Q2 2024 Lyft Inc Earnings Call

Operator: Good morning, and welcome to the LYFT second quarter 2024 earnings call. At this time, all participants are in a listen-only mode to prevent any background noise. Later, we will conduct a question and answer session, and instructions will be given at that time. If anyone should require operator assistance, please press star then zero on your touchtone telephone. As a reminder, this conference call is being recorded. I would now like to turn the call over to Aurelien Nolf, VP, FP&A, and Investor Relations. You may begin. Thank you.

Operator: Good morning and welcome to the list, 2nd quarter 2024 earnings call. At this time, all participants are in a listen-only mode to prevent any background noise. Later, we will conduct a question-and-answer session, and instructions will be given at that time.

Good morning, and welcome to the Lyft second quarter 'twenty 'twenty four earnings call.

Speaker Change: At this time all participants are in a listen only mode to prevent any background noise.

Speaker Change: Later, we will conduct a question and answer session and instructions will be given at that time.

Operator: If anyone should require operator assistance, please press star, then zero on your touchtone telephone. As a reminder, this conference call is being recorded.

Speaker Change: If anyone should require operator assistance. Please press Star then zero on your Touchtone telephone.

Speaker Change: As a reminder, this conference call is being recorded.

Aurelian Nulf: I would now like to turn the conference over to Aurelian Nulf, VP, STNA, and Investor Relationship. Thank you. Welcome to the list, earnings call for the 2nd quarter of 2024. On the call today, we have our CEO, David Risher, and our CFO, Erin Brewer. We make forward-looking statements on today's call relating to our business strategy and performance, future financial results, and guidance. The statements are subject to risks and uncertainties that could cause our actual results to differ materially from those projected or implied during this call. The factors and risks are described in our earnings materials and our recent SEC filings.

Speaker Change: I would now like to turn the conference over to a rally enough V. P. S. T N E and Investor Relations you may begin.

Aurelien Nolf: Thank you. This is the LYFT earnings call for the second quarter of 2024. On the call today, we have our CEO, David Risher, and our CFO, Erin Brewer. We make forward-looking statements on today's call relating to our business strategy and performance, future financial results, and guidance. These statements are subject to risks and uncertainties that could cause our actual results to differ materially from those projected or implied during this call. These factors and risks are described in our earnings materials and our recent SEC filings.

Speaker Change: Thank you welcome to the leaf to earnings call for the second quarter of 2024.

Speaker Change: On the call today, we have our CEO, David <unk> CFO Erin Brewer.

Speaker Change: We'd make forward looking statements on todays call relating to our business strategy and performance, which Youll financial results and guidance.

Speaker Change: These statements are subject to risks and uncertainties that could cause our actual results to differ materially from those projected or implied during this call.

Speaker Change: These factors and risks are described in our earnings materials and our recent SEC filings.

Aurelian Nulf: All of the forward-looking statements that we make on today's call are based on our beliefs other today, and we disclaim any obligation to update any forward-looking statements except as required by law.

Aurelien Nolf: All of the forward-looking statements that we make on today's call are based on our beliefs as of today, and we disclaim any obligation to update any forward-looking statements except as required by law. Additionally, today we are going to discuss customers. For Rideshare, there are two customers in every car. The driver is LYFT's customer, and the rider is the driver's customer.

Speaker Change: All of the forward looking statements that we make on todays call.

Speaker Change: Based on the beliefs as of today and.

Speaker Change: And we disclaim any obligation to update any forward looking statements, except as required by law.

David Risher: Additionally, today we are going to discuss customers. For right share, there are two customers in the recall. The driver is the list customer, and the driver is the driver's customer. We care about both.

Speaker Change: Additionally, today, we are going to discuss customers.

Speaker Change: All right sure there are two customers in every call.

Speaker Change: The driver at least customer and the Ryder is the drivers customer.

David Risher: We care about both. Our discussion today will also include non-GAAP financial measures, which are not a substitute for GAAP results. Reconciliations of our historical gap to non-gap results can be found in our earnings materials, which are available on our IR website. And with that, I'll pass the call to David.

Speaker Change: We care about both.

Aurelian Nulf: Our discussion today will also include non-GAAP financial measures, which are not a substitute for GAAP results.

Speaker Change: Our discussion today will also include non-GAAP financial measures, which are not a substitute for GAAP results.

David Risher: Reconciliation of our historical gap to non-GAAP results can be found in our earnings materials, which are available on our IR website. And with that, I'll pass the call to David. Thank you, Aurelian. Good morning, everyone, and let's jump right into it. Lift's strong results in the second quarter continue to validate our long-term strategy. Customer obsession drives profitable growth.

Speaker Change: Reconciliations of our historical GAAP to non-GAAP results can be found in our earnings materials, which are available on our IR website.

Speaker Change: And with that I'll pass the call to David.

David: Thank you Ryan.

David Risher: Good morning, everyone. And let's jump right into it. LYFT's strong results in the second quarter continue to validate our long-term strategy: Customer Obsession Drives Profitable Growth. To start, in Q2, LYFT reached gap profitability for the first time in our company's history. This is a testament to our team members and their hard work every day obsessing over our riders and drivers and operating with discipline and excellence. It's an important milestone and another step along the path we laid out to you earlier this year. Erin will share our financial results in more detail shortly.

David: Good morning, everyone, let's jump right into it.

David: With strong results in the second quarter continue to validate our long term strategy.

David: Customer obsession drives profitable growth.

David Risher: To start, in Q2, Lift reached gap profitability for the first time in our company's history. This is a testament to our team members and their hard work every day obsessing over our riders and drivers and operating with discipline and excellence. It's an important milestone, and another step along the path we laid out to you earlier this year.

David: To start in Q2 lift reached GAAP profitability for the first time in our company's history. This is a testament to our team members and their hard work every day obsessing over our riders and drivers and operating with discipline and excellence.

David: It is an important milestone and another step along the path we laid out to you earlier this year.

David Risher: Aaron will share our financial results in more detail shortly. Turning now to our customers, driver and rider engagement hit all-time highs in Q2. Q2 saw the most new drivers in any quarter since 2019 on the platform, including 34% more women and non-binary drivers compared to Q2 last year thanks to Women Plus Connect. Our 70% driver earnings commitment launched nationwide, and in those launch regions, we saw a meaningful increase in driver perception of pay fairness from the prior quarter, a leading indicator of driver preference. This quarter, driver hours hit an all-time high, showing our forward progress with the number of drivers in the time they choose to spend them.

David: Aaron will share our financial results in more detail shortly.

David Risher: Turning now to our customers, driver and rider engagement hit all-time highs in Q2. Q2 saw the most new drivers in any quarter since 2019 on the platform, including 34% more women and non-binary drivers compared to Q2 last year, thanks to Women Plus Connect. Our 70% driver earnings commitment launched nationwide, and in those launch regions, we saw a meaningful increase in driver perception of pay fairness from the prior quarter, a leading indicator of driver preference.

Aaron: Turning now to our customers' driver and rider engagement hit all time highs in Q to.

Speaker Change: Q2 saw the most new drivers in any quarter since 2019 on the platform, including 34% more women and nonbinary drivers compared to Q2 last year, thanks to women plus connect.

Aaron: Our 70% driver earnings commitment launched nationwide and in those launch regions. We saw a meaningful increase in driver perception of pay fairness from the prior quarter, a leading indicator of driver preference.

David Risher: This quarter, driver hours hit an all-time high, showing our forward progress with the number of drivers and the time they choose to spend on the road. In related news, two weeks ago, the California Supreme Court unanimously upheld Prop 22, protecting the independence of the driver's value.

Aaron: This quarter driver hours hit an all time high showing our forward progress with a number of drivers and the time they choose to spend on lift.

David Risher: In related news, two weeks ago, the California Supreme Court unanimously upheld Prop 22, protecting the independence of the driver's value. Drivers also had huge wins in Minnesota and Massachusetts that secure their freedom to earn when, where, and however they want. Drivers rely on Lyft for available and flexible earnings opportunities. Gigwork like driving helps people live their lives on their terms. That's why it's here to stay. Now, when it comes to riders in Q2, we had a record 23.7 million quarterly active riders, up over 10% year on year. At the same time, ride intent conversion increased, and ride frequency kept growing, thanks in part to the fastest pickup time we've had in four years.

Aaron: And related news two weeks ago, the California Supreme Court unanimously upheld prop twenty-two protecting the independents the drivers value.

David Risher: Drivers also had huge wins in Minnesota and Massachusetts that secure their freedom to earn when, where, and how they want. Drivers rely on LYFT for available and flexible earnings opportunities. Gig work like driving helps people live their lives on their terms. And that's why it's here to stay.

Aaron: Drivers also had huge wins in Minnesota in Massachusetts, it's secure their freedom to earn when where and however, they want.

Aaron: Drivers rely on lift for available and flexible earning earnings opportunities.

Speaker Change: Big work like driving helps people live their lives and their terms that's why it's here to stay.

David Risher: Now when it comes to riders, in Q2, we had a record 23.7 million quarterly active riders, up over 10% year on year. At the same time, ride intent conversion increased, and ride frequency kept growing, thanks in part to the fastest pickup time we've had in four years. We also had record rides in Q2, including the most scheduled rides in the company's history, and we saw record bike and scooter rides, especially e-bike rides in our largest market, New York City. Rides on our best-in-class e-bikes now represent over half of all bike and scooter rides.

Speaker Change: Now when it comes to riders in Q2, we had a record $23 7 million quarterly active riders up over 10% year on year.

Speaker Change: At the same time right intense conversion increased and ride frequency kept growing thanks in part to the fastest pickup time, we've had in four years.

David Risher: We also had record rides in Q2, including the most scheduled rides in the company's history. And we saw record bike and scooter rides, especially e-bike rides in our largest market, New York City. Rides on our best-in-class e-bikes now represent over half of all bike and scooter rides this year. So to state it simply, our focus on customer obsession and operational excellence have led to more riders choosing Lyft and Ever, and their riding more often.

Speaker Change: We also had record rides in Q2, including the most scheduled rides in the Companys history and.

Speaker Change: And we saw record bike and scooter rides, especially E bike rides in our largest market New York City.

Rides on our best in class E bikes now represent over half of all bike and scooter rides this year.

David Risher: So to state it simply, our focus on customer obsession and operational excellence has led to more riders choosing Lyft than ever, and they're riding more often. Before moving on, I want to give you a closer look at part of the rider experience and how we're working to radically improve it. It's what's known as prime Time or surge pricing in the industry. Many of you have probably experienced it at one time or another, and I'm willing to bet you didn't care for it one bit.

Speaker Change: So it's a stated simply our focus on customer obsession and operational excellence have led to more riders choosing lift than ever and they are writing more often.

David Risher: Before moving on, I want to give you a closer look at part of the rider experience and how we're working to radically improve it. It's what's known as prime time or surge pricing in the industry. Many of you have probably experienced it at one time or another, and I'm willing to bet you didn't care for it one bit. It's probably rideshare's most hated feature. Well, thanks to an enormous effort on the part of our team, building on the great momentum we've seen with drivers, the number of rides impacted by prime time has decreased dramatically. In Q2, the average prime time amount included on each ride declined by 25% versus the first quarter, and that contributes to better conversion rates.

Speaker Change: Before moving on I wanted to give you a closer look at part of the rider experience and how we're working to radically improve it.

Speaker Change: It's what's known as prime time, our surge pricing in the industry.

Speaker Change: Many of you have probably experienced it at one time or another and I'm willing to bet you didn't care for it one bit it's probably rideshare is most hated feature.

David Risher: Probably Rideshare's most hated, Well, thanks to an enormous effort on the part of our team building on the great momentum we've seen with drivers, the number of rides impacted by primetime has decreased dramatically. In Q2, the average primetime amount included on each ride declined by 25% versus the first quarter, and that contributes to better conversion rates. In fact, the markets where we saw the sharpest declines in prime time in Q2, like Phoenix, Baltimore, and Orlando, are the markets where conversion rates are improving the most. So we are going to do something a little crazy.

Speaker Change: Well, thanks to an enormous effort on the part of our team building on the great momentum we've seen with drivers.

Speaker Change: Number of rides impacted by primetime has decreased dramatically.

Speaker Change: In Q2, the average primetime amount included on each ride declined by 25% versus the first quarter and that contributes to better conversion rates in fact, the markets, where we saw the sharpest declines in prime time in Q2, like Phoenix, Baltimore and Orlando are the markets where conversion rates are improving the most.

David Risher: In fact, the markets where we saw these sharpest declines in prime time in Q2, like Phoenix, Baltimore, and Orlando, are the markets where conversion rates are improving the most.

David Risher: So we are going to do something a little crazy. We are going to open up a can of what that's on prime time. We are starting with innovations focused on those who use it every day commuters. Reliable pricing is particularly important to them because they know what their rides should cost and hate it when prices change. For those riders, we are piloting a new feature called price lock, letting a rider purchase a monthly subscription that caps the price for a specific route at a specific time. Primetime won't ever completely go away. It's an important way to match supply and demand when demand specs quickly.

Speaker Change: <unk>.

Speaker Change: So here, we're going to do something a little crazy, we are going to open up a can of whup <expletive> on prime time.

David Risher: We are going to open up a can of whoop-ass on prime. We are starting with innovations focused on those who use it every day, commuters. Reliable pricing is particularly important to them because they know what their ride should cost and hate it when prices go up. For those riders, we are piloting a new feature called Price Lock, letting a rider purchase a monthly subscription that caps the price for a specific route at a specific time. Primetime won't ever completely go away.

Speaker Change: We are starting with innovation focus on those who use it everyday commuters.

Speaker Change: Reliable pricing is particularly important to them because they know what their ride should cost and hate it when prices change, but those riders. We are piloting a new feature called price lock letting a rider purchased a monthly subscription the caps the price per specific route at a specific time.

Speaker Change: Primetime won't ever completely go away. It is an important way to match supply and demand when demand is back quickly.

David Risher: It's an important way to match supply and demand when demand spikes quickly. But with innovations like price lock, we can chip away at how often it occurs and hopefully take what I'm willing to bet is again, ride shares, the least liked, and most hated feature, and turn it into a reason to choose. Next, I want to switch gears and touch on LYFT Media, which continues to perform well with revenue up more than 70% compared to a year ago. In Q2, we signed deals with 44 new brands, including T-Mobile and Activision, and re-signed several more, including Amazon, Fidelity, and NBCUniversal.

David Risher: But with innovations like price lock, we can chip away at how often it occurs and hopefully take what I'm willing to bet is again rideshare's least like, most hated feature and turn it into a reason to choose Lyft.

