Lyft in Trouble
blog.pragmaticengineer.com
Lyft in Trouble
1–10 of 22 posts
Re: Lyft in Trouble
#2Funny that he left the incorrect numbers in his tweet and pointed to his blog for the fixed numbers, even though he’s paying for the ability to edit tweets. That’s one way to drive traffic, I guess.
Re: Lyft in Trouble
#3Re: Lyft in Trouble
#4As a reply further down points out, half of their loss is in the form of stock based comp and that doesn't affect free cash flow, so Lyft isn't quite going out business in the next year.
The situation is still pretty dire, however. It's crazy to me that Lyft still hasn't entered the food and grocery delivery market when it has been abundantly clear for years that that's where the money is. And in 10+ years of operation they still haven't been able to launch in a single location outside the US.
Re: Lyft in Trouble
#5Funny that he left the incorrect numbers in his tweet and pointed to his blog for the fixed numbers, even though he’s paying for the ability to edit tweets. That’s one way to drive traffic, I guess.
He claims he can’t edit after they’re posted.
Re: Lyft in Trouble
#6Which part of stock comp is causing the issue? Is this what was granted this year but is vesting over multiple (e.g. 4 years)? Is this the stock granted in past years but vesting this year?
Re: Lyft in Trouble
#7As a reply further down points out, half of their loss is in the form of stock based comp and that doesn't affect free cash flow, so Lyft isn't quite going out business in the next year. The situation is still pretty dire, however. It's crazy to me that Lyft still hasn't entered the food and grocery delivery market when it has been abundantly clear for years that that's where the money is. And in 10+ years of operati…
It will affect their cashflow if they can’t continue to pay staff in stock based comp.
Lyft operates in Canada.
Re: Lyft in Trouble
#8As a reply further down points out, half of their loss is in the form of stock based comp and that doesn't affect free cash flow, so Lyft isn't quite going out business in the next year. The situation is still pretty dire, however. It's crazy to me that Lyft still hasn't entered the food and grocery delivery market when it has been abundantly clear for years that that's where the money is. And in 10+ years of operati…
It will affect their cashflow if they can’t continue to pay staff in stock based comp. Lyft operates in Canada.
> It will affect their cashflow if they can’t continue to pay staff in stock based comp.
That's not how cashflow or stock based comp works. Lyft doesn't buy stock off the market and use it to pay their employees - they just issue new stock.
Re: Lyft in Trouble
#9Which part of stock comp is causing the issue? Is this what was granted this year but is vesting over multiple (e.g. 4 years)? Is this the stock granted in past years but vesting this year?
It's explained in the associated article: https://blog.pragmaticengineer.com/lyft-in-trouble/
Re: Lyft in Trouble
#10Earlier quoted context omitted.
It will affect their cashflow if they can’t continue to pay staff in stock based comp. Lyft operates in Canada.
> It will affect their cashflow if they can’t continue to pay staff in stock based comp. That's not how cashflow or stock based comp works. Lyft doesn't buy stock off the market and use it to pay their employees - they just issue new stock.
Pretty sure they are commenting on the fact that employees won't continue to accept funny money. In which case they may have to pay a larger % of comp in cash to stay competitive and hence it will affect cashflow.