LYFT Inc (NASDAQ: LYFT) has announced that it is bringing back Lyft Shared. This service allows riders to carpool. The move comes when the company is trying to cut back on its spending because of the increased gas prices and a driver shortage.
Lyft suspended the carpooling device in 2020 to reduce the spread of the COVID-19 virus. Since the pandemic is winding down, the company has been trying to return the service to some markets. Lyft has already returned the service to a few cities, including Miami and Philadelphia. It now plans to return it to bigger cities. The cities include Atlanta, Vegas, Denver, and San Francisco.
While Lyft Shared is the company’s cheapest service, many riders didn’t enjoy the trips and would leave the drivers with bad ratings. Fortunately, the company has stated that it has changed the carpooling service. For instance, it will restrict the service to two riders in one trip to reduce the detours the driver has to make.
Lyft is collaborating with Valera Health
Lyft is also collaborating with Valera Health in May, the Mental Health Awareness month. The parties hope to raise awareness of mental health as mental health issues have increased because of the pandemic.
People from all age groups report cases of anxiety, depression, and substance abuse. Valeria and Lyft hope to ease this burden. Lyft will offer rides at a discount to patients at Valeria Health as part of the initiative.
The President and co-founder of Lyft, John Zimmer, recently sat down for an interview at Yahoo Finance Live, where he discussed the company’s plans. Zimmer stated the company is investing in balance to ensure the company profits from the post-pandemic era. He noted that Lyft had seen an increase in drivers and a 30% market improvement last year.
Lyft has a driver shortage
Despite Zimmer’s confidence, the company is going through a rough patch. Lyft’s stock fell by 27% after announcing that it would need to invest more money to attract drivers as it was experiencing a shortage.
Lyft’s biggest competitor Uber has experienced the same problem. However, Uber seems to be doing better because of its food delivery business.