Speaker Change: With innovations like price lock, we can chip away and how often it occurs and hopefully take what I'm willing to bet again Rideshare is released like most hated feature and turn it into a reason to choose lyft.

David Risher: Next, I want to switch gears and touch on lift media, which continues to perform well, with revenue up more than 70% compared to a year ago. In Q2, we signed deals with 44 new brands, including T-Mobile and Activision, and we signed several more, including Amazon, Fidelity, and NBC Universe. Russell, our in-app video ads continue to drive interest from brands to power this growth. To case in point, our in-app media revenue grew more than ten times year on year. For all our partners, measuring return on ad spend is critical when they sign and resign, and consistent with our roadmap, will continue to roll out these capabilities for our in-app video ads.

Speaker Change: Next I want to switch gears and touch on Lyft media, which continues to perform well with revenue up more than 70% compared to a year ago.

Speaker Change: In Q2, we signed deals with 44, new brands, including T mobile and Activision and re signed several more including Amazon Fidelity and NBC Universal.

David Risher: Our in-app video ads continue to drive interest from brands to power this growth. As a case in point, our in-app media revenue grew more than 10 times year on year. For all our partners, measuring return on ad spend is critical when they sign and re-sign. And consistent with our roadmap, we're continuing to roll out these capabilities for our in-app video ads.

Speaker Change: Our in App video ads continue to drive interest from brands to power. This growth case in point, our in App media revenue grew more than 10 times year on year.

Speaker Change: For all our partners measuring return on AD spend is critical when they sign and re sign and consistent with our roadmap, we're continuing to roll out these capabilities for our in App video ads.

David Risher: This quarter, we've begun working with three major partners, including Google Campaign Manager, and next quarter, we'll integrate even more. We have a leading team and are building B-right tools to scale this business.

David Risher: This quarter, we've begun working with three major partners, including Google Campaign Manager, and next quarter, we'll integrate even more. We have a leading team and are building the right tools to scale this. Finally, given recent chatter about autonomous vehicles, I want to spend a few minutes outlining how we think. In short, ABs represent an enormous opportunity for. We believe that the best way for autonomous vehicles to be commercialized at real scale and the best way to monetize this technology is through networks where the vehicles can be put to use.

Speaker Change: This quarter, we began working with three major partners, including Google campaign manager and next quarter, we will integrate even more we have a leading team and are building the right tools to scale this business.

David Risher: Finally, given recent chatter about autonomous vehicles, I want to spend a few minutes outlining how we think of them. In short, AVs represent an enormous opportunity for Lyft. We believe that the best way for autonomous vehicles to commercialize at real scale and the best way to monetize this technology is through networks where the vehicles can be put to use. Lyft has that network today. To understand why we're so bullish on AVs, you have to remember that a ride share network is far more than the app you see. On the demand side, Lyft's platform gives access to 40 million riders each year in the US and Canada.

Speaker Change: Finally, given the recent chatter chatter about autonomous vehicles I wanted to spend a few minutes outlining how we think of them.

Speaker Change: In short <unk> represent an enormous opportunity for lift.

Speaker Change: We believe that the best way for autonomous vehicles to commercialize at real scale and the best way to monetize this technology is through networks, where the vehicles can be put to use lyft have that network today.

David Risher: LYFT has that network today. But to understand why we're so bullish on ABs, you have to remember that a rideshare network is far more than the app you see. On the demand side, the LYFT platform gives access to 40 million riders each year in the U.S. and Canada. And on the supply side, it includes a vast set of capabilities for onboarding individually owned vehicles to our platform, making sure every vehicle and ride is properly insured, and offering customer service when things go wrong at scale. And when it comes to fleet management, our FlexDrive subsidiary has given us deep expertise in the easy onboarding, offboarding, and servicing of tens of thousands of fleet vehicles over the years.

Speaker Change: To understand why we're so bullish on <unk> you have to remember that a rideshare network is far more than the App you see.

Speaker Change: On the demand side lift platform gives access to 40 million riders each year in the U S and Canada.

David Risher: And on the supply side, it includes a vast set of capabilities in onboarding individually owned vehicles to our platform, making sure every vehicle and ride are properly insured, and offering customer service when things go wrong at scale. And when it comes to fleet management, our Flex Drive subsidiary has given a deep expertise in the easy onboarding, off-boarding, and servicing of tens of thousands of fleet vehicles over the years. All this is why, in markets like Las Vegas, we've been able to facilitate over 130,000 of AV rides so far, and we are just getting started. Bottom line, our aim is to be the easiest and best way for partners to commercialize AVs.

Speaker Change: And on the supply side and includes a vast set of capabilities and onboarding individually owned vehicles to our platform, making sure every vehicle.

Speaker Change: And ride are properly insured and offering customer service when things go wrong.

Speaker Change: Gail.

Speaker Change: And when it comes to fleet management, our Flex drive subsidiary has given us deep expertise in the easy onboarding off boarding and servicing of tens of thousands of fleet vehicles over the years.

David Risher: All this is why, in markets like Las Vegas, we've been able to facilitate over 130,000 AV rides so far, and we're just getting started. Bottom line, our aim is to be the easiest and best way for partners to commercialize AB. Doing so will help us grow ever faster as ABs come online in the years ahead. Okay, back to 2024. We remain on track for the rest of the year as we continue working towards a long-term healthy business. Q3 is the heart of the summer travel season and the start of back to school and back to work, which means good things for the Pricelot commute customers I just mentioned.

Speaker Change: All of this is why in markets like Las Vegas, we've been able to facilitate over 130000 rides so far and we are just getting started.

Speaker Change: Bottom line, our aim is to be the easiest and best way for partners to commercialize a b's doing so will help us grow ever faster at <unk> come online in the years ahead.

David Risher: Doing so will help us grow ever faster as AVs come online in the years ahead.

David Risher: Okay, back to 2024. We remain on track for the rest of the year as we continue working towards a long-term healthy business. Q3 is the heart of summer travel season and the start of back to school and back to work, which means good things for the price lock to meet customers. As I just mentioned, Aaron will share more on what we expect in the back half of the year in just a second. At Investor Day, we said our next phase of growth is here, and the opportunity we see is great. We are thrilled to have achieved gap profitability of this quarter, and so I want to close by reiterating our long-term foundational thesis: customer obsession drives profitable growth.

Speaker Change: Okay back to 2024, we remain on track for the rest of the year as we continue working towards a long term healthy business.

Speaker Change: Q3 is the heart of summer travel season, and the start of back to school and back to work, which means good things for the price lock can meet customers I just mentioned.

David Risher: Erin will share more on what we expect in the back half of the year in just a moment. At Investor Day, we said our next phase of growth is here. And the opportunity we see is great. We are thrilled to have achieved gap profitability this quarter. And so I want to close by reiterating our long-term foundational thesis: Customer Obsession Drives Profitable Growth. I'm pleased with the progress we've made and confident in the road ahead. Over to you, Erin.

Speaker Change: And we'll share more on what we expect in the back half of the year and just a second.

At Investor Day, We said our next phase of growth is here and the opportunity. We see is great. We are thrilled to have achieved GAAP profitability of this quarter and so I want to close by reiterating our long term foundational thesis.

Speaker Change: Customer obsession drives profitable growth I am pleased with the progress we've shown and confident in the road ahead.

David Risher: I'm pleased with the progress we've shown and confident in the road ahead.

Aaron Brewer: Over to you, Aaron. Thanks, David.

Aaron: Over to you Aaron.

Erin Brewer: Thanks, David. Good morning, everyone.

Aaron Brewer: Good morning, everyone, and thanks for joining us today. As David mentioned, we saw strong results in the second quarter, including our first gap profitable quarter, and we generated significant free cash flow. At our investor day, I highlighted how operational excellence drives growth through more driver hours, more riders on the platform, and riders choosing Lift more frequently. In short, operational excellence underpins the health of our marketplace, and in Q2, we fired on all cylinders. In the second quarter, we had more active riders than ever on our platform, and driver hours hit a new all-time high. Service levels in the second quarter kept improving.

Aaron: Thanks, David and good morning, everyone and thanks for joining us today.

Erin Brewer: And thanks for joining us today. As David mentioned, we saw strong results in the second quarter, including our first GAAP profitable quarter, and we generated significant free cash flow. At our Investor Day, I highlighted how operational excellence drives growth through more driver hours, more riders on the platform, and riders choosing LYFT more frequently.

Aaron: As David mentioned, we saw strong results in the second quarter, including our first GAAP profitable quarter.

Aaron: And we generated significant free cash flow.

Aaron: At our Investor Day, I highlighted how operational excellence drives growth through more driver hours more riders on the platform and writers choosing lift more frequently and short operational excellence underpins the health of our marketplace and in Q2, we fired on all cylinders.

Erin Brewer: In short, operational excellence underpins the health of our marketplace, and in Q2, we fired on all cylinders. In the second quarter, we had more active riders than ever on our platform, and driver hours hit a new all-time high. Service levels in the second quarter kept improving. Average ETAs were more than 10% faster than a year ago and the fastest in four years. And the average prime Time, as measured by the average surcharge added to a ride, declined by more than 25% quarter over quarter. Why is this important?

Aaron: In the second quarter, we had more active riders than ever on our platform and driver hours hit a new all time high.

Aaron: Service levels in the second quarter kept improving <unk>.

Aaron Brewer: Average ETAs were more than 10% faster than a year ago, and the fastest in four years. And the average prime time, as measured by the average surcharge added to a ride, declined by more than 25% quarter over quarter.

Aaron: Average ETA'S, where more than 10% faster than a year ago and the fastest in four years and the average prime time as measured by the average surcharge added to a ride declined by more than 25% quarter over quarter.

Aaron Brewer: Why is this important? It means we continue to perfect our ability to help drivers know when and where they can choose to drive. That's great for drivers and for riders, and also for the long-term health of our platform.

Erin Brewer: It means we continue to perfect our ability to help drivers know when and where they can choose to drive. That's great for drivers and for riders and also for the long-term health of our platform. Now, let's turn to our performance for the quarter, which is consistent with the outlook we provided on our Q1 earnings call on May 7th. I'll start with my usual reminder that, unless otherwise indicated, all income statement measures are non-GAAP and exclude select items that are detailed in our earnings materials.

Aaron: Why is this important it means we continue to perfect our ability to help drivers know when and where they can choose to drive.

Aaron: That's great for drivers and for writers and also for the long term health of our platform.

Aaron Brewer: Now let's turn to our performance for the quarter, which is consistent with the outlook we provided on our Q1 earnings call on May 7th. I'll start with my usual reminder that, unless otherwise indicated, all income statement measures are non-GAAP and exclude select items that are detailed in our earnings materials. We supported 205 million rides and 23.7 million active riders. Total rides grew 15% year over year, and active riders grew 10% year over year, driven by improved retention and higher frequency. Growth bookings exceeded $4 billion, up 17% year over year. This reflects strong rides growth, competitive prices, and lower levels of prime time, given the even faster than expected improvements of the health of our marketplace.

Erin Brewer: We supported 205 million rides and 23.7 million active riders. Total rides grew 15% year-over-year, and active riders grew 10% year-over-year, driven by improved retention and higher frequency. Gross bookings exceeded $4 billion, up 17% year over year. This reflects strong ride growth, competitive prices, and lower levels of prime Time, given the even faster than expected improvements in the health of our marketplace. Revenue exceeded $1.4 billion, up more than 40% year over year. Cost of revenue was $812 million, up 37% year-over-year, driven by higher insurance costs as compared to the prior year and higher ride volume.

Speaker Change: Now, let's turn to our performance for the quarter, which is consistent with the outlook. We provided on our Q1 earnings call on May 7th.

Speaker Change: I'll start with my usual reminder, that unless otherwise indicated all income statement measures are non-GAAP and excludes select items that are detailed in our earnings materials.

Speaker Change: We supported 205 million rides and $23 7 million active riders.

Speaker Change: Total rides grew 15% year over year and active riders grew 10% year over year, driven by improved retention and higher frequency.

Speaker Change: Gross bookings exceeded $4 billion up 17% year over year.

Speaker Change: This reflects strong rides growth competitive prices and lower levels of prime time, given the even faster than expected improvements of the health of our marketplace.

Aaron Brewer: Revenue exceeded $1.4 billion, up more than 40% year over year. Cost of revenue was $812 million, up 37% year over year, driven by higher insurance costs as compared to the prior year and higher ride volume. Operating expenses were $556 million or 13.8% of growth bookings, which was slightly higher than in the first quarter of 2024, mainly driven by sales and marketing, specifically incentives tied to rider engagement.

Speaker Change: Revenue exceeded $1 $4 billion up more than 40% year over year.

Speaker Change: Cost of revenue was $812 million up 37% year over year, driven by higher insurance costs as compared to the prior year and higher ride volume.

Erin Brewer: Operating expenses were $556 million, or 13.8% of gross bookings, which was slightly higher than in the first quarter of 2024, mainly driven by sales and marketing, specifically incentives tied to rider engagement. At our Investor Day on June 6, we shared how we're delivering seamless, dependable customer experiences, which means continually helping drivers know the best time and places to drive to enable them to meet their goals. That, in turn, continues to drive preference, engagement, and retention with our customers and unlocks more efficiencies in the marketplace. Part of running a dynamic marketplace means that we are constantly trading off between contra revenue and sales and marketing incentives to optimize the balance of the marketplace.

Speaker Change: Operating expenses were $556 million or 13, 8% of gross bookings, which was slightly higher than in the first quarter of 2024, mainly driven by sales and marketing specifically incentives tied to rider engagement.

Aaron Brewer: Let me take a moment here to remind you about the way we think about investments in contra revenue and sales and marketing incentives. At our investor day on June 6, we shared how we are delivering seamless, dependable customer experiences, which means continually helping drivers know the best time and places to drive to enable them to meet their goals. That in turn continues to drive preference, engagement, and retention with our customers and unlocks more efficiencies in the marketplace. Part of running a dynamic marketplace means that we are constantly trading off between contra revenue and sales and marketing incentives to optimize the balance of the marketplace.

Speaker Change: Let me take a moment here to remind you about the way, we think about investments in contra revenue and sales and marketing incentives.

Speaker Change: At our Investor Day on June 6th we shared how we are delivering seamless dependable customer experiences, which means continually helping drivers now the best time and places to drive to enable them to meet their goals.

Speaker Change: That in turn continues to drive preference engagement and retention with our customers and unlocks more efficiencies in the marketplace.

Speaker Change: Part of running a dynamic marketplace means that we are constantly trading off between contra revenue and sales and marketing incentives to optimize the balance of the marketplace.

Aaron Brewer: Therefore, it's worth noting that on a combined basis, contra revenue and sales and marketing incentive expenses declined double-digit on a per ride basis compared to Q2 of last year.

