Lyft is ending its internal car rental program


Lyft will stop renting cars from its own fleet and has laid off about 60 employees, according to The Wall Street Journal. As Tech Crunch Note, the layoffs were also confirmed by LinkedIn posts from the affected workers. People who have lost their jobs, The newspaper said, worked in operations and covered 2% of the company’s workforce. In May, the company reportedly wrote in a memo to staff that it was slowing hiring due to the economic downturn, but had no plans for layoffs. Things have clearly changed since then.

In an internal memo from Lyft Vice President Cal Lankton, seen by The newspaper, the executive said the company’s road to internal leasing is “long and difficult with significant uncertainty.” Lankton also explained that Lyft began discussing the possibility of exiting the company last fall and talks escalated because “the economy has made the business case unworkable.”

The ride-sharing service launched its car rental business in Los Angeles and the San Francisco Bay Area in 2019 after a few months of testing, eventually expanding its car rental offering to five locations. Although it is canceling the vehicle rental option from its fleet, the company is not leaving the space entirely. Lyft already operates more than 30 rental locations with Sixt SE and Hertz Global Holdings Inc., and said it will continue to work with major car rental companies. “This move,” a spokesperson told the publication, “will ensure we continue to have national coverage and provide passengers with a smoother booking experience.”

Lyft is also revamping its global operations and consolidating its offerings from 13 to nine regions. This will lead to the closure of a site in Northern California and its Detroit hub, but it is unclear whether the move will result in more layoffs. Either way, Lyft is just the latest company in the tech industry to cut jobs due to the economy. Tesla reportedly fired 500 employees from its Nevada Gigafactory without 60 days notice. Netflix cut 300 jobs in June after cutting 150 jobs in May. And more recently, TikTok started firing people all over the world. Even the biggest companies in the industry aren’t immune: Meta reportedly told managers to keep an eye out for underperforming workers and “move to quit” them if they’re unable to recover. the right path.

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