David Risher, a former Amazon executive, will become the new CEO of Lyft starting April 17, the ride-hailing company announced on Monday. This move comes as the company’s co-founders, Logan Green and John Zimmer, will step down from their management positions at the company, but will continue to serve in non-executive roles as chair and vice chair of the Lyft board, respectively. While Green will be succeeded by Risher, no replacement has been named for Zimmer.
Steps to Reduce Costs
Lyft has struggled to turn a profit over the years and its stock has been under pressure in recent months, dropping more than 13% so far in 2023. The company also announced last year that it would cut 13% of its staff, or 700 employees, in a major effort to reduce costs. The leadership shakeup, however, seemed to boost investors’ confidence as the stock rose about 4% in after-hours trading on Monday.
What makes David Risher an Ideal fit?
According to Lyft, Risher’s management experience at Amazon and Microsoft, where he worked two decades ago, makes David Risher an ideal fit for the company. David Risher was Amazon’s 37th employee and went on to become the e-commerce giant’s first head of product and head of US retail. Risher has been a member of the Lyft board since July 2021 and has spent the past 13 years working at a non-profit he co-founded to encourage children to read more.
“I am honored to step into the CEO role at such an important moment in the company’s history, and am prepared to take this business to new levels of success,” said David Risher in a statement.
Green, who has been the CEO of Lyft, commented in a separate statement that building the company over the past 16 years has “been the adventure of a lifetime.”
Investors remain Optimistic
The transition to a new CEO marks a significant moment in Lyft’s history, as the company continues to face intense competition in the ride-hailing industry. While Lyft has been focusing on cutting costs and expanding into new markets, it remains to be seen how David Risher will steer the company toward profitability and growth. Nevertheless, Lyft’s decision to bring in a seasoned executive from the tech industry has been met with optimism from investors, who are hopeful that Risher’s experience will help the company turn a corner.