Q1 2026 Lyft Inc Earnings Call

May 7, 2026

Speaker #1: Good afternoon and welcome to Lyft, first quarter 2026 earnings call. As a reminder, this conference call is being recorded. On the call today, we have CEO David Risher and our CFO, Aaron Brewer.

Erin Brewer: Good afternoon, welcome to Lyft's Q1 2026 Earnings Call. As a reminder, this conference call is being recorded. On the call today, we have CEO David Risher and our CFO, Erin Brewer. Our full prepared remarks are available on the IR website, we'll use this time to answer your questions. We'll make forward-looking statements on today's call, including statements relating to our business strategy and performance, partnerships, future financial and operating results, trends in our marketplace, 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 in our recent SEC filings.

Erin Rheaume: Good afternoon, welcome to Lyft's Q1 2026 Earnings Call. As a reminder, this conference call is being recorded. On the call today, we have CEO David Risher and our CFO, Erin Brewer. Our full prepared remarks are available on the IR website, we'll use this time to answer your questions. We'll make forward-looking statements on today's call, including statements relating to our business strategy and performance, partnerships, future financial and operating results, trends in our marketplace, 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 in our recent SEC filings.

Speaker #1: Our full prepared remarks are available on the IR website, and we'll use this time to answer your questions. We'll make forward-looking statements on today's call, including statements relating to our business strategy and performance, partnerships, future financial and operating results, trends in our marketplace, and guidance.

Speaker #1: These statements are subject to risk and uncertainty that could cause our actual results to defer materially from those projected or implied during this call.

Speaker #1: These factors and risks are described in our earnings materials and in our recent SEC filing. All of the forward-looking statements that we make today's call are based on belief as of today, and we disclaim any obligation to update any forward-looking statements except as required by law.

Erin Brewer: All of the forward-looking statements that we make today's call are based on beliefs as of today. We disclaim any obligation to update any forward-looking statements except as required by law. Additionally, today we're gonna discuss customers. For Rideshare North America, there are generally two customers in every car: the driver's Lyft customer and the rider is the driver's customer. We care about both. Our discussion today will also include non-GAAP financial measures, which are not a substitute for GAAP results. Reconciliation of our historical GAAP to non-GAAP results can be found in our earnings materials, which are available on our IR website. With that, I'll pass the call to David Risher.

Erin Rheaume: All of the forward-looking statements that we make today's call are based on beliefs as of today. We disclaim any obligation to update any forward-looking statements except as required by law. Additionally, today we're gonna discuss customers. For Rideshare North America, there are generally two customers in every car: the driver's Lyft customer and the rider is the driver's customer. We care about both. Our discussion today will also include non-GAAP financial measures, which are not a substitute for GAAP results. Reconciliation of our historical GAAP to non-GAAP results can be found in our earnings materials, which are available on our IR website. With that, I'll pass the call to David Risher.

Speaker #1: Additionally, today we're going to discuss customers. For rideshare in North America, there are generally two customers in every car: the driver's list customer and the rider's driver's customer.

Speaker #1: We care about both. Our discussion today will also include non-GAAP financial measures, which are not a substitute for GAAP results. Reconciliation of our historical GAAP to non-GAAP results can be found in our earnings material, which are available on our IR website.

Speaker #1: And with that, I'll pass the call to David.

Speaker #2: Thank you, Aaron. Hello, everyone. This is Q1 representing another strong quarter for Lyft. We again delivered on our financial commitments and again had double-digit growth in active riders, gross bookings, and adjusted EBITDA year over year.

David Risher: Thank you, Erin. Hello, everyone. Lyft's Q1 represented another strong quarter for Lyft. We again delivered on our financial commitments and again had double-digit growth in active riders, gross bookings, and adjusted EBITDA year-over-year, further setting ourselves up for a global hybrid AV future. Rideshare demand remained healthy. We saw double-digit rides growth around peak events like Valentine's Day, Super Bowl Sunday, St. Patrick's Day. Stepping back, our share of the US rideshare market has grown from three years ago when I joined and has held above that point ever since, with an increase in Q1 over last quarter. In March, we delivered our highest ever number of rides in a week. Taken together with our financial results, this continues to validate our thesis that customer obsession drives profitable growth.

Speaker #2: Further setting ourselves up for a global hybrid AV future. Rideshare demand remained healthy. We saw double-digit rides growth around peak events like Valentine's Day, Super Bowl Sunday, and St.

Speaker #2: Patrick's Day. Stepping back, our share of the U.S. rideshare market has grown from the three years ago when I joined, and has held above that point ever since, with an increase in Q1 over last quarter.

Speaker #2: And in March, we delivered our highest-ever number of rides in a week. Taken together with our financial results, this continues to validate our thesis.

Speaker #2: The customer obsession drives profitable growth. Looking globally, we're now operating in over 120 countries around the world and have further deepened our presence in London with our acquisition of Getz UK Business, which we just officially week.

David Risher: Looking globally, we're now operating in over 120 countries around the world and have further deepened our presence in London with our acquisition of Gett's UK business, which we just officially closed this week. Finally, we took significant steps forward with our partner Waymo in Nashville with the construction of a state-of-the-art AV depot. We continue to be extremely bullish about AV's ability to expand our market and about our own capacity to operate them at industry-leading utilization levels, the ultimate driver of profitability. With that, let me turn it over to Erin to take you through a few financial highlights.

Speaker #2: And finally, we took significant steps forward with our partner Waymo in Nashville with a construction of a state-of-the-art AV depot. We continue to be extremely bullish about AV's ability to expand our market and about our own capacity to operate them at industry-leading utilization levels.

Speaker #2: The ultimate driver of profitability. And with that, let me turn it over to Aaron to take you through a few financial highlights.

Speaker #1: Thanks, David. The consistent execution David just described translated directly to strong financial results. In the first quarter, gross bookings were up 19% and adjusted EBITDA up 25% year over year.

Erin Brewer: Thanks, David. The consistent execution David just described translated directly to strong financial results. In Q1, gross bookings were up 19% and adjusted EBITDA up 25% year over year. Over the last 12 months, we've generated a record $1.12 billion in free cash flow. During Q1, we executed our largest quarterly share repurchase ever, totaling $300 million in the quarter. Looking forward, our guidance reflects continued momentum across the business. At the midpoint of our range, we expect gross bookings to accelerate to approximately 20% and adjusted EBITDA to expand by more than 30% year over year. With that, we'll take your questions.

Speaker #1: Over the last 12 months, we've generated a record $1.12 billion in free cash flow. And during Q1, we executed our largest quarterly share repurchase ever, totaling $300 million, in the quarter.

Speaker #1: Looking forward, our guidance reflects continued momentum across the business. At the midpoint of our range, we expect gross bookings to accelerate to approximately 20% and adjusted EBITDA to expand by more than 30% year over year.

Speaker #1: And with that, we'll take your questions.

Speaker #3: Let's dive into Q&A. If you have joined via the weber, please use the raise hand icon, which can be found at the bottom of your application.

Erin Brewer: Let's dive into Q&A. If you have joined via the webinar, please use the raise hand icon, which can be found at the bottom of your application. When you are called on, please unmute your line and ask a question. Please limit to one question. We'll now pause for a moment to assemble. Okay, first question comes from Eric Sheridan with Goldman Sachs.

Speaker #3: When you're called on, please unmute your line and ask a question. Please limit to one question. We'll now pause for a moment to assemble.

Speaker #3: Okay. First question comes from Eric Sheridan with Goldman Sachs.

Speaker #2: Okay, great. Hopefully, you can hear me okay. What are to dive into the partnerships and how they continue to evolve? What are the key learnings as these partnerships continue to build in the momentum and build in their duration in terms of them as stimulants of increased frequency on your platform or stimulants of increased new rider growth on the platform more broadly?

Eric Sheridan: Okay, great. Hopefully you can hear me okay. Wanted to dive into the partnerships and how they continue to evolve. What are the key learnings as these partnerships continue to build in their momentum and build in their duration in terms of them as stimulants of increased frequency on your platform or stimulants of increased new rider growth on the platform more broadly? Would love to get a better sense of color there. Appreciate it.

Speaker #2: We'd love to get a better sense of color there. Appreciate it.

Speaker #4: Sure. Hey, Eric, it's David. I'll take it. Maybe Aaron will tag team on me a little bit here as well. So super good question.

David Risher: Sure. Hey, Eric, it's David. I'll take it. Maybe Erin will tag team on me a little bit here as well. Super good question, and I think I'm just gonna maybe reset the table for one second because I think the role of partnerships continues to be incredibly important to our current business and will be incredibly important in our AV business. How we perform as a partner, I think is actually a good predictor, and how our partners perform is a good predictor of the future. Okay, to your question. We got a record number of rides this quarter from partnership tagged ride requests. About 27%, I think. That's a big deal. I think when we first started talking about this, we were at 20%, then 22%, then 25%, then 27%. Why? Two reasons.

Speaker #4: And I think I'm just going to maybe reset the table for one second because I think the role of partnerships continues to be incredibly important to our current business and will be incredibly important in our AV business.

Speaker #4: So how we perform as a partner I think is actually a good predictor and how our partners perform is a good predictor of the future.

Speaker #4: Okay. So to your question, we got a record number of rides this quarter from partnership-tagged rides, rider requests, so about 27%, I think. And that's a big deal.

Speaker #4: I think when we first started talking about this, we were 20%, then 22, then 25, and 27. Why? Two reasons. Number one, we partner with great organizations that have huge stands, right?

David Risher: Number one, we partner with great organizations that have huge TAMs, right? If you look at some of our most recent ones, of course, DoorDash is still only about a year and a half old. United is more recent. Even Southwest Airlines through their credit card program. You know, these are enormous programs, and so they represent a huge opportunity for us to acquire new customers. Now, those and I'll come back to frequency in a second. Those customers are different, right? For example, DoorDash customers tend to be very heavy users, and you can understand this, right? People eat three times a day, and they tend to take rides relatively more often than others. You saw us obviously complete, you know, double down on that partnership by expanding that to Canada.

Speaker #4: So if you look at some of our most recent ones, of course, DoorDash is still only about a year and a half old. United is more recent.

Speaker #4: Even Southwest Airlines, through their credit card program, these are enormous programs. And so they represent a huge opportunity for us to acquire new customers.

Speaker #4: Now, those I'll come back to frequency in a second. Those customers are different. Right? So, for example, DoorDash customers tend to be very heavy users.

Speaker #4: And you can understand this, right? People eat three times a day. And they tend to take rides relatively more often than others. So you saw us, obviously, complete double down on that partnership by expanding that to Canada.

Speaker #4: Okay. You look at United Airlines. United Airlines is kind of a different vibe, right? They tend to be more business customers. Our index and some of the United's big hubs, Chicago being a good example where we had great growth this past year.

