Despite reporting that it performed better than expected in the first quarter, ride-hailing company Lyft has hit some major setbacks as a result of the COVID-19 pandemic.
The Uber rival reported a 23 percent increase in first-quarter revenue compared with the same period last year. But it posted a loss — excluding interest, taxes and other costs — of $85.2 million for the first quarter.
"It is impossible to accurately predict the duration and depth of the economic downturn we face," Lyft CFO Brian Roberts said during an earnings call. "Our business may be impacted for an extended period of time. So we must be prepared to adapt accordingly."
In April, Lyft withdrew its 2020 financial forecast and reduced its work force by 17 percent, furloughed 5 percent and cut salaries for the remaining employees. The company also suspended shared rides as a precaution during the pandemic.
With plummeting ridership in the U.S. and Canada, Lyft has been experimenting outside of its traditional business model.
In April, it launched Essential Deliveries, a pilot program in which government agencies, local nonprofits, businesses and health care organizations can request Lyft deliveries of meals, groceries, medical materials and cleaning supplies.
Lyft has made it clear it is looking to get ridership back on track. This month, Lyft launched its Health Safety Program with new policies for protecting riders and drivers. It includes a self-certification for riders and drivers to commit to COVID-19 precautions. It requires its passengers to wear face coverings, and provides cleaning supplies and masks for drivers.
Lyft also has offered free rides, scooter trips and bike memberships to front-line workers and first responders during the crisis.
