Ride-hailing platform Lyft on Wednesday (Aug. 7) announced performance benchmarks in the second quarter, reflecting strong engagement from both riders and drivers.
The company reported a record 23.7 million active riders, representing a 10% increase from the previous year. Total rides hit a new high of 205 million, up 15% year over year.
Lyft’s driver engagement saw significant improvements, with driver hours and recruitment reaching new highs. The company also introduced the Driver Earnings Commitment nationwide, a program designed to ensure drivers receive at least 70% of fares after external fees, addressing concerns about pay fairness and boosting driver satisfaction.
“For over a year you’ve heard us say that customer obsession drives profitable growth,” Lyft CEO David Risher said in a company release. “In Q2 we delivered, and drivers and riders are choosing Lyft in record numbers.”
Lyft’s Price Lock subscription plan was a key development during the quarter. This feature allows riders to pay a fixed monthly fee to avoid surge pricing during peak times, offering cost predictability and potential savings. Priced at under $5, Price Lock aims to enhance the rider experience by reducing the impact of fluctuating ride prices.
“Primetime,” Lyft’s term for surge pricing, occurs when the platform raises ride prices in response to high demand or limited availability.
“We’re super excited about it,” Risher said during the earnings call. “We’ve been testing for a month and it’s available to everyone now. Price Lock takes the frustration away. This is about paying a little bit of money in a subscription fee to get a consistent experience. It’s a better value proposition.”
The company observed increased ride activity linked to major events and seasonal trends. Rides to and from restaurants, bars and entertainment venues increased 16%, compared to the same period last year. In college towns, rides during spring graduation weekends rose by 23%, while travel to and from airports and hotels increased 13% from the first quarter of 2024.
Additionally, Lyft’s expansion in Canada saw rides double, with Toronto emerging as the company’s eighth largest market. In cities with Pride celebrations during June, Lyft saw a 17% increase in rides compared to an average weekend in the quarter.
Gross bookings increased 17%, year over year, to $4 billion, while revenue rose 41%, year over year, to $1.4 billion. Lyft saw the highest number of new drivers joining in a single quarter since 2019.
Rival Uber’s mobility segment reported growth in the second quarter of 2024, too. The company supported 7.4 million monthly drivers and couriers globally. Driver earnings rose 23% year-over-year, indicating improved compensation for those using the platform. Additionally, the number of mobility supply hours logged by drivers reached an all-time high, demonstrating increased driver activity and engagement. Ride bookings surged 23% compared to the previous year, contributing to overall growth in Uber’s mobility operations.
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