Lyft ends car rental, lays off 60 employees

Lyft is reportedly firing 60 staff and ending its vehicle-rental solutions.

According to an employee memo reviewed by the Wall Road Journal, Cal Lankton, Vice President of Fleet and Worldwide Operations at Lyft, spelled out to staff members that “Our road to scaling first get together rentals is extended and demanding with substantial uncertainty … the financial state produced the company circumstance unworkable.”

Lyft had formerly authorized drivers to rent vehicles from Lyft. The firm is now pivoting entirely to 3rd-social gathering rental partnerships with Hertz and Sixt.

Spokesperson Jodi Seth claimed in a assertion, “We have made a decision to discontinue Lyft‘s initially get together Rentals small business to emphasis on our most effective-in-course 3rd celebration Rentals with Sixt and Hertz,” according to Bloomberg.

Lyft has continued cuts during the company. The world functions team has been consolidated from 13 to nine locations, and a Detroit hub has been shut.

Prior to this go, Lyft experienced indicated that a employing slowdown was on the desk. In a May possibly memo, Lyft President John Zimmer instructed workers, “Given the slower than predicted recovery … we have designed the tricky but important determination to noticeably sluggish selecting in the U.S.,” according to the Wall Road Journal.

At the time, Mr. Zimmer also stressed that “our in close proximity to-term motion program will be targeted on accelerating gains — no matter if we like it or not, that’s the ticket of entry in today’s current market,” in accordance to the Might memo cited by the Wall Road Journal.

Lyft‘s inventory has fallen a lot more than 70% in the previous calendar year.