David Risher: Okay, you look at United Airlines. United Airlines is kind of a different vibe, right? They tend to be more business customers. They, you know, we out index in some of the United's big hubs. Chicago being a good example, where we had great growth this past year. They tend to be airport rides, not surprisingly, which means higher bookings per ride, which tends to mean higher profits. That's wonderful. How do we reward United customers? Well, we give them miles, which they've done for years now. I think we're over 350 million rides right around. Excuse me, 350 miles awarded. 350 million miles awarded, right around there. That's a big deal.

Speaker #4: They tend to be airport rides, not surprisingly, which means higher bookings per ride, which tends to mean higher profits. So that's wonderful. How do we reward United customers?

Speaker #4: Well, we give them miles, which they've done for years now. I think we've got we're over 350 million rides right around excuse me, 350 miles awarded, 350 million miles awarded right around there.

Speaker #4: That's a big deal. And then a couple of weeks ago, we announced pay-with-miles, which is amazing. I mean, that's literally I don't know how many billions of miles or hundreds of millions, maybe, United has banked.

David Risher: A couple of weeks ago, we announced pay with miles, which is amazing. I mean, that's literally, you know, I don't know how many billions of miles or hundreds of millions maybe United has banked, but this allows United MileagePlus customers to pay with, you know, with their miles on Lyft, and that's wonderful. It's an industry first, and it deepens that relationship. You put all these things together, and you get sort of a portfolio. Some tend to drive frequency and new customer acquisition a little bit more. Some tend to drive, you know, other behaviors that we kind of like airport rides and so forth. Super, super important. Maybe I'll talk about AV partners another time.

Speaker #4: But this allows United Mileage Plus customers to pay with their miles on Lyft. And that's wonderful. It's an industry-first and it deepens that relationship.

Speaker #4: So you put all these things together and you get sort of a portfolio. Some tend to drive frequency and new customer acquisition a little bit more.

Speaker #4: Some tend to drive other behaviors that we kind of like, like airport rides and so forth. But super, super important. Maybe I'll talk about AV partners another time.

Speaker #4: I don't think that was the sort of core of your question. But we remain very committed to the concept of really developing the ecosystem and going deeper and deeper in the TAM, which is quite large.

David Risher: I don't think that was the sort of core of your question, but that's, we remain very committed to the sort of concept of really developing the ecosystem and going deeper and deeper in the TAM, which is quite large.

Speaker #2: Great. Thank you.

Eric Sheridan: Great. Thank you.

Speaker #4: Sure.

David Risher: Sure.

Speaker #3: All right. The next question will be Doug from JPMorgan.

Erin Brewer: Great. Next question will be Doug from JPMorgan.

Erin Rheaume: Great. Next question will be Doug from JPMorgan.

Speaker #2: Oh, hi. This is Nita, John for Doug. So a couple of questions. One is on the SF commentary. I think you guys mentioned that you have continued to gain share and also saw rides increase by 20% in the ODD.

Neeraj: Hi, this is Neeraj on for Doug. A couple of questions. One is on the SF commentary. I think you guys mentioned that you have continued to gain share and also saw rides increase by 20% in the ODD. Just curious, given, you know, Uber has said their CP has gained They have gained CP in the last six months as well. Just trying to understand the share dynamics there. Like, are you gaining share from Waymo? Or, like, how does the share dynamics work there? The next one was, have you started seeing any elasticity from the California insurance mandate? Yeah. Thank you.

[Analyst] (JPMorgan): Hi, this is Neeraj on for Doug. A couple of questions. One is on the SF commentary. I think you guys mentioned that you have continued to gain share and also saw rides increase by 20% in the ODD. Just curious, given, you know, Uber has said their CP has gained They have gained CP in the last six months as well. Just trying to understand the share dynamics there. Like, are you gaining share from Waymo? Or, like, how does the share dynamics work there? The next one was, have you started seeing any elasticity from the California insurance mandate? Yeah. Thank you.

Speaker #2: So just curious, given Uber has said their CP has gained they have gained CP in the last six months as well. So just trying to understand the share dynamics there, like are you gaining share from Waymo or how does the share dynamics work there?

Speaker #2: And the next one was, are you have you started seeing any elasticity from the California insurance mandate? Yeah. Thank you.

David Risher: Sure. Why don't I take the first half, and then Erin, you can take the second half. Broadly speaking, as we've said before, you know, we think AVs are an incredible positive for rideshare. Really, it's because it's a great product, and therefore you would expect over time that's gonna bring new people, you know, into the rideshare ecosystem. When we look across sort of in aggregate all of the regions where AVs are in the marketplace, we've effectively held share pretty steady, you know. That's kind of a good indication because it means that as new riders are coming on, still the whole, you know, the whole pie is growing. San Francisco are doing great. As we said, we actually had an increase.

Speaker #4: Sure. Why don't I take the first half and then Aaron, you can take the second half. So broadly speaking, as we've said before, we think AVs are an incredible positive for ride share.

Speaker #4: And really, it's because it's a great product and therefore you would expect over time that's going to bring new people onto the sort of into the ride share ecosystem.

Speaker #4: And when we look across sort of in aggregate, all of the regions where AVs are in the marketplace, we've effectively held share pretty steady.

Speaker #4: So that's kind of a good scene because a good indication because it means it has new riders are coming on still the whole pie is growing.

Speaker #4: San Francisco, we're doing great. As we said, we actually had an increase. We've had nice growth in San Francisco. These things are always multivariable.

David Risher: We've had nice growth in San Francisco. You know, these things are always multi-variable. We're also doing some marketing in San Francisco, so that, you know, is sort of a maybe confounding factor. We like what we see in San Francisco. I will say, you know, when I look at what the other guys say, you know, they maybe pick six months for a particular reason, I'm not sure. Broadly speaking, I feel pretty good about our position in SF.

Speaker #4: We're also doing some marketing in San Francisco. So that is sort of a maybe confounding factor. What we like what we see in San Francisco.

Speaker #4: When I look at what the other guys say, they maybe pick six months for a particular reason. I'm not sure. But, broadly speaking, I feel pretty good about our position in SF.

Speaker #3: Yeah. And happy to comment on California. So on our previous earnings conference call, we talked about, obviously, the insurance reform in California, that we expected to deliver great value to riders and to drivers.

Erin Brewer: Yeah. Happy to comment on California. On our previous earnings conference call, we talked about obviously the insurance reform in California that we expected to deliver great value to riders and to drivers. We further talked about how we expected that to translate into increasing demand over time and sort of gaining momentum in H2. I can sit here today and tell you that as we got into sort of February, March, and even in here to Q2, we are seeing that growth begin in California. That growth in Q1 outpaced other top regions. We're starting to see those effects. We obviously look forward to that momentum continuing for the balance of the year.

Speaker #3: We further talked about how we expected that to translate into increasing demand over time. And sort of gaining momentum in the back half of the year.

Speaker #3: I can sit here today and tell you that as we got into sort of February-March and even in here to the second quarter, we are seeing that growth begin in California, that growth in the first quarter outpaced other top regions.

Speaker #3: And so we're starting to see those effects. We obviously look forward to that momentum continuing for the balance of the year.

Speaker #4: Got it. Thank you both.

Neeraj: Got it. Thank you both.

[Analyst] (JPMorgan): Got it. Thank you both.

Speaker #3: Thank you. Our next question will be Nikhil from Bernstein.

Erin Brewer: Thank you.

David Risher: Sure.

Erin Brewer: Our next question will be Nikhil from Bernstein.

Erin Rheaume: Our next question will be Nikhil from Bernstein.

Speaker #5: Hey, thank you for taking the question. I wanted to ask about the rides growth and appreciate the callout in the letter that's helpful. Thank you.

Nikhil Devnani: Hey, thank you for taking the question. I wanted to ask about the rides growth and appreciate the callout in the letter. That's helpful. Thank you. The mid-single digit North America volume, if I'm reading it right, it looks like Canada is growing much faster, almost 50%. It'd be helpful if you could maybe just outline what you saw in the US business on a ride volume basis, and I guess the big picture factors that maybe weighed on that in the quarter. It seems like it's decelerated over the last few quarters. Just your perspective on what's happening there would be really helpful. Thank you.

Speaker #5: So the mid-single digit in North America volume if I'm reading it right, it looks like Canada is growing much faster almost 50%. So it'd be helpful if you could maybe just outline what you saw in the US business on a ride volume basis and I guess the big picture factors that maybe weighed on that in the quarter.

Speaker #5: It seems like it's decelerated over the last few quarters. So just your perspective on what's happening there would be really helpful. Thank you.

Speaker #4: Yeah, for sure. Hey, Nikhil. So a couple of things. I mean, the first thing to think well, so okay, let's just sort of maybe level set on the data and then talk about worsening.

David Risher: Yeah, for sure. Hey, Nikhil. A couple things. I mean, Well, okay, let's just sort of maybe level set on the data and then talk about worse things. On the data, we grew both in the United States and in Canada, to be super clear. No question Canada outgrew the US. I don't think it was quite to the degree you're talking about, but it was a very significant growth. I mean, we did grow something like 50% year-on-year in Canada. Might get that a little bit wrong. Anyway, okay. Look, North America, let's think about that, and then the US. North America, huge region, of course. Super diverse, a lot of geographies, and a lot of segments within those geographies.

Speaker #4: So on the data, we grew both in the United States and in Canada to be super clear. No question, Canada outgrew the US. I don't think it was quite to the degree you're talking about.

Speaker #4: But it was a very significant growth. I mean, we did grow something like 50% year on year in Canada. I get that a little bit wrong.

Speaker #4: Anyway, okay. So look, so North America, let's think about that, and then the US. North America, a huge region, of course. Super diverse. A lot of geographies.

Speaker #4: And a lot of segments within those geographies. What we have seen is in Canada, for sure, but also low-scale markets. So we've been talking about for now, I don't know, six or seven quarters.

David Risher: What we have seen is in Canada for sure, but also low-scale markets that we've been talking about for now, I don't know, 6 or 7 quarters, that's where we are seeing our sort of outsized growth, for sure. Low-scale markets, again, you can sort of imagine those as maybe the Milwaukees of the world or maybe the Pittsburghs, whatever it might be. Sometimes second and third-tier cities or even more rural areas where there's a huge amount of TAM, you know, left and is sort of under-penetrated. Obviously in some of the cities, particularly the largest cities where rideshare has been active the longest, I would say the industry on average is seeing slightly lower rates of growth, or at least did see this past quarter.

Speaker #4: That's where we are seeing our sort of outsized growth, for sure. Low-scale markets, again, you can sort of imagine those as maybe the Milwaukees of the world, or maybe the Pittsburghs—whatever it might be.

