“The brand foundations are strong—and yet there is so much more we can do to put the brand into action,” Irving said in the blog post. “Lyft is known for its warmth, likability, and endearing personality. These are qualities that any other brand would be jealous of, and I am confident in the team's ability to accelerate the brand connection to even more riders and drivers as we go forward.”
Cost cuts
Avila joined Lyft five months into the tenure of CEO David Risher, who has implemented cost cuts, including significant layoffs. “We need to be a faster, flatter company where everyone is closer to our riders and drivers so we can deliver on this purpose,” Risher stated in a letter to employees last April.
Lyft on Feb. 13 reported fourth-quarter revenue of $1.2 billion, up 4% from the prior-year period, citing strong demand that led to a record of more than 40 million annual active riders in 2023. But the company also dealt with an embarrassing mistake in its announcement—due to a typo, it estimated its gross margin would expand by 500 basis points in 2024, while the actual estimate was 50 basis points. The original report sent Lyft’s stock soaring.
Risher took responsibility during an appearance on CNBC, saying, “We had thousands of eyes” on the process, adding, “It’s a terrible thing. It is an extra zero that slipped into a press release.”