Erin Brewer: Therefore, it's worth noting that on a combined basis, contra revenue and sales and marketing incentive expenses declined double-digits on a per ride basis compared to Q2 of last year. Turning now to Adjusted EBITDA. In the second quarter, Adjusted EBITDA was $103 million, which as a percentage of gross bookings was 2.6%, up from 1.2% a year ago, driven by efficiencies in our marketplace and further operating expense leverage. Gap's net income in the second quarter was $5 million.

Speaker Change: Therefore, it's worth noting that on a combined basis contra revenue and sales and marketing incentive expenses declined double digit on a per ride basis compared to Q2 of last year.

Aaron Brewer: Turning out to adjusted EBITDA. In the second quarter, adjusted EBITDA was $103 million, which is a percentage of gross bookings was 2.6%. Up from 1.2% a year ago, driven by efficiencies in our marketplace and further operating expense leverage. GapNet income in the second quarter was $5 million. This marked our first profitable quarter on again. Gap basis, reflecting our focus on operational excellence and cost discipline. This is a very important milestone for the company and consistent with our focus on long-term profitability and sustainability.

Speaker Change: Turning now to adjusted EBITDA.

Speaker Change: In the second quarter, adjusted EBITDA was $103 million, which as a percentage of gross bookings was two 6%.

Speaker Change: Up from one 2% a year ago, driven by efficiencies in our marketplace and further operating expense leverage.

GAAP net income in the second quarter was $5 million.

Erin Brewer: This marked our first profitable quarter on a gap basis, reflecting our focus on operational excellence and cost discipline. This is a very important milestone for the company and consistent with our focus on long-term profitability and sustainability. On that note, as I discussed at our Investor Day in June, we are confident in our ability to achieve sustainable gap profit in the early phase of our long-term planning horizon of 2025 to 2027. Progress won't necessarily be linear, but the overall trajectory is moving to sustainable gap profit.

Speaker Change: This marked our first profitable quarter on a GAAP basis, reflecting our focus on operational excellence and cost discipline.

Speaker Change: This is a very important milestone for the company and consistent with our focus on long term profitability and sustainability.

Aaron Brewer: All that note, as I discussed at our investor day in June, we are confident in our ability to achieve sustainable GAP profit in the early phase of our long-term planning horizon of 2025 to 2027. Progress won't necessarily be linear, but the overall trajectory is moving to sustainable gap profit. We ended the second quarter with a solid cash position, with unrestricted cash, cash equivalents, and short-term investments of approximately $1.8 billion. We generated $256 million of free cash flow in the second quarter, and a total of $368 million of free cash flow over the last four quarters.

Erin Brewer: We ended the second quarter with a solid cash position with unrestricted cash, cash equivalents, and short-term investments of approximately $1.8 billion. We generated $256 million of free cash flow in the second quarter and a total of $368 million of free cash flow over the last four quarters.

Aaron Brewer: Turning now to Q3, we're off to a good start. The team is hard at work on supporting summer festivals and new back to school and commute activations, and focusing on delivering a seamless experience to drivers and riders. For the third quarter of 2024, we expect growth bookings of approximately $4 billion to $4.1 billion, up 13 to 15% year over year, growing slightly faster than rides. We expect adjusted EBITDA of approximately $90 million to $95 million, and an adjusted EBITDA margin as a percentage of growth bookings of approximately 2.3%.

Erin Brewer: Turning now to Q3. We're off to a good start. The team is hard at work on supporting summer festivals and new back to school and commute activations and focusing on delivering a seamless experience to drivers and riders. For the third quarter of 2024, we expect gross bookings of approximately $4 billion to $4.1 billion, up 13 to 15% year over year, growing slightly faster than rider growth. We expect adjusted EBITDA of approximately $90 million to $95 million and an adjusted EBITDA margin as a percentage of gross bookings of approximately 2.3%.

$1 billion up 13% to 15% year over year growing slightly faster than rides.

Speaker Change: We expect adjusted EBITDA of approximately 90 million to $95 million and an adjusted EBITDA margin as a percentage of gross bookings of approximately two 3%.

Aaron Brewer: We are reiterating our expectations for the full year 2024, and continue to expect total rides growth in the mid-teens year over year, with growth bookings to grow slightly faster than rides on a year-over-year basis. We expect an adjusted EBITDA margin as a percentage of growth bookings to be approximately 2.1%.

Erin Brewer: We are reiterating our expectations for the full year 2024 and continue to expect total rides growth in the mid-teens year-over-year, with gross bookings to grow slightly faster than rides on a year-over-year basis. We expect an adjusted EBITDA margin as a percentage of gross bookings to be approximately 2.1%. This outlook includes our current estimate of the impact of third-party insurance contract renewals, which will mostly take effect in the fourth quarter. The final stages of the negotiations are still underway, but at this point, we have good visibility into the outcome.

Speaker Change: We are reiterating our expectations for the full year 2024, and continue to expect total rides growth in the mid teens year over year with gross bookings to grow slightly faster than rise on a year over year basis.

Speaker Change: We expect an adjusted EBITDA margin as a percentage of gross bookings to be approximately two 1%.

Aaron Brewer: This outlook includes our current estimate of the impact of third party insurance contract renewals, which will mostly take effect in the fourth quarter. The final stages of the negotiations are still underway, but at this point, we have good visibility into the outcome. Consistent with our expectations, we believe that the rate of premium increase year over year will be slower than the prior year, reflecting the ongoing work we've done to bend the insurance cost curve through product and safety initiatives aimed at reducing accident frequency and improving settlement outcomes, which our partners are recognizing in our renewal discussion.

Speaker Change: This outlook includes our current estimate of the impact of third party insurance contract renewals, which will mostly take effect in the fourth quarter.

Speaker Change: The final stages of the negotiations are still underway, but at this point, we have good visibility into the outcome.

Erin Brewer: Consistent with our expectations, we believe that the rate of premium increase year-over-year will be slower than the prior year, reflecting the ongoing work we've done to bend the insurance cost curve through product and safety initiatives aimed at reducing accident frequency and improving settlement outcomes, which our partners are recognizing in our renewal discussions. Turning to free cash flow, we're on track to generate positive free cash flow for the full year. And given our strong progress in the first half of 2024 and our increased visibility, we now expect that more than 90% of adjusted EBITDA will convert to free cash flow for the full year 2024.

Speaker Change: Consistent with our expectations, we believe that the rate of premium increase year over year will be slower than the prior year, reflecting the ongoing work we've done to bend, the insurance cost curve through product and safety initiatives aimed at reducing accident frequency and improving settlement outcomes.

Which our partners are recognizing in our renewal discussions.

Aaron Brewer: Turning to free cash flow, we're on track to generate positive free cash flow for the full year, and given our strong progress in the first half of 2024, and our increased visibility, we now expect that more than 90% of adjusted EBITDA will convert to free cash flow for the full year 2024. This means we will reach our long-term conversion target of more than 90% which we articulated at our investor day in June, well ahead of schedule.

Speaker Change: Turning to free cash flow, we're on track to generate positive free cash flow for the full year and given our strong progress in the first half of 2024 and our increased visibility. We now expect that more than 90% of adjusted EBITDA will convert to free cash flow for the full year 2002.

Speaker Change: Four.

Erin Brewer: This means we will reach our long-term conversion target of more than 90 percent, which we articulated at our Investor Day in June, well ahead of schedule. With that, I'll bring our prepared remarks to a close. We had a solid second quarter, and we have strong momentum going into the back half of the year and beyond. We remain focused on building a long-term healthy business. Our focus on operational excellence, product innovation, and partnerships, and media will continue to grow preference, engagement, and retention with drivers, riders, and our partners. Operator, we're ready to take questions.

Speaker Change: This means we will reach our long term conversion target of more than 90%, which we articulated at our Investor day in June well ahead of schedule.

Aaron Brewer: With that, I'll bring our prepared remarks to a close. We had a solid second quarter, and we have strong momentum going into the back half of the year and beyond. We remain focused on building a long-term, healthy business.

With that I'll bring our prepared remarks to a close we had a solid second quarter and we have strong momentum going into the back half of the year and beyond.

Speaker Change: We remain focused on building a long term healthy business.

Aaron Brewer: Our focus on operational excellence, product innovation, and partnerships and media will continue to grow preference, engagement, and retention with drivers, riders, and our partners.

Speaker Change: Our focus on operational excellence product innovation and partnerships and media will continue to grow preference engagement and retention with drivers riders and our partners.

Operator: Operator, we're ready to take questions. Thank you. If you have dialed in and would like to ask a question, please press star one on your telephone keypad to raise your hand and join the queue. To withdraw your question, press star one again.

Speaker Change: Operator, we're ready to take questions.

Speaker Change: Thank you.

Operator: If you have dialed in and would like to ask a question, please press star 1 on your telephone keypad to raise your hand and join the queue. To withdraw your question, press star 1 again. If you are dialed in and listening via loudspeaker on your device, please pick up your handset and ensure that your phone is not on mute when asking your question. Our first question comes from Doug Anmuth with J.P. Morgan. Please go ahead.

Operator: If you're dialed in and listening to a loudspeaker on your device, please pick up your handset and ensure that your phone is not on mute when asking your question.

Doug Amis: Our first question comes from the line of Doug Amis with JP Morgan. Please go ahead. Thanks so much for taking the questions.

Doug Anmuth: Thanks so much for taking the questions. I have two.

David Risher: First, can you talk more about how the economics will work on price lock? What kinds of use cases do you anticipate? And generally, what kind of evidence gives you the confidence in rolling this out? And does it play into the 3Q outlook, if at all? And then also, if you could talk a little bit about just the balance in the marketplace, record high supply, and driver hours. Talk more about the transition that you're making as you shift incentives from drivers to riders and the impact that you're seeing there. Thanks.

David Risher: First, can you talk more about how the economics will work on price lock and what kind of use cases you anticipate and generally what kind of what gives you the confidence and rolling this out and does it play into the three queue outlook.

David Risher: If at all, and then also if you could talk a little bit about just balance on the marketplace, record high supply and driver hours to talk more about the transition that you're making as you shift incentives from drivers to riders and the impact that you're seeing there. Thanks.

David Risher: Yeah, hey, Doug. It's David.

David Risher: Yeah, hey, Doug, it's David. Why don't maybe Erin and I will tag team on this one?

Aaron Brewer: Why don't maybe Aaron and I will tag team on this one. Aaron, why don't you take the second part, and then I'll talk about price lock. Yeah, the second part, the driver, Doug, your question was around driver rider or contra revenue versus marketing and so on and so on. Yeah, I think it appears. Yeah, yeah, sure. I'm happy to take that. As we mentioned in our prepared remarks, you know, we've been extremely pleased with the progress that we've made. And it's been a concerted effort over the last four quarters. If you think about the effort around driver earnings commitment, for example, along with many other initiatives that have helped really increase driver engagement on the platform.

Erin Brewer: Erin, why don't you take the second part and then I'll talk a little bit about it. You take the second part, but driver, Doug, your question was around driver, rider, contra revenue versus marketing, and so on and so on. Yeah, I think that's right there. Yeah.

Erin Brewer: Yeah, yeah, sure. Happy to take that.

Erin Brewer: As we mentioned in our prepared remarks, you know, we've been extremely pleased with the progress that we've made. And it's been a concerted effort over the last four quarters. If you think about the effort around driver earnings commitment, for example, along with many other initiatives that have helped really increase driver engagement on the platform, and then also, you've seen us continue to invest on the rider side and in specific activations for product launches.

Aaron Brewer: And then also you've seen us continue to invest on the rider side and against specific activations for product launches. And we've seen great progress there. We've seen new riders increase. We've seen retention increase, and so we've been really pleased with the outcome of those investments, which gives us confidence as we think about investments for the future.

Speaker Change: And then also you've seen us continue to invest on the rider side and against a specific activations for product launches and we've seen great progress. There we've seen new riders increase we've seen retention increase and so we've been really pleased with the outcome of those investments which gives us confidence.

Erin Brewer: And we've seen great progress there. We've seen new riders increase, and we've seen retention increase. And so we've been really pleased with the outcome of those investments, which gives us confidence as we think about investments for the future.

Speaker Change: As we think about investments for the future.

David Risher: And then I'm price lock.

David Risher: Then on price talk, I'll get to the economics in a second. But first, what's the basic value proposition? So, as Erin just said, drivers, we've got great supply, and they really like what they see with transparency and consistent earnings. So, then the question becomes on the rider's side, what can we do to make the product even better and the service even better? And people just don't love the variability, right? They don't love the idea. In fact, actually, I'll tell you a very specific story very briefly.

Speaker Change: And then on price book I'll get to the economics and the second the first what's the basic value proposition. So as Aaron just said on drivers, we've got great supply and they really like what they see with transparency with consistent earnings and so forth.

David Risher: I'll get the economics in a second, but first, what's the basic value proposition? So, as Aaron just said, on drivers, we've got great supply, and they really like what they see with transparency, with consistent earnings and so. So then the question becomes, on the rider side, what can we do to make the product even better and the service even better, and people just don't love the variability, right? They don't love the idea.

Speaker Change: So then the question becomes on the rider side, what can we do to make the product even better and the service even better and people just don't love the variability right. They don't love the idea in fact actually I'll tell you, it's very specifics towards Super briefly. So there was a woman I picked up as a driver myself a couple of months ago.

David Risher: In fact, actually I'll tell you I was very specific story super briefly, so there was a woman I picked up as a driver myself a couple of months ago. And she said like every morning she'll wake up early and see whether her commute from Sauce, Lido into San Francisco is $25.30, $35, you know, even more. And if it's 20 to 25, she'll definitely take a lift. If it's more, sometimes she will; sometimes she will. If it's too much, she'll drive and so forth. So people really don't care for it.

David Risher: So there was a woman I picked up as a driver myself a couple of months ago in Sausalito, and she said that every morning she'd wake up early and see whether her commute from Sausalito into San Francisco is $25, $30, $35, you know, or even more. And if it's 20 to 25, she'll definitely take a Lyft. If it's more, sometimes she will, sometimes she won't. And if it's too much, she'll drive, and so forth.

Speaker Change: In Sausalito and she said like every morning, she'll wake up early and see whether the community from Sausalito into San Francisco was $25 30 to $35 or even more and if it's 20 to 25, but it will definitely take a lift if it's more sometimes youre welcome time, she won't if it's too much she'll drive and so forth. So.

David Risher: So people really don't care for it. So Pricelock, the idea is that you pay a subscription fee. We're still trying to figure out the exact economics of it, but you know it'll definitely be under five bucks a segment, for sure. And you lock in a price, and that price is meant to both save you money but, maybe more importantly, give you predictability over time. And like anything else, it'll be something that takes a couple quarters to sort of work its way through the system.

