Earnings call transcript Q1 2023

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Operator

Good afternoon, and welcome to the Lyft First Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode to prevent any background noise. Later, we will conduct a question-and-answer session and instructions will be given at that time. [Operator instructions] As a reminder, this conference call is being recorded.

I would now like to turn the conference over to Sonya Banerjee, Head of Investor Relations.

begin. may You

Sonya Banerjee

to quarter Welcome earnings for call Thank XXXX. the first of the you. Lyft

On we and call Elaine Green. the today Paul; our David and CFO, Risher; our Co-Founder Board Logan have Chair, our CEO,

addition, Kristin our for and the In Vice session. are Business Sverchek, Zimmer; President President our and John Chair; Affairs Q&A of here Co-Founder,

uncertainties and implied will in and our that deck those to and performance, strategy filings. make our to business subject results actual forward-looking SEC We cause call. are slide projected recent are financial could statements factors guidance. results to relating risks from described statements on risks earnings and and during today’s call materially These These future our differ this or

call of any law. beliefs on All forward-looking are required except statements based today to update disclaim that as any forward-looking obligation statements, by as today's our we and on make

GAAP our be Our substitute Reconciliations are of discussion measures, material, earnings our not are available historical will non-GAAP non-GAAP which include on for IR results. GAAP in which our to website. results a financial our found may

will that, pass call to I with And Logan. the

Logan Green

his CEO. from change effective transitioning on was pass few I'm things John as now Lyft's Sonya. developments I'm also and excited afternoon, baton leadership you a for Good this on us. the summer. be to team off kick That is to to address going second our Thanks, April today’s The to by talking David call. is thank President transition. Risher, ever who going will early joining XX. everyone big about role

him are to great challenges. opportunities the spirit our David's for next leader chapter. for mindset what Lyft obsession, and proven the experience view Lyft energy, lead on and going the purpose us a Lyft. and competitive driven exactly needs. give a He customer right to ambition of brings ahead and of strong experience His incredible clear appreciation an be to the Board, is incredible David he's

this I transition, be call John earnings and the With that will join. last the

as for as Lyft's I'm David which the We're Lyft's look as Lyft day company to continuing now on supporting of serve the the and to until Chair forward time Board to serve day the of be at continue Board. will to basis, end he to will leading members Vice serve Chair. continue President on excited of of to John journey. leg the company and to the its June, next

build work, the and Finally, in to grateful are Lyft to I are support. this is company our Lyft life's say to John your I want to thank have hands. incredibly confident you community. with the great it's opportunity investor we had and

I'm over going David. turn to to call the Now

David Risher

a you establishing Lyft Logan. industry, Thanks, of millions impact lives had a for grateful an of iconic John I'm profound and so defining pioneering has dollars. an building drivers the That brand. on riders, of new billions and and earned company extraordinary legacy. to a have is

Amazon, do to competitive to learned at builder if an a you To has At we I what I more learned with power driven today's at that That's And I everyone focus. I'm on met, bring I -- joined yet haven't Microsoft, of results and scale heart. focused. leader, call, company Worldreader, you At should and customer insanely extremely who haven't how us the the know less. be help Lyft. I'm

needs. about riders together. and perspective. and very durable out so my their get two addresses We they lives can live here's So Lyft basic

control that a money gives time. social away drivers over them to are work species. provide And We their and we

Lyft and work going riders -- have And play delivering profitable to is out durable one prioritizing drivers. These a will renewed But and great focus of for point. approach are never driver experience. This they're back play. business. getting large, to away. driving long-term. the business and us strong a told Near-term, help broke. execution As basics will are the be inflection what aren't with on And we profitable Lyft go a basis today me growing over means pure the I will at needs an rideshare we People build go

what doing here's can here's and what So you we've expect been next.

other to the a we've choose to last and to First, remember, key basis. with smaller over of our have go nearly a reason riders year both bookings X been which direction. don't the pricing. ride rideshare been category strengthened XX in This pricing of really the Lyft and The this time riders acceleration we competitively, Uber. an in rideshare have We what In our position important every is first want. rides millions expect primetime give percentage weeks, results and want years, year-on-year growth them way, is for on over and

fast to prices we've didn't Second, We these costs we million pickup it times. announced critical organization. in $XXX to services review in effect. fund costs make greater Elaine these week annual when consistently and to to And good about able expect deliver the Collectively, changes improvements, last full will but impact financial and being detail. to we restructured our savings offer those is cut the and in lightly, headcount of decisions cut

and to making. organization importantly, enabling for eight have more layers flattening Even halved we and management five, restructured the nearly from of teams, decision faster the number

me with we gives so leads, rideshare structure our layers, new direct removing faster. Our innovate can contact