Speaker #4: But sometimes second and third-tier cities, or even more rural areas where there's a huge amount of TAM left and is sort of underpenetrated. And then obviously in some of the cities, particularly the largest cities where ride share has been active the longest, I would say the industry on average is seeing slightly lower rates of growth, or at least did see this past quarter.

Speaker #4: And I think that's an industry thing. And it has a lot to do just with kind of S-curves and being in markets for a long, long time.

David Risher: I think that's an industry thing, it has a lot to do just with kind of S curves, and being in markets for a long, long time. Okay. Once you look at that, you say, Well, okay, how are you going to re-accelerate growth in some of those markets? That's where some of the segments I think become so interesting. You've heard us of course talk about Lyft Silver, which addresses older people, who by the way take a lot of rides. Even on our platform, once they become Silver members, they take a lot more rides. Lyft Teen are still a very new product. Huge opportunity there, one that obviously is sort of infinitely replenishing, you sort of might say.

Speaker #4: Okay. So once you look at that, then you say, well, okay, how are you going to re-accelerate growth? And some of those markets. And that's where some of the segments, I think, become so interesting.

Speaker #4: So you've heard us, of course, talk about Lift Silver, which addresses older people who, by the way, take a lot of rides. And even on our platform, once it becomes silver members, they take a lot more rides.

Speaker #4: Lyft Teen, still a very, very new product—huge opportunity there, one that obviously is sort of infinitely replenishing, you might say. You look at the partnerships that we have in some major cities.

David Risher: You look at the partnerships that we have in some major cities. DoorDash is a great, you know, obviously, you know, they've got both urban and suburban footprint, but anyway, they've got a nationwide footprint. You look at United Airlines, they've got real hubs, and some of those hubs are where we're seeing really good growth. We saw, for example, double-digit growth in both New York and in San Francisco. Part of that, of course, is also some marketing, right? We're now really leaning into this idea of check Lyft. What we find, and of course national studies show, is that when people check both apps, they tend to save money.

Speaker #4: DoorDash is a great obviously, they've got both urban and suburban footprint. But anyway, they've got a nationwide footprint. You look at United Airlines, they've got real hubs in some of those hubs or where we're seeing really good growth.

Speaker #4: We saw, for example, double-digit growth in both New York and in San Francisco. Part of that, of course, is also some marketing, right? We're now really leaning into this idea of check lift.

Speaker #4: What we find, and of course, national studies show, is that when people check both apps, they tend to save money. That's a very powerful message.

David Risher: That's a very powerful message, and frankly, one that favors us, both because of our pricing strategy and also, you know, if you're not even looking at our app, then how can you be saving money? There's a lot of room left there to go. When I kinda look across all those, I see a lot of vectors for growth. It's why we're saying, you know, our rides are gonna overall we're seeing, you know, acceleration in Q2 and beyond. Maybe I'll turn it over to Erin to talk a little bit about that and then, maybe some other things as well.

Speaker #4: And frankly, one that favors us, both because of our pricing strategy and also if you're not even looking at our app, then how can you be saving money?

Speaker #4: So there's a lot of room left there to go. So when I kind of look across all those, I see a lot of vectors for growth.

Speaker #4: It's why we're saying our rides are going to accelerate overall. We're seeing acceleration in Q2 and beyond. And maybe I'll turn it over to Aaron to talk a little bit about that and then maybe some other things as well.

Speaker #3: Sure. Yeah, I'll offer a little bit of color Nikhil. In our prepared remarks, we quantify the impact that we saw that weather in the first quarter had on our overall rides.

Erin Brewer: Sure. Yeah. I'll offer a little bit of color, Nikhil. You know, in our prepared remarks, we quantified the impact that we saw the weather in Q1 had on our overall rides, roughly about 3 million rides. You can think about that as a little bit more than half of that being bikes, bike rides overall, obviously, given the severity of the weather in the Northeast. Beyond that, I think it's important to highlight a couple of seasonal factors, right? We always have a deceleration naturally in the bikes business, Q4 to Q1. Same with FREENOW. Those both seasonally accelerate into Q2. That in addition to a number of the areas that David just mentioned, I talked about California. We've got a very healthy marketplace right now as well.

Speaker #3: Roughly about 3 million rides you can think about that as a little bit more than half of that being bike rides overall. Obviously, given the severity of the weather in the Northeast.

Speaker #3: Beyond that, I think it's important to highlight a couple of seasonal factors, right? We always have a deceleration naturally in the bikes business. Q4 to Q1, same with Free Now.

Speaker #3: Those both seasonally accelerate into the second quarter. So that, in addition to a number of the areas that David just mentioned, I talked about California, we've got a very healthy marketplace right now as well.

Erin Brewer: Those are some of the underlying factors as we think about acceleration into Q2. Maybe zooming out a little bit more broadly, really nothing has changed as we think about our trajectory here in 2026 and our overall objective to deliver north of a billion rides for the full year.

Speaker #3: Those are some of the underlying factors as we think about acceleration into Q2. And then maybe zooming out a little bit more broadly, really nothing is changed as we think about our trajectory here in 2026 and our overall objective to deliver north of a billion rides.

Speaker #3: For the full year.

Speaker #5: Thank you very much.

Nikhil Devnani: Thank you very much.

Speaker #3: Next question will be Ben from Deutsche.

Erin Brewer: Next question will be Ben from Deutsche.

Erin Rheaume: Next question will be Ben from Deutsche.

Speaker #6: Great. Thank you for taking my questions. So the theme this quarter has been AI productivity and sort of the investment companies are making sort of into tokens, for instance.

Ben Black: Thank you for taking my questions. The theme this quarter has been AI productivity and the investments that companies are making into tokens, for instance. I'm wondering how you think philosophically about, you know, balancing the need to maintain your improving margin trajectory today versus growing talent and also investing in these tools to support productivity. Secondly, you know, I'd be curious to hear what you're seeing in the market this quarter that required you to increase incentives per ride by 17%. Could you maybe touch on that as well, please?

Speaker #6: So I'm wondering how you think the software about sort of balancing the need to maintain your improving margin trajectory today versus growing talent and also investing in these tools to support productivity.

Speaker #6: And then secondly, I'd be curious to hear what you're seeing in the market this quarter that required you to increase incentives per ride by 17%.

Speaker #6: Could you maybe touch on that as well, please?

Speaker #4: Sure. Again, we'll sort of tag team this. So I mean, maybe just state the obvious. Yeah, I mean, AI is amazing. It's just rolling through our org just like every other org.

David Risher: Sure. Again, we'll sort of tag team this. I mean, maybe just state the obvious. I mean, AI is amazing. It is rolling through our org just like every other org. You know, it's sort of lightning pace. I was looking at AI adoption recently just among the developers, our engineers, and just with a new tool, we have a strategic relationship with Claude, and a new tool has gotten to 80% some adoption over the course of, whatever, 35 days, 45 days. AI, the code generation tool there. You know, amazing. How we think about it I know you asked specifically about the cost of tokens and so forth, but just zooming out for a second, how we really think about it is AI builds capacity. It, well, it actually does two things.

Speaker #4: It's for the lightning pace. I was looking at AI adoption recently just among the developers, our engineers. And just with a new tool, we have a strategic relationship with Claude and a new tool has gotten to 80-some percent adoption over the course of whatever, 35 days, 45 days.

Speaker #4: AI, the code generation tool there. So anyway, amazing. Now, how we think about it, I know you asked specifically about the cost of tokens and so forth.

Speaker #4: Just zooming up for a second, how we really think about it is, AI builds capacity. Well, it actually does two things: it builds capacity, and it increases speed.

David Risher: It builds capacity and it increases speed. Capacity and velocity. That's the way we think about it. We see examples of this all across the organization. You know, we've talked a couple different times about becoming a more global org. Gosh, when you become a more global org, you have to do all kinds of things around data and privacy and security and systems integration and so forth. You know, truthfully, a lot of that is not particularly customer value add, but you just have to do it. Our team has just been crushing it. A lot of the reasons they've been crushing it without having to hire a bunch of new people is we're relying on new AI tools that we've written internally or developed, you know, co-developed with others and so forth, that allows us to get things done.

Speaker #4: So capacity and velocity. That's the way we think about it. And we see examples of this all across the organization. We've talked a couple of different times about becoming a more global org.

Speaker #4: Gosh, when you become a more global org, you have to do all kinds of things around data and privacy and security and systems integration and so forth.

Speaker #4: And truthfully, a lot of that is not particularly customer value add, but you just have to do it. And our team has just been crushing it.

Speaker #4: And a lot of the reasons they've been crushing it without having to hire a bunch of new people is we're relying on new AI tools that we've written internally or developed co-developed with others and so forth.

Speaker #4: That allows us to get things done. Same with customer-facing things. We'll talk about that maybe another time as kind of a whole separate topic.

David Risher: Same with customer-facing things. We'll talk about that maybe another time. It's kind of a whole separate topic. Broadly speaking, I'd say we run a pretty lean ship, and what AI is allowing us to do is to move faster and to build capacity among our staff so that they can either be more productive or work on more things simultaneously, or what have you.

Speaker #4: But broadly speaking, I'd say we run a pretty clean ship. And what AI is allowing us to do is to move faster and to build capacity among our staff so that they can either be more productive or work on more things simultaneously or what have you.

Speaker #3: Sure. I'll take the question on incentives and sort of start with our usual line about incentives in this business, which fall in two places in our P&L, the contra revenue line and sales and marketing line.

Erin Brewer: Sure. I'll take the question on incentives and sort of start with our usual line about, you know, incentives in this business, which fall in two places in our P&L, the contra revenue line and sales and marketing line, are used dynamically in the marketplace to balance and optimize overall. You know, stepping back, that's why we always say that we are optimizing our P&L as we think about gross bookings, as we think about adjusted EBITDA. I think that's important context. Let's kind of get into the details on the incentive line. If you think about contra revenue incentives overall, on a year-over-year basis, that's actually been a source of leverage. In Q1, we had our highest driver hours ever in Q1. You know, very strong engagement overall.

Speaker #3: Are used dynamically in the marketplace to balance and optimize overall. Stepping back, that's why we always say that we are optimizing our P&L as we think about gross bookings, as we think about adjusted EBITDA.

Speaker #3: So I think that's important context. So let's kind of get into the details on the incentive line. If you think about contra revenue incentives overall on a year-over-year basis, that's actually been a source of leverage.

Speaker #3: In the first quarter, we had our highest driver hours ever in the first quarter. Very strong engagement overall. We talked a little bit in the prepared remarks about our most recent driver preference survey.

