Recently, Lyft has been making big changes to its micromobility division, which includes bikes and scooters, and will reduce its workforce by about 1%. These changes were detailed in a recent announcement to the Securities and Exchange Commission.
The company, which previously considered selling this part of its business, now sees bikes and scooters as essential to its mission. Lyft CEO David Risher explained in a blog post that these services strengthen the company. As a result, Lyft will focus more on integrated transportation solutions under a new name, Lyft Urban Solutions, to better reflect its goals.
Lyft operates Citibike in New York and similar systems in over 50 markets worldwide, including cities like London, Madrid, Toronto, and Dubai. The company expects that by streamlining its operations, it will save about $20 million a year by the end of 2025.
David Risher became CEO last year and has since significantly reduced costs, including job cuts, to compete better with rivals like Uber. His efforts are showing results: Lyft recently reported unexpectedly high revenue and its first-ever net profit for the second quarter of 2024.
