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Lyft To Pick Up New CEO Amid Deepening Post-Pandemic Losses

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Logan Green and John Zimmer, co-founders of Lyft, are stepping down to make room for a former Amazon executive as the ride-hailing service battles to recover from the pandemic while long-time rival Uber has been regaining pace.

According to the revised order released Monday, Green will stand down as Lyft’s CEO on April 17, and Zimmer will step down as the San Francisco company’s president at the end of June.

Green will be succeeded as CEO by David Risher, who helped turn Amazon into an e-commerce behemoth. Green will remain Lyft’s non-executive chairman, while Zimmer will become vice chairman after leaving management.

The reorganization comes roughly a month after Lyft announced a $588 million loss for the final three months of last year, more than doubling from the same period in 2021, and issued a bleak prediction for 2023. This exacerbated Lyft’s stock decline, which had dropped its shares below $10, a roughly 80% loss from their price at the end of 2019, only a few months before the announcement of a global epidemic halted demand for ride-hailing services.

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The reorganization comes roughly a month after Lyft announced a $588 million loss.

While Uber’s ridership has returned to pre-pandemic levels, Lyft has failed to find a means to recover, leading its losses to rise and investors to flee the shares. Uber expanded its operations to include food delivery, a popular choice amid government lockdowns that kept people opening the Uber app.

Wedbush Securities analyst Daniel Ives called Lyft’s last six months a “train wreck” that necessitated a change in leadership. He stated that Risher had so much work ahead of him that Lyft would consider selling him. An acquisition would be less expensive than it would have been a few years ago, as Lyft’s current market valuation has dropped to $4 billion, down from around $14 billion at the end of 2019.

Risher said in a prepared statement that he was “gobsmacked” when asked about becoming Lyft’s CEO and that he is now “prepared to take this business to new levels of success.”

Risher was hired as Amazon’s 37th employee and proved so valuable to the Seattle company that when he departed, its founder, Jeff Bezos, issued a thank you statement thanking Risher for helping to develop a company that “is all about working hard, having fun, and making history.”

With consumers reducing their e-commerce purchases due to the epidemic, Amazon has announced 27,000 layoffs since late last year.

Risker founded Worldreader, a San Francisco organization that teaches young children to read.

Uber, also based in San Francisco, experienced a considerably more traumatic leadership transition in 2017 when its co-founder Travis Kalanick was forced out in a high-profile power struggle that was depicted last year in a Showtime TV series. Dara Khosrowshahi, the company’s new CEO, has been attempting to transform Uber into the transportation equivalent of Amazon.

 

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SOURCE – (AP)

Kiara Grace is a staff writer at VORNews, a reputable online publication. Her writing focuses on technology trends, particularly in the realm of consumer electronics and software. With a keen eye for detail and a knack for breaking down complex topics, Kiara delivers insightful analyses that resonate with tech enthusiasts and casual readers alike. Her articles strike a balance between in-depth coverage and accessibility, making them a go-to resource for anyone seeking to stay informed about the latest innovations shaping our digital world.

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Tesla Cuts The Price Of Its “Full Self Driving” System By A Third To $8,000

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NEW YORK — Tesla reduced the price of its “Full Self Driving” system — which cannot drive itself and requires drivers to remain attentive and ready to intervene — by nearly a third to $8,000 from $12,000, according to the company website.

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Tesla Cuts The Price Of Its “Full Self Driving” System By A Third To $8,000

Tesla CEO and billionaire Elon Musk stated in 2019 that there would be a fleet of robotaxis on the road by 2020, but that promise has yet to be fulfilled, and the system must still be supervised by humans.

The cutbacks, which took effect on Saturday, follow Tesla’s decision to trim $2,000 off the pricing of three of its five models in the United States late Friday. That is the most recent example of the difficulties that the electric vehicle manufacturer is facing.

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Tesla Cuts The Price Of Its “Full Self Driving” System By A Third To $8,000

Tesla dropped the costs of its most popular model, the Model Y, a small SUV that is the best-selling electric vehicle in the United States, as well as the Models X and S, which are older and more expensive. Prices for the Model 3 car and Cybertruck remained unchanged.

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Tesla Cuts The Price Of Its “Full Self Driving” System By A Third To $8,000

The price cut comes a day after Tesla’s stock fell below $150 a share, wiping out all gains recorded in the previous year. The Austin, Texas-based company’s stock price has fallen almost 40% this year due to declining sales and growing competition. Discounted sticker prices are intended to entice more car purchasers.