David Risher: So price talk. The idea is you pay a subscription fee. I was still trying to figure out the exact economics of it. You know, it'll definitely be under $5 segment for sure. And you lock in a price. And that price is meant to both save you money, but also, maybe more importantly, give you predictability over time. And like anything else, it'll be something that takes a couple quarters to sort of work. So we do the system. It's definitely in our forecast; our outlook. Of course, because we're driving down PT that has a little bit of an impact on bookings, right?

Speaker Change: We really don't care for them. So price stock. The idea is you pay a subscription fee or we're still trying to figure out the exact economics of it it will definitely be under five Bucks segment for sure.

Speaker Change: And you lock in a price and that price is meant to both save you money, but also maybe more importantly give your predictability over time and like anything else that'll be something that takes a couple of quarters to sort of work its way through the system, it's definitely in our forecast or outlook.

David Risher: It's definitely in our forecast, and our outlook. Of course, because we're driving down PT, that has a little bit of an impact on bookings, right? Because PT shows up in bookings. But that's okay, because that's how you drive growth because you get your prices to be more consistent. And then we like the economics of it, medium to long term, and, you know, stay tuned; we're super excited about it. We've been in testing mode for about a month now. It's available to everyone right now. If you open up your LYFT app, look at it, it's right in the menu, the hamburger menu, and lock in your price, I think you'll like the experience.

Speaker Change: Of course, because we're driving down PT that has a little bit of an impact on bookings right because PT shows up in bookings, but that's okay. Because that's how you drive growth as you get your prices to a more consistent way.

David Risher: Because PT shows up on bookings, but that's okay because that's how you drive growth as you get your prices to a more consistent way. And then we like the economics of it medium to long term.

Speaker Change: And then we liked the economics of it medium to long term and.

David Risher: And, you know, stay tuned. Super excited about it.

Speaker Change: Stay tuned we're super excited about it we've been in testing mode for about a month now, but it's available to everyone right. Now if you open up your lift out look at the menu it'll hamburger menu and not lock in your prices and then collect experience.

David Risher: We've been in testing mode for about a month now, but it's available to everyone right now. If you open up your lift app, look at it's right in the menu, the hamburger menu, and lock in your price. I think you'll like the experience.

Unknown Executive: Thank you.

Speaker Change: Thank you.

Ken Gorowski: Our next question comes from the lot.

Operator: Our next question comes from the line of Ken Gawrelski with Wells Fargo. Please go ahead.

Speaker Change: Our next question comes from the line of Ken Goralski with Wells Fargo. Please go ahead.

Ken Gorowski: Can you find a Ken Gorowski with Wells Fargo? Please go ahead. Yes, thank you so much.

Ken Gawrelski: Yes, thank you so much. A couple for me, please.

Ken Goralski: Yes. Thank you so much couple for me please first.

Aaron Brewer: A couple for me, please. First, I appreciate the color on insurance, although I think if I recall, the 17% increase per ride that you announced for the last renewal. Could you just give it a little bit more color? You said it will moderate from there. Just I, and I know the negotiations are not complete. But maybe there's a lot of room there between 17. And kind of 1% or so. So if you could give us a sense of just the kind of magnitude of moderation there.

Ken Goralski: I appreciate the color on insurance, although I think if the if I recall the 17%.

Erin Brewer: First, I appreciate the color on insurance. Although, if I recall the 17% increase per ride that you announced for the last renewal, could you just give it a little bit more color? You said it would moderate from there, and I know the negotiations are not complete, but maybe there's a lot of room there between 17% and 1% or so. So could you give us a sense of just the magnitude of moderation there?

Speaker Change: Increase for <unk>.

Speaker Change: Ride that you announced for the last renewal could you just give a little bit more color. You said it will moderate from there just and I know the negotiations are not complete, but maybe theres a lot of room, there between 2017 and kind of 1% or so.

Speaker Change: So if you could give us a sense of just the kind of magnitude of.

Speaker Change: Moderation there.

Aaron Brewer: And then, and then maybe just a second, if you could just touch on what you're seeing on any kind of cyclical elements. Either, you know, through restaurants or, you know, that kind of entertainment side of in from a ride case or, or airport rides. If you could just talk about what any impacts you might be seeing there, given the plethora of weaker consumer data points. Thank you.

Speaker Change: And then.

Erin Brewer: And then maybe just a second, if you could just touch on what you're seeing on any cyclical elements, either through restaurants or that kind of entertainment side from a ride case or airport rides, if you could just talk about any impacts you might be seeing there, given the plethora of weaker consumer data points. Thank you.

Speaker Change: And then maybe just a second if you could just touch on what Youre seeing.

Speaker Change: Any kind of cyclical elements.

Speaker Change: Either through restaurants or.

Speaker Change: That kind of entertainment side.

Speaker Change: And from a ride case or our airport.

Speaker Change: Right. If you could just talk about any impacts you might be seeing there given the.

Speaker Change: The plethora of weaker consumer data points. Thank you.

Speaker Change: Okay.

Aaron Brewer: I can thanks so much for the question.

Erin Brewer: Hi Ken, thanks so much for the questions. I'll start off with the first one on insurance. And let me just start off by saying that we have a great team, and they are doing a great job with respect to our insurance portfolio. I've been really impressed to see the progress that we've made. And you heard a little bit about our roadmap for product and safety initiatives aimed at reducing accident frequency, both what we achieved today and what we expect to achieve going forward, as we highlighted at our investor day.

Speaker Change: Hi, Ken Thanks, so much for the question I'll start off with the first one around insurance and let me just start off by saying we have a great team and they are doing a great job with respect to our insurance portfolio.

Aaron Brewer: I'll start off with the first one around insurance. And let me just start off by saying we have a great team. And they are doing a great job with respect to our insurance portfolio. I've been really impressed to see the progress that we've made. And you heard a little bit about our road map on product and safety initiatives aimed at reducing accident frequency, both what we achieved to date and what we expect to achieve going forward, as we highlighted at our investor day. And we also talked about the importance of our partners and how critical our partners have been to us over the years, how closely we work with them, and I am extremely pleased to see that recognition and that progress.

Erin Brewer: And we also talked about the importance of our partners and how critical our partners have been to us over the years, how closely we work with them, and how pleased we are to see that recognition and that progress. And it's getting reflected in our renewal rate. So I'm not going to give you a specific number, Ken, because we are in the final stages here. But if you think about it in the context of last year, so last year in the fourth quarter of 2023, we talked about insurance cost increases.

Aaron Brewer: And it's getting reflected in our renewal rate.

Aaron Brewer: So I'm not going to give you a specific number can because we are in the final stages here. But if you think about it in context of last year. So last year in the fourth quarter of 2023, we talked about insurance cost increases. We talked about it on a sequential basis. We said from Q3 to Q4 last year that it was about $100 million, which, if you take it sort of straight over the rise, was about 15%. And so we fully expect that to be lower. It is embedded in the reiteration of our full year guidance that we outlined today.

Erin Brewer: We talked about it on a sequential basis. We said from Q3 to Q4 last year that it was about $100 million, which if you take it sort of straight over, the rise was about 15%. And so we fully expect that to be lower. It is embedded in the reiteration of our full-year guidance that we outlined today. So, just bottom line, really pleased and we're on a very good path. Kudos to the team here at LYFT.

Aaron Brewer: So just bottom line really pleased and weren't a very good path.

Aaron Brewer: Kudos to the team here at last.

David Risher: And then Ken, on your question of sort of consumer sentiment. So, make picture; we're seeing strength across the board, right? That's the big picture. And it's interesting. I mean, we all read the same newspaper articles and so forth. I think maybe people are a little attuned to pick up bad news, but frankly, we see people go into concerts and events, and so forth and so on. So the sorts of things that people do when they're actually feeling pretty good about their prospects are rather than the other way around.

David Risher: And then, Ken, on your question about sort of consumer sentiment, so big picture, we're seeing strength across the board, right? That's the big picture. And it's interesting. I mean, we all read the same newspaper articles and so forth. I think maybe people are a little attuned to pick up bad news.

David Risher: I'll give you a little bit more data on a couple sort of sub segments. So, for example, we call party rides kind of Friday Saturday at rides late night after I think after five o'clock through midnight or maybe later depending on your definition of a party. Anyway, and there we saw I think about 19% growth year on year, which obviously is a little faster than some of our other segments. Then when you sort of go a little bit deeper, you start to see some regional differences. For example, on the west coast, there's still actually a little bit more commute action and growth than in the rest of the country because, again, it's sort of growing off of the base.

David Risher: But frankly, we see people going to concerts and events and so forth and so on. The sorts of things that people do when they're actually feeling pretty good about their prospects, rather than the other way around. I'll give you a little bit more data on a couple sort of subsegments. So, for example, we call party rides kind of Friday and Saturday night rides, late night after I think it's after five o'clock through midnight, or maybe later, depending on your definition of a party anyway.

David Risher: And there we saw, I think, about 19% growth year on year, which is obviously a little faster than some of our other segments. But then when you sort of go a little bit deeper, you start to see some regional differences. For example, on the West Coast, there's still actually a little bit more commute action and growth than in the rest of the country because, again, it's sort of growing off of the base. It was a little bit depressed, you know, post-pandemic.

Speaker Change: Before you start to see some regional differences for example in the West Coast Theres still actually a little bit more commute action and growth than in the rest of the country. Because again, it's sort of growing off of a base was a little bit depressed.

David Risher: It was a little bit depressed. You know, post-pandemic. So, but these are frankly fairly minor variations, and the grand scheme of things were, you know, we're seeing growth across the board.

David Risher: So these are, frankly, fairly minor variations in the grand scheme of things. We're, you know, seeing growth across the board. I'll mention airports, and again, airports are quite interesting. Now, they're always seasonally higher in Q2 than in Q1, just because travel is beginning. I will say that non-airport rides grew a little bit faster than airport rides this quarter, but again, it's really nothing significant. We're seeing pretty good strength across the board. And a lot of people, you know, they rely on ride share, and it doesn't really change too much, at least from what we've seen.

Speaker Change: Post pandemic, so but these are frankly fairly minor variations in the Grand scheme of things, where we're seeing growth across the board I mentioned I will mentioned airports and again airports.

David Risher: I'll mention; I will mention airports, and again, airports are quite interesting. Now, they're always seasonally higher in Q2 than in Q1 just because travel is beginning. I will say that non-airport rides grew a little bit faster than airport rides this quarter, but again, it's really nothing significant. We're seeing pretty good strength across the board. And a lot of people, you know, they rely on rideshare. And it doesn't really change too much of these from what we can tell. And can I might just jump in and out.

Speaker Change: Interesting now.

Speaker Change: They are always seasonally higher in Q2 than in Q1, just because travel is beginning I will say that non airport rides grew a little bit faster than airport rides this quarter, but again its really nothing significant we're seeing pretty good strength across the board and a lot of people.

Speaker Change: Rely on rideshare and.

Ken Goralski: It doesn't really change too much at least from what we can tell and Ken I might just jump in and out I know your question is around use cases, but obviously Tom.

Erin Brewer: And Ken, I might just jump in and out. I know your question is around use cases. But obviously, talking about our guidance for gross bookings, growth of 13 to 15% year over year for the third quarter. And as a reminder, we talked about gross bookings growing slightly faster than rides. I just want to highlight that in our prepared remarks, we talked about prime time coming down significantly in the second quarter, even faster than our expectations.

Aaron Brewer: I know your question is around use cases. But obviously talking about our guidance for growth bookings, growth of 13 to 15% year over year for the third quarter. And, as a reminder, we talked about growth bookings growing slightly faster than rides. I just want to highlight in our prepared remarks. We talked about prime time coming down significantly in the second quarter, even faster than our expectations. And we see that continuing into the third quarter. Remember, that's a really good sign of the health of our marketplace and consistent with our focus efforts over the past year to drive preference with drivers.

Ken Goralski: Looking about our guidance for gross bookings growth of 13% to 15% year over year for the third quarter and as a reminder, we talked about gross bookings growing slightly faster than rides I just want to highlight in our prepared remarks, we talked about prime time coming down significantly in the second quarter, even faster than our expectations and we see.

Ken Goralski: See that continuing into the third quarter remember that's a really good sign of the health of our marketplace and consistent with our focused efforts over the past year to drive preference with drivers.

Erin Brewer: And we see that continuing into the third quarter. Remember, that's a really good sign of the health of our marketplace and consistent with our focused efforts over the past year to drive preference with drivers. Primetime coming down will have an impact on gross bookings per ride. And so, again, consistent with what we said before, we expect gross bookings will grow slightly faster than rides, probably with an emphasis on the slightly, given that dynamic of gross bookings per ride. But really, really pleased with the dynamics and the health of the marketplace. You heard us talk about some of the all-time highs in the second quarter. So we feel like we're in good shape there.

Aaron Brewer: Prime time coming down will have an impact on gross bookings per ride. And so again, consistent with what we said before, we expect gross bookings will grow slightly faster than rides, probably emphasis on the slightly given that dynamic of gross bookings per ride. But really, really pleased with the dynamics and the health of the marketplace. You heard us talk about some of the all-time highs in the second quarter. So we feel like we're in good shape there.

Operator: Helpful caller, thank you so much. Our next question comes from the line of Michael McGovern with Bank of America. Please go ahead. Hey, thanks for taking my question. Um, I was curious about Pricelock if there might be some.

Unknown Executive: Hopefully, color. Thank you so much.

Michael Mcgovern: Our next question. I'm from the line of Michael McGovern with Bank of America. Please go ahead. Hey, thanks for taking my question.

Michael Mcgovern: Our next question comes from the line of Michael McGovern with Bank of America. Please go ahead.

Michael Mcgovern: I was curious for price lock if there might be some effect of having kind of a headwind to wait and save mix because of that price cap.

Michael Mcgovern: And are those two products kind of overlapping a little bit in that lower price point segment category? And to that end, just curious what we didn't save mix looks like at this point and kind of the unit economics of that lower price point offering and any impact that that's having.

David Risher: Yeah, it's a good question. You know, they don't really compete with each other, and it's yeah, so waiting table has been stable, and even during our tests and stuff, it's actually, you know, great product. We continue to love it. And it's great for when people want to deal. It turns out for commute. The variability around waiting isn't so much what people, you know, want, right. They kind of need to get to the office of certain time. And so, so I wouldn't say the two compete with each other, per se. I really do believe price lock is sort of an unlock about it just, it just takes the frustration away.

David Risher: Yeah, it's a good question. You know, they don't really compete with each other.

