighted the company’s approach to enhancing user experience while leveraging strategic partnerships in the evolving transportation sector.

Price Lock: A New Approach to Ridesharing

During the discussion, Risher praised the early indicators of Price Lock’s success, noting its rollout across the nation. He emphasized that it primarily targets commuters, a key demographic that accounts for a significant volume of daily rides. With Price Lock, users can experience more predictable pricing, making ridesharing more appealing, especially during busy morning hours.

Risher recounted an anecdote from a driver whose passenger weighed the cost of different rides every morning. “If it costs $20, she’ll take a Lyft; $30 makes her think twice, and at $40, she opts to drive herself,” he explained. This unpredictability often frustrates riders, making the Price Lock model particularly relevant.

With approximately four additional rides per user, Price Lock not only enhances rider satisfaction but also offers drivers more consistent income. “We are seeing low churn rates, indicating strong market fit,” Risher remarked. The positive early data suggests the program may become a permanent feature, with further promotions anticipated to increase users’ engagement.

Autonomous Vehicles in San Francisco: Observations and Opportunities

Moving on to autonomous vehicles (AVs), Risher noted the growing presence of companies like Waymo and Zoox in San Francisco, framing these entities not as competitors but as partners. “As they scale up, they will face new challenges in operations and maintenance,” he explained. Lyft aims to collaborate with these players to address the complexities of AV development and deployment.

He mentioned, “It’s fascinating to observe their growth, but managing AVs at scale brings different challenges.” Risher highlighted the importance of partnerships as the industry moves towards more significant deployment and scale. As AV technology evolves, Lyft plans to ensure that they are at the forefront, providing essential support and guidance to partners navigating these changes.

Looking Ahead: Financial Guidance and Market Strategies

When asked about financial projections, Risher praised the recently shared guidance on the $50 million increase in quarterly insurance costs. Analyst Ken Gawrelski probed whether there might be additional variations in the cost of revenue between quarters. Risher acknowledged the complexities but reassured that the guidance remains focused on maintaining profitability in a competitive landscape.

Regarding pricing strategies for the domestic rideshare market, Risher recognized the potential impact of fluctuating surge pricing and rider incentives, suggesting a balanced approach. “We will continue to evaluate how decreases in prime time could complement or conflict with our broader pricing initiatives,” he asserted.

These discussions underscore Lyft’s commitment to adapting its strategies to the challenges and opportunities within the transportation landscape. As the company develops innovative solutions like Price Lock and navigates the rise of autonomous vehicles, stakeholders can expect an ongoing focus on enhancing user experience and maintaining profitability.

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Lyft CFO Discusses Pricing Strategy and Consumer Incentives Ahead of 2024

Erin Brewer — Chief Financial Officer

Hi, Ken. Regarding the cost of revenues, there isn’t anything significant to consider from Q3 to Q4. Our pricing strategy aims to stay healthy and competitive within the market, and there are no expected changes in this regard. It’s important to note that the price for rider experiences is influenced by many factors, including the mix of transport modes, distance, and prime time conditions in specific locations.

Our goal is to provide value to riders, which includes a variety of transport options that cater to their needs and offering reliable pricing. Our Price Lock option and the decrease in prime time surcharges have been beneficial, and these are foundational elements of our pricing strategy. While I won’t delve into 2025 specifics, we’re confident in our approach.

For context, our gross bookings per ride decreased in Q3 compared to Q2. This decrease is primarily due to the seasonal nature of bike and scooter usage, which peaks during favorable weather in Q3. As we move into Q4, we expect a shift in this trend—retaining a similar seasonal mix with bikes and scooters—which should lead to an increase in gross bookings per ride.

Ken Gawrelski — Analyst

Thank you.

Erin Brewer — Chief Financial Officer

Yeah.

Operator

Your next question comes from Benjamin Black with Deutsche Bank. Please go ahead.

Benjamin Black — Analyst

Thank you. There has been a 17% year-on-year drop in consumer incentives. Can you explain what factors contributed to this performance and how it may trend in the future? Also, could you comment on the returns from your consumer incentive investments and the competitive landscape for active riders in the U.S. and Canada?

Erin Brewer — Chief Financial Officer

Thanks for the question. Our deployment of incentives aligns closely with our overall strategy to keep the marketplace balanced. In 2024, we’re ahead of our Investor Day targets for combined efficiencies at 10%. We’ve also made significant advancements, as highlighted by David’s remarks, particularly with innovations like Earnings Commitment and enhancements from our recent product release aimed at drivers.

To provide specifics, total incentive spend in the third quarter was approximately $274 million, representing 6.7% of gross bookings—down from 7% in the prior quarter. This marks the lowest percentage of gross bookings for incentives in the last six quarters, demonstrating our efficiency in these areas.

We continuously monitor our incentives’ effectiveness, which varies based on initiative type, to ensure proper deployment. We’re seeing great efficiency and positive outcomes from these investments.

Operator

Your next question comes from Shweta Khajuria with Wolfe Research. Please go ahead.

Shweta Khajuria — Analyst

Thank you. Can you share your insights on consumer sentiment this quarter? We’ve seen mixed signals in data but would like to know about consumer spending resilience. Additionally, what is your outlook on the take rate and revenue margin in the near to midterm?

David Risher — Chief Executive Officer

Hi, Shweta. I’ll address the consumer sentiment first, and then Erin can cover the second part. We’re optimistic about what we’re observing. Our primary use cases indicate increased demand, which correlates with the return to office trends and our Price Lock service. Interestingly, our party-time usage on weekends has also shown notable growth.

