Lyft Says Demand Picking Up as Covid-19 Restrictions Ease
June 02 2020 - 8:51PM
Dow Jones News
By Micah Maidenberg
Lyft Inc. said demand for rides has risen in recent weeks as
people began venturing out following Covid-19 lockdowns but remains
well below levels seen a year earlier.
Lyft said Tuesday the number of rides ordered through its
platform last month was 70% weaker compared with May of last year.
Demand rose 26% last month compared with April, however, driven in
part by gains in cities including Austin, Texas; Nashville, Tenn.;
and New York.
Rideshare trips increased week-over-week for seven consecutive
weeks since the week that ended April 12, the company said.
Shares of Lyft rose 4.2% in after-hours trading Tuesday. The
stock ended the regular session at $31.68.
The coronavirus pandemic has hit Lyft and its main rival, Uber
Technologies Inc., hard. Shelter-in-place orders earlier this year
decimated both companies' businesses, sending ridership plunging
and complicating their efforts to generate profits.
In April, Lyft said it would reduce about 17% of its workforce,
furlough employees and lower pay. Uber said in early May that it
would eliminate 3,700 positions. About two weeks later, it said it
would lay off some 3,000 people and close more than three dozen
offices.
Since mid-March, when the U.S. economy began to shut down as the
coronavirus spread, Lyft said riders have ordered more rides during
weekdays compared with weekends, including from employees commuting
to still-open job sites and consumers visiting stores deemed
essential to pick up goods.
In a regulatory filing Tuesday, the company reported stronger
demand during recent weekends as officials eased restrictions on
activities in different parts of the country.
"Rideshare rides during the weekend ended May 31st increased 36%
versus the weekend ended April 26th and 53% versus the weekend
ended April 12th, " Lyft said. Bike rides ordered through the Lyft
platform more than doubled in May compared with April, the company
said.
The company said that for its second quarter it expects to
report a loss, on the basis of adjusted earnings before interest,
taxes, depreciation and amortization, of not more than $325
million, assuming volumes this month are unchanged compared with
May. Previously the company anticipated losing no more than $360
million for the quarter.
Write to Micah Maidenberg at micah.maidenberg@wsj.com
(END) Dow Jones Newswires
June 02, 2020 20:36 ET (00:36 GMT)
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