Lyft maintains end-2021 profitability goal even as COVID-19 guts demand

(Reuters) - Lyft Inc said on Wednesday cost cuts put the company on track to reach its goal of becoming profitable on an adjusted basis by the end of 2021, even as its second-quarter revenue tumbled 61%. Quarterly revenue fell to $339.3 million (260.13 million pounds), as the coronavirus pandemic crushed demand for ride-hailing services in North America. Lyft said the number of active drivers dropped by 60% to 8.69 million in the three months ended June, from a year earlier

Reuters August 13, 2020 02:05:46 IST
Lyft maintains end-2021 profitability goal even as COVID-19 guts demand

Lyft maintains end2021 profitability goal even as COVID19 guts demand

(Reuters) - Lyft Inc said on Wednesday cost cuts put the company on track to reach its goal of becoming profitable on an adjusted basis by the end of 2021, even as its second-quarter revenue tumbled 61%.

Quarterly revenue fell to $339.3 million (260.13 million pounds), as the coronavirus pandemic crushed demand for ride-hailing services in North America.

Lyft said the number of active drivers dropped by 60% to 8.69 million in the three months ended June, from a year earlier.

Overall, the company recorded a $437.1 million net loss in the quarter, while adjusted EBITDA loss of $280.3 million was smaller than its previous projection of a loss of $325 million.

Lyft in April announced pay cuts and laid off nearly 1,000 employees, or 17% of its workforce, in an effort to reduce costs.

Unlike larger rival Uber Technologies Inc , which operates in 69 countries, Lyft only offers rides in the United States and Canada.

That region is the biggest market for both companies, but it also remains among the worst-hit by the health crisis, with business and travel at a standstill across United States.

(Reporting by Tina Bellon in New York and Munsif Vengattil in Bengaluru; Additional Reporting by Akanksha Rana; Editing by Sriraj Kalluvila)

This story has not been edited by Firstpost staff and is generated by auto-feed.

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