Lyft Pulls Scooters From Six Cities Amid Push for Better Unit Economics
Lyft is removing its scooters from six U.S. markets and laying off 20 employees to focus on densely populated cities where ridership is higher.
Lyft pulls its scooters out of six U.S. markets, including Nashville, Atlanta, and Dallas, as the company shifts its micromobility strategy. A Lyft spokesperson shares that the company is choosing to focus on markets where it can have the biggest impact, moving resources away from smaller cities and toward larger opportunities. This restructuring results in layoffs for about 20 employees within the bikes and scooters division, along with a number of contracted scooter chargers and repositioners.
The decision stems from Lyft's realization that micromobility works best in cities with high population density, a characteristic these six exiting markets lack. Unlike competitor Uber, which recently pulled its JUMP vehicles from certain cities due to regulatory hurdles, Lyft states that its departure is purely a result of low ridership. This marks the second round of layoffs for Lyft's micromobility team this year, following a reduction of about 50 employees in March.
Despite these cuts, Lyft continues to invest heavily in its remaining scooter and bike operations by upgrading its hardware. The company currently deploys new Segway-built scooters that are specifically designed for shared use, a move that decreases operating costs and boosts ridership by about 20% in successful markets like Denver and Miami. These durable scooters now make up more than 65% of Lyft's active fleet, and the company plans to completely phase out older models by the end of January.