Shares of Lyft Inc. dropped July 31 after the company pulled its fleet of electric bikes over reports of some of the bicycles catching fire in its home market of San Francisco.
The San Francisco Examiner reported that two of Lyft's electric bicycles and their batteries appeared to have caught fire, sparking concerns over the safety of the batteries technology used in the e-bikes. The incident occurred two weeks after Lyft's bikes returned to San Francisco streets following a legal battle with the San Francisco Municipal Transportation Agency.
San Francisco lawmakers subsequently called on the company to be transparent about the incident and to pull the bicycles off the roads until they are proven safe, according to the report.
"[W]e are temporarily making the ebike fleet unavailable to riders while we investigate and update our battery technology. Thanks to our riders for their patience and we look forward to making ebikes available again soon," a company representative told S&P Global Market Intelligence in an emailed statement.
Lyft said the issue is limited to bikes in the Bay Area, adding that it is unclear whether the bikes and batteries were tampered with or vandalized. There were no reports of any injuries linked with the bike fires to date.
Lyft's decision to make its bikes unavailable comes just about three months after its bikes were pulled from the streets of New York, Washington and San Francisco over braking complaints from users.
Lyft's stock was trading at $60.87, down 2.55%, on market close July 31.