David Risher: And it's, yeah, so the waiting table has been stable. And even during our tests and stuff, it's actually, you know, a great product; we continue to love it. And it's great for when people want a deal. But it turns out that for commuters, the variability around waiting isn't so much what people, you know, want, right? They kind of need to get to the office at a certain time. And so, I wouldn't say the two compete with each other, per se.

David Risher: I really do believe price lock is sort of an unlock of a, it just, it just takes the frustration away. And I think, if you want to think about it, maybe competitively, I think what a lot of people do in the morning is they'll check, you know, multiple apps. And, you know, we want to give them, frankly, less reason to check out the other guy and more reason to say, you know what? I've made an investment.

Aaron Brewer: And I think to do want to think about it may be competitively. I think what a lot of people do in the morning is they'll check, you know, multiple apps. And you know, we want to give them frankly less reason to check, you know, the other guy and more reason to say, you know what I've made an investment. And it's relatively small, as we say, a couple, you know, three to five bucks and like that. And that's going to give me consistency. So I think waiting table is more about sort of trading off time and money.

David Risher: And it's relatively small, as we say, a couple, up to, you know, three to five bucks on my guy. And that's going to give me consistency. So I think waiting and saving is more about sort of trading off time and money. This one is actually more about paying a little bit of a subscription fee to get a very, very consistent experience, day in and day out for 30 days.

Aaron Brewer: This one is actually more about, you know, paying a little bit of money and a subscription fee to get a very, very consistent experience, you know, day in and day out for 30 days.

Aaron Brewer: And Michael, I'll just add on to that and emphasize that as you think about our overall mix, if you will, of our modes, that has remained stable. We are not seeing changes there. And then all of our modes contribute to the growth and our profitability. Thank you.

Erin Brewer: And Michael, I'll just add on to that and emphasize that as you think about our overall mix, if you will, of our modes, that that has remained stable. We are not seeing changes there. And then all of our modes contribute to growth and our profitability.

Ken Goralski: All of our modes contribute to the growth in our profitability.

Speaker Change: Got it thank you.

Brian Nowak: Our next question comes from the line of Brian Nowak with Morgan Stanley. Please go ahead. Great. Thanks for the questions. I have a couple.

Speaker Change: Okay.

Operator: Our next question comes from the line of Brian Nowak with Morgan Stanley. Please go ahead.

Speaker Change: Our next question comes from the line of Brian Nowak with Morgan Stanley. Please go ahead.

Brian Nowak: Great. Thanks for taking my questions. I have a couple.

Brian Nowak: Great. Thanks, taking my questions I have a couple the first one if you sort of go back to the analyst day, and the multi year bookings guidance in the mid teens.

Brian Nowak: The first one, if you sort of go back to the analyst day and the multi-year bookings guidance in the mid teens, as you're sort of thinking through prime time coming down and not price lock. As they've been changed about sort of your visibility and kind of the drivers of that mid teens growth.

Brian Nowak: Just sort of thinking through a prime has been coming down in price lock has anything changed about sort of your your visibility and kind of the drivers of that mid teens growth and then the second one and this is sort of a.

Aaron Brewer: Then the second one, Erin, this is sort of a, it's kind of a math question on the Kager. As we're thinking about this 24 to 27 bookings Kager in the mid teens, a lot of times Kager as they started a higher number than they go into a lower number. The way you guys built this out, is it more sort of like you see a lot of drivers to just consistently stay in this mid-teens range each year as opposed to sort of decelerate over the course of those years and end up at a multi-year Kager in the mid-teens.

Erin Brewer: The first one, if you sort of go back to analyst day and the multi-year bookings guidance in the mid-teens, as you're sort of thinking through prime Time coming down and now price lock, has anything changed about your visibility and kind of the drivers of that mid-teens growth? And the second one, Erin, this is sort of a math question on the CAGR. As we're thinking about this 24 to 27 bookings CAGR in the mid-teens, a lot of times, CAGRs start at a higher number, and they go on to a lower number.

Speaker Change: It's kind of a math question on the CAGR.

Speaker Change: It was as we're thinking about this 24 to 27 bookings cater in the mid teens, yeah, a lot of times a CAGR as they started a higher number and then go on to a lower number the way you guys. Built this out is it more sort of like you see a lot of drivers to just consistently stay in this mid teens range each year as opposed to sort of decelerate over the course of the year.

Erin Brewer: The way you guys built this out, is it more sort of like you see a lot of drivers just consistently stay in this mid-teens range each year, as opposed to sort of, you know, decelerate over the course of those years and end up at a multi-year CAGR in the mid-teens? Can you just help us with the trajectory that you've drawn up on that CAGR?

Speaker Change: And up at a multi year CAGR in the mid teens can you just help us kind of the trajectory that you've drawn up on that CAGR.

Aaron Brewer: Can you just help us in kind of the trajectory that you've drawn up on that Kager? Yeah, sure, Brian.

Erin Brewer: Yeah, sure, Brian, I'll start and then I'll turn it over to David to chat more about some of the long-term growth drivers we articulated at Investor Day. So as it relates to the trajectory, I would say overall, we've thought about it as relatively steady. Now you have to understand that given that there will be points along the way where, for example, you heard us really talk and dig deep into partnerships and our strong ability to partner and the runway that we felt like we had to grow partnerships. That's just one example.

David: Yeah sure, Brian I'll start and then I'll turn it over to David to.

David Risher: I'll start, and then I'll turn it over to David to chat more about some of the long-term growth drivers we articulated at Investor Day. So, as it relates to the trajectory, I would say overall we thought about it as relatively steady. Now you have to understand that, given that there will be points along the way. For example, you heard us really talk and dig deep into partnerships and are our strong ability to partner and the runway that we felt like we had to grow partnerships. That's just one example. And so you can imagine along that trajectory of that multi-year plan that in any given period of time maybe as a partnership ramps up that you could see a different cadence there.

David: Chat more about some of the long term growth drivers, we articulated at Investor day.

David Risher: And so you can imagine along that trajectory of that multi-year plan that in any given period of time, maybe as a partnership ramps up, that you could see a different cadence there. So I'm just giving you a little bit of color to emphasize that it's not always an incredibly straight line. But no, we did not envision it with a particular slope at the front or the back end. So I would say, stepping back, you can think about it as relatively steady.

David Risher: So I'm just giving you a little bit of color to emphasize that it's not always an incredibly straight line. But no, we did not envision it with a particular slope at the front of the back end. So I would say, stepping back, you can think about it as relatively steady.

David Risher: Yeah, and I'll piggyback on Erin's comments and maybe even zoom out a little bit. You know, I It's so tempting to sort of think about, you know, short-term things and so forth. But, you know, we're really thinking about this business in a long-term way. We really are, right? Remember, one other thing you said at Investor Day is that there are 160 billion rides every year that people take in private vehicles in North America alone.

David Risher: Yeah, and I'll piggyback on Aaron's comments and maybe even zoom out a little bit.

David Risher: You know, I. It's so attempting to sort of think about, you know, short term things and so forth. But, you know, we're really thinking about this business in a long-term way. We really are, right. Remember that one other thing you said at Investor Day is there are 160 billion billion rides every year that people take in private vehicles in North America alone. So we're very focused on what are the fundamental drivers going to get more people, you know, not using their personal vehicle because it's hard to park, because it's complicated in their lives. Why not let someone else drive, you know, a good price pick me up exactly on time, take me where I want to go, and so forth.

David Risher: So we're very focused on what are the fundamental drivers. They're going to get more people, you know, not using their personal vehicle because it's hard to park, because it's complicated in their lives. Why not let someone else drive for a good price, pick me up exactly on time, take me where I want to go and so forth.

David Risher: So that's really our focus. And that's why we're so excited to see our service metrics so great. You know, quickest pickup times we've had a long time, you know, great pricing, great service levels, and so forth. So then, you know, so so so given that context and Aaron just said, like, we're not really thinking of a deceleration over time or anything like that. We're thinking, gosh, this is a gigantic market, and we're super, super well positioned for it.

David Risher: So that's really our focus, and that's why we're so excited to see our service metrics. Great, you know, the quickest pickup times we've had in a long time, great pricing, great service levels. So then, you know, given that context, as Erin just said, like, we're not really thinking of a deceleration over time or anything like that.

David Risher: We're thinking, gosh, this is a gigantic market and we're super, super well positioned for it. Then, you know, zooming in or clicking on one level, if you think of investor day, again, we talked a lot about customer obsession and certainly around innovation, new products like price lock, which really takes some of the pain away and makes it an even better value proposition. We think about our partnership strategy, again, as Erin just mentioned, and we're seeing, you know, great, great momentum there, particularly on the media side.

David Risher: Then, you know, zooming in or clicking on one level, if you think of Investor Day again, we talked a lot about customer obsession and certainly around innovation, new products like Price Lock, which really takes some of the pain away and make it an even better value proposition. We think about our partnership strategy, again, as Erin just mentioned, and we're seeing great, great moments in there, particularly on the media side. As a quick aside, we just signed; we signed with Disney, but I think it's wonderful. We're the official red share provider of Walt Disney World Resort, and it's a great experience, and they just resigned for another bunch of years.

David Risher: As a quick aside, we just signed a new contract with Disney, which I think is wonderful. We're the official ride share provider of Walt Disney World Resort, and it's a great experience. And they just re-signed for another bunch of years. It actually includes a media buy, which is fantastic. And they're a company that doesn't, you know, partner with companies that don't have a similar view around customer obsession and growth. So anyway, that whole kind of partnership piece is super, super important in our media business.

David Risher: It actually includes the media by which is fantastic, and their company that doesn't, you know, partner with companies that don't have a similar view around customer obsession and growth. So anyway, that whole kind of partnership piece is super, super important, and our media business.

David Risher: So anyway, I'm kind of expanding a little bit beyond what you said, but we feel really good about how we're positioned. And we just, we just keep looking, you know, a couple of years out, as Erin just said, we've got, you know, we're very confident in our guidance, not just for the year, but frankly, for the next, through 2027.

David Risher: So anyway, I'm kind of expanding a little bit beyond what you said, but we feel really good about how we're positioned, and we just, we just keep looking, you know, a couple of years out. As Erin just said, we've got, you know, we're very confident in our guidance, not just for the year, but for the next, you know, through 2027.

Brad Erickson: Thank you. Our next question comes from the line of Brad Erickson with RBC Capital Markets. Please go ahead.

Brian Nowak: Thank you.

Operator: Our next question comes from the line of Brad Erickson with RBC Capital Markets. Please go ahead.

Speaker Change: Our next question comes from the line of Brad Erickson with RBC capital markets. Please go ahead.

Brad Erickson: Hey, thanks. I have to first, can you just expand on that point with prime time coming down, and can you mention price lock too? I think the, I guess the implied guidance for Q4 aims to kind of improve off of what you just gave for Q3. Why would that be the case, if that's the right inference, or why wouldn't it? That's the first question in a second on the topic of A.V.

Brad Erickson: Hey, thanks. I have two.

Brad Erickson: Hey, Thanks to Bruce can you just expand on that point with primetime coming down and I think you mentioned price locked too, but I think the I guess the implied guidance for Q4 aims to kind of improve off of.

Speaker Change: What you just gave for Q3, what would that be the case, if that's the right and prints or why it wouldn't.

That's the first question and the second on the topic of AAV can.

David Risher: Can you talk about the text that you have in place to work with maybe different partners over time? Does anything platform-wise need to be built for that, or is it easier, if and as those players come to market and any partnerships, we can kind of think about there. Thanks.

Speaker Change: Can you just talk about the tech that you have in place to work with maybe different partners over time does that mean.

Speaker Change: Platform wise need to be built for that or is it an easier lift if and as those players come to market in any partnerships. We can kind of think about there. Thanks.

David Risher: I want to start with the A.V. question a little bit, we'll just do this in reverse order just for fun. So let's, I want to talk about A.V.s for just a minute, because it's such a hot topic.

David Risher: First, can you just expand on that point with primetime coming down? And I think you mentioned price lock, too. I think the implied guidance for Q4 aims to kind of improve on what you just gave for Q3. Why would that be the case, if that's the right inference, or why wouldn't it be?

Speaker Change: I wanted to start with the Avi question, a little bit we'll just do this in reverse order just for just for fun. So I want to talk about <unk> for just a minute because it's such a hot topic. So to answer your question directly there is an enormous amount of tech that we already have built that we've already used and then we'll continue to leverage in new ways and let's break it down for a couple of.

David Risher: So, to answer your questions directly, there is an enormous amount of tech that we already have built, that we've already used, and then we'll continue to leverage in new ways. And let's break it down for a couple of seconds. So we have this very large platform; we do two million rides a day. In order to make those two million rides a day happen, of course we have to bring drivers onto the platform all the time. Every one of those drivers, when we have over 1 million active drivers over the course of the year, every one of those drivers has a car.

Speaker Change: So.

Speaker Change: Yeah.

David Risher: Every one of those cars needs to be and drivers need to be onboarded in various different ways, different checks, and so on and so forth to make sure they qualify. And then obviously a whole bunch of support along the way; they have to get paid, they have to get insured. They've got to make sure that they've got the man 24 hours a day, seven days a week. So these are all sort of the things that we built into the general platform. And then specifically when it comes to A.V.s, and we've done this, we said about 130, or actually over 130,000 rides in Las Vegas alone. It's all about sort of API level integration with AP with autonomous vehicle vendors.

David Risher: That's the first question. And second, on the topic of AVs, can you just talk about the tech that you have in place to work with maybe different partners over time? Does anything platform-wide need to be built for that? Or is it an easier lift, if and as those players come to market, and any partnerships we can kind of think about there? Thanks.

David Risher: That sort of integration is, you know, it's quite technically difficult, right? It all looks simple on the app, but behind the scenes all sorts of back and forths are happening. But we have a lot of experience doing that. And as I said, we've got, you know, so anyway, we'll build on exactly that experience.

David Risher: And then the last thing I'll say is, you know, when you look at how A.V.s are likely to enter these sorts of platforms, some of them will be owned by individuals, maybe be putting their car on the platform after hours when they're not being used. And some of them will come in the form of fleets, right? Entire companies that will buy up A.V.s, and we just like a rental car company might do today, buy up a bunch of cars and then need to get them utilized. And by the way, they need to get them utilized a lot, you know, probably, I don't know, 18 hours a day or something like that to make sure these things actually pay off.

David Risher: I want to start with an AV question a little bit. We'll just do this in reverse order just for fun.

