Lyft predicts that as passenger demand increases after the lock-up period ends, drivers will abandon the food delivery app and return to carpooling, claiming that the driver missed the “friendship and meaningful interaction” during the meal rather than the transporter.
The company’s latest earnings-unlike rival Uber, which does not have its own food delivery app-show that the company has been working hard to attract drivers.
Lyft president and co-founder John Zimmer said that since late February, the demand for drivers has exceeded that of existing drivers, and Uber has also encountered this problem. Announced a $250 million “stimulus” payment The driver of last month.
But he said that the expiration of federal unemployment benefits in the third quarter will also help solve the problem, and continued vaccinations will also enable them to return to normal lives.
Zimmer believes that as demand picks up, ride sharing is much better for workers than providing food.
“After a year of social distancing, the drivers told us that they were eager to talk face-to-face. They missed the friendship and meaningful interaction when using Lyft,” he said.
Lyft said consumers are willing to pay higher prices to offset the cost of additional incentives needed to get drivers back on the road.
In the first quarter of 2021, the number of passengers using the platform increased by 8% compared to the previous three months, although the number of passengers and revenue still fell by more than one-third from pre-pandemic levels.
According to data from FactSet, during the January-March period, Lyft reported revenue of US$609 million, a 36% decrease from the same period last year, but stronger than Wall Street’s estimate of US$558 million.
Lyft said that Lyft’s net loss for the quarter was worse than expected, at $427 million, compared to $320 million expected, even though the loss included a one-time payment of more than $300 million. It includes $180.7 million in stock compensation related to the 2019 IPO.
The company’s adjusted Ebitda loss was $73 million, which was a significant improvement from analysts’ previous estimate of $139 million, and it was the company’s lowest Ebitda loss since its listing.
The purpose of achieving the company’s Ebitda profit target for the second half of the year is to rebalance the supply of drivers to drivers.
The company said that the current mismatch means that the income of drivers returning in April has skyrocketed. In its top 25 markets, the average hourly wage after fees is $30 per hour.
In after-hours trading, Lyft’s stock price rose by more than 5%.