LYFT LOWDOWN [Friday, May 8th]

Do you realize it has been 1 year since Uber went public?

Seems crazy to me given all that has happened during that time

Here are UBER headlines for this first week of May 2020:

• “On Wednesday, Lyft reported losses of $398.1 million, and revenue of $955.7 million for Q1 2020. Citing Covid-19 impacts to its business, Lyft recently laid off about 17% of its workforce, and slashed pay for remaining employees by 10% to 30%. Heading into Q2, Lyft is facing a new lawsuit in the state of California, which alleged that the ride-hail company is misclassifying drivers as contractors, and should categorize them as employees instead…” [FULL ARTICLE]
• “Though Lyft is clearly being challenged by the pandemic, the company’s balance sheet should help it weather the storm, as it has $2.7 billion in cash and short-term investments and almost no debt. Even if rides remain down significantly, the company should not need to raise any cash for several quarters. Roberts also said that with the company’s new cost structure, it would be able to reach adjusted EBITDA with a ride volume that was 15%-20% lower than it had originally projected. Earlier the company had set a goal of reaching adjusted EBITDA profitability by the end of 2021, when annual revenue was expected to be around $6 billion. Based on that guidance, Lyft should be able to reach adjusted EBITDA profitability on revenue of around $5 billion. Last year, its revenue reached $3.6 billion…” [FULL ARTICLE]
• “Shares in Lyft rose over 18% in after-hours trading, but shares are still less than half the $72 price from their initial public offering last year. Shares of larger rival Uber Technologies Inc (UBER.N) were up 9%. The first-quarter results offer a first look at the impact of strict stay-at-home orders to combat the spread of the virus in many of the ride-hailing industry’s largest markets…” [FULL ARTICLE]
• “Lyft said it’s ramping up its efforts to keep drivers and passengers from spreading the novel coronavirus. The ride-hailing company said Thursday it’ll now require people using its service to wear face masks or other face coverings while on rides. The move comes as cities across the US prepare to ease shelter-in-places orders and more people will likely be out and about. On Monday, Lyft rival Uber began requiring the use of face coverings…” [FULL ARTICLE]
• “A glimpse at Lyft’s stock price Wednesday, which soared as much as 16.77% after first-quarter earnings were reported, suggested all was well in the ride-hailing company’s world. In this COVID 19-era, “well” is a relative term. Lyft’s net losses did dramatically improve from the year-ago quarter (a loss of $398 million versus $1.1 billion in Q1 2019). However, Lyft was clear in its earnings call: COVID-19 had a profound impact on its customers and its business and the future was uncertain…” [FULL ARTICLE]
• “Lyft lays off 143 employees. San Francisco ridesharing company operates local call center…” [FULL ARTICLE]
• “Republicans who long hated AB 5, the law limiting when employers can classify workers as independent contractors, have argued for the last two months that the law should be put on hold during the coronavirus pandemic. San Diego City Attorney Mara Elliott, along with California Attorney General Xavier Becerra and the city attorneys of San Francisco and Los Angeles, this week hit back. They’re not just enforcing the law; they’re using it to go after two of the biggest fish in the gig worker sea: Uber and Lyft. They now officially claim the drivers for those two companies should be employees with guarantees like minimum wage and sick leave…” [FULL ARTICLE]
• “Ultimately, though, the companies are poised to bounce back from the pandemic stronger than they were before. Uber and Lyft have both suffered losses as people avoid rideshare services and public transportation. Uber on Thursday reported a $2.94 billion loss in its first quarter, and Lyft reported a $398.1 million loss, but both companies had a year-over-year increase in revenue…” [FULL ARTICLE]