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☆ Uber Eats to Take Down Thousands of Virtual Brands to Declutter the App
▼ + stars: | 2023-03-27 | by ( Preetika Rana | Heather Haddon | ) www.wsj.com time to read: 1 min

Uber Eats is taking thousands of online-only brands off its app this week out of concern that the platform is getting clogged by restaurants listing multiple delivery options with different names but the same menu. So-called virtual brands—delivery businesses without physical storefronts—mushroomed on delivery apps during the pandemic, becoming a lifeline for eateries who used their empty kitchens and idle staff to test new ideas and make up for lost sales.

Lyft Inc., grappling with competition and a battered stock price, is tapping a board member as its chief executive, and its two co-founders will step back from managing the company, the ride-sharing company said Monday. David Risher , who had management stints at Amazon.com Inc. and Microsoft Corp. before starting a childhood-reading nonprofit in 2009, will take over from Logan Green , who co-founded Lyft with current President John Zimmer . The pair will retain their seats on the board but not participate in running Lyft day-to-day.

☆ Uber, Lyft Score Victory as California Court Affirms Right to Treat Drivers as Contractors
▼ + stars: | 2023-03-14 | by ( Preetika Rana | ) www.wsj.com time to read: 1 min

Uber and similar companies are in a global tug of war with regulators over whether and how to grant more benefits to workers. Uber Technologies Inc., Lyft Inc. and other companies scored a victory with a California court ruling that preserves their independent-contractor model in the state and could boost their efforts to maintain that model elsewhere. A state appeals court reversed a lower-court ruling that found a California ballot measure known as Proposition 22 illegal. Proposition 22, which passed in November 2020, allowed these companies to continue to treat their drivers as independent contractors.

☆ Consumers Change Food-Delivery Habits
▼ + stars: | 2022-12-29 | by ( Preetika Rana | Heather Haddon | ) www.wsj.com time to read: 1 min

Consumers are changing their food-delivery habits amid economic concerns and as the industry evolves from the growth it saw during the pandemic. Consumers continue to spend more on the biggest food-delivery apps DoorDash Inc. and Uber Technologies Inc.’s Uber Eats, but growth is slowing and people are spending more cautiously, analysts and industry executives said. People are switching to in-store pickups, ordering fewer dishes and changing what they get delivered, they said.

☆ DoorDash Cuts 6% of Staff, Joining Other Companies Reversing Pandemic-Fueled Hiring
▼ + stars: | 2022-11-30 | by ( Preetika Rana | Will Feuer | ) www.wsj.com time to read: 1 min

DoorDash Inc. said it is laying off around 1,250 people just weeks after offering a bullish outlook for its food-delivery business, extending a run of tech companies that have abruptly reversed course on hiring in recent months after blistering growth during the pandemic. Chief Executive Tony Xu said the cuts, equivalent to 6% of DoorDash employees, were the most difficult announcement in the company’s close to 10-year history.

☆ Lyft-Backed Proposal to Tax Rich for Green Initiatives Rejected in California
▼ + stars: | 2022-11-09 | by ( Preetika Rana | ) www.wsj.com time to read: 1 min

California voters rejected a ballot measure that sought to tax the state’s rich for its planned transition to electric vehicles and other green initiatives, dealing a blow to ride-hailing company Lyft Inc. and the environmental groups that had backed the proposition. With about 95% of the ballots counted, around 59% of the vote was against the proposal and 41% was in favor as of Wednesday morning. The Associated Press projected it would be rejected.

☆ Lyft Shares Slide After Disappointing Revenue and Ridership Numbers
▼ + stars: | 2022-11-07 | by ( Preetika Rana | ) www.wsj.com time to read: 1 min

Lyft Inc.’s stock fell Monday after it said its revenue growth slowed last quarter and the number of people using its service remained below prepandemic levels, rising at slower-than-expected pace. The company reported revenue of $1.05 billion for the three months through September. That is 22% above a year earlier, the slowest growth for Lyft in more than a year. Analysts polled by FactSet had expected revenue of $1.06 billion.

☆ Lyft Shares Slide After It Reports Slower Growth for Last Quarter
▼ + stars: | 2022-11-07 | by ( Preetika Rana | ) www.wsj.com time to read: 1 min

Lyft Inc.’s stock fell Monday after it said its revenue growth slowed last quarter and the number of people using its service remained below prepandemic levels, rising at slower-than-expected pace. The company reported revenue of $1.05 billion for the three months through September. That is 22% above a year earlier, and in line with Wall Street’s forecasts, the slowest growth for Lyft in more than a year.