Erin Brewer: We talked a little bit in the prepared remarks about our most recent driver preference survey. Again, super strong results. You see some leverage there in the contra revenue line. As I think about sales and marketing incentives, I think it's really important to chat about this from a P&L perspective. If you look at our performance in the quarter, you see strong revenue growth, you see gross margins expanding year over year. You know, I mentioned insurance being a point of leverage, so that's aided by that. We, of course, continue with our very disciplined fixed cost base. Why is all of that important to incentive? Those are the things that can continue to allow us to invest when we see great re-return opportunities to invest in that rider incentive line. We do it very deliberately.

Speaker #3: Again, super strong results. So you see some leverage there in the contra revenue line. And then as I think about sales and marketing incentives, I think it's really important to chat about this from a P&L perspective.

Speaker #3: So if you look at our performance in the quarter, you see strong revenue growth. You see gross margins expanding year over year. I mentioned insurance being a point of leverage so that's aided by that.

Speaker #3: We, of course, continue with our very disciplined fixed cost base. Why is all of that important to incentive? Because those are the things that can continue to allow us to invest when we see great return opportunities to invest in that rider incentive line.

Speaker #3: We do it very deliberately. We do it very focused on what the ROI is over the long term. And so some of that strong performance throughout our P&L gave us the opportunity to take advantage of some of those strong investment opportunities.

Erin Brewer: We do it very focused on what the ROI is over the long term. Some of that strong performance throughout our P&L gave us the opportunity to take advantage of some of those strong investment opportunities, especially at a time when the marketplace is performing so well. We delivered across all of our financial commitments. Hopefully that gives you a little bit of color about how we manage that piece in the quarter.

Speaker #3: Especially at a time when the marketplace is performing so well. And we delivered across all of our financial commitments. So hopefully that gives you a little bit of color about how we manage that piece in the quarter.

Ben Black: Great. Yes. Thank you.

Speaker #6: Great. Yes. Thank you.

Speaker #3: Next question is John Blackledge with TD Cowan. John? You're done. We're going to come back to you, okay? We're going to go to Mike with Moth and Nathanson.

Erin Brewer: Next question is John Blackledge with TD Cowen. John? Okay, John, we're gonna come back to you, okay? We're gonna go to Mike with MoffettNathanson. Oh, wait. Oh, I can hear somebody. Is that John?

Erin Rheaume: Next question is John Blackledge with TD Cowen. John? Okay, John, we're gonna come back to you, okay? We're gonna go to Mike with MoffettNathanson. Oh, wait. Oh, I can hear somebody. Is that John?

Speaker #3: Oh, wait. Oh, I can hear somebody. Is that John?

Speaker #7: Yeah. Sorry. Sorry. First time Zoom. I'm kidding. Two questions. Could you talk about the strength and the high-value modes and how much runway there is for further penetration of total rides?

John Blackledge: Yeah. Sorry. First time Zoom.

Erin Brewer: No, it's okay.

John Blackledge: I'm kidding.

John Blackledge: Oh.

John Blackledge: 2 questions.

David Risher: Zoom call fan?

John Blackledge: Yeah. Could you talk about the strength in the high value modes and how much runway there is for further penetration of total rides? Second question, would you expect this kind of divergence between GB growth and rides volume growth to extend into H2, or will the gap close a bit as we get through H2? Thank you.

Speaker #7: And then second question, would you expect this kind of divergence between GB growth and rides volume growth to extend into the second half, or will the gap close a bit as we get through the second half?

Speaker #7: Thank you.

Speaker #4: Yeah. We'll tag team on that one again. So a lot of runway there. A lot of headroom maybe is a better way to say it.

David Risher: Yeah, let's, we'll tag team on that one again. Lot of runway there. Lot of headroom maybe is a better way to say it. It's just, you know, this is an area where I would say Lyft maybe underinvested for some period of time and now has completely made up for lost time, let's say. We're really focusing on improving the quality of the cars, the types of drivers. You know, some drivers who drive for Black and the high value modes, so we call those the Black XL, even XXL, actually a new product for big families. Anyway, the types of drivers, you know, we're sort of Let's say shifting towards a more professional set of drivers there. Of course, TBR also, you know, operates in the very high-end kind of chauffeur service as well.

Speaker #4: It's just this is an area where I would say Lyft maybe underinvested for some period of time. And now has completely made up for lost time, let's say.

Speaker #4: So we're really focusing on improving the quality of the cars, the types of drivers, some drivers who drive for black and high-value modes. So we call those the black XL, even XXL, actually a new product for a big families.

Speaker #4: Anyway, the types of drivers, we're sort of, let's say, shifting towards a more professional set of drivers there. Of course, TBR also operates in the very high-end kind of chauffeur service as well.

Speaker #4: So lots of growth there. And lots of runway ahead, I would say. Yeah, been an area that over the last couple of quarters you've heard us talk about the acceleration, and we have a big ambitions there because there's a lot of demand to fill with a high-quality product.

David Risher: Lots of growth there, and lots of runway ahead, I would say. It's been an area that over the last couple of quarters you've heard us talk about the acceleration, and we have, you know, big ambitions there 'cause there's a lot of demand to fill with a high-quality product.

Speaker #3: Yeah. And I'll take the one on gross bookings and rides growth rates. So if you think about the dynamic there in the first quarter, there's a couple of different components.

Erin Brewer: Yeah. I'll take the one on gross bookings and rides growth rates. If you think about the dynamic there in Q1, there's two different components. Obviously, part of what you're seeing is this continuation of a very active shift toward higher value modes. We've been talking about that for a few quarters. The Q1 of that growth is up over 35% year over year. Obviously, adding in the FREENOW business, which carries a higher average gross bookings per ride, is helpful. Separately, but correspondingly, we continue to diversify the things that add to our gross bookings, where there may not be a ride attached, things like ads and luxury, for example. Those are some of the dynamics driving that.

Speaker #3: Obviously, part of what you're seeing is this continuation of a very active shift toward higher value modes. We've been talking about that for a few quarters.

Speaker #3: In the first quarter, that growth is up over 35% year over year. Obviously, adding in the free now business, which carries a higher average gross bookings per ride is helpful.

Speaker #3: And then separately, but correspondingly, we continue to diversify the things that add to our gross bookings, where there may not be a ride attached, things like ads and luxury, for example.

Speaker #3: And so those are some of the dynamics that are driving that. If you think about expectations for the second quarter, I do expect that delta between gross bookings growth and rides growth to narrow somewhat.

Erin Brewer: If you think about expectations for Q2, I do expect that delta between gross bookings growth and rides growth to narrow somewhat. You've got the significant seasonal expansion of the bikes business, I think is probably one of the main underlying drivers. It will narrow somewhat as you think about those trends from Q1 to Q2.

Speaker #3: You've got the significant seasonal expansion of the bikes business. I think is probably one of the main underlying drivers. So it will narrow somewhat as you think about those trends from Q1 to Q2.

Speaker #7: Thank you. Thanks.

John Blackledge: Thank you. Thanks.

Erin Brewer: Okay. Now we really are gonna take a question from Mike at MoffettNathanson.

Speaker #3: Okay. No, we really are going to take a question from Mike at Moth and Nathanson.

Speaker #6: Awesome. Thank you. It was nice knowing that it was coming. Two, if I can. Yeah, I had time to prepare. But it was going to be the same questions anyways.

Mike: Awesome. Thank you. It was nice knowing that it was coming. 2 if I can.

[Analyst] (MoffettNathanson): Awesome. Thank you. It was nice knowing that it was coming. 2 if I can.

David Risher: Time to prepare.

Mike: Yeah, time to prepare. It was gonna be the same questions anyways. Can we talk about pricing in the US market? All interquarter, we get questions from clients about what the third-party data shows for industry pricing, kind of head-scratching, kind of ramp. When we see this reported number, I know that there's some FREENOW aspect on it, but can we maybe just simplify it, like point blank, what year-over-year pricing is for like a Lyft standard ride? I know there's the premiumization aspect, but just to kind of level set that, and any nuance around that would be really helpful. Another question. I'd love to hear how you're feeling about your ads business.

[Analyst] (MoffettNathanson): Yeah, time to prepare. It was gonna be the same questions anyways. Can we talk about pricing in the US market? All interquarter, we get questions from clients about what the third-party data shows for industry pricing, kind of head-scratching, kind of ramp. When we see this reported number, I know that there's some FREENOW aspect on it, but can we maybe just simplify it, like point blank, what year-over-year pricing is for like a Lyft standard ride? I know there's the premiumization aspect, but just to kind of level set that, and any nuance around that would be really helpful. Another question. I'd love to hear how you're feeling about your ads business.

Speaker #6: Can we talk about pricing in the US market? All interquarter, we get questions from clients about what the third-party data shows for industry pricing.

Speaker #6: Kind of head-scratching kind of ramp. And then when we see this reported number, I know that there's some free now aspect on it. But can we maybe just simplify it?

Speaker #6: Point blank. What year-over-year pricing is for a Lyft standard ride. I know there's the premiumization aspect, but just to kind of level set that.

Speaker #6: And any nuance around that would be really helpful. And then another question. I'd love to hear how you're feeling about your ads business. Maybe some updates on the run rate there and if anything's changed on your outlook for the future, if you're more optimistic or anything along those lines would be really great.

Mike: Maybe some updates on the run rate there and if anything's changed on your outlook for the future, if you're more optimistic or anything along those lines would be really great. Thank you so much.

[Analyst] (MoffettNathanson): Maybe some updates on the run rate there and if anything's changed on your outlook for the future, if you're more optimistic or anything along those lines would be really great. Thank you so much.

Speaker #6: Thank you so much.

Speaker #3: David, do you want to start with the ads business? And I'll talk about pricing. Okay.

Erin Brewer: David, do you wanna start with the ads business and I'll talk about.

David Risher: Totally.

Erin Brewer: Talk about pricing? Okay.

Speaker #4: Aaron and I are chuckling here in the background. Yeah, that sounds good. So, okay. On ads. Ads, as we said, we've talked about ads for a while, I think, and talked about how we were super pleased with sort of the run rate, the exit rate from last year.

David Risher: Erin and I are a chuckling pair with that. Yeah, that sounds good. Okay, on ads. Ads, as we said We've talked about ads for a while, I think, and talked about how we were super pleased with sort of the run rate, the exit rate from last year. I think the sort of big picture that we have on this is, gosh, there's a lot of opportunity. The reason for it is, you know, advertisers are always looking for new ways to connect with customers. In an increasingly virtualized world where people are spending more and more time on their phones, the big open question is not, how do I do more digital ads? I mean, that is a fairly well-solved problem in a sense.

Speaker #4: I think the sort of big picture that we have on this is, gosh, there's a lot of opportunity. And the reason for it is, advertisers are always looking for new ways to connect with customers.

Speaker #4: And in an increasingly virtualized world where people are spending more and more time on their phones, the big open question is not, how do I do more virtual or digital ads?

