Lyft ends car rental, lays off 60 employees

Lyft is reportedly firing 60 employees and ending its vehicle-rental companies.

In accordance to an worker memo reviewed by the Wall Avenue Journal, Cal Lankton, Vice President of Fleet and Global Operations at Lyft, discussed to workers that “Our highway to scaling 1st bash rentals is very long and complicated with substantial uncertainty … the economy made the business case unworkable.”

Lyft experienced earlier allowed motorists to lease autos from Lyft. The business is now pivoting solely to 3rd-social gathering rental partnerships with Hertz and Sixt.

Spokesperson Jodi Seth mentioned in a assertion, “We have made a decision to discontinue Lyft‘s very first social gathering Rentals organization to focus on our very best-in-class third bash Rentals with Sixt and Hertz,” in accordance to Bloomberg.

Lyft has continued cuts in the course of the company. The worldwide functions workforce has been consolidated from 13 to nine regions, and a Detroit hub has been closed.

Prior to this go, Lyft experienced indicated that a selecting slowdown was on the table. In a Might memo, Lyft President John Zimmer instructed staff, “Given the slower than anticipated recovery … we have made the difficult but important decision to significantly sluggish hiring in the U.S.,” according to the Wall Avenue Journal.

At the time, Mr. Zimmer also pressured that “our near-expression motion system will be centered on accelerating profits — whether we like it or not, which is the ticket of entry in today’s marketplace,” in accordance to the May perhaps memo cited by the Wall Avenue Journal.

Lyft‘s stock has fallen more than 70% in the past year.