Lyft to sell bike, scooter assets in latest effort to cut costs
8:33 am Wednesday, September 04th, 2024
(Reuters) -Lyft will sell some assets related to its bike and scooter rental operations and cut jobs, the ride-sharing service provider said on Wednesday, as part of a restructuring plan to rein in costs.
The company, which offers the popular Citibike service in New York City and runs similar operations in other U.S. cities, had in July 2023 said it was exploring options for the unit after having received “strong inbound interest”.
Lyft did not provide details on the operations it would retain, but disclosed about $34 million to $46 million in charges, largely related to asset disposal costs.
The company will lay off about 1% of its nearly 3,000 employees at the end of last year, as part of the plan.
Cost savings from the restructuring, improved operations, and better sales strategies will help boost adjusted operating income by about $20 million on an annual basis by the end of next year, the company said.
Lyft last month forecast a weak September quarter, raising concerns about the company’s ability to cope with intense competition from Uber Technologies.
CEO David Risher has slashed jobs, as well as rolled out enhanced driver earnings and new programs to drum up ride share demand since he joined Lyft early last year.
(Reporting by Akash Sriram in Bengaluru; Editing by Krishna Chandra Eluri and Sriraj Kalluvila)