Speaker #4: I mean, that is a fairly well-solved problem in a sense. What's really interesting is how do you actually connect that to the physical world?

David Risher: What's really interesting is how do you actually connect that to the physical world? If you look at some of the campaigns we've done, we talked about Sephora last time. We talked about a Charles Schwab ad campaign this time that I think in the prepared remarks. Actually, I think just today we're doing something with McDonald's. You know, you start to see some really interesting trends where people are literally changing behavior as a result of being in cars when they're seeing ads, kind of in real time. Oh, also, bikes here in San Francisco. Gemini is all over the bike system here, same sort of deal. Of course, city, across all of New York City. A lot of opportunities there.

Speaker #4: And so if you look at some of the campaigns we've done, we talked about Sephora last time. We talked about the Charles Schwab ad campaign this time that I think in the prepared remarks.

Speaker #4: Actually, I think just today we're doing something with McDonald's. You start to see some really interesting trends where people are literally changing behavior as a result of being in cars when they're seeing ads kind of in real time.

Speaker #4: Oh, also bikes here in San Francisco. Gemini is all over the bike system here. So same sort of deal. Of course, city across all of New York City.

Speaker #4: So a lot of opportunities there. And then when you start to look at the audience we have, which is a fairly large audience, talking about 50 million people plus, then the question is, well, how can you take that audience and extend that?

David Risher: When you start to look at the audience we have, which is a fairly large audience, talking about 50 million people plus, the question is, well, how can you take that audience and extend that? We're doing something called audience extension, which allows us to sort of extend beyond, you know, sort of our four walls. How can you take some of that same data and extend that beyond the in-car experience to, you know, off platform, you know, through Paydesk and through other, you know, ad brokers? There's just a lot of opportunity here.

Speaker #4: And so we're doing something called audience extension, which allows us to sort of extend beyond sort of our four walls. How can you take some of that same data and extend that beyond to just beyond the in-car experience to off-platform through Trade Desk and through other ad brokers?

Speaker #4: So there's just a lot of opportunity here. And the person—I call her up from time to time—the person who runs our ad group, Suzie Ryder, joined us from YouTube a couple of years ago, where she had run their ad business for many years, really started it, and then kind of grew it to something quite big.

David Risher: The person, you know, I call her up from time to time, the person who runs our ad group, Suzie Reider, joined us from YouTube a couple of years ago, where she had run their ad business, for many years, really started it and then kind of grew it to something quite big. We've got the same amount of conviction here. You know, it may not be quite the same size as YouTube. That would be impressive. Certainly we've got a lot of conviction. There's a lot of headroom ahead.

Speaker #4: And we've got the same amount of conviction here. It may not be quite the same size as YouTube. That would be impressive. But certainly, we've got a lot of conviction that there's a lot of headroom ahead.

Speaker #3: Yeah. Mike, and to talk about pricing, I appreciate the simplicity of your question, and I may somewhat frustrate you because as you know and following our business, it tends to be fairly complex, right?

Erin Brewer: Yeah, Mike. To talk about pricing, I appreciate the simplicity of your question, and I may somewhat frustrate you because, you know, as you know, in following our business, it tends to be fairly complex, right? There are changes year-over-year as you think about the mix of our business in top markets or certain geographies, which are going to carry higher average pricing. We've obviously been growing very significantly in low scale markets. You've got some of that mix effect, which makes it probably not straightforward to give you the best answer. I would offer 2 perspectives, though. I think if you look over a number of years, this industry generally does see some amount of price increases if you think about longer term trends over years.

Speaker #3: There are changes year over year. As you think about the mix of our business in top markets or certain geographies, which are going to carry higher average pricing.

Speaker #3: We've obviously been growing very significantly in low-scale markets. So you've got some of that mix effect, which makes it probably not straightforward to give you the best answer.

Speaker #3: I would offer a couple of perspectives, though. I think if you look over a number of years, this industry generally does see some amount of price increases if you think about longer-term trends over years.

Speaker #3: Maybe over the near term, what I can tell you is sequentially from Q4 to Q1, pretty stable overall. A couple of questions ago, one of the things I was trying to highlight as you think about our overall gross bookings and kind of the mix of that, it has evolved.

Erin Brewer: Maybe over the near term, you know, what I can tell you is sequentially from Q4 to Q1, pretty stable overall. A couple of questions ago, one of the things I was trying to highlight as you think about our overall gross bookings and kind of the mix of that, it has evolved. It has evolved over time. We've, you know, we talked about the significant growth of higher value modes in that mix, the addition of FREENOW. We further talked about things like, you know, ads or our chauffeuring business, which contribute to gross bookings and have been growing obviously nicely, but don't carry the same rides component. Those are some of the areas. You know, sequentially, I would say overall pricing pretty stable as we think about Q4 to Q1. Hopefully that's some helpful color.

Speaker #3: It has evolved over time. So we've talked about the significant growth of higher value modes in that mix, the addition of free now. We've further talked about things like ads or our chauffeuring business, which contribute to gross bookings and have been growing, obviously, nicely.

Speaker #3: But don't carry the same rides component. So those are some of the areas. Sequentially, I would say overall pricing pretty stable as we think about Q4 to Q1.

Speaker #3: So hopefully, that's some helpful color.

Speaker #6: Thank you.

Mike: Thank you.

[Analyst] (MoffettNathanson): Thank you.

Speaker #3: Up next, we have Ken with Wells Fargo.

Erin Brewer: Up next, we have Ken with Wells Fargo.

Speaker #7: Thank you. Can you hear me okay?

Ken Gawrelski: Thank you. Can you hear me okay?

Speaker #3: Yes.

Erin Brewer: Yes.

Speaker #7: All right. Thank you. Can you maybe can you help me a little bit strategically understand? You've made several acquisitions. Some in the kind of some are geographic diversification, but others just it's not strictly in the rideshare business.

Ken Gawrelski: All right. Thank you. Can you help me a little bit strategically understand, you've made several acquisitions, some in the kind of, some are geographic diversification, but others, you know, just it's not strictly in the rideshare business. Could you talk a little bit about how you see them all coming together strategically? What are, you know, what are the key, like, points of synergy? What beyond geographic expansion to those assets? Why are they better together? Maybe I would just put it that way simply.

Speaker #7: Could you talk a little bit about how you see them all coming together strategically? What are the key points of synergy? What beyond geographic expansion, do those assets why are they better together?

Speaker #7: Maybe I'll just put it that way simply.

Speaker #4: Yeah. Let me take a stab at that. So and maybe a little it's just a tiny bit of history, I guess. So we were not a particularly acquisitive company for a period of time.

David Risher: Let me, you know, let me take a stab at that. And maybe a little, just tiny bit of history, I guess. We were not a particularly acquisitive company for a period of time, and I think there's a pretty obvious reason for why. It's 'cause we were kind of just getting our base business, you know, going strong. Last year, we made our first significant acquisition, at least as long as I've been here, with FREENOW. That was definitely a rideshare acquisition. Of course, it's a, you know, taxi-focused, you know, kind of core rather than, you know, what's called PHV in Europe.

Speaker #4: And I think there's a pretty obvious reason for why. It's because we were kind of just getting our base business going strong. Last year, we made our first significant acquisition, at least as long as I've been here with Free Now.

Speaker #4: That was definitely a rideshare acquisition. Of course, it's a taxi-focused kind of core rather than what's called PHV in Europe. But it expanded our footprint, which is nice for geographic diversity in the nine new countries.

David Risher: It's expanded our footprint, which is nice for geographic diversity, into nine new countries and allowed us, in that case in particular, strategically also to build upon the government relations that a company that's been in the taxi business has had to have had for a long time, which is gonna be so important for AVs. I would look at much of our acquisition activity in Europe as important for geographic diversity, but also for an AV future. You can see that with Gett as well, which just closed this week actually. Gett is a, you know, well-respected, largely B2B taxi service in London.

Speaker #4: And allowed us, in that case in particular, strategically also to build upon the government relations that accompanied its being in the taxi business, has had to have had for a long time, which is going to be so important for AVs.

Speaker #4: So I would look at much of our acquisition activity in Europe, as important for geographic kind of diversity, but also for an AV future.

Speaker #4: You can see that with Get as well, which just closed last quarter this week, actually. Get is a well-respected largely B2B taxi service in London.

David Risher: You know, as we mentioned kind of in the prepared remarks, between that and the FREENOW presence in London, we're on something north of 70%, maybe 80%, something like this, of the taxis that have apps, in their cars now have a Lyft app in the car. That's amazing because that allows us, you know, obviously access to a very, very important market. You know, Europe's biggest rideshare market, arguably one of the most interesting and important in the world. Again, if you think of our activity in London, you know, there's a short-term issue there of kind of wanting to build volume, in part because that's part of what we bring to the AV category, as well as government relations. Again, Gett actually directly works with governments, and then we've got good relations through FREENOW.

Speaker #4: As we mentioned, kind of in the prepared remarks, between that and the Free Now presence in London, we're on something north of 70, maybe 80 percent, something like this of the taxis that have apps.

Speaker #4: In their cars now have a Lyft app in the car. So that's amazing because that allows us obviously access to a very, very important market.

Speaker #4: Europe's biggest rideshare market, arguably one of the most interesting and important in the activity in London, there's a short-term issue there of kind of wanting to build volume, in part because that's part of what we bring to the AV category, as well as government relations, again, Get actually directly works with governments and then we've got good relations through Free Now.

Speaker #4: So I would say those are sort of the things. Now, TBR is the other acquisition that we've announced recently. Also in the rideshare space, but quite different.

David Risher: I would say those are sort of the things. Now, TBR is the other acquisition that we've announced recently, also in the rideshare space, but quite different. That's really a chauffeur space, you know, very, very high-end. I think that speaks to. We talk about this as up and out, right? Out is kind of the overseas piece, and up is how can we strengthen our position in kind of higher end offerings. It's wonderful to have a very, very top tier. Perhaps you may know TBR is often a kind of service non-deal road charters in the United States and abroad, 120 countries. You know, once you have a service level that is sort of marked at, you know, a 10 out of 10, that frankly brings your whole company up.

Speaker #4: That's really a chauffeur space, a very, very high-end. And I think that speaks to so we talk about this as up and out, right?

Speaker #4: Out is kind of the overseas piece. And up is how can we strengthen our position in kind of higher-end offerings? And it's wonderful to have a very, very top-tier perhaps you may know TBR as often they kind of service non-deal roadshows in the United States and abroad.

Speaker #4: 120 countries. Once you have a service level that is sort of marked at a 10 out of 10, that frankly brings your whole company up.

Speaker #4: And so many companies, of course, are now making good money in the high-end. So I think that's maybe the that touches on the significant ones.

