Lyft discontinues Scooter Business in 6 Cities and dismissing 20 employees

Lyft is ceasing its E-scooter operations in 6 cities to cut their losses. In a bid to put a brake on the on-going and impending losses, Lyft has decided to pull its scooters from 6 prominent markets.

These markets located in 6 different cities, including Nashville, San Antonio, Dallas, the Phoenix area, Atlanta, and Columbus. This has been done in the wake of low profit to cost ratio in these relatively smaller markets, where maintenance has always been a cumbersome one and on the pricier side.

This news to discontinue its E-scooter services came along with unfortunate news for a few of Lyft’s employees. Currently, around 400 people work in the bike and scooters segment of Lyft’s consolidated team. It is reported that at least 20 employees would lose their job.

As per a media report, the employees have been notified about their departure in advance. In conversation with an official from Lyft, it came to light that Lyft is interested in bigger markets. Bigger markets tend to provide greater opportunities.

The Lyft official, in a disclosure to their recent decision, stated: “We’re choosing to focus on the markets where we can have the biggest impact. We’re continuing to invest in growing our bike and scooter business, but will shift resources away from smaller markets and toward bigger opportunities.”

It seems that Lyft will not be content with the dismissal of those around 20 of its employees. It is said that many contractors who were engaged in the charging and repositioning of the scooters and bikes, too, shall lose their jobs amid this wave.

It should be brought to the kind attention of the readers that Lyft’s dismissing a number of employees is nothing new. According to previous reports, Lyft had also laid off around 50 people earlier this year. That time it had been done in March. And thus, the current one becomes the second round of the laying off of its workers from the same segment, i.e., scooters and bikes’ division.

Earlier this year, the 50 people to lose their jobs were reportedly the previous employees from Motivate. The company ‘Motivate’ had been acquired by Lyft, only the last year.

Lyft functions its E-scooter business in San Jose, Alexandria, Arlington, Minneapolis, Montgomery County, Austin, Denver, Los Angeles, Miami, Santa Monica, Oakland, San Diego, and Washington, D.C as of now. In big markets like Miami and Denver, Lyft reportedly has gained profit by a margin of 20% due to an enhanced ridership.

A lack of ridership has been held as the prime reason for this sudden decision, although not in haste. In fact, those 6 markets are located in areas of less density of population. This directly corresponds to a limited number of riders. Sectors like micro-mobility hardly seem to have profit from small and medium markets.

It seems unlikely for Lyft to be the only company in the micro-mobility sector that has signed up for this overhaul. Earlier, Uber too, extracted its JUMP scooters and bikes out of the markets, which did not seem to deliver any profits. These markets included those of San Diego, Providence, and Atlanta.

Sometimes it’s the depleting profits and lack of ridership, while sometimes there are challenges of regulation which result in greater operating costs. In any case, Lyft has finally decided to go in for the popularly trodden path.

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