David Risher: So, but anyway, fleet management is its own area of expertise and specialization, right? Again, you've got to figure out, you know, how to keep cars serviced, you know, when they go offline. You basically want your cars utilized all the time. But you know, things break down, accidents happen even with A.V.s, which will probably be safer. You know, people will bump into them. All these things. And so, fleet management is a whole thing, and we have this Flex Drive subsidiary that we've had for years and have onboarded and off-boarded and serviced and worked with tens of thousands of vehicles over that course.

David Risher: So I want to talk about AVs for just a minute, because it's such a hot topic. So to answer your question directly, there is an enormous amount of tech that we already have built, that we've already used, and that we'll continue to leverage in new ways. And let's break it down for a couple of seconds.

David Risher: So, you know, we have this very large platform. We do you know two million rides a day. In order to make those two million rides a day happen, of course, we have to bring drivers onto the platform all the time. Every one of those drivers; we have over 1 million active drivers over the course of the year. Every one of those drivers has a car. Every one of those cars needs to be, and drivers need to be onboarded in various different ways, different checks, and so on and so forth to make sure they qualify. And then obviously, a whole bunch of support along the way. They have to get paid. They have to get it insured.

David Risher: They've got to make sure that they've got demand 24 hours a day, seven days a week. So these are all sort of the things that we have built into the general, And then specifically when it comes to AVs, and we've done, as we said, about 130 or actually over 130,000 rides in Las Vegas alone. It's all about sort of API level integration with autonomous vehicle vendors. That sort of integration is, you know, quite technically difficult, right? It all looks simple on the app, but behind the scenes, all sorts of back and forth are happening.

David Risher: But we have a lot of experience doing that, and as I said, we've got, you know, so anyway, we'll build on that. And then the last thing I'll say is, you know, when you look at how AVs are likely to enter these sorts of platforms, some of them will be owned by individuals, maybe putting their cars on the platform after hours when they're not being used. And some of them will come in the form of fleets, right?

David Risher: Entire, you know, companies that'll buy up AVs, maybe just like a rental car company might do today, buy up a bunch of cars and then need to get them utilized. And by the way, they need to get them utilized a lot, you know, probably, I don't know, 18 hours a day or something like that to make sure these things actually pay off. So, but anyway, fleet management is its own area of expertise and specialization, right?

David Risher: Again, you've got to figure out, you know, how to, how to keep cars serviced, you know, when they, you know, go offline, you basically want your cars utilized all the time. But, you know, things break down, accidents happen, even with AVs, which will probably be safer, you know, people will bump into them, all these things. And so fleet management is a whole thing. And we have this FlexDrive subsidiary that we've had for years and have onboarded and offboarded and serviced and worked with, you know, tens of thousands of vehicles over that course, I think we've got about 15,000 vehicles, kind of online right now so you put all these things together and you realize that we are very very well positioned um and we're in very active conversations with all the partners you would expect we're very interested in figuring out how can we take this tech i mean everyone from the OEM's to the ADAS guys the people who are actually developing the tech and commercialize it and and we're their best bet Thank you

David Risher: I think we've got about 15,000 vehicles. articles, kind of online right now.

David Risher: So you put all these things together and you realize that we are very, very well positioned and we're in very active conversations with all the partners you would expect, who are very interested in figuring out how can we take this tech. I mean, everyone from the OEM, so the ADAS guys, the people who are actually developing, attacking, and commercializing, and where they're best bet. Thanks.

Erin Brewer: Thanks. And Brad, I'll take your question on Q4 and the full year. I'll start with the full year. You know, just as a reminder, in our full year directional commentary, we talked about ride growth in the mid-teens. And obviously, that's a range.

Aaron Brewer: And Brad, I'll take your question on Q4 in the full year. I'll start with the full year. You know, just as a reminder, our full year directional commentary, we talked about rides growth in the mid teens. And obviously that that's a range. And then we talked about gross bookings to grow slightly faster than rides. And I provided some commentary on what that means for Q3 given the dynamics that we're seeing in prime time, but also as a reminder, the third quarter is a big season for bike rides. And so that has an impact as well.

Erin Brewer: And then we talked about gross bookings growing slightly faster than rides, and I provided some commentary on what that means for Q3, given the dynamics that we're seeing in primetime. But also, as a reminder, the third quarter is a big season for bike races, and so that has an impact as well. As you think about then Q4, the dynamics, I think you asked specifically about rides. I think it's reasonable to expect a slight increase in rides in Q4, because we also, again, have the dynamic of that being a lower seasonal period for bike rides, given weather. And then that implies just a slight uptick on the ride share side of things. So hopefully, that gives you some color on your question.

Aaron Brewer: As you think about the Q4, the dynamics, I think you asked specifically about rides. I think it's reasonable to expect a slight increase in rides in Q4 because we also again have the dynamic of that being a lower seasonal period for bike rides, given weather. And then that implies just a slight uptick on the ride share side of things. So hopefully that gives you some color to your question.

Unknown Executive: Yeah, that's great.

Eric Sheridan: I think our next question comes from the line of Eric Sheridan with Goldman Sachs. Please go ahead. Thanks so much for taking the question. I guess we've talked a lot about the operations of the business. One quick one on capital allocation; you know, and investor day, we talked about trying to limit dilution from stock base comp over time. And then potentially maybe looking into your balance sheet is another tool for driving equity value. We'd love to get any updated thoughts you have on either the make sure of finding the right balance between growth investments for the long term and potentially using assets on the balance sheet to be aimed more at equity creation.

Operator: Our next question comes from the line of Eric Sheridan with Goldman Sachs. Please go ahead.

Eric Sheridan: Thanks so much for taking the question. I guess we've talked a lot about the operations of the business. I want to ask a quick question on capital allocation. You know, at Investor Day, we talked about trying to limit dilution from stock-based comp over time and then potentially maybe looking at your balance sheet as another tool for driving equity value. We'd love to get any updated thoughts you have on either the mixture of finding the right balance between growth investments for the long term and potentially using assets on the balance sheet to be aimed more at equity creation. Thank you so much. Yeah, thanks for the question.

Speaker Change: Quite balanced between growth investments for the long term and potentially using assets on the balance sheet to be aimed more at equity creation. Thank you so much.

Aaron Brewer: Thank you so much. Yeah, thanks for the question, Eric. You asked about stock base comp, and so we remain on track with our target for 2024 of 340 million. Related to that. So we feel good about that. No change there. And as it relates to overall capital deployment thoughts, you know, we are investing in areas that drive profitable growth. And at the same time, we're very focused on taking a prudent approach to managing our balance sheet. Nothing specific to announce today, Eric. You know, as we generate higher levels of free cash flow in future periods, certainly gives us more optionality.

Erin Brewer: Yeah, thanks for the question, Eric. You asked about stock-based comp. And so we remain on track with our target for 2024 of $340 million related to that. So we feel good about that. No change there. And as it relates to overall capital deployment thoughts, you know, we are investing in areas that drive profitable growth. And at the same time, we're very focused on taking a prudent approach to managing our balance sheet.

Speaker Change: Yeah. Thanks for the question, Eric you asked about stock based comp and so we remain on track with our target for 2024 of $340 million.

Speaker Change: Related to that so we feel good about that no change there.

Speaker Change: And as it relates to overall capital deployment thoughts we are investing in areas to drive profitable growth and at the same time, we're very focused on taking a.

Erin Brewer: Nothing specific to announce today, Eric. You know, as we generate higher levels of free cash flow in future periods, it certainly gives us more optionality. So, again, hopefully that gives you some color on our thoughts. Not a lot of updates from what we articulated at Investor Day.

Speaker Change: Prudent approach to managing our balance sheet.

Speaker Change: Nothing specific to announce today, Eric you know as we generate higher levels of free cash flow in future periods. It certainly gives us more optionality.

Aaron Brewer: So again, hopefully that gives you some color on our thoughts, not a lot of updates from what we articulated at Investor Day.

Eric: So again hopefully that gives you some color on our thoughts not a lot of updates from what we articulated at Investor day.

Stephen Jew: Thank you. Our next question comes from the line of Stephen Jew with UBS. Please go ahead. Great. Thank you so much. So David, frequency of usage and getting your customers to come back again and again is something that's been on your mind. So it looks like on the latest results. And I think so far this year, we're looking at a monthly rise. That's probably about 15 to 16% below. Where it lived was in 2019. I know there's a lot that goes into this between day-to-day execution as well as new product well-outs. So can you tell us where the majority of lifts engineering resources are being placed to drive.

Eric: Thank you.

Operator: Our next question comes from the line of Stephen Ju with UBS. Please go ahead.

Speaker Change: Our next question comes from the line of Stephen Ju with UBS. Please go ahead.

Stephen Ju: Okay, great. Thank you so much.

Stephen Ju: Great. Thank you so much so.

David.

Stephen Ju: Frequency of usage in getting your customers to come back again and again.

David Risher: So, David, frequency of usage and getting your customers to come back again and again is something that's been on your mind. So, it looks like in the latest results, and I think so far this year, we're looking at a monthly rise that's probably about 15 to 16% below where LYFT was in 2019. I know there's a lot that goes into this between day-to-day execution as well as new product rollout. So, can you tell us where the majority of LYFT's engineering resources are being placed to drive, you know, that greater utilization?

Stephen Jew: You know, that greater utilization. I mean, not that we need to explicit disclosure on what products you may be making, but rather.

David Risher: I mean, not that we need explicit disclosure of what products you may be making, but rather, you know, some perspective on, hey, you know, we're planning these many releases in the first half of 2025, second half of 2025, so we get a better sense of the roadmap from here.

Stephen Jew: You know, some perspective on hey, you know, we're planning these many releases during the first half of 25, second half of 25. So we get a better sense of the roadmap from here. Thank you.

David Risher: Yeah, thanks, Stephen. I'm thinking about how best to answer that.

David Risher: Yeah, thanks, Stephen. I don't know how to answer that.

David Risher: I mean, I guess, again, maybe I'll start in sort of big picture for a second, then zoom in. So when we look at overall allocation of resources, we're always looking at, you know, quite specifically on the rider side, you know, well, okay, first on the driver's side, how do we make sure we've got great driver supply? And there's almost no such thing as it's too good driver supply, so it's always something we're looking on, because, you know, we want to make sure as many drivers are driving as possible for past pickup times and so forth.

David Risher: I mean, I guess... Um, again, maybe I'll start sort of from the big picture for a second and then zoom in. So when we look at the overall allocation of resources, we're always looking, you know, quite specifically on the rider side. You know, well, okay, first on the driver's side, how do we make sure we've got great driver supply? And there's almost no such thing as, as, as too much driver supply. So it's always something we're looking at because, you know, we want to make sure as many drivers are driving as possible for past pickup times and so forth, on the and so so there. Maybe I'll stick on that for a couple seconds.

David Risher: If you look at our cadence, you know, we did a very large release earlier this year, the 70% earnings guarantee, which, as we said before, has been very, very well received and really sets us apart. I actually literally had a Lyft driver last night who commented on how much he appreciated it. So anyway, and you can expect, you know, even now we're actually rolling out some additional features around giving drivers additional visibility into how much they're going to make every time they accept a ride and so forth.

David Risher: So there, maybe I'll stick on that for a couple of seconds. If you look at our cadence, you know, we did a very large release earlier this year, the 70% earnings guarantee, which, as we said before, has been very, very well received and really sets us apart. I actually literally had a lift driver last night who commented on how much he appreciated that. So anyway, and you can expect, you know, even now we're actually rolling out some additional features around given drivers additional visibility into how much they're going to make every time they accept a ride, and so forth.

David Risher: So that's sort of a rolling thing, but you can expect sort of another kind of release to come on the driver's side to give drivers even better ways to make money and so forth. We actually just launched, as a quick aside, something called LYFT Direct, a new version of a kind of a co-branded or a credit card, debit card, actually, that allows drivers to, you know, have a high-yield savings account and get paid immediately and so forth.

David Risher: So that's sort of a rolling thing, but you can expect sort of another kind of release to come on the driver's side to get drivers even better ways to earn and so forth.

David Risher: We actually just launched, as a quick aside, called Lift Direct, a new version of a kind of a co-branded or a credit card debit card, actually, that allows drivers to, you know, have a high yield savings account and get paid immediately and so forth. So that's kind of a continuous thing.

David Risher: So that's kind of a continuous thing. We're always working on the driver's side, but, you know, there are kind of a couple of chunky things that happen every once in a while. On the rider side, you know, we're coming into the, you know, we're coming through summer, of course. But then, and so things like the on-time pickup promise for airports, you know, is quite important. That's a very popular feature. But then you can expect again in the fall, something really focused on the commute.

David Risher: We're always working on the driver's side, but you know, there are kind of a couple of chunky things that happen every year. On the rider's side, you know, we're coming into the, you know, we're coming through summer, of course, but then, and so things like the on-time pickup promise for airports, you know, is quite important. That's a very powerful feature. But then you can expect, again, something in the fall, you know, really focused on commute. Now, in this case, we've really already talked about that. That's going to be price lock, and it's a huge focus for people who are commuting.

David Risher: So, I don't know. So I guess maybe zooming out then on the rider's side, we're always looking at a combination of how do we get new riders on the platform and then how do we increase their frequency? And in both cases, you know, we have all-time highs on the new rider's side, for sure. The frequency we've kind of gone up to by two as well. So I don't know.

David Risher: Now, in this case, we've really already talked about that that's going to be price lock. And it's a huge focus for people who are commuting. So I don't know. So I guess maybe zooming out, then on the rider side, we're always looking at a combination of how do we get new riders on the platform? And then how do we increase their frequency? And in both cases, you know, we have all-time highs on the new rider side, for sure.

David Risher: And then frequency, we've kind of gone up queue by queue as well. So, I don't know. I know it's maybe a little bit vague, but it's kind of a, you know, customer obsession sort of means, you know, having some big chunky things but also just continuous improvements every day to make the service better. And we feel like we've got a pretty good, you know, we've got a good roadmap ahead and a good balance between all that. Thank you.

Aaron Brewer: I know it's maybe a little bit vague, but it's kind of a, you know, customer obsession sort of means, you know, having some big chunky things, but also just continuous improvements every day to make the service better. And we feel like we've got a pretty good, you know, we've got a good roadmap ahead and a good balance between all that.

Erin Brewer: I might add on to that a little bit, Stephen, to give some context, growth in active riders has been greater than 10% every quarter over the last four quarters, excuse me, while frequency has also been growing sequentially every quarter, and we touched on retention as well going up. And so I know your question was largely around engineering, but we continue to see opportunities to make really smart investments that drive rider preference, retention, and engagement.

Aaron Brewer: Thank you. I might just add on to that a little bit, Steven, you know, to give some context, you know, growth in active riders has been greater than 10%. A recorder over the last quarter over over the last four quarters, excuse me, while frequency has also been growing sequentially every quarter and we touched on retention as well going up.