David Risher: Many companies, of course, are now making, you know, good money in the high end. I think that's maybe that touches on the significant ones.

Speaker #6: Thank you.

Ken Gawrelski: Thank you.

Speaker #3: Okay. Next. Next question is going to be from Ross with Barclays.

Erin Brewer: Okay. Next question is gonna be from Ross with Barclays.

Erin Rheaume: Okay. Next question is gonna be from Ross with Barclays.

Ross Sandler: Great. This is a good follow-on from that last answer. Can we just get an update on whether the FREENOW, kind of like for like is growing? I think it was, like, flattish when you guys made that acquisition. I know we haven't anniversary'd it, but is the business growing? Are there any, like early proof points of US Lyft enthusiasts going to Europe and, you know, kind of, whatever, adding to the FREENOW business that way? Any color there? Thank you.

Speaker #7: Great. So this is a good follow-on from that last answer. Can we just get an update on whether the Free Now kind of like-for-like is growing?

Speaker #7: I think it was, like, flattish when you guys made that acquisition. I know we have an anniversary date, but is the business growing? And are there any early proof points of U.S. Lyft enthusiasts going to Europe and kind of, whatever, adding to the Free Now business that way?

Speaker #7: Any color there? Thank you.

Speaker #3: So I'll start with the performance and then David, do you want to talk about what we've got coming up on the rider side? So Ross, to answer your question directly, yes, the business is growing.

Erin Brewer: I'll start with the performance. David, do you wanna talk about what we've got coming up on the rider side? Ross, to answer your question directly, yes, the business is growing. You know, we talked about when we bought the business having about a billion dollar overall annual run rate, that we talked about that being on track as we closed last year. We anticipate growth as we look into 2026.

Speaker #3: We talked about when we bought the business having about a billion-dollar overall annual run rate, that we talked about that being on track as we closed last year.

Speaker #3: We anticipate growth as we look into 2026.

Speaker #4: Okay. And on the second part there, we've just begun, but maybe I can give you kind of the arc of the project. So today, what happens very directly, if you're a Lyft user and you open up a Free Now app, in London, you'll get a notification saying if you open up a Lyft app, I'm sorry, you'll get a notification saying our partner, Free Now, is delivering rides here.

David Risher: On the second part, there we've just begun, but maybe I can give you kind of the arc of the project. Today what happens, you know, very directly, if you're a Lyft user and you open up the FREENOW app in London, you'll get a notification saying, If you open up the Lyft app, I'm sorry. You'll get a notification saying, you know, our partner FREENOW is delivering rides here in Europe. It's a fairly kind of basic integration, you know, just like that. We do some other small things as well with Chase and some other things.

Speaker #4: In Europe. And so it's a fairly kind of basic integration just like that. And we do some other small things as well with Chase and some other things.

Speaker #4: Our vision for sure and we can say now really by 2027 is that anywhere as a rider on the Lyft app, the sort of Lyft ecosystem, anywhere you are with that app and that we do business through Free Now or others, you'll be able to open that app and be able to get a ride anywhere you want.

David Risher: Our vision for sure, we can say now really by 2027, is that anywhere as a rider on the Lyft app, the sort of Lyft ecosystem. You know, anywhere you are with that app and that we do business through FREENOW or others, you'll be able to open that app and be able to get a ride anywhere you want. It'll be a much more tightly integrated experience. That's happening over, you know, in 2027. That's always been kind of the plan when we started is step-by-step integration such that by 2027 we're able to debut that. Once that happens, of course, you would expect the growth of the business to be much more significant as a result of that work.

Speaker #4: So it'll be a much, much more tightly integrated experience. That's happening over in 2027. And that's always been kind of the plan we started is step-by-step integration such that by 2027, we're able to debut that.

Speaker #4: Once that happens, of course, then you would expect the business the growth in the business to be much more significant as a result of that work.

Speaker #3: Okay. Great. Next question is Chad with Oppenheimer.

Erin Brewer: Okay, great. Next question is Chad with Oppenheimer.

Erin Rheaume: Okay, great. Next question is Chad with Oppenheimer.

Chad Larkin: Hey, thanks. Could you maybe talk about the margin benefits of some of these higher value rides as they become a larger share of overall rides and as well as, like, as taxi expansion into more cities? Thank you.

Speaker #8: Hey, thanks. Could you maybe talk about the margin benefits of some of these higher-value rides as they become a larger share of overall rides?

Speaker #8: And as well as taxi expansion into more cities, thank you.

Speaker #3: Sure. I'll take the margin profile. David, do you want to talk about taxi expansion overall? So absolutely, as you think about the higher-value mode mix of rides, all the way up to and including TBR and chauffeuring that David was just describing, they absolutely bring a higher overall margin profile to the business.

Erin Brewer: Sure. I'll take the margin profile. David, do you wanna talk about taxi?

David Risher: Okay

Erin Brewer: taxi expansion overall? Absolutely as you think about the higher value mode mix of rides, all the way up to and including TBR and chauffeuring that David was just describing, they absolutely bring a higher overall margin profile to the business. The mix is not only helpful financially, but also gives riders a lot greater choice. What we're seeing is when we, when those are offered up, you know, we're definitely seeing behavior where that trade-up will happen. It's both satisfying rider needs and desires at that point in time, but also obviously increasing that mix is bringing in a healthier margin profile.

Speaker #3: So the mix is not only helpful financially, but also gives riders a lot greater choice and what we're seeing is when we when those are offered up, we're definitely seeing behavior where that trade-up will happen and so it's both satisfying rider needs and desires at that point in time, but also obviously increasing that mix is bringing in a healthier margin profile.

Speaker #4: Yeah. And I'm going to give a shout-out to our Lyft Black in particular and then zoom back out. It's actually our highest-rated ride mode, highest-rated ride mode.

David Risher: Yeah. I'm gonna give a shout-out to our Lyft Black in particular and then zoom back out. It's actually our highest rated ride mode. It is a great product. It's been a little bit under-marketed over the years, but as I say, we've both improved the quality of it, and you're starting to see maybe a little bit more uptake. If you're on the call and you haven't taken it, I highly recommend, and go ahead and pay with your United miles. Okay. The taxis. You know, one of our strategic priorities this year, when we talk about our internal, kind of our internal framework for it, is expanding the platform.

Speaker #4: So, it is a great product. It's been a little bit undermarketed over the years because, as I say, we've both improved the quality of it, and you're starting to see maybe a little bit more uptake.

Speaker #4: If you're on the call and you haven't taken it, I highly recommend. And go ahead and pay with your United Miles. Okay. And then the taxes, one of our strategic priorities this year when we talk about our internal kind of our internal framework for it is expanding the platform.

Speaker #4: And you've seen some experiments we've done and kind of small-scale in St. Louis. Then I would say more significant scale in LA. There'll be other cities beyond that.

David Risher: You know, you've seen some experiments we've done in a kinda small scale in St. Louis, then I would say much more significant scale in LA. There'll be other cities beyond that. It's great because taxis carry their own insurance, so that's got sort of an interesting, slightly different financial profile, than the, you know, typical rideshare. That's wonderful. Of course, taxis in Europe are a whole different thing, right? It's a much higher end product, a very predictable product, in many countries, and has also higher bookings per ride typically just because of, again, the combination of regulation and it's seen as a little bit more of a luxury product than here in the US.

Speaker #4: It's great because taxis carry their own insurance. So that's got sort of an interesting slightly different financial profile. Then typical rideshare that's wonderful. And then, of course, taxis in Europe are a whole different thing, right?

Speaker #4: It's a much higher-end product, a very predictable product. In many countries and has also higher bookings per ride typically just because of, again, a combination of regulation and it's seen as a little bit more of a luxury product than here in the US.

David Risher: Yeah, when you look across our whole platform, I feel really good about our building out a very strong foundation, that then ultimately, of course, will embrace AVs as well, and that's that's next to come.

Speaker #4: So yeah, when you look across our whole platform, it's I feel really good about our kind of building out a very strong foundation that then ultimately, of course, will embrace A/Bs as well.

Speaker #4: And that's next to come.

Speaker #3: Great. Next question will be Justin with KeyBank.

Erin Brewer: Great. Next question will be Justin with KeyBank.

Erin Rheaume: Great. Next question will be Justin with KeyBank.

Speaker #6: Great. Thank you. This is Miles on for Justin. I wanted to ask about loyalty. I was wondering if you could just provide an update.

Miles Jakubiak: Great. Thank you. This is Miles on for Justin. I wanted to ask about loyalty. I was wondering if you could just provide an update. I know it's pretty early on Lyft Cash Rewards. Maybe just a broader view. You know, you mentioned wanting to do more in loyalty, so how that fits in with the strategy and then, you know, along with Lyft Pink and your existing offering there. Maybe just, you know, continuing on international expansion. You know, been pretty active in M&A in new geographies obviously. Do you think, you know, this puts you in a position where you can start organically entering new markets now that you have more of a portfolio in places like Europe to bolster that expansion? Thank you.

Speaker #6: I know it's pretty early on Lyft Cash Rewards. And then maybe just a broader view—you mentioned wanting to do more loyalty. So, how does that fit in with the strategy, and then along with Lyft Pink and your existing offering there?

Speaker #6: And then maybe just continuing on international expansion, been pretty active in M&A in new geographies, obviously. But do you think this puts you in a position where you can start organically entering new markets now that you have more of a portfolio in places like Europe to bolster that expansion?

Speaker #6: Thank you.

David Risher: Sure, Miles. Why don't I start with that one and then, and we'll see if Erin has anything to that or maybe not. I'm sorry. Oh, wait, I just totally spaced on your question. My apologies.

Speaker #4: Sure, Miles. Why don't I start with that one and then we'll see if Aaron has anything to add or maybe not. So oh, wait, I just totally spaced on your question.

Speaker #4: My apologies.

Speaker #3: Loyalty.

Erin Brewer: Loyalty.

Speaker #4: Oh, loyalty. Yeah, of course. Of course. Okay. So right. So yeah, loyalty. So we've made some real inroads in loyalty. This is an area, again, of the company where maybe we've been a little bit kind of silent because we've been getting some things together behind the scenes.

David Risher: Oh, loyalty. Yeah, of course. Of course. Okay, right. Yeah, loyalty. We've made some real inroads in loyalty. This is an area again of the company where maybe we've been a little bit kinda silent 'cause we've been getting some things together behind the scenes. But here's what's happened. In the last, I think it was last August, we really started to lean into loyalty for our business riders. This is a really interesting program. We have not really had a good business product for some period of time when it came to a loyalty product. And this was causing us some pain in the marketplace. What we did is we said, "Well, let's come out with the best program that there is for rideshare, full stop.

