Lyft rides recover slightly in August, remain down 53% from last year

  • Lyft (NASDAQ:LYFT) revealed on Tuesday that its trips rose 7.3% in August from July as operations in Canada recovered faster than in the United States, Reuters reported.
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  • However, the company said the novel coronavirus pandemic is still crushing demand with overall August rides down 53% compared to a year earlier. Trips had dropped as much as 80% during the height of the Covid-19 outbreak in April.
  • The company said it used fewer driver incentives in August as more drivers returned to service and said it expects lower incentive spending in the third quarter. Lyft expects adjusted loss for the third quarter to not exceed $265 million.
  • The company also said it has increased spending on Proposition 22, a November ballot measure in California which seeks to reverse a contested state law that forces gig economy companies to treat their workers as employees.
  • Lyft, Uber (NYSE:UBER), DoorDash and Instacart each spent an additional $17.5 million on the measure, bringing total funding for the campaign to $181 million, a public state filing showed.
  • InvestorPlace Markets Analyst Thomas Yeung, CFA, wrote on Aug. 25: “It’s been a rough year for holders of Lyft stock. The company’s second-quarter earnings showed signs of post-pandemic recovery, but shares sagged after a California court battle over worker classification recently intensified.

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