Aaron Brewer: And so I know your question was largely around engineering, but we continue to see opportunities to make really smart investments that drive rider preference, retention, and engagement. And I think some of that trajectory and the staff that I just listed off gives us a lot of confidence in our framework for those investments going forward. For sure. Thank you.

Jim: Our next question comes from the line of Tom Champion with Piper Sandler. Please go ahead. Hi, this is Jim on for Tom. Thanks for taking the question. Just one on advertising. So we saw the 10X increase for the in-app revenue. Can you talk about what's driving that and how we can think about the scale of that revenue. I'd assume that's off a lower base. Thank you. And sorry, just to clarify, Adam, off a lower base, lower than one. Yeah, I mean, just kind of explaining what's driving the 10X increase, and how to think about the scale of that revenue?

Erin Brewer: And I think some of that trajectory and the stats that I just listed off gives us a lot of confidence in our framework for those investments going forward, for sure. Thank you. Our next question comes from the line of Tom Champion with Piper Sandler. Please go ahead.

Operator: Hi, this is Jim on behalf of Tom. Thanks for taking the question. Just one on advertising.

Jim: And sorry, just to clarify, Jim, off a lower base, lower, lower than lower the Um, yeah, I mean, just kind of explaining, like, what's driving the 10x increase and how to think about the scale of that revenue. Yeah, for sure. So, again, I won't give you too much specifics on the, you know, the particulars there.

David Risher: Yeah, for sure.

David Risher: So, yeah, I won't give you too much specifics on the, you know, on the particulars there. What I can tell you is this: we’re super optimistic about this business, and here, and that growth is kind of the reason why. Brands are always looking, and this is like a forever statement, always looking for new ways to get to their customers, right? And the world changes, right? You know, 100 years ago is, you know, maybe billboards on the road, and then it was, you know, radio advertising, and TV advertising, and, you know, sort of clicky type advertising, early internet days, and now much more sophisticated.

David Risher: What I can tell you is this. So we're super optimistic about this business. And here, and it's, and that growth is kind of the reason why. Brands are always looking, and this is like a forever statement, always looking for new ways to get to their customers, right? And the world changes, right?

David Risher: You know, 100 years ago, it was, you know, maybe billboards on the road, and then it was radio advertising, and TV advertising, and, you know, sort of clicky-type advertising, early internet days, and now. So that's just a sort of marketing for everything. But the most important thing for targeted advertising is the targeting and the data. You know, you've got to figure it out because everyone always knows, like, you know, as John Wanamaker famously said, "You know, I know half my advertising works." I just never know which app to use.

David Risher: So, that's just a sort of for everything. But the most important thing for targeted advertising is the targeting and the data, you know. You've got to figure out because everyone always knows, like, you know, as John Wanamaker famously said, you know, I know half of my advertising works, I just never know which half. So, increasingly, it's all about the data, and we have an enormous amount of data, right? Every time a rider gets in the car, they're literally telling us where they're going. Are they going to the drugs tour? Are they going to supermarkets? They're going to 7-Eleven, they're going to McDonald's, they're going to, you know, airport. What airline are they taking because we know where they're getting dropped off.

David Risher: So increasingly, it's all about the data. And we have an enormous amount of data, right? Every time a rider gets in the car, they're literally telling us where they're going. Are they going to the drugstore? Are they going to the supermarket? They're going to 7-Eleven, going to McDonald's, going to, you know, the airport. What airline are they taking?

David Risher: Because we know where they're getting dropped off. So all of these things give us an enormous amount of first-party data that we can then go and turn around and say to marketers, "Is this data of interest to you, either as a brand play or as a sort of more, you know, almost kind of call-to-action transactional play, right?" When the person gets out at the drugstore, you know, maybe you prefer they buy Colgate over Crest or whatever it might be.

David Risher: So, all of these things give us an enormous amount of first-party data that then we can then go and turn around and say to marketers, you know, is this data of interest to you, either as a brand of play, or as a sort of more, you know, almost kind of called action transactional play, right? When the person gets out of the drug store, you know, maybe you prefer they buy, you know, Colgate over Crest or whatever it might be. So, anyway, long way of saying, if you've got a big audience, and we do, you know, obviously, you know, 40 million riders, if you've got a way to get data, and then if you have platforms every month, now, to give additional visibility into the effectiveness.

David Risher: So anyway, long way of saying, if you've got a big audience, and we do, obviously, 40 million, if you've got a way to get data, and then if you've got a way to measure the effectiveness, and again, we do, and we're signing up platforms every month now, to give additional visibility into the effectiveness, And then if you have engagement, you're going to get growth. And our engagement scores are super high.

David Risher: And then, if you have engagement, you're going to get growth. And our engagement scores are super high. You know, I've seen the other different ways to measure engagement versus industry benchmarks, but we can bear really, really well to a lot of others. And you can kind of imagine why; you literally have maybe a 15-minute trip on average. In a trip, you might check your app, you know, six or seven times. So, we have really, and then these new video ads that we've just sort of put on the platform, and known by getting to some of the things that are really driving growth.

David Risher: You know, I've seen, there are different ways to measure engagement versus industry benchmarks, but we compare really, really well to a lot of others. And you can kind of imagine why. You literally have maybe a 15-minute trip.

David Risher: On average, in a trip, you might check your app, you know, six or seven times. So we have these new video ads that we've just sort of put on the platform. Now I'm getting to some of the things that are really driving growth. You have new partners, plus you have a new ad unit, in this case, the video ad, really liking literally quarter by quarter.

David Risher: You have new partners, plus you have a new ad unit, in this case, the video ad unit. And its performance, you start to see growth. And we're seeing not only growth from existing partners, but you know, existing partners are signing on again, and then I'm talking about ad partners, and the new ad partners are coming on as well. So, it's kind of an all-the-buff thing.

Stephen Ju: You have new partners plus you have a new AD unit in this case the video AD units.

Speaker Change: And its performance.

Speaker Change: You start to see growth and we're seeing not only growth from existing partners, but EBIT exists.

Speaker Change: Existing partners are signing on again, and then I'll talk about <unk> and the new AD partners are coming on as well. So so it's kind of an all of the above thing we've talked about this as a very very large business bounced I forget the sometimes I say, one number sometimes a different number so and I could get myself and that they'll chop. This time, but it is.

David Risher: You know, we've talked about this as a very, very large business. I don't know if I forget to; sometimes I say one number, sometimes I say different numbers, and I could get myself in that little trap this time. But it's, we expect to be a very, very large, very, very large business, and we're investing behind it, and really liking, literally, quarter by quarter, what we're seeing.

Speaker Change: Expected to be a very very large very very large business and we're investing behind it and really liking literally quarter by quarter.

Speaker Change: Thanks.

David Risher: Great. Thanks, David.

David: Great. Thanks, David.

John Colantoni: Our next question comes from the line of John Colantoni with Jeffreys. Please go ahead. Great. Thanks for taking my questions.

Operator: Our next question comes from the line of John Colantoni with Jeffreys. Please go ahead.

Speaker Change: Our next question comes from the line of John calling Tony with Jefferies. Please go ahead.

John Colantoni: Great, thanks for taking my questions. So my Canada trips doubled. If we sort of just make a simple assumption that Canada was, let's say 5% of trips last year, that math would imply that US trips grew closer to 10% in the second quarter. So it looks like growth is decoupling from Uber a bit more in the second quarter than in the prior three quarters. Any details you can provide on supply, pricing, or timing of the product roadmap that could help explain that moderation of market share? Maybe, on the flip side, can you just talk about what drove the strong performance in Canada? And if there's any learnings that you can bring over to the US market? Thanks.

Speaker Change: Great. Thanks for taking my questions.

John Colantoni: So, can the trips double if we sort of just make a simple assumption that Canada was, let's say, 5% of trips last year? That math would imply that US trips grew closer to 10% in the second quarter. So, it looks like growth is decoupling from Uber a bit more in the second quarter than in the prior three quarters.

Ken Goralski: So ken of trips doubled.

Speaker Change: If we sort of just make a simple assumption.

Speaker Change: Canada was let's say, 5% of trips last year that math would imply that U S trips grew closer to 10% in the second quarter. So it looks like growth is decoupling from over a bit more in the second quarter than in the prior three quarters. Any details you can provide on supply pricing for timing of the <unk>.

Aaron Brewer: Any details you can provide on supply, pricing, or timing of the product growth roadmap that could help explain that moderation and market share.

David Risher: Maybe on the flip side, can you just talk to what drove the strong performance in Canada, and if there's any learnings that you can bring over to the US market? Thanks.

Erin Brewer: So I'll take the first part of that question and turn it over to David to chat more about our efforts in Canada. You know, as a reminder, we don't break out the different geographies. So I wouldn't comment, but I think your estimates around Canada might be a little bit high. Maybe the broader point is that we don't see any change in our share. So we feel we feel good about where we are there. Yeah, 100% 100% Yeah, no, there's there's.

Aaron Brewer: So I'll take the first part of that question and turn it over to David to chat more about our efforts in Canada. You know, as a reminder, we don't break out the different geographies. So I wouldn't comment, but I think your estimates around Canada might be a little bit high. Maybe the broader point is, we don't see any change in our share. So we feel we feel good about where we are there. Yeah, 100%. Yeah, no, there's no; I think the math isn't quite right there. But what I will say is, what we're definitely growth in Canada.

David Risher: Yeah, 100%. Yeah, no, there's there's no, I think the math isn't quite right there.

David Risher: But what I will say is that we're definitely seeing growth in Canada, I think it's just maybe a bit smaller than you're thinking in total. And what's driving that is I was actually just in Toronto a couple of, I guess, a couple months ago now. And what we're seeing is that riders and drivers are loving our customer-obsessed approach. You know, Canada has really been kind of a one-player market there. And it's really great when the second player comes in and starts to innovate in all kinds of areas and, frankly, gives people a choice and a new option.

David Risher: I think it's just maybe a bit smaller than what you're thinking in total.

David Risher: And what's driving that? Yes, I was actually just in Toronto a couple of, I guess, a couple of months ago now. And what we're seeing is that riders and drivers are loving our customer-obsessed approach. Canada has really been kind of a one player market pair, and it's really great when the second player comes in and starts to innovate around all kinds of areas and, frankly, give people choice and a new option. So seeing super good growth. I think we've mentioned this already, but if we haven't, Toronto, I think, is now our eighth largest market. So that's great.

David Risher: So, we're seeing super good growth. I think we mentioned this already, but if we haven't, Toronto, I think, is now our eighth largest market. So that's great.

David Risher: It's only a single city, let's be clear. You know, and there's a lot more to go in Canada. But the fact that we've gotten to such a strong position in a fairly short period of time gives us a lot of hope. But, again, to be clear, there's not really sort of a, you wouldn't see this in the big picture. And certainly not in a way that would suggest that our domestic growth is growing any more slowly than we've said, or

David Risher: It's only a single city. Let's be clear. There, you know, and there's a lot more to go in Canada, but the fact that we've gotten to such a strong position in a fairly short period of time gives us a lot of hope. But, but you know, I get to be clear, there's not really sort of a, you wouldn't see this in the big picture and certainly not in a way that would suggest that our domestic growth is growing any more slowly than what we said. Yeah.

Nikhil Devnani: Thank you. Our next question comes from the line of Nikhil Devnani with Bernstein. Please go ahead. Hi, thanks for taking the question. I wanted to follow up on the investor day growth targets.

Operator: Our next question comes from the line of Nikhil Devnani with Bernstein. Please go ahead.

Nikhil Devnani: Hi, thanks for taking the question. I wanted to follow up on the Investor Day growth targets. Is there any incremental commentary you can provide on faster-growing modes or markets that might help you sustain the 15%? Whether it's smaller cities or suburbs, however you want to cut it, but I think the challenge investors are having is that the bigger you get, the assumption is that it's harder to sustain the growth unless you have a product cycle or expansion markets to point to.

Nikhil Devnani: Is there any incremental commentary you can provide on faster growing modes or markets that might help you sustain the 15% whether it's smaller city, the suburbs, however you want to cut it, but I think the challenge investors are having is that the bigger you get, the assumption is that it's harder to sustain the growth unless you have a product cycle or expansion markets to point to. And so you've kind of alluded to this. Excuse me with Canada, wait and save in the past as well. But could you maybe contextualize how big some of these faster growing verticals or some markets can be an R for you.

Nikhil Devnani: And so you've kind of alluded to this, excuse me, with Canada, wait and save in the past as well. But could you maybe contextualize how big some of these faster growing verticals or submarkets can be and are for you? And then my second question is around insurance. Erin, it looks like accruals have started to increase a bit. So has there been a change in strategy to self-insure some more? Thank you.

Aaron Brewer: And then my second question is around insurance. Erin, it looks like a cruel to start to increase a bit. So has there been a change in strategy to self-insure some more. Thank you.

Aaron Brewer: I can start with the insurance question, and then I'll turn it over to David to lead the first part of your question. So Nikhil, in our most recent renewal cycle, I would say there was a slight mix shift as it relates to our mix of third party versus self insurance. It wasn't, wasn't significant, but a slight shift.

Erin Brewer: I can start with the insurance question, and then I'll turn it over to David to lead the first part of your question.

Aaron Brewer: And we are always looking at that mix to optimize our overall portfolio and making choices accordingly. So a slight shift.

Erin Brewer: So Nikhil, in our most recent renewal cycle, I would say there was a slight mix shift as it relates to our mix of third-party versus self insurance. It wasn't wasn't significant, but a slight shift. And we are always looking at that mix to optimize our overall portfolio and making choices accordingly. So a slight shift.

David Risher: And Nikhil, I'll say a couple of things about overall growth. I guess. So again, we just remember the hundred sixty billion rides like that's a real number. So there's a lot of space to grow even within that, even before we talk about, you know, expanding beyond the sort of, you know, exists. Fantastic Tan. So maybe let's think of a couple of ways. So there's certainly geographical expansion, as you say, and that's part of what we're seeing in Canada and why we're excited about it. And, of course, you know that could potentially open up opportunities. The future, we will comment on that, but it certainly gives us some interesting data, let's say to use.

David Risher: And Nikhil, I'll say a couple of things about overall growth. I guess, so again, just remember the 160 billion rides as if that's a real number. So there's a lot of space to grow even within that, even before we talk about, you know, expanding beyond the sort of, you know, existing. So maybe we can think about it a couple ways. So there's certainly geographical expansion, as you say, and that's part of what we're seeing in Canada and why we're excited about it. And of course, you know, that could potentially open up opportunities in the future. But we won't comment on that.

