Why Lyft’s CEO says ‘it would be insane’ not to go all in on bikeshare
Lyft retains and restructures its micromobility business, focusing on docked systems, incurring costs with $20M expected benefits.
In the summer of 2023, Lyft considered selling its micromobility business but ultimately chose to retain and enhance its docked bike and scooter operations. CEO David Risher highlighted a 65% year-over-year increase in e-bike rides, reasoning that it would be 'insane' not to continue managing the business themselves to maintain excellence throughout their operations. This decision involves significant investments in operational improvements and the development of solar-powered docking stations capable of charging both bikes and scooters.
To facilitate this shift, Lyft is restructuring its team and finances, which includes laying off about 1% of its tech workforce and reallocating resources from R&D to sales, operations, and deployment. The company expects to incur between $34 million and $46 million in restructuring and related charges, mostly attributed to asset disposal costs. Despite these expenses, Lyft estimates that the ongoing benefits from this restructuring will amount to $20 million annually, contributing positively to the overall business.
Lyft is also streamlining its micromobility operations by integrating PBSC's bikeshare services with its own bike and scooter-share programs under the new name Lyft Urban Solutions, led by Michael Brous. Additionally, Lyft aims to standardize hardware and software platforms across cities while focusing on docked systems to foster better urban organization and long-term city partnerships. Although discontinuing its dockless services in Washington D.C. and Denver, Lyft will maintain its presence in the dockless market through partnerships with Spin and Bird.