Lyft's recent round of layoffs has likely contributed to the current decline in ride fares. During the spring, Lyft made the decision to reduce its corporate workforce by about 25%, letting go of more than 1,000 employees. As part of their reasoning for the job cuts, the company aimed to utilize the saved funds to lower prices for passengers and better compete with Uber. According to a report by the Wall Street Journal, Lyft has successfully implemented these fare reductions in the months following the layoffs. As a result, Lyft has witnessed an increase in market share, putting them in direct competition with their larger rival, Uber. Lyft's CEO, David Risher, who assumed the top position earlier this year and oversaw the layoff process, has utilized his previous experience in the nonprofit sector to guide the company in operating with fewer resources.
Despite these efforts, Lyft has not publicly shared a specific timeline for achieving profitability. Additionally, there were reports suggesting that the company is considering selling off its bike-focused division. In order to stay competitive with Uber, Lyft has introduced other changes. For instance, as of May, passengers at some major US airports can request a Lyft ride as soon as they land, eliminating the need to wait until after deplaning and retrieving their luggage. It is worth noting that the cost of rides through both Uber and Lyft has increased by over 80% in recent years, as reported by Forbes. In October, Lyft raised its fee on all rides in order to cover insurance costs. Moreover, various municipalities are contemplating or implementing additional fees on app-based rides. For example, Washington, DC is considering a $2 fee for ride-hailing trips to and from the downtown area, as reported by DCist in April.