(Reuters) – Lyft Inc said on Wednesday cost cuts put the company on track to reach its goal of becoming profitable on an adjusted basis by the end of 2021, even as its second-quarter revenue tumbled 61%.
Quarterly revenue fell to $339.3 million, as the coronavirus pandemic crushed demand for ride-hailing services in North America.
“While rideshare rides in the quarter were down significantly year-over-year, we are encouraged by the recovery trends we are beginning to see, with monthly rideshare rides in July up 78% compared to April,” Chief Executive Officer Logan Green said in a statement.
Lyft said the number of active drivers dropped by 60% to 8.69 million in the three months ended June, from a year earlier.
Overall, the company recorded a $437.1 million net loss in the quarter, while adjusted EBITDA loss of $280.3 million was smaller than its previous projection of a loss of $325 million.
Lyft in April announced pay cuts and laid off nearly 1,000 employees, or 17% of its workforce, in an effort to reduce costs.
Unlike larger rival Uber Technologies Inc, which operates in 69 countries, Lyft only offers rides in the United States and Canada.
That region is the biggest market for both companies, but it also remains among the worst-hit by the health crisis, with business and travel at a standstill across the United States.
Last week, Uber said while its ride-hailing trips declined 75% overall in the second quarter, bookings in some regions outside the United States exceeded pre-COVID-19 levels.
Lyft also remains entirely dependent on consumer demand for ride-hail, shared bike and scooters trips, while Uber has expanded its food delivery service Uber Eats during the pandemic.
Reporting by Tina Bellon in New York and Munsif Vengattil in Bengaluru; Additional Reporting by Akanksha Rana; Editing by Sriraj Kalluvila