Lyft’s road to recovery may be bumpy. For the March quarter, the ride-hailing company reported revenue of $1 billion, exceeding Wall Street estimates and representing an increase of 14% year-over-year. However, investors were sufficiently alarmed by the company’s forecast that revenue for the current quarter would be lower than anticipated.

Lyft plunges down drastically

Following the announcement of the earnings, Lyft’s stock dropped nearly 15% in after-hours trading on Thursday. The most recent income report comes closely following Lyft stirring up its C-suite and declaring plans to cut 26% of its workers as it battles for a portion of the overall industry and productivity.

Lyft’s CEO, David Risher, previously held positions at Microsoft and Amazon, and the company’s two co-founders resigned from their management positions. Risher has been an individual on the Lyft board starting around 2021.

On a telephone call with examiners on Thursday to talk about the outcomes, Risher said Lyft is as of now at “an emphasis point” as individuals return to pre-pandemic social propensities.

Risher stated on the call, his first as CEO, “I am very aware of our current levels of growth and profitability are not acceptable.” I intend to keep you apprised of our progress and am committed to developing Lyft into a substantial, long-lasting, and profitable business that our riders, drivers, and shareholders will adore.

Contrasted with its central adversary Uber, Lyft has so far battled to return from the pandemic’s hit to its business. While Uber differentiated its business past ride-hailing by conveying dinners and staple things during well-being emergencies, Lyft won’t ever do that.

As pandemic restrictions in the United States eased, Uber was also able to attract drivers back to the platform more successfully than Lyft. Earlier this week, Uber announced in its quarterly earnings report that revenue was up 29% as demand for its rideshare and delivery services held firm despite lingering concerns about a recession.