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Lyft lays off 17% of workforce, furloughs hundreds more

cnbc.com

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Re: Lyft lays off 17% of workforce, furloughs hundreds more

#31

Post by edmundsauto »

rvz wrote: post #13
bdcravens wrote: post #9

As a company, is there reason to believe that Uber can better weather the storm? Does Lyft do anything other than rides?

Lyft is in a much more worse position than Uber. Since Uber is in more locations than Lyft and Uber has Uber Eats and other services, I don't know how Lyft can justify its value. One thing that's common is that they're both unprofitable and have both been racing to burn cash for years and unfortunately they are now making difficult cuts to save themselves. But the true picture will be revealed on May 6th in their Q1…

I would interpret the evidence 180 degrees in the opposite direction. Wouldn't the increased footprint mean that Uber has more costs in less profitable areas? (It seems logical that Lyft would have pretty equal coverage in the profitable areas). And Uber Eats + other services hemorrhage money -- I read that Eats has something like a $1b/year burn rate, even leveraging much of Uber's other infra.

(Also, aren't Q2 earnings are usually in July?)

Re: Lyft lays off 17% of workforce, furloughs hundreds more

#33

Post by MiroF »

edmundsauto wrote: post #28
MiroF wrote: post #27

Earlier quoted context omitted.

> anything to pay people in stock, since it just siphons off value from all existing stock wait what?

It doesn't cost cash, I think they meant.

Yeah, sorry it was unclear but I was more confused by the "siphoning" value part.

Re: Lyft lays off 17% of workforce, furloughs hundreds more

#34

Post by vmception »

caogecym wrote: post #29
stephencoyner wrote: post #19

This seems like a great time for Amazon or Google to buy Lyft. Amazon could bundle rides with package deliveries and get the pre-existing driver and passenger network from Lyft. Lyft was actually telling drivers to work with Amazon when the pandemic started (1). Waymo could take Lyft’s aggregated rider demand. They already have a partnership to transfer autonomous rides from Waymo to Lyft during bad weather situation…

Agreed, though the stock went up after this news, Google and Amazon could have acted faster.

That's because there is at least 17% less share dilution than there was a day before, let alone the runway being marginally extended.

So speculators don't get dumped on by employees with RSUs all day every day, and the business prospects are not adversely impacted any more than they already were. Thats when you pay more for shares.

Layoffs are proactive for investors, not an omen for investors, don't get that confused.

Re: Lyft lays off 17% of workforce, furloughs hundreds more

#35

Post by SilasX »

saagarjha wrote: post #26
hckr_news wrote: post #24

Earlier quoted context omitted.

What does this mean?

It means their comments show up as [dead] until they’re vouched by others.

Thanks. I keep [dead] comments turned on and I thought that one was pretty reasonable so I was going to vouch for it but wasn't sure if there was some context I was missing. Your comment provides it.

Re: Lyft lays off 17% of workforce, furloughs hundreds more

#36

Post by edmundsauto »

MiroF wrote: post #33
edmundsauto wrote: post #28

Earlier quoted context omitted.

It doesn't cost cash, I think they meant.

Yeah, sorry it was unclear but I was more confused by the "siphoning" value part.

"Dilutes" stock value (per share) would possibly be more accurate? Keep throwing shares at execs; if the company is successfully, it's a dilution. If it fails, then at least they didn't waste real money.

Re: Lyft lays off 17% of workforce, furloughs hundreds more

#38

Post by jonknee »

bearjaws wrote: post #12
bdcravens wrote: post #9

As a company, is there reason to believe that Uber can better weather the storm? Does Lyft do anything other than rides?

Uber eats is the biggest delta between the two companies, I suspect they still will need to cut staff though.

And international exposure, Lyft is just in the US and a little in Canada.

Re: Lyft lays off 17% of workforce, furloughs hundreds more

#39

Post by qqssccfftt »

SilasX wrote: post #35
saagarjha wrote: post #26

Earlier quoted context omitted.

It means their comments show up as [dead] until they’re vouched by others.

Thanks. I keep [dead] comments turned on and I thought that one was pretty reasonable so I was going to vouch for it but wasn't sure if there was some context I was missing. Your comment provides it.

[dead] by itself is a shadowban. [flagged] [dead] is not.

Re: Lyft lays off 17% of workforce, furloughs hundreds more

#40

Post by nerdponx »

rvz wrote: post #13
bdcravens wrote: post #9

As a company, is there reason to believe that Uber can better weather the storm? Does Lyft do anything other than rides?

Lyft is in a much more worse position than Uber. Since Uber is in more locations than Lyft and Uber has Uber Eats and other services, I don't know how Lyft can justify its value. One thing that's common is that they're both unprofitable and have both been racing to burn cash for years and unfortunately they are now making difficult cuts to save themselves. But the true picture will be revealed on May 6th in their Q1…

Uber used to have higher prices (in my area) and a lower-quality UI. That's changed in the last year or so, especially now that Uber has all of the "ride safety" features that Lyft lacks.
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