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In the summer of 2023 , Lyft wascontemplating the saleof its micromobility business sector after receiving strong interest from prospective buyers . Today , the drive - hail troupe is doubling down on its docked ice yacht and bikeshare operations , positioning itself as the ideal partner for cities count to enhance their urban transportation networks .
Since acquiring shared bike and station providerPBSC Urban Solutionstwo years ago , Lyft has gift in building and deploying respectable quality eastward - bikes and dock vitamin E - scooter , as well as anew eccentric of docking stationthat is solar - powered , modular and able to charge both bikes and scoter .
As CEO David Risher review Lyft ’s micromobility asset , he asked himself : “ Do we sell the whole matter , or do we lock it ? ”
“ east - bike in particular are growing so fast globally . It would be insane not to take it on ourselves , ” Risher told TechCrunch , noting Lyft ’s due east - bike rides increase 65 % year - over - twelvemonth through August to make up half of total ride . “ So we said , let ’s do this ourselves and bring it to the real standard of excellency that we have for our whole business . ”
Lyft is proceed its micromobility business organisation , but it ’s do at a cost . The company is restructure its squad and finance and laying off about 1 % of its workforce on the tech side as the company fault resources from R&D to sale , surgical process and deployment , according to a Lyft representative and a regulative filing .
The company disclosed Wednesday aurora it will incur about$34 million to $ 46 millionof restructuring and related charges , of which $ 32 million to $ 42 million are tie in to plus disposal cost . The remaining cost will be refer to employee break and benefit price , and consultative fee , according to a regulative filing .
Lyft will streamline and integrate the two sides of its micromobility business — PBSC , which sells bikeshare - as - a - service to local operators and cities in 49 marketplace globally , and the eight Lyft - owned and operated bike and scooter ploughshare programs , like Citi Bike in New York City and Divvy in Chicago . The combined division will be renamed Lyft Urban Solutions , and Michael Brous , Lyft ’s former head of operations , will head it up .
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“ We estimate that the ongoing welfare to the business of this restructuring is going to be on the order of $ 20 million a year , and it will be a last contributor to the job , ” Risher said .
It ’s still a minor luck of the clientele , which in thesecond quartersaw revenue of $ 1.4 billion . But any amount aid to stick around in the unripened — Lyft register an operating loss of $ 27 million in the quarter , much narrow than the year - ago operating expiration of $ 159 million , and actually clear $ 5 million in net income versus a net loss of $ 114 million in the twelvemonth - agone quarter .
Lyft ’s goal is to slowly update the ironware and package political platform in each metropolis to eventually get to the point of standardization . And Lyft wants to do it in a way that focuses on a place - base , control grid - get in touch approach . That means ward off dockless scooter and bikes .
“ We ’re really focused on the docked version because it candidly help metropolis devise themselves estimable , ” Risher said . “ There was a time where it was a free - for - all , allow ’s just put a bunch of junk on the street , but we thought we should do it in a way that works for riders but also influence for cities . ”
Docked bike and ice yacht - share also has the added welfare of giving companies like Lyft access to longer - term city partnerships , as stations finish up becoming part of a city ’s infrastructure .
Lyft ’s dockless footmark is already small — the company run scooter in Washington , D.C. , alongside its Capital Bikeshare serving , as well as bikes and scooters in Denver . Lyft say in a blog spot Wednesday that it would discontinue both of those services and explore other choice with Denver .
But , so as not to miss out on the dockless scooter frenzy , Lyft will proceed topartner with Spinand , as of latterly , Bird ( which owns Spin ) so riders can book directly through the Lyft app .
Lyft does not break out its micromobility business in quarterly or annual earnings account , and the company would not portion out what pct of its full revenue comes from shared micromobility . That said , the total turn of ride Lyft immortalize across micromobility and drive - hail hit 709 million in 2023 , and about 56.7 million of those , or around 8 % , were bike and scooter - share rides .
Update : This report was updated to include Wednesday ’s SEC filing and admit more information on the cost of the restructuring .
