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Lyft considers options for bikes business after getting 'strong interest'

Published 07/24/2023, 09:28 AM
Updated 07/24/2023, 10:52 AM
© Reuters.
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(Reuters) -Lyft said on Monday it was exploring options for its bikes and scooters unit, including a sale or a strategic partnership, the latest move to help turn around the company that has fallen behind Uber (NYSE:UBER) in the North American ride-sharing market.

Lyft (NASDAQ:LYFT) said it has received "strong inbound interest" for the business that operates in 15 countries and served 3.6 million riders last year with around 68,000 bikes and scooters.

Its shares were up 1.3% after the news in a broadly stronger market.

"It's only logical for Lyft to listen to credible proposals and explore strategic partners and options in several forms to serve more riders," the company said in a blog post. It does not disclose how much of its revenue comes from the business.

© Reuters. FILE PHOTO: The Lyft Driver Hub is seen in Los Angeles, California, U.S., March 20, 2019.  REUTERS/Lucy Nicholson/File Photo

Under new Chief Executive David Risher, Lyft has spent the past few months cutting costs after its strategy for clawing back market share from Uber with lower fares stoked concerns of a hit to its profit margins.

In one of his first steps after taking the reins, former Amazon (NASDAQ:AMZN) executive Risher announced in April that Lyft would lay off about 1,072 employees, or 26% of its workforce, and asked employees to come to the office more regularly.

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