Speaker #4: But here's what's happened. So in the last, I think it was last August, we really started to lean into loyalty for our business riders.

Speaker #4: So this is a really interesting program. So we have not really had a good business product for some period of time when it came to a loyalty product.

Speaker #4: And this was causing us some pain in the marketplace. And so what we did is we said, "Well, let's come out with the best program that there is for rideshare full stop.

Speaker #4: Full stop." And so here it is, super clear. It's free. Okay. That's very important. And it's 6% back up to 8% back depending on your mode.

David Risher: Full stop. Here it is, super clear. It's free, okay? That's very important. It's 6% back, up to 8% back, depending on your mode. You also get points multiplier for United, Hilton, and Alaska, if I'm not mistaken. That's great. I'm gonna say the free part one more time. It's because it's quite important. We have a competitor out there that sells something else, and internally we sometimes talk about it as selling a time bomb. They say it that way, but you know, you sell something for free, and then a couple of months later, it starts to charge you. We don't have that.

Speaker #4: And then you also get points multipliers for United and Hilton and Alaska, if I'm not mistaken. And that's great. I'm going to say the free part one more time.

Speaker #4: It's because it's quite important. We have a competitor out there that sells something else. And we internally, we sometimes talk about it as selling a time bomb.

Speaker #4: I'd say it that way, but you sell something for free and then a couple of months later, it starts to charge you. So we don't have that.

Speaker #4: We have a product that's a free product that gives you immediate rewards back for what we call our managed business rewards program. We've learned a ton there.

David Risher: We have a product that's a free product that gives you immediate rewards back for what we call our Lyft Business Rewards program. We've learned a ton there. It's been, you know, quite successful. I mean, I forget the exact statistic, but it's significant. Maybe I can kinda find it as I'm talking here. It's been significant. It's grown very significantly and has some kinda interesting characteristics about how many more rides people take once they start to sign up. That's kind of been the basis of it. You also mentioned Lyft Cash Rewards as something we're experimenting with on the consumer side. Super cool. Still relatively small 'cause it's definitely in experimentation mode.

Speaker #4: It's been quite successful. I'm going to forget the exact statistics, but it's significant. Maybe I can kind of find it as I'm talking here, but it's been significant it's grown very significantly and has some kind of interesting characteristics about how many more rides people take once they start to sign up.

Speaker #4: So that's kind of been the basis of it. And you also mentioned Lyft Cash Rewards as something we're experimenting with on the consumer side.

Speaker #4: Super cool. Still relatively small because it's definitely an experimentation mode. But what I think you can see is we're starting to put some energy in this area.

David Risher: What I think you can see is we're starting to put some energy in this area and, you know, this is a bit of a stay tuned story, but something that we've got some good stuff to talk about in the future.

Speaker #4: And this is a bit of a stay-tuned story, but it's something that we've got some good stuff to talk about in the future.

Speaker #3: Maybe I can add in some of the stats on business rewards. Overall, so if we think about sort of first-time rides on rewards eligible business profiles, that grew 59% year over year.

Erin Brewer: Maybe I can add in some of the stats on Business Rewards.

Erin Brewer: overall. You know, if we think about sort of first time rides on rewards eligible business profiles, that grew 59% year-over-year. Those rewards eligible riders are taking 25% more Lyft rides per month. We're super excited about what we're seeing kind of in these early phases. You know, that tells us a lot about that we've got a great product overall, that people are finding value in it. They're taking more airport trips. A little bit more on the stats.

Speaker #3: And those rewards eligible riders are taking 25% more Lyft rides per month. So we're super excited about what we're seeing kind of in these early phases.

Speaker #3: That tells us a lot about that we've got a great part a great product overall. That people are finding value in it. They're taking more airport trips.

Speaker #3: So a little bit more on the stats.

Speaker #4: Awesome. And then I think you had a question I know about kind of organic expansion maybe in a new markets internationally. I think that's probably one we're not going to talk too much about.

David Risher: Awesome. I think you had a question I know about kind of organic or expansion maybe into new markets internationally. That's probably one we're not gonna talk too much about.

Speaker #3: Okay. Next question. We have Schwetta with Wolf Research.

Erin Brewer: Okay, next question we have Shweta with Wolfe Research.

Erin Rheaume: Okay, next question we have Shweta with Wolfe Research.

Speaker #5: Thank you for taking my question. Two quick ones for me, please. First, I'm sorry if I missed it, but did you quantify the impact of the fuel program on your P&L?

Shweta Khajuria: Thank you for taking my question. Two quick ones for me, please. First, I'm sorry if I missed it, but did you quantify the impact of the fuel program on your P&L? If not, could we please get a sense of the impact? The second is how should we think about the partnership rides growth? The 27% data point is great. Any sense on how that cohort of 27% of the rides, what that growth is versus the non-partnership rides? How does that compare? Thank you.

Speaker #5: If not, could we please get a sense of the impact? And then the second is how should we think about the partnership rides growth?

Speaker #5: So the 27% data point is great. Any sense on how that cohort of 27% of the rides would that growth is versus the non-partnership rides?

Speaker #5: How does that compare? Thank you.

Speaker #3: Schwetta, I'll take the fuel question. And then turn it over to David. So we talked in our prepared remarks and on this call, we're really proud just generally all the time about the way that we engage with our drivers, about the continued preference that they demonstrate for our platform.

Erin Brewer: Shweta, I'll take the fuel question, and then turn it over to David. We talked in our prepared remarks and on this call, we're really proud just generally all the time about the way that we engage with our drivers, about the continued preference that they demonstrate for our platform. I think that's important because we're super proud to have been really first out there with a relief program. I think it says a lot about who we are as a company overall. What we did in this overall program is really take the approach of leaning in with our partners. We've got a great driver rewards program overall. It offers all kinds of benefits to partners.

Speaker #3: And I think that's important because we're super proud to have been really first out there with a relief program. I think it says a lot about who we are as a company overall.

Speaker #3: And what we did in this overall program is really take the approach of leaning in with our partners. We've got a great driver rewards program overall.

Speaker #3: It offers all kinds of benefits to partners. And so leaning in with our partners to provide relief here in terms of drivers can get almost a dollar in savings across all the programs that's really co-funded overall.

Erin Brewer: Leaning in with our partners to provide relief here in terms of, you know, drivers can get almost $1 in savings across all the programs. That's really co-funded overall, if you think about the way that those benefits accrue. While all of this is meaningful to drivers certainly and material to them, it's not material to our overall financial profile, nor do we expect it to be in Q2.

Speaker #3: If you think about the way that that those benefits accrue. So while all of this is meaningful to drivers, certainly in material to them, it's not material to our overall financial profile nor do we expect it to be in the second quarter.

Speaker #4: And then on the partnership side, it's not too much more I can say, but maybe just give a little bit of color. Maybe two ways to think about it.

David Risher: On the partnership side, there's not too much more I can say, but maybe just give a little bit of color. You know, maybe two ways to think about it. One is, like, different partners do provide different types of benefits to us as a business. On average, partners tend to be quite strong at bringing higher, sort of higher bookings type rides on average. United, you can, you know, absolutely probably imagine why that would be true. Same with Alaska, same with Hilton, same with Chase. Sometimes it's quite significant.

Speaker #4: One is different partners do provide different types of benefits to us as a business. On average, partners tend to be quite strong at bringing higher sort of higher bookings type rides.

Speaker #4: On average, United—you can absolutely probably imagine why that would be true. Same with Alaska. Same with Hilton. Same with Chase. And sometimes it's quite significant.

David Risher: You know, it's a sort of a new set of rider or a set of riders who are taking, you know, typically higher priced rides, which tend to have higher margins, and people tend to be quite loyal to those programs, and therefore they take, you know, rides, you know, quite regularly. You have maybe more of a sort of volume strategy with DoorDash. I mean, DoorDash is kind of the, you might sort of think of it as the volume anchor, you know. It's got such a large program, but it also DashPass. Also, you know, as I mentioned, you know, people eat, you know, quite a lot, and therefore that's an important piece of the puzzle.

Speaker #4: So it's a sort of a new set of rider or a set of riders who are taking typically higher priced rides, which tend to have higher margins and people tend to be quite loyal to those programs and therefore they take rides quite regularly.

Speaker #4: Then you have maybe more of a sort of volume strategy with DoorDash. I mean, DoorDash is kind of the you might sort of think of it as the volume anchor.

Speaker #4: Because it's got such a large program, but it also DashPass, but also as I mentioned, people eat quite a lot. And so therefore, that's an important piece of the puzzle.

Speaker #4: So in overall, it was a portfolio tends to be quite a healthy part of our kind of ride our rider portfolio. So that just kind of gives you a sense of how we think about it.

David Risher: Overall as a portfolio tends to be, you know, quite a healthy part of our kind of ride, our rider portfolio. That just kind of gives you a sense of how we think about it. Have different characteristics, but on average, really quite nice, typically on the booking side and frequency side.

Speaker #4: Different have different characteristics. But on average, really quite nice. Typically on the booking side and frequency side.

Speaker #5: Okay. Thank you both.

Shweta Khajuria: Okay. Thank you both.

Speaker #4: Sure.

David Risher: Sure.

Speaker #3: And the last question is going to be with Rohit from Roth Capital. Did we lose you?

Erin Brewer: The last question is gonna be with Rohit from Roth Capital. Did we lose you?

Speaker #6: Hey, can you hear me now? It said unmute. I hope you can hear me.

Rohit Kulkarni: Hey, can you hear me now? It said unmute. I hope you can hear me.

Speaker #4: It's okay.

David Risher: Sure can.

Speaker #6: Okay. I had two questions. One on pricing and one on AVs. You talk about this check lift messaging campaign. Are you seeing any kind of measurable changes in rider behavior since you launched it?

Rohit Kulkarni: Okay. I had two questions, one on pricing and one on AVs. You talk about this check Lyft messaging campaign. Are you seeing any kind of measurable changes in rider behavior since you launched it? Perhaps improved conversion from price-sensitive shoppers? Kind of if you think and becomes a normalized kind of consumer behavior, is there a scenario that could lead to more structural pressure on industry pricing over time? Or perhaps there is more pricing power that both companies have? That's just first question. Second, on AVs, it seems like the three cities closer to launch Nashville, Hamburg, London.

Speaker #6: Perhaps improved conversion from price-sensitive shoppers and kind of if you think and becomes a normalized kind of consumer behavior is there a scenario that could lead to more structural pressure on industry pricing over time or perhaps there is more pricing power that both companies have?

Speaker #6: That's just first question. And second, on AVs, it feels like the three cities closer to launch: Nashville, Hamburg, London. Can you just level set how are you operating in or offering your services?

Rohit Kulkarni: Can you just level set, how are you operating in or offering your services, be it the orchestration layer, lead operations, depot management, perhaps talk through your capabilities across those three places?

