Ride-sharing platform Lyft announced second-quarter performance benchmarks on Wednesday (August 7) that reflect strong engagement from both riders and drivers.
The company reported a record 23.7 million active riders, up 10% year over year, and total rides reached a new high of 205 million, up 15% year over year.
Lyft’s driver engagement has improved significantly, with driver hours and new hires reaching new highs. The company also rolled out the Driver Earnings Commitment nationwide, a program designed to ensure drivers receive at least 70% of their fare after outside fees, addressing pay equity concerns and increasing driver satisfaction.
“For over a year, you’ve heard us say that customer focus drives profitable growth,” Lyft CEO David Risher said in a company press release. “In the second quarter, we delivered, and drivers and riders are choosing Lyft in record numbers.”
A key development during the quarter was Lyft’s Price Lock subscription plan. This feature allows riders to pay a fixed monthly fee to avoid price spikes during peak periods, providing cost predictability and potential savings. Priced at under $5, Price Lock is designed to improve the rider experience by reducing the impact of fluctuating fares.
“Primetime,” Lyft’s term for price increases, occurs when the platform increases ride prices in response to high demand or limited availability.
“We’re super excited about it,” Risher said during the call. “We tested it for a month and now it’s available to everyone. Price Lock takes away the frustration. It’s about paying a little bit of money for a subscription fee to get a consistent experience. It’s a better value.”
The company observed increased ride activity related to major events and seasonal trends. Trips to and from restaurants, bars and entertainment venues increased 16% compared to the same period last year. In college towns, trips increased 23% during spring graduation weekends, while trips to and from airports and hotels increased 13% compared to the first quarter of 2024.
Additionally, Lyft’s expansion in Canada saw rides double, with Toronto becoming the company’s eighth-largest market. In cities with Pride celebrations in June, Lyft saw a 17% increase in rides compared to an average weekend during the quarter.
Gross bookings increased 17% year-over-year to $4 billion, while revenue increased 41% year-over-year to $1.4 billion. Lyft reported its highest number of new drivers in a single quarter since 2019.
Rival Uber’s mobility segment also saw growth in the second quarter of 2024. The company served 7.4 million monthly drivers and couriers worldwide. Driver revenue increased 23% year-on-year, indicating improved compensation for the platform’s users. In addition, the number of mobility hours completed by drivers reached an all-time high, indicating increased activity and engagement among drivers. Ride bookings increased 23% year-on-year, contributing to the overall growth of Uber’s mobility business.
