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Lyft may end shared rides as part of new CEO’s focus on profitability

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Lyft may end shared rides as part of new CEO’s focus on profitability-GadgetAny

source: American Institute for Economic Research

Ride-hailing company Lyft may stop offering shared rides as part of its efforts to focus on its core business under its new CEO, according to a report by The Information. The report cites anonymous sources familiar with the matter who said that new CEO Meg Whitman, who took over from co-founder Logan Green in February, wants to focus on the company’s core ride-hailing business and profitability. This could lead to a reduction in the company’s offerings, including shared rides.

Lyft launched its shared ride option, called Lyft Line, in 2014, which allows users heading in the same direction to share a ride and split the cost. The service was later expanded to offer shared rides for commuters and on-demand shuttles. However, The Information report suggests that Lyft may now prioritize its standard ride-hailing services and focus on profitability, rather than continuing to invest in shared rides and other services that have yet to prove profitable.

source: FreightWaves

The report also notes that Lyft’s efforts to expand into other areas, such as bike-share and autonomous vehicles, have not yet yielded significant results. The company has faced challenges with its bike-share operations, with some cities terminating their contracts due to low ridership, and its autonomous vehicle program has yet to launch commercial services. As a result, Whitman is reportedly looking to focus on Lyft’s core ride-hailing business and improve its profitability.

Lyft has not officially confirmed any plans to drop shared rides, but the company has previously indicated that it is focused on improving its financial performance. In a letter to shareholders in February, Whitman and Green said that they were “laser-focused” on achieving profitability and that they would “eliminate or curtail initiatives that are not contributing meaningfully to the bottom line.”

Monica Green

By Monica Green

I am specialised in latest tech and tech discoveries.

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