Speaker #6: Be it the orchestration layer, lead operations, depot management, perhaps talk to your capabilities across those three places.

Speaker #4: Sure, Rohit. I'll take this and it's a these are big last questions, but let's do it. Let's do it. Okay. Yeah. No, no problem at all.

David Risher: Sure, Rohit. I'll take this and these are big last questions, you know, let's do it. Let's do it. Okay. Yeah, no problem at all. Okay, on pricing. Let's talk about that for a second. Here's, okay, you asked about sort of results and then maybe kind of the implications on the future. The results right now are great, promising, but it's still very early. You know, these are, it's quite an early campaign. You'll see us turn up the volume there, which is probably a good indication that we like what we see so far. You know, this is a very, very price competitive, already a very, very competitive marketplace.

Speaker #4: So okay. On pricing, let's talk about that for a second. So here's so okay. You asked about sort of results and then maybe kind of the implications on the future.

Speaker #4: The results right now are great, promising, but it's still very early. These are quite it's quite an early campaign. You'll see us turn up the volume there, which is probably a good indication that we like what we see so far.

Speaker #4: This is a very, very price-competitive already a very, very competitive marketplace. I don't think either company truthfully has a lot of room on the price side because if we did, we would have done it.

David Risher: You know, I don't think either company truthfully has a lot of room on the price side because if we did, you know, we would, we would have done it. You know, we do it every day. You know, another way to say we do it 3 million times a day. We try to offer the best price we possibly can. As Erin says, you know, reliable competitive pricing is our strategy. You know, that is maybe not, you know, something I worry so much about. What I do think is true is customers who check both apps tend to do better. You know, there's that study out there that says, you know, in New York, they save $170. It's just true.

Speaker #4: We do it every day. Another way to say we'll be 3 million times a day. We try to offer the best price we possibly can as Aaron says, reliable, competitive pricing is our strategy.

Speaker #4: So that is maybe not something I worry so much about. What I do think is true is customers who check both apps tend to do better.

Speaker #4: And there's that study out there that says in New York, they'd save 170 bucks. It's just true. The more people who kind of check both, I think the healthier the marketplace gets.

David Risher: You know, the more people who check both, I think the healthier the marketplace gets. Keeps us both on our toes. That's the way we think about it. You know, obviously, our position is kind of a nice one, easy to be in because we offer a very competitive product. Fast ETAs, in many cases faster than the competition. Good pricing, in many cases, less expensive, although good and not always, than the competition. If more people check us out, then we can, you know, start to impress them with the quality of our service and so forth and so on. Now I can talk all about driver cancellation, how we've done a great job there, and pickup times, and so forth.

Speaker #4: Keeps us both on our toes. So that's the way we think about it. Obviously, our position is kind of a nice one to be in because we offer a very competitive product.

Speaker #4: Fast ETAs, in many cases faster than the competition. Good pricing, in many cases less expensive, although could not always. The competition. And so if more people check us out, then we can start to impress them with the quality of our service and so forth and so on.

Speaker #4: And now I can talk all about driver cancellation, how we've done a great job there and pick up times and so forth. So it kind of tends to be a very nice reinforcement once people get into our place.

David Risher: It kind of tends to be very nice reinforcement once we once people get into our our place. Yeah. I'm gonna turn it over to Erin, and then we'll come back on AVs.

Speaker #4: Yeah. I'm going to turn it over to Aaron and then we'll come back on AVs.

Speaker #3: Yeah. Maybe before you dive into AVs, Rohit, I think something interesting to point out, David mentioned early days, this campaign has been live in San Francisco and New York.

Erin Brewer: Maybe before you dive into AVs, Rohit, I think something interesting to point out, David mentioned early days, you know, this campaign has been live in San Francisco and New York. These are two cities that also have a pretty heavy mix of premium modes. In your question was the implication of sort of price-sensitive riders. Hopefully what you gathered from David's answer, but I think it's really important in our observation in these early cities is that's not really the thing, right? The thing is just, hey, check, as opposed to doing something maybe out of habit. Just check. You know, I just wanted to clarify that.

Speaker #3: These are two cities that also have a pretty heavy mix of premium modes. So in your question, was the implication of sort of price-sensitive riders?

Speaker #3: And hopefully what you gathered from David's answer, but I think it's really important in our observation in these early cities is that's not really the thing, right?

Speaker #3: The thing is just, hey, check as opposed to doing something maybe out of habit. Just check. So I just wanted to clarify that.

Speaker #4: Absolutely right. Super appreciate it. And by the way, everybody likes the deal. Everybody likes the deal. So yeah, and we see that up and down.

David Risher: Absolutely right. Super appreciate it. By the way, everybody likes a deal. Everybody likes a deal. We see that up and down. On AVs. Okay, you mentioned a couple of areas where a couple of cities that we've talked specifically about. Let's give you a quick update on each. Maybe start with Nashville, then go to London, then go to Hamburg. In Nashville, it's actually quite exciting. You see Waymo's on the road right now. Later this summer, we start to take over operations with them.

Speaker #4: On AVs—okay. So, you mentioned a couple of areas, or a couple of cities, that we've talked specifically about. Let me give you a quick update on each.

Speaker #4: Maybe start with Nashville and then go to London and then go to Hamburg. So in Nashville, it's actually quite exciting. You see Waymo's on the road right now.

Speaker #4: Later this summer, we start to take over operations of that. Then we open up our whole kind of new center, this 80,000 square foot center.

David Risher: We open up our whole, you know, kind of new center, this 80,000 square foot center, and you'll be able to actually order a Waymo on the Lyft app in our hybrid marketplace there, which is really something we're very, very excited about. It's going great. You know, how can I characterize it? I guess what I would say there is, you know, we've been in a very nice position for the last 10 years. We have about 50,000 cars that we've had to manage through our FlexDrive subsidiary. Those 50,000 cars have driven, you know, literally billions of miles.

Speaker #4: And then you'll be able to actually order a Waymo on the Lyft app in our hybrid marketplace there, which is really something we're very, very excited about.

Speaker #4: It's going great. I'm kind of characterizing it. I guess what I would say there is we've been in a very nice position for the last 10 years.

Speaker #4: We've about 50,000 cars that we've had to manage through our flex drive subsidiary. Those 50,000 cars have driven literally billions of miles, billions of miles.

Speaker #4: And that has required an enormous amount of expertise or that has delivered to us an enormous amount of expertise on maintenance and availability and so forth.

David Risher: That has required an enormous amount of expertise, or that has delivered to us an enormous amount of expertise on maintenance and, you know, availability and so forth. We think we're, you know, industry-leading on the operations side. When you look at the partner we have in this case, Waymo, probably the world's No, not probably. Inarguably the world's leader in AV tech. Then you marry that with what we believe is the world's leader in fleet operations and efficient fleet operations, low-cost fleet operations. We really are very excited about what we see there. That's kind of where that, where Nashville is. Over the summer, you'll see that grow pretty quickly. Okay. In London, it's a different situation. In London, our partner is Baidu.

Speaker #4: And we think we're industry-leading on the operation side. So when you look at the partner we have in this case, Waymo, probably the world's—not probably, inarguably the world's—leader in AV tech.

Speaker #4: And then you marry that with what we believe is the world's leader in fleet operations and efficient fleet operations, low-cost fleet operations. We really are very excited about what we see there.

Speaker #4: So that's kind of where Nashville is. And over the summer, you'll see that grow pretty quickly. Okay. In London, it's a different situation. In London, our partner is Baidu.

Speaker #4: Baidu, arguably the second sort of most advanced technology out there. Certainly in terms of driver miles driven and so forth and so on. I was actually just in China a couple of weeks ago meeting with them incredible company.

David Risher: Baidu, you know, arguably the second, you know, sort of most advanced technology out there, certainly in terms of driver out miles driven and so forth and so on. I was actually just in China a couple weeks ago meeting with them. You know, incredible company. Their RT6 cars have just rolled off, literally the docks, the same ones I was, you know, riding in Beijing are now in London. They're beginning mapping streets. It'll take a while there. It takes a while when you add a new, you know, technology to city streets. You know, there are regulators that you have to work with, and we're spending a lot of energy working with regulators on issues like data privacy, for example.

Speaker #4: Their RT6 cars have just literally rolled off the docks—the same ones I was riding in in Beijing are now in London. They're beginning to map streets.

Speaker #4: It'll take a while there. It takes a while when you add a new technology to city streets, they're regulators that you have to work with.

Speaker #4: And we're spending a lot of energy working with regulators on issues like data privacy, for example. Very, very important, but I'm super proud of our team.

David Risher: Very, very important, but I'm super proud of our team. They've made incredible progress there. There's just the physics of the thing. You know, just as a quick story, in London, a lot of small streets that are two-way, so how do you navigate, you know, a two-way street with AVs where you can't, you know, signal each other, you go first, you go first? These things take time, but we've got an ODD that's beginning to get mapped out, and we're sort of beginning there. A little bit earlier in the process. But at the same time, very much on track. Hamburg, that's a different thing.

Speaker #4: And they've made incredible progress there. And then there's just the physics of the thing. And just as a quick story, in London, a lot of small streets that are two-way and sort of how do you navigate a two-way street with AVs where you can't signal to each other.

Speaker #4: You go first, you go first. So these things take time, but we've got an ODD that's beginning to get mapped out. And we're sort of beginning there.

Speaker #4: So a little bit earlier in the process just because it's a yeah, but at the same time, very much on track. And then Hamburg, that's a different thing.

Speaker #4: Hamburg is really just—we've established a partnership at the city level, saying that we're going to be the AV provider there, and we haven't given too much more detail on it.

David Risher: Hamburg is really just we've established a partnership with the city level saying that we're gonna be the AV provider there. We haven't given too much more detail on it. I won't do so today, it just gives you a sense that, you know, things are gonna roll out both in the U.S. and Europe, you know, in a number of different ways. That's kind of where things stand. Okay. Listen, I think I'm getting the wrap up. Yeah, you're so welcome. Thank you, Rohit. Thank you all. Really appreciate you joining the call today, of course. Looking ahead, super excited about another strong year coming up, as we continue to track towards our 2027 targets. Thanks for coming along on the ride with us. You take care, we'll see you next time.

Speaker #4: I won't do so today, but it just gives you a sense that things are going to roll out, both in the US and Europe, in a number of different ways.

Speaker #4: So that's kind of where things stand. Okay. Listen, I think I'm getting the wrap-up. So yeah, you're so welcome. Thank you, Rohit. And thank you all.

Speaker #4: Really appreciate you joining the call today, of course. Looking ahead, super excited about another strong year coming up. As we continue to track towards our 2027 targets, thanks for coming along on the ride with us.