Lyft (LYFT) posted mixed results for the second quarter, despite it being the first profitable quarter in the company's history. Lyft CEO David Risher joins Market Domination to discuss the overall state of consumers and the ride-share company's outlook.
In the second quarter, Lyft saw a 16% increase in active riders going to and from restaurants, bars, and entertainment venues. Risher notes that consumer price sensitivity hasn’t changed much, explaining that they’re not seeing a meaningful increase in riders opting to use Lyft’s Wait and Save feature, which allows them to save some money on their ride for longer wait times. To proactively combat consumer price sensitivity, he notes that Lyft is introducing a Price Lock feature that “gives people complete certainty about how much they’re going to pay for a ride every day.”
As Lyft looks ahead, AI will play a major role in its growth. Risher explained that the technology has been well-received by drivers, who are able to quickly resolve their issues and get back on the road faster than before. He added, “What I’m really excited about is if we can create products and services for drivers to help them earn even more on the platform. I think there’s a lot of things you can do with AI there.” He explained that autonomous vehicles will play a major role in the future, saying, “AVs are going to be a huge tailwind for ride-sharing because it’s going to add more offerings…certainly a safer offering in the long run and hopefully a cheaper offering as well.”
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This post was written by Melanie Riehl
