Lyft is a world-known online car services app, in which you can request a ride whenever and wherever you need to go. Your request through the phone will notify the closes driver around your location and they will be on their way to you. Regarding the price, the cost of the ride will depend on your destination, how far it is, and how long it will take your driver to arrive at that location. Overall, Lyft is a really easy, accessible, and convenient app on your phone. With approximately 4,419 employees as of December 2022. Although as of recently Lyft has abruptly decided to lay off more than a thousand workers.
The Reasons Behind the Current Lay Offs
One of the main reasons why Lift has decided to reduce jobs in their workforce is because as stated by the company’s recent new CEO David Risher “his focus is on creating a great and affordable experience for drivers and improving drivers’ earning.” David Risher is an Amazon veteran who recently in April took over the Lyft company as CEO. He replaced the cofounders, Logan Green and John Zimmer, who step down from their management position at the ride-hailing company.
David Risher was the 37th employee of Amazon and now as the CEO faces the struggles of keeping Lyft aboard. Risher mentioned the fresh elimination of 1,200 positions or upward of 30% of its staff. Meaning thousands of employees were getting fired In hopes of creating and structuring the company so that the leaders could be closer to the drivers and the riders. Regardless of this decision being a harsh one to make, David also mentioned that “the results will be a far stronger, more competitive Lyft.” David also has claimed that unlike Uber they are facing more immense challenges and struggles.
Uber vs Lyft Issue
Uber, managed to expand their business beyond just ride-hailing, they were also able to deliver meals and groceries. A change Lyft itself never participated in and for this reason, the company was really hurt earlier in the pandemic when customers were mainly ordering meals and groceries online rather than requesting rides. Uber’s decision to spread to meal delivery strengthened the company.
They stated in an interview that this decision created its “strong quarter.” With an increase in revenue of 49% year-over-year. Overall, showing success after success. On the other hand, Lyft has not had the same luck in fact the company’s earliest earnings show just how disappointing and low the company has fallen from then. With a 6% increase in midday trading Friday, but even with that, the company’s stock is still down roughly 70% over the past years. With no signs of increase, this played a huge factor behind the reason the company has decided to fire so many employees.
Firing Employees
More findings have shown that this is not the first time Lyft has had such a sudden layoff spree of employees. In fact, last November the company laid off about 683 employees, or in other words 13% of its then workforce. This was to reduce the amount of money being spent. Furthermore, they wanted to be able to keep up with their biggest competition Uber in this tough economic era. Since 2020 the number of employees in the company has only gone down. They went from 4,578 employees that year, to 4,453 employees in 2021 and 4,419 employees as of December 2022 as previously mentioned. These numbers are without mentioning the new way of layoff happening this year in 2023 which will only bring the number of layoffs even more down. Meaning more people will be losing their jobs.
Fear Amongst Employees
Numerous employees fear being fired next and being left without a job. Lyft went from being at its peak in 2019 to being at its lowest now in 2023 and the past years. Due to the decrease in the economy, after the pandemic, many people started losing their jobs and now. Workers are being forced to experience the cruel reality of being fired and being left without a job.
By: Nohemi Sanchez
Sources:
The Washington Post: More lay offs pile up, shaking labor market that has provided resilient
CNN Business: Lyft plans to ‘significantly reduce’ workforce, CEO says
NPR: Lyft if the latest tech company to cut jobs
Inset Image courtesy of Elvert Barnes Flickr Page – Creative Common License
Featured Image courtesy of Alpha Photo Flickr Page – Creative Common License
