Lyft plans to shut down its car rental business and cut about 60 jobs, according to a report by Bloomberg. The company confirmed the news last week and it was first reported by The Wall Street Journal.
The layoffs affect less than 2% of Lyft’s total employee count, and jobs are concentrated within the rental business unit, the report said.
“We have decided to discontinue Lyft’s rental business to focus on our best third-party rentals with Sixt and Hertz,” Lyft spokesperson Jodi Seth said in a statement. “This decision will ensure that we continue to have nationwide coverage and provide passengers with a more seamless booking experience.”
After launching rentals in 2019, Lyft suspended them in March 2020 due to the pandemic. In August, it announced a partnership with Sixt to revive rentals.
In May this year, Lyft said it would cut hiring and cut expenses in part of the business. In 2022, the company’s shares lost more than two-thirds of their value, according to the report.
Lyft’s car rental business had five locations and allowed customers to rent vehicles in its fleet through its app.