Lyft’s Revenue Drops by 61% in the Second Quarter

North America based ride hailing firm Lyft Inc. (LYFT) announced that its revenue for the second quarter of the year dropped sharply by 61% due to travelling restrictions and stay at home orders put in place to curb spread of the deadly virus.

The company says number of active riders declined by 60% to 8.69 million in the second quarter but it remains positive this situation will change soon.

Revenue in the quarter dropped to $339.3 million, additionally, it recorded an adjusted EBITDA loss of $280.3 million which was a bit lower than the $325 million loss which had been predicted by analysts.

The company further said it has trimmed down its costs to keep on check its goal of becoming profitability on adjusted basis by the end of next year.

While on a post earnings call with investors, CEO Logan Green, said the company will have no other options than to suspended operations in California if a preliminary injunction preventing it from classifying cab drivers as independent contractors comes into effect on August 21.

We saw a rebound in demand in Q2 and have seen further evidence of this trend since the end of Q2. Rideshare rides in July were 78% greater than April,” added Green.

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