Lyft is shutting down its in-house car rental program

Lyft will stop renting cars from its own fleet and has therefore laid off around 60 employees The Wall Street Journal. As TechCrunch notes that the layoffs were also confirmed by the LinkedIn posts of the workers concerned. The people who lost their jobs The diary said, worked in operations and covered 2 percent of the company’s workforce. Back in May, the company reportedly wrote in an employee memo that it was slowing down hiring efforts due to the economic downturn, but had no layoffs planned. Things have clearly changed since then.

In an internal memo from Lyft VP Cal Lankton, seen by The diary, the executive said the company’s journey to in-house leasing has been “long and challenging with significant uncertainty.” Lankton also explained that Lyft began discussing the possibility of exiting the business last fall, and that talks intensified when “the economy made the business case unfeasible.”

The ride-hailing service opened its car rental business in Los Angeles and the San Francisco Bay Area back in 2019 after a few months of testing, eventually expanding its first-party car rental offering to five locations. While the option to rent vehicles from its fleet is being phased out, the company isn’t completely leaving the space. Lyft already operates more than 30 rental locations with Sixt SE and Hertz Global Holdings Inc. and plans to continue working with major rental companies. “This decision,” said a spokesman for the publication, “will ensure we continue to have national coverage and provide drivers with a more seamless booking experience.”

Lyft is also in the process of reorganizing its global operations and consolidating its offerings from 13 to nine regions. That will result in the closure of a Northern California location and its Detroit hub, but it’s unclear if the move will result in more layoffs. In any case, Lyft is just the latest company in the tech industry to shed jobs due to the economy. Tesla has reportedly laid off 500 employees at its Nevada Gigafactory without 60 days notice. Netflix cut 300 jobs in June after cutting 150 jobs in May. And more recently, TikTok has started dumping people all over the world. Even the biggest companies in the industry aren’t immune: Meta reportedly urged managers to keep an eye out for underperforming workers and leave them if they can’t get back on track.

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