Lyft Inc. LYFTis bringing in a new chief executive and removing its co-founders from running the ride-hailing company on a day-to-day basis, sending shares more than 5% higher in after-hours trading. Former Amazon.com Inc. AMZN and Microsoft Corp. MSFT executive David Risher will take over as CEO, replacing co-founder Logan Green, according to an announcement from the company. Green and Lyft’s other active co-founder — John Zimmer, who had been serving as president — will remain on the company’s board as chair and vice chair, but not actively participate in running the company. Lyft shares lost more than a third of their value in a single session in February after Green and Zimmer provided a forecast that missed expectations in what one analyst called “a debacle for the ages.” In an interview with the Wall Street Journal, Risher — who has been on Lyft’s board since 2021 — admitted that Lyft faces competitive issues, seemingly referencing Uber Technologies Inc. UBER He mentioned “a very aggressive—very aggressive—competitor,” while adding, “I think being a strong No. 2 is a good place to be.” Lyft stock has plummeted nearly 75% in the past 12 months, dropping 74.4% as the S&P 500 index SPX has declined 12.6%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.