Under its new CEO, Lyft intends to discontinue shared rides and concentrate on operations.

Image Credit: 1000 logos As one of the company's methods for appointing a new CEO, Lyft may decide to discontinue its shared ride services. Instead, the company will concentrate on strategies to increase profitability in its primary ride-hailing business.

Removing the shared ride option

Lyft is thinking about discontinuing its shared rides service when it transitions to new leadership in the middle of April so it can concentrate on its business operations. David Risher said in an interview with TechCrunch that after he assumes the position next month, further functions might possibly be dropped. This includes functions like the Wait & See feature, which enables customers to pay less while they wait for their driver for an extended period of time in specified locations. It's feasible that we won't need both of them going forward and that we can concentrate all of our energies on doing fewer things better, he said. As he stated, it is time for the organization to let go, therefore removing the shared rides option could be a better choice. In reaction to its rival's Uber Pool, which was also introduced that same year, this option was first introduced in 2014 on a limited basis before being expanded to the entire service. Uber and Lyft shut down their carpooling services when both companies were impacted by the lockdowns before relaunching updated versions later. Because it charges lower fees than single ride hailing services, this has been a money pit for both businesses. Although nothing has been finalized as of yet, this potential move by the company shows how the new management of the company wants to stop its losses and wrest back some market share from its primary rival and now sibling company Uber. In the last few years, Uber has already surpassed Lyft in many markets, including food delivery and even transportation. As of today, Uber has a market share of roughly 76%, up from 62% at the beginning of 2020. Whereas Lyft only receives 26%. Image Credit : KnowTechie Returning to the Fundamentals According to Global Village Space, Lyft is returning to its core competencies rather than expanding its product or service offerings to include delivery or even selling the business. According to Risher, the company's major objective is to concentrate on ridesharing's fundamentals. This duopoly, he continued, "keeps us honest and lets us to play off one another a little bit. In so many other markets, you want some choice, and I think as a driver, you want variety. You can't be losing share to the other guy if you want to be there long term." Read More: Why Uber Customers Annoyed With Push Notification Ads? After serving as president and CEO of Lyft for 11 years, Logan Green and John Zimmer will step down in April, and Risher will take over. The executive shuffle includes this choice. Both of the executives will continue to serve as the board's vice chair and chair respectively.