Lyft levels. awareness improved open that and for people Third, we our too app need long. to see so been too service more is and our drive great quiet pricing We've a choice, that

gotten point collaboration we TikTok influencer, we remind folks Uber. So to you'll to us. who ways I are hope with low it's see and our it's it's Rowe, to us use a get consider launched just us funny, see visibility differences cost, chance you've and yesterday high and designed Delaney people smart, between out real to of

yet finally, share of majority projects rideshare you, I can't drivers spending I our want margin. time both my market again. top but and with tell healthy I'm strong growth on to time grow a to as plans, long-term line and it's the And player. a Lyft Riders can competitive

weeks my day first of I fact, grow the innovate believe the CEO to of and am In North first as the excited this X opportunity ago. was super I rideshare. American very topic what untapped about significant is I had meeting

to this, for new we am those acceptable. let by of current and know very to me aware targets job, updated that not -- finish levels in also until I I saying are waiting I'm I our So targets. can them. on provide of long-term investors growth are profitability deliver the sure want wait I'm long-term

recap. the here's So

game the plan. Here's

on of what demand and are basics and riders we time our pricing when increasing, We're drivers in want all increases and First, at volumes. a is focusing on demand, ride competitive about particular execution. the that

informed That's I Lyft riders, profitable progress. on learned off way. drivers our to we retail I the building me, innovation are and we the We've removed Second, sector. our love. riders -- growing bring have drivers. business, focus business And in and I look large, building from long-term business And to a strong a committed of structurally is a by executing we to objectives focusing Amazon's disciplined time costs from third, on my a to you that durable, on real business am start. and increase into my our excuse what to the and keeping very organize clear and over shareholders forward execution and velocity we're great

you. it Elaine, I'll to turn over

Elaine Paul

lot about to a start, I He's Lyft say vision David. Thanks, Logan and pioneer David. I'm of big welcome and to thank team John To for I'm the to and the a energized bringing already this for vision to industry. the forward. excited want you and having building to path also energy

I which our all our release. statement are to detailed exclude in remind Before earnings I otherwise measures unless items financial income non-GAAP that are review select and want results. everyone indicated,

to Turning QX.

produced Our results. focus competitively solid on pricing early

year-over-year partial to X this for a accelerated ride growth in ride rate Our focus. expect nearly accelerate QX, And quarter quarter with with operating in further. was time in years. renewed we first rideshare of a full impact rideshare QX growth the QX

results was were better represents QX. $XX had guidance. XX% $X than from XX% active Our better our by in X% million roughly up QX than strength. year-over-year an $XX.X acceleration guidance year-over-year, up QX QX, in driven billion, year-over-year, and revenue financial growth riders was million rideshare We which

was Contribution was changes. $XX.XX XX% QX, growth year-over-year in in X% in decelerating up our versus million 'XX. by rider a QX year-over-year down active pricing The driven $XXX growth X% per rate Revenue QX, was primarily year-over-year.

last was points lower The per As XX in units a percentage line primarily as decrease of is revenue, due as XXXX. XX% year with contribution well of insurance to costs down margin versus from and economic. guidance QX higher ride percentage

were $XXX X% down expenses million in QX, year-over-year. Operating

QX 'XX. and the guidance of result cutting adjusted XX% X million, cost million. to $XX points percentage were was As $XX revenue QX expenses our high-end date, from of a operating improvement of EBITDA of of exceeding of efforts

cash Our cash, Unrestricted was and level flat margin ended X%. balance. cash of QX billion, the strong We end XXXX. were equivalents at adjusted with short-term $X.X EBITDA in the investments with QX a

of our of Next, approximately cost cost I'm million operating $XXX savings This million up to costs of and to and expect approximately the $XXX When we related to going headcount effect, impact savings. initiatives. in address in million our saving operating made financial are latest is $XXX full reduction. headcount annual generate

respectively. of realize QX, roughly to each expect million QX, in and $XX and million, savings million $XX of We $XX QX,

improvements. savings expect explained, David for we to As these to in the pay service use continued our near-term,

