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Lyft shares drop after lower revenue report and lay offs

Reports say that Lyft shares dropped by more than 19% after it reported a revenue for the third quarter of 2022 that turned out to be lower than analysts’ projections. The company had just laid off 13% of its staff before the revenue call.

Lyft reported a revenue of $1.05 billion as opposed to the $1.06 billion estimation by analysts. Also, it had been expected to hit 21.2 million active riders but recorded 20.3 million instead.

Since the pandemic, the ride-hailing company has struggled to get as much riders as it used to do before the virus-induced social distancing and remote work culture hit its business.

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For comparison, its rivals Uber was able to beat analysts expectations in revenue and even reported higher active riders than before the pandemic. If Lyft had been hoping to convince investors that the covid era was the cause of its problems, Uber’s results would make that harder to sell.

However, the company expects that its massive job cuts may make it easier for it to recover in the revenue aspect. Although, it has not revealed its plans to increase active riders.

For the fourth quarter of the year, CEO Logan Green said that the company is aiming for a revenue of between $1.15 billion and $1.17 billion. Lyft had launched a media arm to help improve its chances of making money through advertisement, there is no info yet on how that business division is coming along since it was announced in August.

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Onwuasoanya Obinna

A reader of books and stringer of words. Passionate about Science and Tech. When not writing or reading he is surfing the web and Tweeting.