Lyft says it will spend more to attract more drivers
Lyft Inc will spend more to increase the supply of drivers, signaling higher costs of getting cars back on the road, and declined on Tuesday to predict when the ride hailing company would hit pre-pandemic levels of business, sending its shares plummeting.
The number of drivers, many of whom left as demand dwindled during the pandemic, remained below pre-pandemic levels and a full recovery of driver supply was taking longer than Lyft had hoped, President John Zimmer said in an interview with Reuters.Lyft forecast second-quarter revenue of $950-million to $1-billion, shy of the average analyst estimate of $1.02-billion, according to IBES data from Refinitiv.
Drivers have also been burdened with surging fuel costs brought on by Russia’s invasion of Ukraine, prompting some to stop driving or drive less.Lyft reported first-quarter revenue of $875.6-million, beating average analysts’ expectations for $846 million, according to Refinitiv data. “We’ll keep an eye on it, but we’re very confident in our ability to balance supply and demand,” Zimmer said.
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