not flow to adjusted operating will costs the long-term us Over materially lower profitability. well savings EBITDA. the will improved for So time, position

of stock-based stock-based further XXXX. $XXX and in our from also the XXXX impact and when down million comp $XXX we expense. in compensation XXXX, the combined $XXX costs will down in our changed million approximately our staff reductions, be with are roughly plans expect We million compensation bringing We've

charge will of which in adjusted a $XX Our result from we to in reduction million are in QX, excluding $XX one-time EBITDA. million force approximately

market. a this will our outlook, competitive some accelerate be prices growth adjusting share of partial our I to ride to provide me a QX full with continued with expect quarter focus, further. quarter rideshare the was Before QX be QX framing. we our and let

actively our in cost impact per in ride economics this quarter, are savings unit lower will offsetting the the While initiatives. result we with

As our and QX. EBITDA we expect flat with roughly margin adjusted will adjusted EBITDA a QX result, be

share With me that, our let QX guidance.

will in of X% approximately per lower the This rideshare ride margin assumes accelerates ride expect between economics. year-over-year. reflecting be year-over-year full We XX%, billion to least anticipate XX% up and unit is billion, quarter growth X% at to We contribution of impact which revenues $X QX. $X.XX

of XX%, as which million includes $XX We and revenue expect between will operating savings. related roughly of restructuring be XX% expenses a percentage

with EBITDA adjusted the be $XX expect roughly midpoint, would adjusted of million to margin both we million, $XX flat Finally, X% an and EBITDA to of QX. X%. between At

the up open Before thoughts. closing three me to share call I Q&A, let

focus a the renewed This is basics our what expect. of have drivers growth. we ride and First, on riders accelerating

moved decisively costs and for cut to We've continued way. Second, pay we're disciplined to our level executing the savings near-term. in improvements a service we'll use operating the in

higher achieve with over improve, and can economics our higher we ride leverage. operating Third, time, greater mix volume, margin we in and opportunities, can as

As an mentioned, long-term expect coming financial months. David the in we update on provide our to targets

Operator, we're ready for questions.

Operator

Anmuth question Doug first of from is with line Your JPMorgan. Instructions] [Operator the

open. Your line is

Doug Anmuth

so that those being going you big David, the parity. talk for Thanks questions. providing and David of can really one competitively, with market provide line market in with you And competitively more in talked and can is pricing and more when and kind about about how the then focus much you pricing areas talk for think But for of great Lyft you One service forward. over about differentiate just the also time. Elaine. taking pricing both

of how expect pricing it you around And out does that per across margin, forward then Thanks. and that both contribution that have going levels talked the revenue on low play and can lower about reflecting XQ? for insurance Elaine level we XXs ride,

David Risher

it's David. Hey, Doug, the question. Thanks for

on great focus said, stakes. the now getting with on the on you service basics. and competition on it's the where just is. So real levels and really it's a And issue. is table pricing is differentiation, market execution as our in where line Right And it's

we've think quiet to to start start you zoom people a you out, on have tell in who you our And case, when are. been to I little that. then Now,

just So even reminding differentiation, people who of I is before think important. are really significant we

the similarly But we this Now little long-term all again, TikTok that seen we gives sort in than indication you think I differentiate drivers you've the models. a there's get of more different know many medium do of to can ad, an I short-term. ways have bit differentiation, but of so And one don't and all where category treated and has we different. rides, if way

Ubers. both versus that got and of drivers talk And that like example. as products future. we've Wait & differentiated maybe a later Save the can And around lot on taken we've the be are how approaches really of shared ideas for that'll we we ride an in against about and create the our riders services But some conversation can

part me over it for question. to Elaine Let of turn the second the

Elaine Paul

Thanks things in respect question your With Doug. pricing. question. margin driving terms versus insurance the on and Hi, versus what's revenue per lower to for contribution ride of

So year-on-year, guide, revenue and is in the operating with the to pricing QX, in and by QX rates competitively. we to and deterioration the year-on-year, that impacting our QX contribution as our margin driven is margin QX increase insurance by driven experienced QX pricing. From contribution lower entirely per ride that's

per To prices less be generating lower with ride. revenue on specific, we're average,

contribution per have margin. ride economics Our thus cost which subsequent driving in And the is our are QX. unit change materially compressing, per not changed to

on at this But call, be a we'll future as to Thanks long-term providing Doug. guidance long-term for of alluded are time year. point. In question, we the terms we guidance not this at giving the go-forward margin,

Doug Anmuth

Great. Thank you both.