SOURCE – (AP)

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Japan’s Anti-Monopoly Body Orders Google To Fix Ad Search Limits Affecting Yahoo

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TOKYO — Japan’s antitrust authority stated Monday that Google, the US search giant, must rectify its advertising search restrictions that impact Yahoo in Japan.

The Japan Fair Trade Commission said in a statement that a recent investigation into Google’s activities revealed that it was hurting fair competition in the advertising sector.

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Japan’s Anti-Monopoly Body Orders Google To Fix Ad Search Limits Affecting Yahoo

Yahoo Japan Corp., which later merged with the Japanese social media platform Line, began offering keyword-targeted search advertising services utilizing Google’s technology after the two businesses forged a partnership in 2010.

The FTC claims that Google imposed limits in its search advertising deal with Yahoo Japan for more than seven years, limiting its ability to compete in focused search ads.

An FTC investigation into whether this violated the Anti-Monopoly Law prompted Google to lift the limitations.

Google said in an emailed statement that it has fully cooperated with the commission’s investigation and that the agency has not determined that it has breached antitrust laws. It committed to follow the commission’s orders and provide “valuable” search services to Japanese consumers and marketers.

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Japan’s Anti-Monopoly Body Orders Google To Fix Ad Search Limits Affecting Yahoo

Line Yahoo declined to comment.

Google will be subject to a three-year review to ensure that necessary improvements are implemented, according to the commission. It did not impose any fines or other penalties on Google, which remains popular in Japan.

The commission’s decision comes after another setback for Google in Japan. Japanese doctors launched a civil case against the corporation last week, seeking damages for what they call baseless, insulting, and frequently inaccurate statements.

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Japan’s Anti-Monopoly Body Orders Google To Fix Ad Search Limits Affecting Yahoo

The Tokyo District Court lawsuit seeks 1.4 million yen ($9,400) in damages for 63 medical professionals who posted ratings on Google Maps.

Google responded by saying it is working “24 hours a day” to remove misleading or incorrect content on its platform, using human and technology resources “to delete fraudulent reviews.”

SOURCE – (AP)

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Tesla reduces US prices for 3 of its electric vehicle models following a rough week.

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Tesla reduced the pricing of three of its five models in the United States by $2,000 late Friday, highlighting the issues facing the electric vehicle firm run by billionaire Elon Musk.

The business reduced the costs of the Model Y, a small SUV that is Tesla’s most popular model and the best-selling electric vehicle in the United States, as well as the versions X and S, which are older and more expensive versions. Prices for the Model 3 car and Cybertruck remained unchanged.

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Tesla cuts US prices for 3 of its electric vehicle models after a difficult week

The reductions dropped the starting price for a Model Y to $42,990, $72,990 for a Model S, and $77,990 for a Model X.

The decision comes a day after Tesla’s shares fell below $150 per share, wiping out all gains earned over the previous year. The Austin, Texas-based company’s stock price has fallen almost 40% this year due to declining sales and growing competition. Discounted sticker prices are intended to entice more car purchasers.

Musk announced early Saturday on X, the social media site that was previously known as Twitter, that the cost of an entry-level Tesla could be as low as $29,490 after accounting for a federal tax credit and gas savings.

Industry observers have been waiting for Tesla to unveil the Model 2, a tiny electric vehicle for approximately $25,000. This month’s media rumors that Musk intended to cancel the project added to uncertainty about the company’s direction, but Musk denied the reports.

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Tesla cuts US prices for 3 of its electric vehicle models after a difficult week

The price drops marked the end of a long workweek for Tesla, which said on Monday that it would be laying off 10% of its global workforce, or approximately 14,000 employees. The company also announced the recall of roughly 4,000 of its 2024 Cybertrucks after discovering that the accelerator pedal could become stuck, enabling the vehicle to accelerate accidentally and increasing the danger of a crash.

Musk stated on Saturday that he has postponed a planned weekend travel to India to meet with Prime Minister Narendra Modi due to “very heavy Tesla obligations.” He expressed on X that he was looking forward to rescheduling the visit for later this year.

Tesla is slated to report first-quarter profits on Tuesday.

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Tesla cuts US prices for 3 of its electric vehicle models after a difficult week

The business stated earlier this month that its global sales declined substantially from January to March as competition grew, electric car sales growth stagnated, and previous price cuts failed to attract additional buyers.

Tesla’s quarterly sales fell year on year for the first time in nearly four years.

SOURCE – (AP)

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