On May 3rd, 2022, Lyft announced first quarter results for the period ending March 31, 2022. Lyft Co-Founder and President John Zimmer discussed how Lyft will scale into an impactful modern transportation network. Elaine Paul, Lyft’s CFO, stated the company wants to invest more in driver supply in Q2’22 to move its marketplace further into balance. Lyft wants to take care of drivers and riders with the best possible experience. Logan Green, Co-Founder and CEO of Lyft, Q1’22 said results exceeded the Company’s outlook. At the beginning of the quarter, ride volumes were soft due to omicron, but demand rebounded sharply in February and March for the company. Logan reported daily rides were up 20% in February versus January and grew further in March.
More Balance in the Marketplace (Liquidity) – Lyft to Invest in Driver Supply
Although Openbay was not mentioned on the earning call, Openbay has been doing its share to help Lyft drivers reduce the operational costs of owning and operating a motor vehicle. Since September 2019, Openbay has been serving the automotive repair and service needs of Lyft drivers, nationwide. The Openbay marketplace matches driver automotive service needs with trustworthy automotive service professions to perform repair and maintenance services.
“Needed to get repairs done ASAP and Openbay checked all the shops in my area to find one that could take me and the shop was supper accommodating and got it done quicker than expected.”
David O (Lyft Driver) – Google 5 Star Review
“I have never been so very happy and impressed by the complete experience of Openbay handling my car repair.”
Mari W (Lyft Driver) – Google 5 Star Review
Automotive Repair and Maintenance Costs Increasing
For the last few years, the cost of vehicle maintenance has been increasing between 4% – 5% annually. Depending on the vehicle in operation, costs can vary from $1,100 to $1,300 annually for a driver that puts on average 12,785 miles per year. However, rideshare drivers can average as much as 1,000 miles per week or upwards of 50,000 miles per year. This increase in mileage on a vehicle translates to an increase in operational costs, namely repair and maintenance. The chart below describes a three year period on the rising costs of repair and maintenance for a rideshare driver that drives upwards of 50,000 miles per year.
Lyft Drivers on Openbay
Lyft drivers get exclusive services and pricing for automotive repair and maintenance services on Openbay. Drivers get matched with a local service professional that can service their make of vehicle and the service they need. One size does not fit all – not all shops deliver 100% of the services that drivers need for their vehicle. For example, not every shop has wheel alignment equipment. Openbay matches driver needs with shops that can deliver the service in need. Lyft drivers get upfront pricing for a service and then select a professional that meets their needs (distance to shop, has a loaner car, early drop off, service in their driveway, etc.). Openbay makes it convenient for Lyft drivers to process payment too by providing in-app payment processing.
In support of Lyft’s plans to invest more in driver supply and incentives, Openbay is continuing to do its part.
Image credits: Yahoo Finance, Lyft (Nasdaq:LYFT)
May 3, 2022 – Lyft earnings transcript provided by Motley Fool