A fun example—Halloween data indicates we had record usage this year, which suggests discretionary spending is strong. Even with the increase last year, we are seeing significant engagement this time around, implying that our services are resonating well with consumers.

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Lyft Reports Strong Performance Amid Market Challenges

Key Insights on Consumer Value and Revenue Growth

Leaders at Lyft recently discussed their awareness of the current economic landscape, emphasizing the need for value-driven offerings to appeal to consumers. As Executive Team members highlighted, while some customers thrive, others struggle with financial pressures. Lyft aims to provide affordability through its range of services, including bikes, which deliver about 250,000 rides daily at a low per-ride cost. No significant worries are apparent at this time, as the company’s high-value modes (HVMs) continue to demonstrate strength.

Erin Brewer, Chief Financial Officer

Erin Brewer elaborated on the revenue margins observed throughout 2024, particularly in Q3. Efficiency improvements related to incentive spending have positively influenced these margins. Notably, the bikes and scooters segment has a direct impact on revenue, with a reported 2.5-point increase in Q3 because of higher volumes in that area.

Shweta Khajuria, Analyst

Shweta thanked the team for their insights and proceeded with her inquiries.

David Risher, Chief Executive Officer

David took the opportunity to address questions about Lyft’s performance in Canada. He noted that the company is on track to double its ride volume year-on-year, revealing a strong market presence in Canada. For instance, Toronto has become Lyft’s sixth-largest market, indicating a significant rise in user engagement compared to last year.

Regarding Lyft Media, David explained that the company is making strides and targeting specific run rates for this year. He highlighted the growing need for brands to connect with consumers, drawing parallels to historical advertising methods. The focus continues to be on first-party data, which is invaluable for creating customized marketing experiences for riders who spend an average of 17 minutes in rides.

With ongoing developments, Lyft remains in a foundational stage in its advertising efforts, stressing the importance of measurability in their campaigns. David expressed optimism around new ad units they introduced, like video ads in the Lyft app, which add further engagement opportunities.

John Blackledge, Analyst

John then inquired about performance in Canada and aspects of continued expansion. He also sought insights into Lyft Media’s revenue trends in Q3.

David Risher, Chief Executive Officer

David confirmed that both initiatives are progressing well, crediting positive developments in product-market fit and strategic execution. Lyft continues to harness historical data to support their innovations.

Operator

The operator invited the next question, with Mark Mahaney from Evercore ISI on the line.

David (substitute for Mark Mahaney)

This analyst sought to confirm how Lyft views autonomous vehicles (AVs) as a tool for market expansion, asking whether any use cases highlighted rider preference for AVs over traditional rides.

David Risher, Chief Executive Officer

In response, David acknowledged it’s still early to identify specific trends. Notably, Lyft has provided around 130,000 AV rides mostly in Las Vegas, which presents unique conditions. As they monitor competitive activity across various cities, they remain cautious in drawing conclusions about rider preferences.

David added that the novelty factor of AVs, particularly among tourists in San Francisco, might skew the data. Overall, he reiterated that they are continuing to refine their approach based on observed trends, even while the user experience remains curated for safety and reliability.

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Lyft’s CEO Discusses Future of Autonomous Vehicles and User Growth

New Partnerships Signal Future Developments for Lyft’s AV Strategy

In San Francisco, Lyft’s involvement with autonomous vehicles (AVs) is evolving as they explore various models and partnerships. Their collaboration with May Mobility, particularly with Toyota Siennas in Atlanta next year, is generating interest. As Lyft navigates this novel landscape, they are approaching operations carefully without rushing to conclusions.

Asset-Light Strategy Remains Central to Lyft’s Operations

Sitting down with analysts, Lyft CEO David Risher emphasized the company’s asset-light business model. While Lyft operates with 1.4 million independent drivers who own their own vehicles, they are looking into fleet maintenance but will not take on a heavy operational role. Risher mentioned their Flexdrive subsidiary for rideshare drivers without primary vehicles, which serves as a test ground for service agreements with maintenance experts.

Growth in User Base Presents New Challenges

Analyst Steven Choi raised concerns over user growth, noting that as Lyft’s active rider base expands, growth may slow. Risher acknowledged that increasing ride frequency among existing users is vital. Although Lyft boasts 800 million rides a year, this still pales in comparison to the 160 billion rides people take using their personal vehicles in the U.S. Risher sees significant room for growth and is determined to enhance user experience to encourage repeat business.

Conclusion: Looking Toward Future Engagements

Risher concluded by expressing excitement about Lyft’s future and upcoming engagements in major cities like LA and New York. As they look to strengthen their position in the AV market and improve user experience, they remain committed to connecting with their investor community and exploring what lies ahead.

Call participants:

• Aurelien Nolf – VP, Financial Planning and Analysis and Investor Relations
• David Risher – Chief Executive Officer
• Erin Brewer – Chief Financial Officer
• Doug Anmuth – Analyst
• Eric Sheridan – Analyst
• Brian Nowak – Analyst
• Ken Gawrelski – Analyst
• Benjamin Black – Analyst
• Shweta Khajuria – Analyst
• John Blackledge – Analyst
• Steven Choi – Analyst

This article is a transcript of the conference call produced for The Motley Fool. While we strive for accuracy, there may be errors. We recommend you do your research and consider listening to the call and reviewing the company’s SEC filings.

The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

The views expressed are those of the author and do not necessarily reflect the views of Nasdaq, Inc.