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Lyft employees pushed founders to quit as growth stalls

Lyft

Lyft employees pushed founders to quit as growth stalls

Lyft's recent leadership switch was fueled by months of employee dissatisfaction as its market share and stock price shrank.

The ride-sharing app has faced tough competition from Uber, prompting some employees to doubt the co-founders' leadership.

Several investors and stock experts have sought a change in CEO Logan Green and President John Zimmer for months.

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As a result, Lyft announced the founders would step down from day-to-day management on Monday, April 3.

The company appointed a board member with expertise working at big tech companies and nonprofits as its new CEO.

Sources said the board learned about the employees' concerns and discussed the matter.

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Staff questioned whether the co-founders were accountable at an all-hands meeting in February, given Uber's far better performance.

Attendees said that reflected concerns raised at prior meetings.

They said that after the firm shed 13 percent of its workforce in November, one staff asked the co-founders why they weren’t quitting.

Lyft’s co-founders replied they were learning and growing from their errors and moving quickly.

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New CEO David Risher said while the co-founders grew a modest business into a household name, Lyft has recently grappled with challenges.

In interviews, the co-founders said that they were departing for personal reasons.

Uber has long surpassed Lyft, its younger crosstown opponent, and its lead has grown recently.

Along with the cuts late last year, Lyft curtailed other businesses, like car rentals, as it prepared for a future recession.

Source: The Wall Street Journal

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