Lyft's Risher: Ride-hailing provider 'open to offers' as company struggles

In the midst of a rocky beginning to his stint as CEO of the ride-hailing behemoth Lyft, David Risher appears to be revising his position on the possibility of selling the company.

In a recent interview with Bloomberg Television, Risher indicated that Lyft was "open to offers," according to an SFGate news report. That marked a change in tone from his earlier optimism about the company's chances in its fight against competitor Uber.

Risher took over as CEO of Lyft in April, succeeding Logan Green, the company's co-founder and previous CEO. The move prompted rumors that the financially unstable company was considering going up for sale. Risher's response in the interview to a question regarding the company's openness to an acquisition was, "If someone calls, a public company has to be." But he made it clear that Lyft is not actively looking to sell itself at this time.

Since its initial public offering in 2019, Lyft's stock price has dropped by approximately 90%, and the firm is currently valued at $3.1 billion. That stands in stark contrast to Uber's valuation, which is 25 times more than Lyft's current worth.

For more than a decade, Lyft and Uber have been engaged in an intense competition in the market for ride-hailing services. Both companies have their headquarters in San Francisco. They have undercut each other's prices, competed for the allegiance of drivers and riders, and worked together to resist legislation in California that would provide benefits to gig workers. But Lyft has seen its market share decrease as a direct result of Uber's successful strategic investments during the pandemic in food delivery and driver incentives. Since the year 2020, Lyft's market share has decreased from 38% to 26% as reported by CNN and the industry research firm YipitData. And despite the fact that neither firm has yet reached yearly profitability, Uber is moving closer to that milestone than its competitor.

Shortly after taking the post of Lyft CEO, Risher initiated a 26% decrease in the company's workforce numbers in an effort to buck the downward spiral. That was the second wave of layoffs the corporation had implemented in fewer than six months' time. In an email sent to staff, the CEO indicated that the cost savings realized from the layoffs would be used to make improvements in the form of competitive pricing, faster pick-up times and better driver pay. But Risher has made it clear that he has no intention of following in Uber's footsteps and starting his own food delivery firm.

Risher has also initiated modifications in Lyft's office work policy, according to a report from The New York Times. Although Lyft employees have always had the option to work from home, this fall the company will begin encouraging employees to come into the office at least three days per week in order to better compete with Uber.

Risher's comments suggest a willingness to accept acquisition offers that have the potential to redefine the company's future in light of the major hurdles and increasing competition that Lyft is currently facing in the ride-hailing sector. But it is still unknown whether a sale or any other strategic actions will be implemented by the company as it navigates the quickly shifting landscape of the industry.