Lyft Inc posted a loss of US$437.1 million during the second quarter, when the COVID-19 outbreak led many people to stay home and few were eager to use its ride-hailing service.
The San Francisco-based company’s revenue slumped to US$339.3 million in the April-to-June period, down 61 percent from the same period last year, the company said on Wednesday.
Its number of active riders declined 60 percent during the quarter, as people shied away from traveling in shared vehicles.
“The facts of COVID-19 have been severe for our society and economy, as well as our own business,” cofounder and CEO Logan Green told a conference call with investors. “While the recovery in our ride-sharing business has not been a straight line, we’re seeing encouraging progress.”
Riders are increasingly using Lyft for essential trips such as doctor appointments and grocery runs, and as cities are forced to cut budgets and public transit use declines, Green said.
Rides were up 78 percent last month from April, he added.
Business gradually improved, but rides were down 70 percent in May, 61 percent in June and 54 percent last month, compared with last year.
Taking steps to stem the bleeding, Lyft in April announced that it would lay off 982 people, or 17 percent of its workforce.
That month, rides were down 75 percent from last year.
Lyft also furloughed 300 employees, and reduced salaries and board-member compensation.
Lyft and rival Uber are also confronting a judicial order that they classify their drivers as employees in California, which would leave the companies on the hook to provide benefits, overtime pay and sick leave for drivers.
Both companies have vowed to appeal the decision.
“If our efforts here are not successful, it would force us to suspend our operations in California,” Lyft cofounder and president John Zimmer said, adding that California makes up 16 percent of Lyft’s total rides.
Lyft still expects to achieve profitability at the end of next year, but the company’s projections assume that it would prevail against the order to classify its drivers as employees.
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