Lyft reported on Tuesday (Nov. 10) as part of its third quarter earnings results that active riders had risen to 12.5 million from 8.7 million in Q2 on the heels of a major regulatory victory for the gig economy.
On Nov. 3, California passed Proposition 22, which lets app-based firms like Lyft, among others, categorize workers as contractors instead of as employees.
Lyft Co-Founder and CEO Logan Green referred to the ballot measure on an earnings call with analysts as a “landmark achievement for our industry that will make ridesharing even better for drivers and riders.”
“We believe the outcome in California is a win-win-win,” Green said, noting that the measure is good for drivers, riders and the state’s economic recovery.
Green noted that drivers will keep their flexibility and independence, while passengers will keep having access to rides.
In terms of the benefits to California’s economic recovery, Green said “hundreds of thousands of its residents will continue to have access to flexible earnings opportunities on platforms like ours.”
“Beyond California, we’re continuing to engage with policymakers across the country and believe that the policy solution that California voters chose can provide a model for other states,” Green said.
Active Rider Growth
In terms of the quarter, Q3 revenue was down 48 percent year over year but up 47 percent quarter over quarter.
“The sequential improvement in revenue was driven primarily by growth in active riders, which increased 44 percent quarter over quarter,” Green said. “As communities reopened, more people turned to ridesharing to go about their daily activities.”
Green noted that recovery trends vary locally throughout North America, reflecting differences in responses to the pandemic. Some cities have sustained wider reopenings, letting people be more active, while other cities have taken a more cautious approach by keeping or reimposing limitations.
Green also reported formidable engagement in the company’s bikeshare and scooter operations in the quarter.
In its fleet business, the company saw improvement with Express Drive, which lets people rent cars to drive for the Lyft platform, and Lyft Rentals, which is the company’s consumer car rental experience.
As for its overall results, Lyft reported basic and diluted net loss per share of $1.46 on revenue of $499.7 million.