So as lyft preps for an IPO it doing everything possible in it power to cut down costs, one way they are doing that is cutting down on it number of staff. In it bike and scooter division alone the company has laid off 50 staff, and they range from managers through to technical people and those holding less-senior roles.
In a statement by a spokesperson of the company to techcrunch, she said “This was part of our performance management process,”“We are actively hiring for this part of the business with hundreds of hires planned this year.” But that still changes nothing considering the fact that the company employs about 5,000 people, so basically it just laid off 1% of it entire workforce. But it’s notable because of where the cuts were made, and because they are coming as the company gears up for a public listing, after which it will be subject to more public scrutiny.
The scooter business is starting to really get some hype, Lime is now valued at $2.4 billion after raising $310 million last month. Bird is also reportedly raising at a similar valuation.
Uber, meanwhile, acquired Jump last yearto spearhead its own scooter and bike strategy. on the last of those, this essay outlines how difficult it is to make money right now on a scooter business, when you calculate the average price for a ride, the average lifespan of a scooter and the average price to get one on the street. And that’s before you consider marketing and other costs, and before you have seen the basic premise proven out: that a critical mass of people will use hired electric scooters on a regular basis.