Price adjustments implemented in June helped Lyft Inc. boost its guidance for 2019, the company's chief financial officer said during the second-quarter earnings call.
"More specifically, we began to adjust prices on select routes and in select cities based on costs and demand elasticities," CFO Brian Roberts said. "We expect that these changes will accelerate Lyft's path to profitability, and further, we believe these price adjustments reflect an industry trend."
Media reports have suggested that investors were willing to provide subsidies on rides for Lyft, but when the company went public in March, it was only a matter of time before the subsidies would stop and the price of rides would increase.
Roberts did not go into detail about how much the prices were adjusted.
Lyft raised its full-year 2019 outlook for revenue to between $3.47 billion and $3.5 billion, up from a range of $3.28 billion and $3.3 billion.
Since the price adjustments went into effect at the end of June, they had a limited impact on the second quarter, Roberts said. For the third and fourth quarters, Lyft expects these adjustments to increase revenue per active rider.
"And we expect that revenue per active rider could accelerate in Q3 up to 1% versus Q2," Roberts said. "So Q2 is up 22% year over year, and we think Q3 could go up to about 23% year-on-year."
The number of riders using Lyft grew to 21.8 million during the second quarter, up 41% year over year from 15.5 million, as revenue per active rider reached $39.77. This was up 22% from $32.67 per rider in the second quarter of 2018.