New Lyft CEO says rider, driver experience top priority as it competes with Uber
CEO David Risher said 'We have to priced in line with Uber'
New Lyft CEO David Risher reveals his plan to win back ridership from Uber
Lyft incoming CEO David Risher discusses the changes he will make to turn the company's stock around on 'The Claman Countdown.'
There is a new CEO steering Lyft as the brand continues to vie with Uber for market share.
David Risher, a member of the ride-share’s board, stepped into the top job at Lyft on Monday. His becoming chief executive comes about three weeks after Lyft first unveiled his appointment, as well as transitions of co-founders Logan Green and John Zimmer into board roles.
Risher told FOX Business on Tuesday getting the ride-share company "focused on customers, on its drivers and its rider, in a really sort of basic way" and giving them a "great experience" is a "big focus" for him.
"We know riders want to be picked up on time. They want to pay a fair price," he said. "We know that drivers want a good driving experience."
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One thing Risher said Lyft is focused on the rider side is pricing.
Lyft signage on a vehicle as it exits the ride-sharing pickup at San Francisco International Airport in San Francisco on Thursday, Feb. 3, 2022. Lyft Inc. is scheduled to release earnings figures on Feb. 8. (Photographer: David Paul Morris/Bloomberg via Getty Images / Getty Images)
"We have to be priced in line with Uber," he told FOX Business. "The last thing I want is for someone to open up two apps and have us be more expensive, so that’s one thing we’re very focused on, making sure we’re priced in line with where the market is."
Risher also said he has been in "full-on listening mode" on what drivers "want the most."
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More broadly, another top-of-list item for Risher is "really reminding people that we all live in such a digital, virtual road right now, but Lyft’s job is really to get people out and connected and coming together."
On vying with Uber, the Lyft CEO said he thought the competitor has become the "default" for "too many people," explaining the ride-share business is meant to have "at least two" players. He indicated choice is good for riders and drivers.
In this photo illustration the Lyft logo is seen displayed on a smartphone. (Photo Illustration by Rafael Henrique/SOPA Images/LightRocket via Getty Images / Getty Images)
One thing Lyft can do is "reminding the world that we’re a great option – a great, great ride-share option" in creative ways, according to Risher. He said Lyft has "been a little quiet for a while and, of course, COVID made that tricky because ride-share wasn’t on the top of people’s minds for a long time.
"And then I think we can, you know, a little bit, I’ll say, take the gloves off," he continued. "When you look at marketplaces where there are a couple of strong competitors, you know what you tend to see the underdog being a little bit assertive to remind people that they’re number two but try harder, you know, to use the old [Avis] line from many, many years ago."
Uber, in addition to rides, has food delivery and other services.
Risher said he understood why combining food delivery and rides "may be compelling" as a business model but questioned it in terms of rider and driver experience. Getting in a car "that just dropped off a tuna sandwich" may not be something riders want, he suggested, and drivers could face frustrations while doing deliveries as well.
Passengers wait for rides from Lyft Inc. at the LAX-it centralized pickup area at Los Angeles International Airport in Los Angeles Tuesday, Oct. 29, 2019. On Tuesday, Los Angeles International Airport's ban on Uber, Lyft, and taxi curbside pickup wen (Patrick T. Fallon/Bloomberg via Getty Images / Getty Images)
During a late March appearance on "The Claman Countdown," Risher said he is "going to build a great company" that is "profitable" and "strong."
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Lyft recently said it generated $4.1 billion in revenue for 2022, coming 27.6% higher year-over-year. Its net loss was $1.58 billion, marking a 49% widening from the $1.06 billion in the prior year.
As of Tuesday afternoon, shares of Lyft were down price-wise over 71% in 12 months.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| LYFT | LYFT INC. | 17.17 | -0.19 | -1.09% |
| UBER | UBER TECHNOLOGIES INC. | 73.07 | +1.11 | +1.54% |
Uber, meanwhile, has said its 2022 revenue came in at $31.88 billion while its net loss came in at $9.14 billion, according to its earnings release. Its stock has fallen about 3.5% in a one-year time frame.
In the Tuesday interview, Risher said Lyft is an "iconic" brand "that people love and want to see succeed."
Prior to taking on the Lyft CEO job, Risher came from the nonprofit he co-founded, Worldreader. He also has experience in the tech industry, having worked in roles at Amazon and Microsoft in the past.
He has said he learned to compete at Microsoft, to focus on customers at Amazon and to do more with less at Worldreader, all of which he told FOX Business "are so appropriate for the role I’m taking on."