Signage at a Lyft Inc. drivers’ lounge in Oakland, Calif. (David Paul Morris/Bloomberg Information)
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Lyft Inc. tapped David Risher to be its new CEO, changing co-founder Logan Inexperienced because the ride-hailing firm struggles to compete with larger rival Uber Applied sciences Inc.
Inexperienced, together with co-founder and present President John Zimmer, will step again from each day operations however stay on the board, the corporate stated in a press release.
Risher, who has been a board member of Lyft since 2021, has held earlier roles as head of product at Amazon.com Inc. and as a common supervisor at Microsoft Corp. earlier than launching his personal startup. He’ll step into the CEO place efficient April 17.
“All founders finally discover the appropriate second to step again and the appropriate leaders to take their firm ahead,” Inexperienced stated within the assertion. “David has the appropriate vitality, ambition and expertise to guide Lyft into the longer term.”
San Francisco-based Lyft has more and more been marginalized by Uber, which accounted for 74% of the U.S. shopper ride-share gross sales on the finish of December, whereas Lyft had 26%, in accordance with Bloomberg Second Measure. Uber has benefited from increasing its ride-hailing service into meals and beverage supply, which helped it thrive in the course of the pandemic when demand for shared rides plummeted. It additionally lured drivers with incentives and bonuses throughout a extreme scarcity of staff because the financial system reopened in 2021.
Lyft has remained unprofitable because it grew to become a publicly traded firm in 2019, however has made effort to chop prices, shedding greater than 700 workers final yr. Final month Lyft forecasted dramatically decrease earnings within the present quarter, sending its shares plunging. Lyft’s earnings stood in stark distinction to rival Uber Applied sciences Inc., which noticed journey bookings soar by 31% within the fourth quarter.
“The choice suggests to us that Lyft is in a troublesome aggressive place, given operational challenges vs. bigger rival Uber,” wrote Bloomberg Intelligence analyst Mandeep Singh. “Amid a danger of money burn and market-share loss, we expect Lyft might discover strategic choices, together with a sale.”
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