© Reuters. FILE PHOTO: Lyft logo is seen in this illustration taken June 27, 2022. REUTERS/Dado Ruvic/Illustration
(Reuters) -Lyft Inc said founders Logan Green and John Zimmer would step down as CEO and president, with board member David Risher taking on the top role as the ride-hailing firm struggles with intense competition.
Shares of Lyft (NASDAQ:) rose about 5% in trading after the bell.
The change in guard comes after Lyft drastically lost market share to bigger rival Uber Technologies (NYSE:) Inc, which boasts better pricing power, a global presence and a food delivery business.
A lackluster quarterly forecast from Lyft last month fanned concerns that the company’s price cuts to avoid being a distant second to Uber in the North American ride-sharing market would squeeze profits.
Risher, a former Amazon (NASDAQ:) and Microsoft (NASDAQ:) executive, will be tasked with overcoming cost challenges and finding new strategies to attract drivers to the platform as demand rises with more people returning to offices and travel resuming.
A member of the Lyft board of directors since July 2021, Risher will become CEO on April 17, while Green and Zimmer will continue to serve as chair and vice chair of the board.
Lyft, which was founded in 2012, is yet to report an annual profit but has managed to reduce losses through cost cuts and other initiatives over the years.