David Risher

Sure.

Operator

is question with the Suisse. line Stephen of next Credit from Ju Your

Your line is open.

Stephen Ju

so you Thank Okay. much.

Elaine, XXXX So, the you inflection much in we we the we decelerating, and bit starting think pretty have been guess, your on peak gap in and unit are And imply linearly David, regards I guess service an if to accelerating this is closing secondarily, commentary have been the I could about Does talking see, that to a growth. in early little since Uber. I versus guys what point. dig

brand? affinity your are back you are you the you. consumers Lyft that that, have coming the as given Thank are go that away rewind So Or business? you and with you finding to doing finding are back straight

David Risher

it. question. Yes, for Thanks Stephen. good

point. on your -- inflection So, the I characterization as we're first, yes, absolutely like an of it

We've exactly this I about seeing. really sort what been XX focused on for think that's weeks. execution of we're strategy

XX% enjoying mid You've results talked XXs. that that from about of sort to that up seen high share the we're we've some of overall

even you Oregon being markets, there and example we're Portland, our I pre-post neck, Phoenix, a neck actually are running and more stronger there. color Arizona can give about interesting just being an neck other. running bit and example, we're seeing little of some In growth, where neck another

us? can with execute tells move So vote share when us and what does that tell apps. that well, fast we their That riders

what after. we that's in more So seeing and Maybe talk short-term. I'll just stop it we're detail can the there about

Operator

Eric question Goldman next Sachs. comes Sheridan from of the Your with line

Your line is open.

Eric Sheridan

already. some I for of Maybe much that were so Thanks questions. Thanks. taking the the topics can follow-up upon touched on

have among In driving newer dynamic are of or what your of share incremental to pre-pandemic ability opposed I'm continue where rider sort scale, you sort around maybe existing dynamics period product back among terms behind there's a growth, market differentiated that. market investing coming to to possible curious riders? share to build riders framework a riders as riders the versus to of an

lever striking And to margin the to pricing then longer how going think to against goals? want a in about sort right business philosophically versus for on balance of you the how medium I know the you did we're long-term I broader period guidance. understand wait lever striking little bit you. better But the balance that a think and in over terms the Thank about the of term

David Risher

great I didn't the And at question. Yes, apologies name the my catch beginning.

Eric Sheridan

Eric Sachs. It's Goldman Sheridan from

David Risher

Eric.

got to to have Eric. you, Okay, talk you. Nice

stay. the with question And in So, look, the let pricing, where end work backwards. that's and of market. line Long-term start we're strategy. our the pricing from me That's we'll

think once I line. pricing areas only of So interesting focus super in you're is a

question And brand course, really do it's dismiss. maybe this it, you to in ways? quite people is of that an do iconic part is we other So becomes, easy brand. have then the compete a And how of like,

every app, on of make other they to away, turns choice some a you single based But their it's time riders things. open But it's price. take quite that once important, it out

like Some is brand guys. they of you the of just it is other service. much it impression, some And versus then differentiated how

So out on some building that side, really interesting products. we're

high-level. we see One, couple, as a noise travel very, you'll maybe enter just some course, season, there. us the make And to allude I very summer can of

make event In summer going fact, easier, riders to plan some enter got I as they on particularly travel we're to think we've announcements an season. make life how the week next for

to then another the of back at Lyft come the is, to thing employees that's trying to making we're requirement same here happening get secular of sort doing work, job. And bosses that we're are where extra

And a ride. that's productive so a introduce interesting because gives really it way into ourselves take opportunity, different commute ride us in to a a non-productive to a commute way

think of looking I of of just in again, see and And a where a XXXX, real or -- time. on excuse grow with price from of evidence which are that'll head be you that, in areas that just little to where to sure. be were can service framework, the some And might they beginning, Might what we're me, some then those as XXXX. So doing some sort in really line they on. products market, scratch it's I surface different for over build differentiate for levels, now meet growth, we're kind a brand, people say, start are on

Operator

of is question Devnani Bernstein. next from Your Nikhil line with the

Your line is open.

