The company reported first-quarter revenue of $875 million, a 44 percent increase over the prior year. But the number of active riders, 17.8 million, did not meet analyst expectations.
The company believes it will see a ridership spike as the global economy continues its rocky emergence from pandemic restrictions, and it is spending on driver incentives to ensure it can handle any sudden influx.Adjusting the supply of drivers is “like moving the Titanic,” chief executive Logan Green said on a call with investors Tuesday, while ridership “can change on a dime.”
“We feel very confident that this is the right time to put a little extra investment behind ensuring we’re ready to handle that demand and that we’re there providing the best service levels we can,” Green told investors. In recent investor notes, Ives said investors are spooked by the company’s continued spending on driver incentives, even though he offered a generally positive outlook on Uber and Lyft’s long-term prospects.
“Lyft is spending money like a 1980′s Rock Star and this will have a violent negative reaction from investors in an already jittery market,” Ives said in a note Tuesday evening.
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