U.S.-based transport service Lyft has reportedly laid off approximately 60 employees amid growing economic concerns within the company.
In a memo obtained and published by The Wall Street Journal Wednesday, the company said that it had laid off employees within its rental business department, which allowed customers to rent its fleet of cars through its service.
Lyft’s Vice President of Fleet and Global Operations Cal Lankton wrote in the memo that the company executives began discussions about exiting the rental business last fall, noting economic issues and the uncertainty of running a first-party rental business.
In a statement to The Hill, a Lyft spokesperson confirmed the discontinuation of its first-party rental service, adding it will now focus on its partnership with third-party rental companies such as Sixt and Hertz.
“We have decided to discontinue Lyft’s first-party Rentals business to focus on our best-in-class third party rentals with Sixt and Hertz,” the spokesperson said, adding: “This decision will ensure we continue to have national coverage and offer riders a more seamless booking experience.”
Lyft, a rival to U.S.-based transportation service Uber, saw its stock plunge after sharing its first-quarter earnings in May, after recording revenue growth of $875.6 million for the first quarter of 2022 — a 44 percent increase from the same period last year.
Company executives have also remained optimistic that its revenue growth in 2022 will continue to accelerate and demands will increase by the second half of this year.