Nikhil Devnani

Hi, the you there. please. couple Thank for had I question. a taking

road? a there of near-term QX you understand drags function this single-digit are of point on on maybe color how and growth? of is revenue some or which low to lap around bookings provide at Just revenue underlying much please pieces trip Just the incentives, you unpack that trying pricing revenue maybe can could outlook growth some the really and some some outlook, the down

to longer or make term giving on could incremental of going rides? maybe Thank up cost and you be between like about opportunities efficiency cuts, some locks shared tradeoffs driving might you. growth of kind the forward of had recent the maybe, the then back you some And talk making or David,

David Risher

question. Thanks the do this, Yes, for Nikhil. let's

Let me is and part, Elaine will second. of tackle I first sort tackle going -- the the to

Elaine Paul

the thanks question. Nikhil, Hi, for

you guide, color In what there. XX% is the We're growth assuming XQ significant QX to in of let give revenue rides more least terms of at year-on-year. me some behind our acceleration

overall growth. of that significant And our faster the we market growth. So than anticipate acceleration that's

a terms moderating at And gross year-on-year. of grow and than means In in that rate bookings, quarter-on-quarter bookings that QX take year-on-year that assuming rate is our as and a revenue. faster we're quarter-on-quarter guidance, our assumes result,

some for that hopefully single-digit gives Thanks the you So behind revenue question. color our growth.

David Risher

the of question. then where cost And was on that is of of kind lead, guess, cutting sort the and sort Yes. I does

two start Let me things. with

why we cut for riders be costs? did could and great is, drivers that first We The pass so more cut great competitive along costs and we prices and earnings.

that So rationale. was the

The second piece decision making. was accelerating

more. So is a it's little counterintuitive, sometimes less maybe but

And of can much now the think didn’t gets of sort point. case, in move other sized this we've I so think which right as faster I it think we we organization, that to the a tradeoff. affirmatively. let this And I I very health long-term it business. certainly did just say very the of am on long-term health of not, business, focused focused this on me

so not sense business. at make of long-term really in and growth me the to all. any making jeopardize I'm It interested health short-term that So tradeoffs doesn't

look alluded actually & case you little like, specifically, a to example, even of you kind bring very I think up if to want I Now, interesting Wait couple it's study. proactively this an because for of And a Save. things

different and for focused make save something We're quite our what to is primary can we're that's approach drivers is money, our & really to which cuts. really leaned interest, way up very an of It's from that giving excited used riders the I they of example about bring the something but a talk lens We we've like, a if And and segment as it's Uber riders that I what our about is on want. taking. that's a of mechanism it. into. our Wait So riders, Save

Nikhil Devnani

Great. the Thank you color. both for

David Risher

Sure.

Operator

the Evercore is question of next Your Mark line ISI. with Mahaney from

Your line open. is

Ian Peterson

there. growth on if could update universities enterprise, update Pink Hi, Mark. Lyft just I guys. of question in and you in if One us new Great an care? Thanks. provide And including here. key This for know, is health how could segments doubled Ian QX, provide is an some any quick membership Peterson tracking? progress your you on

David Risher

double I'm interesting they if here. we not a general Unless little whether look we have much more what's report really at can to detailed sure those Pink of a is you take members, on average. speak actually I'll rides the more but than find Sure. on basis, kind out.

what to for you're Lyft me loyal that really whatever so if to reason, important And are tells us. that really you're important is us, you

double to down going on we're So that.

talked I in Now think might slightly be the differently this from it past. and we've of the way

that's how Lyft build [ph] I that. loyal. So think driver I such different -- are time, one I'll I real And make mean, retention mean who people rider acquisition we of people, fervent as drivers. this very area of think a is I'll economics focus linked ours of base to over [indiscernible] acknowledge a not we thing. going be is sure strong, are of the thing, riders, And but but also can and because that

there strong So opportunities But I've anyway, lot to we that. drive that's that's love think our tell we've see. a I lot riders. on just work momentum stay with side, the see maybe usage I Elaine, And there, I’m as go I we've or really to we know, little our the had health other want speaking what that But we've got. into real more on segments not for you on kind a can do really such we do to tuned bit that some what for today? enterprise a to on liking I detail I -- alluded got I fact say, don’t network. loyal I got And care. -- any more and to, BXB I of theoretical, have think

Ian Peterson

Great. Thank you.

David Risher

Sure.

