Lyft reduces losses during pandemic with aggressive cost cuts

Lyft Inc. posted a tighter annual loss even as the coronavirus pandemic hit its business, indicating that the ride-sharing company is turning towards profitability despite the unprecedented crisis.

The San Francisco-based company said its 2020 revenue declined 35% to $ 2.4 billion. Its net loss for the year was $ 1.8 billion, compared to $ 2.6 billion the previous year. Lyft’s bottom line was driven by aggressive cost cuts that included unlicensed workers, wage cuts and other operational changes, resulting in cost savings of $ 360 million last year, President John Zimmer said in an interview. on Tuesday.

“We used an incredibly difficult year to prepare for long-term growth,” he said in the interview, reiterating that the money-losing company is on track to post a profitable quarter on an adjusted basis by the end of this year.

Lyft’s shares have more than doubled since early November, fueled by the distribution of the Covid-19 vaccine and a major regulatory victory in the company’s home state that month. The shares rose more than 10% in after-hours trading Tuesday, driven by the company’s annual results.

Lyft posted fourth-quarter revenue of $ 570 million, slightly more than the previous three months, but 44% less than the prior year. The company said an increase in Covid-19 cases in key markets and new closures weighed on travel demand in the second half of the quarter. The net loss for the period was $ 458.2 million, compared to $ 356 million the previous year.


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