Lyft, the American ride-sharing company, has started the year 2024 on a high note. The company’s stock price has risen by seven per cent to $17.78, and its earnings for the first quarter of 2024 were $1.28 billion. This is a success as experts predicted the figure would be $1.16 billion.
In comparison to the same period in 2023, Lyft’s earnings in the opening quarter represented a notable increase from $1 billion to $1.28 billion. This year-over-year surge represents a remarkable 27.59 per cent rise. Lyft’s gross bookings for the year were valued at $3.7 billion, a 21% increase from the previous year.
The number of rides booked by customers increased by 23 per cent year on year, and the company’s active riders grew by 12 per cent. Lyft CEO David Risher, who took charge in April 2023, has overseen the ride-sharing company’s effort to hire more female drivers.
The decision to prioritize hiring more female employees has yielded impressive results, with a 24 per cent rise in the number of female drivers in the opening quarter of 2024 compared to the same period last year. The campaign to hire more female drivers has proven to be popular among female customers who prefer to travel with female drivers.
Lyft’s “Women Plus Connect” feature, designed to pair female or non-binary riders with customers of the same gender, was initially rolled out in a few U.S. cities last September. The initiative has been introduced to combat the fear of safety that non-male drivers and customers sometimes experience during journeys.
A 2022 investigation by The Verge revealed that female and non-binary drivers for Lyft and Uber regularly deal with sexual assaults and harassment from customers. Lyft’s safety report in 2022 showed that there were 4,000 claims of sexual assault in rides between 2017 and 2019.
Since the “Women Plus Connect” feature was introduced, around 2.5 million female customers have chosen to use the feature. Since becoming CEO, Risher has introduced other changes, including competitive fares for drivers and shorter customer waiting periods.
A few days ago, Risher stated on an earnings call, “We are executing well and bringing much-needed innovation to the market. That’s why drivers and riders are choosing Lyft more often.”
Lyft’s success comes amid one of its main competitors, Uber, reporting disappointing earnings for the year’s first quarter. Uber’s stock price fell by six per cent to $66.40, dropping its market value by $10 billion.
Additionally, Uber reported a net loss of $654 million in the year’s opening quarter, despite analysts initially projecting net profit figures of just above $500 million. However, despite Lyft’s call for more female drivers and greater safety, only 23 per cent of the company’s drivers are female.
This is unfortunate for the large number of female customers who revealed in a Lyft survey that they prefer a driver of the same sex when booking a ride. Lyft’s efforts to hire more female drivers have been successful, and the company’s earnings reflect that.
The decision to prioritize hiring more female employees has not only helped with growth but has also contributed to the safety of non-male drivers and customers. Lyft’s “Women Plus Connect” feature has proven to be a popular addition to the company’s services, as it pairs female or non-binary riders with customers of the same gender.
The initiative has been introduced to combat the fear of safety that non-male drivers and customers sometimes experience during journeys. Lyft’s continued success and growth in the ride-sharing market shows that innovation and safety are critical factors in customer satisfaction.
With the introduction of new initiatives and the continued hiring of more female drivers, Lyft is set to continue its success in the years to come.
