Lyft's co-founders are leaving the company after 11 years of being the president and CEO of the company. Because of this, Lyft is bringing in a new executive officer next month, with the two founders taking over as the chair of the company's board of directors.
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LOS ANGELES, CA - MARCH 29: Lyft CEO Logan Green (R) and President John Zimmer (L) applaud at the Nasdaq opening bell ceremony celebrating the company's initial public offering (IPO) on March 29, 2019 in Los Angeles, California. The ride hailing app company's shares were initially priced at $72.
Stepping Down as CEO & President
Lyft co-founders Chief Executive Officer Logan Green and President John Zimmer will soon step down from their roles. Based on a report from CNBC, this decision is part of the executive shuffle and both executives will still remain on the board.
Green will take over the position of chair for Lyft's board of directors beginning April 17, and Zimmer will move to the position of vice chair on June 30. Meanwhile, board member and former Amazon executive David Risher will replace the position of CEO.
The company was founded by the two executives in 2012, and the company was mainly compared to its competitor Uber. Lyft was recognized by its pink mustaches attached to its vehicles as a safety kind of service and a very particular clientele, especially women.
As per Bloomberg Intelligence analyst Mandeep Singh, this decision reflects the company's struggles of being in a competitive position given the challenges that it faces at this moment. "Amid a risk of cash burn and market-share loss, we think Lyft may explore strategic options, including a sale," Singh added.
New CEO
As per Risher in a statement, "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." Before joining Lyft as a board member in 2021, TechCrunch reported that Risher was an executive at Amazon since 1997.
He was the first Vice President of Produce and Store Development and moved up to the Senior Vice President of Marketing and Merchandising through the ranks along with Amazon founder and former CEO Jeff Bezos.
In 2022, he leaves Amazon and becomes the CEO and co-founder of the non-profit Worldreader which encourages children to get invested in reading. Due to the executive shuffle, he will step down from this position and stay on as a board president.
Risher will take over the full leadership responsibilities of Lyft's whole operations on April 17. The company also clarified that despite these changes, there will be no changes to the company's first-quarter 2023 revenue contribution margin and adjusted EBITDA outlook.
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Reuters reported that Risher will be an annual salary of $725,000 with a signing bonus of $3.25 million. As his predecessor, Green sees Risher as the perfect replacement for his role. He stated, "David has the right energy, ambition, and experience to lead Lyft into the future."
He also argues that all founders or executives have to find the right moment to step back and choose the right leaders to take their roles for the company to keep moving forward. Green's decision to step down comes from spending more time with his family and exploring new greener efforts.
Related Article: Lyft Now Supports Car Ownership; Here's Why Company Changed Its Stance