Operator

Bank. Deutsche is next line Benjamin Black of from Your question with the

is line open. Your

Benjamin Black

of is this follow-up. a perhaps David, a Hey, bit

on about also, fuel narrow revenue that narrow focus discontinued size confidence today? rideshare bounce way And narrow on any feel And side focus, need contribution you. grow do growth? what being feel of the positioned this incentives then side you to the in where the perspective, the shared locks? share there either Thank this marketplace, blog, gives can can us a either offering or locks, marketplace you or spoke how driver you on your is You do the consumer or you the side? And help of from to

David Risher

Yes, can conquer I'm rides. we again, And Benjamin. bring actually question, to this divide thanks for if we'll shared one. the and going see up

to more it. because a mentioned I We about what in little want of past. of I that, know pre-COVID. just a And course, say that's the heard shared change You introduced rides, you've

One -- COVID, interested not was of the we was saving found in it things in that certainly let's complicated were say, interested because they is little product it a though, But all was into what as we people were offering. money. moved at

that we is came I drives was. and shared a Wait So Save with ever up more is in Save tell about product called already & fact can you popular Wait new & which than

a the we rather your rider's picking drivers, out without explain it a I'm of don't to was again, the all way, loss means of but kind let's don't by of They'd really or -- you much to direction, with really feeling going else and I of money I'm up. the like. looking you the in conversation like in drivers. not, drop you are somebody a think like at least save And direction, feeling. riders can in a don't lens stay a I say, by car, offs and of can sudden, way. pickup our one least drivers that of going added from I the have on then they the and sudden, of good have through I'm love And one perspective, track. and part headed And drivers that of our at thought From people fun also because going and control, And place, a all that different it

there how So up. have customers like strategy really fast impressed we're our picked we a And it lot. with

turns want. they as we're as sort give of So competition, again, but riders our maybe the evaluating customers, bigger the how the point from also differentiate of going opportunities forward, and kind look out, a drivers both of of our at types example of we to what it to it our I'm really using

Operator

Your with from Instructions] [Operator Kulkarni question line of is Rohit MKM. ROTH next

is open. line Your

Rohit Kulkarni

about taking my you incentives couple have there thank that fickle. talk quite short-term feeds into kind drivers of your tend sometimes and Hey, profitability been very over history and Maybe near-term, versus of of as for how to them. driver the questions. oriented, how driver has be algorithm of that growth A been incentives

are next, into love to call And then hear incentivize the we'd how on beyond portfolio. on summer how Lyft. and over critical and fits drivers drive latest bikes the period more So maybe you thinking of scooters thinking it, on restructuring bikes to the scooters, to just the

with If you because seasonality think you and more to make have than to tend it of Uber strategically, of different you investors need lead sometimes may compare to any some somewhat changes what the a [indiscernible].

Sonya Banerjee

Rohit, sorry, we can't hear you.

David Risher

of at think me -- we let Yes, I the got your question. Rohit out this. let's end. essence the little a there you do But faded

we'll one hearing drivers. bikes scooters. into me side, were the to question we up about the then Let incentive last, is which say end going with the Elaine and also kind of me thing more is let quick go and

ever a think are more than data important really choosing Lyft drivers that driver the I is before. side, point On

least clearly. So say I can at in recent more memory,

a which have side. see the accelerated we driver QX, is we in for X in most in drivers So year growth time first for pretty is about the in QX that years, on us. the really exciting And supply

very riders for So, important we obviously, our business as -- for well. it's our

side of give And incentive little the a can so, Elaine, color it. on you

Elaine Paul

Yes.

It's anticipating. consistent on what per be were we a $XXX incentives were To tailwinds said helped we a revenue quarter-on-quarter the are QX, on to February we being incentive with and contra some that what ride we'd This and down On side, per million. XX% terms color, supply. organic ride So absolute give in in basis, you by quarter-on-quarter. in absolute is consistent were incentives also basis. with down terms, in

basis. then forward per will currently level a ride quarter-on-quarter QX, And that and the be looking anticipate contra QX down with in we also flat on to revenue incentives roughly

real driver with And that is market of we more that's X So, per that's the was in color time of The of years investments supply. again add, point hour But cost lowest seeing investment our our that one are extent QX. organic to helped it's our efficient. course, been And dependent we incremental to tailwinds we're see outlook. in driver the see on by what other conditions.