David Risher: But it certainly gives us some, you know, interesting data, let's say, then there are new segments, right, even within the existing markets. And, and some of these are going to take a while to really explore. I mean, I can even look back, you know, at what we launched last year, for example, Women Plus Connect, which we talk about quite often when I look at our driver supply today. Right, so Women Plus Connect is a product that allows women riders and drivers to choose each other. And when I look at our driver supply, our female driver supply has actually grown quite nicely, right? We're now up to about I think it's about 29% of new applicants are women.

David Risher: Then there is, you know, then there are new segments, right, even within the existing markets. And, and some of these are going to take a while to really explore. I mean, I can even look back, you know, what we launched last year, for example, Women Plus Connect, which we talk about, you know, quite often. When I look today at our driver's supply, right, so Women Plus Connect is a product that allows women riders and drivers to choose each other. And when I look at our driver's supply, our women driver's supply is actually growing quite nicely, right.

David Risher: We're now up to about, I think it's about 29% of new applicants are women, and remember women drive about 23% on the platform. So that's obviously nice croak. So what that allows you to do over time is it allows you to unlock, you know, a very potentially very, very large market, you know, people women who feel maybe a little less comfortable, you know, driving with rideshare, right, or riding with rideshare, right now, driving or riding either side. And this opens it up now. Consumer behavior takes a long time to change. This is not the sort of stuff that you flip a switch and all of a sudden you see, you know, gigantic numbers. But, you know, you're talking about half the population here.

David Risher: And remember, women drive about 23% of the platform. So that's obvious. Next quote. So what that allows you to do over time is it allows you to unlock, you know, a very potentially very, very large market, you know, people, women who feel maybe a little less comfortable driving with rideshare, right, or riding with rideshare right now, driving or riding either side. And this opens it up. Now, consumer behavior takes a long time to change. This is not the sort of stuff that you flip a switch on, and all of a sudden you see, you know, gigantic numbers.

David Risher: So that's not, that's not small. So we look, you know, segment by segment by segment and see a lot of opportunities. We talked about commuters as well today, where commuters were really, you know, under-penetrated compared to the value prop, right. I mean, people might take the two or three times a week, but the us there is sort of the world of us; they might take rideshare two or three times a week. And we want a bigger share of that. And we think we've got a better product. And then we think of our partnerships. So, and again, we talked about this.

David Risher: But you know, you're talking about half the population here. So that's not, that's not small. So we look, you know, segment by segment by segment and see a lot of opportunities. We talked about commuters as well today, where commuters are really, you know, underpenetrated compared to the value proposition, right? I mean, people might take this two or three times a week.

David Risher: An investor day, partnerships is, it's just an incredible, you know, sort of DNA level expertise that we've developed over the years. And, you know, you've heard some of the same names over and over again, and that's not an accident because, you know, the business of the world, the Delta Airlines, the Chases of the world, the Hilton's of the world. You know, these are some of the world's biggest and best brands and looked out to seven, a little bit of a tough day right now. But at the end of the day, you know, it's the biggest carrier.

David Risher: But the us there is sort of the royal us. They might take rideshare two or three times a week, and we want a bigger share of that. And we think we've got a better one, and then we think of our partnerships. So again, we talked about this on Investor Day. Partnerships is it's just an incredible, you know, sort of DNA level expertise that we've developed over the years. And, you know, you've heard some of the same names over and over again. And that's not an accident.

David Risher: It's because, you know, the Disneys of the world, the Delta Airlines of the world, the Chases of the world, the Hiltons of the world, you know, these are some of the world's biggest and best brands. And look, Delta's having a little bit of a tough day right now. But at the end of the day, you know, it's the US's biggest carrier, and we've got one of the very small number of relationships they have with their Sky Miles, you know, partnership.

David Risher: And we've got, you know, one of the very small number of relationships they have with their SkyMiles, you know, partnership. And that's something that, over time, will be growing even more. Same with Chase, Chase, Sapphire, incredibly important part of Chase's portfolio, that they're credit card portfolio. And they're making huge investments there. And as they invest in that, that helps us as well because we get, you know, riders that get points on Chase. So I think each of these, you know, it might sound a little bit like more of the same, but what it's really meant to say is, when we see something that's working, we double down on, we go deeper, we try to go bigger, try to really figure out kind of where the growth is coming from.

David Risher: And that's something that, over time, will be growing even more. Same with Chase, Chase Sapphire, an incredibly important part of Chase's portfolio, their credit card portfolio. And they're making huge investments there. And as they invest in that, that helps us as well, because we get, you know, riders that get points on Chase. So I think each of these, you know, it might sound a little bit like more of the same. But what it's really meant to say is when we see something that's working, we double down on it, we go deeper, we try to go bigger, try to really figure out kind of where the growth is coming from. And we just don't see any particular limits to the sort of market size that we're kind of addressing. And so, you know, we feel pretty confident about our targets.

Aaron Brewer: And we just don't see any particular limits to the sort of market size that we're kind of addressing. And so, you know, feel pretty confident about our, about our targets. Yeah, I would say at Investor Day, David, one of the things that at least folks shared comments with me was a new appreciation for the depth of our partnerships. And we emphasize, obviously, our existing partnerships and the opportunity to continue to penetrate those. And that's not even mentioning partnerships that may come in the future.

Erin Brewer: Yeah, I would say at Investor Day, David, one of the things that at least folks shared comments with me was a new appreciation for the depth of our partnerships. And we emphasized, obviously, our existing partnerships and, and just the opportunity to continue to deepen those. And that's not even mentioning partnerships that may come in the future. I think the only other area, Nikhil, that I would point to is healthcare and our business there as a market leader in the non-emergency medical transportation space. We continue to see incredible growth there and unlock new states and new partnerships and continue to remain bullish on the opportunity there. Yeah, very good point. And we have a great leader there.

Speaker Change: Mentioning partnerships that may come in the future I think the only other area and to kill that I would point to is health care and our.

Aaron Brewer: I think the only other area and a keel that I would point to is healthcare, and our business there is a market leader. And then on emergency medical transportation space. We continue to see incredible growth there and unlocking new states and new partnerships and continue to remain bullish on the opportunity there. Yeah, super good point. And we have a great leader there as well, a back ease, peace, pressure. Thank you both.

Speaker Change: Our business there is a market leader in the non emergency medical transportation space.

Speaker Change: We continue to see incredible growth.

Speaker Change: There and unlocking new states and new partnerships and continue to remain bullish on the opportunity there, yes Super good point, and we have a great leader there as well.

David Risher: Yeah, a super good point. And we have a great leader there as well. He's precious.

Speaker Change: Question.

Operator: Thank you both. Our final question comes from Bernie McTernan with Needham & Company. Please go ahead. Great, thanks for taking the question. David, solving for pricing has certainly been a focus for the company. You know, first the price cuts.

Speaker Change: Thank you both.

Bernard McTernan: Our final question comes from Bernie McTernan with Needham and Company. Please go ahead. Great. Thanks for your question. David solving for pricing has certainly been a focus for the company. First, the price cuts; now lower prime time.

Bernie Mcternan: Our final question comes from Bernie McTernan with Needham & Company. Please go ahead. Great, thanks.

Speaker Change: Our final question comes from Bernie Mcternan with Needham <unk> Company. Please go ahead.

Bernie Mcternan: Great. Thanks for taking the question David.

David: David solving for pricing has certainly been a focus of the company first the price cuts now lower prime time.

David Risher: And so, if you look out over the next couple of years, do you think we're at the peak drag from pricing right now, or is that still in the future? And then how to think about those positive assets like things from higher conversion, how long do you take for higher volume to outweigh the pricing headwind? And it may be what you see in your best markets right now, like Baltimore, Phoenix, and Orlando, is that pricing headwind being offset by volume already? Thank you. Yeah, it's a great question. I mean, people are certainly price sensitive, right?

Bernie Mcternan: If you look out over the next couple of years do you think we're at the peak drag from pricing right now or is that still in the future and then how to think about those positive offsets like things from higher conversion, how long does it take for higher volume to outweigh the pricing headwind in and maybe what you're seeing in your best markets right now like Baltimore Phoenix and Orlando is is that pricing.

Speaker Change: <unk> being offset by volume already thank you.

David Risher: Yeah, it's a great question. I mean, people are certainly price sensitive, right? And we all know that we see it, you know, every single day, literally millions of times a day.

Speaker Change: Yeah. It's a great question I mean people are certainly price sensitive right.

David Risher: And we all know that we see it every single day, literally millions of times a day. And so we put a lot of energy into figure out how to, it's, and it's two things. It's lowering pricing when we can. And it's reducing variability when we can. And those things are both very important in the pricing equation. The lower price, of course, everybody likes that. The lower variability, and people really dislike, you know, variability. One of the best, you know, so we have a couple of minutes to talk about this for a second. I know it's our last question, but it's a really good and important one.

David Risher: And so we put a lot of energy into figuring out how to do it, and it's two things. It's lowering pricing when we can, and it's reducing variability when we can. And those things are both very important in pricing. The lower price, of course, everybody likes that. The lower variability, again, people really dislike, you know, variability. One of the best, you know, so we have a couple. Let me just talk about that for a second.

David Risher: We have a couple strategies there. So we have some products like weight and save, which give us some additional flexibility to match rider and driver in a way that improves the, even though it's a good discount for the rider. It also allows us to work the economics of it, such that we can, you know, choose them on different drivers, and who's the least costly to serve the rider and so forth. So, you know, we're very, we need to make sure that as we enter, you know, everyone of our nodes needs to contribute to profitability here.

David Risher: I know it's our last question, but it's a really good and important one. We have a couple of strategies here. So we have some products like Wait and Save, which give us some additional flexibility to match rider and driver in a way that improves the even though it's a good discount for the rider, it also allows us to work the economics of it such that we can, you know, choose among different drivers and who's the least costly to serve the rider and so forth.

David Risher: So we're very focused on that. Same with price lock, right? There's obviously an offset, right? You're going to pay a little upfront fee. You're going to pay a little bit less. And we have to make it up in volume. And that's exactly what we're seeing in our early markets. But, you know, there's a lot more to go there. We're super early.

David Risher: And then I'll come back to the partnership side. There's so many ways where I think our partners can help us offset costs such that the rider ends up paying less. And this happens today. You know, we have a lot of various different offers from different partners that we kind of cycle through the platform. You know, maybe you'll have seen some of them. Sometimes it'll be, you know, extra points, you know, on your credit card. But sometimes it'll literally be a discount for the partner funds because it really helps drive traffic to their site. And I think that last area is, and again, the errands point, you know, we have real expertise in partnerships.

David Risher: So, you know, we're very, we need to make sure that as Erin said, every one of our nodes needs to contribute to profitability here, but we're very focused on that. Same with price lock, right? There's obviously an offset, right?

David Risher: That's an area where I think we'll see us continue to invest, you know, low on prices across the wheel. We like where our pricing is. And frankly, our riders generally do too. It's giving us really good growth, all time highs. We've said all that before. So that's maybe not the biggest focus. The biggest focus now is what are some other innovations we can do like with partners that maybe partners pick up some of the cost to provide in a way that'll reduce the price for a rider. But you know, keep, you know, keep the economics and not enter into some crazy, you know, unsustainable thing that sometimes businesses do that just doesn't work.

David Risher: You're going to pay a little upfront fee, you're going to pay a little bit less, and we have to make it up in volume. And that's exactly what we're seeing in our early markets. But, you know, there's a lot more to go there. We're super early.

David Risher: And then I'll come back to the partnership side. There are so many ways where I think our partners can help us offset costs such that the rider ends up paying less. And this happened today. You know, we have a lot of different offers from different partners that we kind of cycle through on the platform. You know, maybe you've seen some of them.

David Risher: Sometimes it'll be, you know, extra points on your credit card, but sometimes it'll literally be a discount that a partner funds because it really helps drive traffic to their site. And I think that last area is, and again, to Erin's point, we have real expertise in partnerships. That's an area where I think we'll see us continue to invest, you know, lowering prices across. We like where our pricing is.

Erin Brewer: And remember, Bernie, the price a rider experiences is a combination of many factors, you know, mode, mix, distance. We talked about prime Time and the impact here on Q2 and Q3, but remember, that's a great thing for the health of our marketplace over the long term. At the end of the day, market prices are dynamic, just as David described, and our goal and what we're doing is operating in a healthy and competitive way. Thank you.

Aaron Brewer: And remember, Bernie, you know, the price of rider experiences is a combination of many factors: you know, mode, mix, distance. We talked about prime time and the impact here on Q2 and Q3, but remember, that's a great thing for the health of our marketplace over the long term. At the end of the day, market prices are dynamic, just as David described, and our goal and what we're doing is operating in a healthy and competitive way.

David Risher: And frankly, our riders generally do too. It's giving us really good growth, at all-time highs. We've set up all that, so that's maybe not the biggest focus. The biggest focus now is what some other innovations we can do, like with partners, to have maybe partners pick up some of the cost of a ride in a way that'll reduce the price for a rider, but you know, keep the economics and not enter into some crazy, you know, unsustainable thing that sometimes businesses do. And remember, Bernie, you know, the price a rider pays.

David Risher: This will conclude our question and answer session.

David Risher: This will conclude our question and answer session. I will now turn the call back to LYFT's CEO, David Risher, for closing remarks.

David Risher: I will now turn a call back to List CEO David Risher for closing remarks. Thank you all. I want to say thanks to two folks, to two groups. Thank you for being our investors over the long term. We've reached gap profitability. I'm super excited about that, but we've got a lot more to come, and we're just as excited about that. And so for that, I'll thank the team. I mean, the team just worked crazy hard to get us where we are. But also to set us up for the long term. We really love how strong our marketplaces.

David Risher: Thank you all. I want to say thanks to two folks, to two groups. Thank you for being our investors over the long term. We've reached gap profitability. I'm super excited about that, but we've got a lot more to come. And we're just as excited about that. And so for that, I'll thank the team. I mean, the team just worked crazy hard to get us where we are but also to set us up for the long term.

David Risher: We really love how strong our marketplace is. We love how riders and drivers are responding to our customer obsession. And so that's that. So for each of you, I recommend checking out LYFT, opening up your app, signing up for price block, and let us know how it works for you. And we're super excited to see you all next time. Thanks for your interest and following us on our progress.

David Risher: We love how our riders and drivers are responding to our customer session. And so that's that.

Operator: So we should you recommend check out list, open up your app sign up for price block. Let us know how it works for you. And we're super excited to see you all next time. Thanks for your interest and following us on our progress.

Operator: This concludes today's conference call. Thank you for your participation. You may now disconnect.

Operator: This concludes today's conference call. Thank you for your participation. You may now disconnect.