☆ Lyft Plans to Lay Off About 700 Employees in Second Round of Job Cuts
▼ + stars: | 2022-11-03 | by ( Preetika Rana | Emily Glazer | ) www.wsj.com time to read: 1 min

Lyft Inc. said it is cutting 13% of staff, or nearly 700 jobs, the latest technology company to say it needed to reduce costs ahead of choppy economic conditions. Co-founders John Zimmer and Logan Green announced the cuts to staff Thursday. “There are several challenges playing out across the economy. We’re facing a probable recession sometime in the next year and rideshare insurance costs are going up,” they wrote in the memo viewed by The Wall Street Journal.

☆ DoorDash Shares Surge on Stronger-Than-Expected Earnings
▼ + stars: | 2022-11-03 | by ( Preetika Rana | ) www.wsj.com time to read: 1 min

DoorDash said its core U.S. restaurants business was profitable on an adjusted basis. DoorDash Inc. shares surged Thursday after it unveiled stronger-than-expected results for last quarter, saying consumers continue to spend more on delivery of food and household essentials even as restaurants have reopened and raised prices. DoorDash’s revenue in the three months through September grew 33% to $1.7 billion from a year earlier. That beat the average revenue estimate of $1.62 billion from analysts polled by FactSet.

☆ Lyft to Lay Off About 700 Employees in Second Round of Job Cuts
▼ + stars: | 2022-11-03 | by ( Preetika Rana | Emily Glazer | ) www.wsj.com time to read: 1 min

Lyft Inc. said it is cutting 13% of staff, or nearly 700 jobs, the latest technology company to say it needed to reduce costs ahead of choppy economic conditions. Confirming an earlier report by The Wall Street Journal, Lyft co-founders John Zimmer and Logan Green announced the cuts to staff Thursday. “There are several challenges playing out across the economy. We’re facing a probable recession sometime in the next year and ride-share insurance costs are going up,” they wrote in the memo viewed by the Journal.

☆ Uber Shares Surge on Gains in Quarterly Revenue, Adjusted Profit
▼ + stars: | 2022-11-01 | by ( Preetika Rana | ) www.wsj.com time to read: 1 min

Uber said it expects bookings in the current quarter of between $30 billion and $31 billion, short of Wall Street’s forecast. Uber Technologies Inc.’s shares soared after the company announced revenue and adjusted earnings gains for last quarter as its customers spent more on rides and food delivery. The ride-hailing company said Tuesday that revenue for the three months through September was up 72% from a year earlier, to $8.34 billion. Adjusted earnings—a figure that excludes some expenses—hit $516 million, its strongest ever. Both were above Wall Street expectations.

☆ Uber Revenue, Adjusted Profit Climbed Last Quarter With Continued Demand for Rides and Food
▼ + stars: | 2022-11-01 | by ( Preetika Rana | ) www.wsj.com time to read: 1 min

Uber said it expects bookings in the current quarter of between $30 billion and $31 billion, short of Wall Street’s forecast. Uber Technologies Inc.’s revenue and adjusted earnings climbed last quarter as people spent more on rides and food delivery despite high inflation and worries about a weakening economy. The ride-hailing giant said Tuesday that revenue for the three months through September was up 72% from a year earlier, to $8.34 billion. Adjusted earnings—a figure that excludes some expenses—hit $516 million, its strongest ever. Both were slightly above Wall Street expectations.

☆ Lyft Battles Gavin Newsom Over California Measure to Fund EVs
▼ + stars: | 2022-10-16 | by ( Preetika Rana | ) www.wsj.com time to read: 1 min

Lyft Inc. is leading the fight for a new green tax in California, pitting the ride-sharing company against the governor over who should pay for the shift to electric vehicles. San Francisco-based Lyft is the biggest financier of efforts to pass a November ballot measure that seeks to make the wealthiest Californians pay some of the costs of transitioning to greener forms of transportation and fund wildfire prevention. Lyft and other supporters are proposing an additional 1.75% tax on income earned over $2 million for the next 20 years, arguing that more money is needed to engineer the state’s shift to cleaner energy.

☆ Layoffs Hit Tech Sector With Force as Amazon, Lyft Warn of Economic Downturn
▼ + stars: | 2022-06-21 | by ( Sebastian Herrera | Preetika Rana | ) www.wsj.com time to read: 1 min

The outlook for tech industry jobs worsened on Thursday, with ride-hailing company Lyft Inc. and payments company Stripe Inc. both announcing major layoffs and Amazon.com Inc. saying it will freeze corporate hiring for months. The stream of grim news for the industry came as the Federal Reserve has moved again to raise interest rates to combat inflation, signaling greater risk that the U.S. economy is sliding into a recession. Faced with that possibility, tech company executives are warning of tougher times ahead.

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