David Risher

your going quick on thing I'm then bit to And one and that super is a more guys. philosophical question. one say you to more little this move bikes

and do. the drivers you will will like a They like over them Of up They it supply the gives demand over their the and control course, it control earnings. just and touch. backing driver them flexibility gives the I a time their incentives They they really tell help them balance always role. gives flexibility work. play in and the like short-term. The

One reduce the again, just because more. for long I me experience drive driver never and a for Everyone not are ago, so the Lyft visibility know to make Strategically, best love because can incentives earnings. driving they is I said drivers while saying I'll is in don't they that go I because of broke, sense. important

create dog. there's so we'll experience it's let's say, for strategically, of drivers. that. wrong tactically tail a the And the and -- nothing But with really not use dog. It's [Indiscernible] them it's the great not

of Now on of bike A and kind scooters couple about other first. I want to to businesses. and question your get things

are So we've of pure -- rideshare. a a effectively play I mean think, real on our strength ours. focus is, I we

on to So that's execute well. important as for us

terms wound We've loop, that economically, for in-house, garage the done? that business the infrastructure a not rental we experimented material it's are which in consumer we change material what the it we of services we have down focus. but built what spinning -- off while. our We're like and is a with car So we call

get ecosystem, us, sure they the And secular comment get rideshare do now into person need things. is are bikes the this the and bike lot. I the Lyft But they about to e-bikes, for them of done side think rides deal. time make. we that a haven't and every welcomed to scooters. E-bikes sort of and frankly, operation, big we make into to people we bike, The like I'm job welcome the to ride a When

do that to how better. on thinking some do we'll So

some We've of got economics of bike the operation. on also side our work the

a So business tune it's relatively, capital-intensive course. of up,

optimize. do have, I to we kind better. can work even some the like do But got think there we interplay to I we've So of and

Operator

question the Fox next from line Your Steven of Advisors. with comes Fox

open. line is Your

Steven Fox

Good Hi. afternoon.

just decisions And lot has think products around a levels good introducing history pretty of a You've offerings. about company new of talked product decent the success. making I with

with So the under were I'm in change terms the mistakes Thanks. new in you're kind past? to it that now structure? What the products made trying understand how to selectivity rideshare of what And you of going maybe is introduce space? -- what into needs into seeing

David Risher

past Thanks, in and comment as for thanks Steven, of I your well, the faster. think I Yes. about terms changes, and bigger agree. Look,

excuse to past front down all because are opportunities me, big we're quickly now can So think big so some the bit us change. in of that, is extent, and mantra drivers of have they from, us quite and we of kind a riders how think on -- of more expectations slowed just in the we -- move it's I dynamic, side again. And drivers that, COVID a certain internally a we other can

create history of is and on and build can going absolutely our to great a on in profitability brand. building large to we and And want That focus, We've it with a drivers services to by products great love. that and our business. so do, urgency. do to course, lot got got profitable part we We've riders a be driven is

Steven Fox

eventually any And sort into fits on autonomy then your going of helpful. think forward? That's just network comments you how

David Risher

fleet I very any do. dollars decent These because have big period in who It's say sort to at are so be about in take effectively on going this consumer the time. operators use it a billions generic not have of means probably side. is is lot I very Autonomy got have -- invested, to on but to bring is their expensive the make and to niche return order be can plug chance way going a of for any making to volume of that it's all while or a some And in a it's in a have a them mean big investment, to ROI that deal. deal brief That big deal. far they that I'll and the invested reason it's -- this, today. because of companies into a for that I platforms.

position incredible partner. So being very, important we an ourselves as very that

will we And with partner venture the it's did it's to wow, know doing is, Now from? great that we on corner, one of in So this did say been always there. ready like just very the is I'll just Where experiments fast? you a AI, I come AV true. the guys. think and some narrative last one Las cars kind This this. Vegas come that's that day think, of point got are corner. in around We've now, And oh, around with wake road right be the be where whole from the to so up AV very, always thing.

in And if [ph] cars in this San you're hyperbole Francisco, day. not can see no that's, within hyperbole, front again, X with not But here day reality one minutes is and lived again, seat. X driving you that's by the

positioning is So tells what we very below fair happen of is are this time, going it a ourselves surface of ready those and will you that most to seem the happens, for when for But noise. fast, to one that of background for be people phenomena period that. it kind are

Steven Fox

helpful. very Great. you. That’s Thank

David Risher

Sure.

Operator

participating. There conference Ladies time. more you this are no call. at and gentlemen, questions thank conclude does for today's This

now may disconnect. You

Lyft (LYFT) 4 May 232023 Q1 Earnings call transcript