Good morning. Welcome to Lyft's first Investor Day. For those of you I haven't met, I'm Erin Brewer. I'm Lyft's CFO. On behalf of the entire Lyft team, we wanna welcome you, whether you're here joining us in person in New York or joining us via webcast. We have a great morning planned for you. We're gonna start out the morning talking about our strategy and our customers, and you're gonna hear a lot more about how we bring customer obsession to life. We'll have a short break at about 10:30 A.M., and then the second part of the morning, we'll cover some foundational topics to our business. That includes running an efficient marketplace, an overview of the current policy landscape, an overview of our insurance program, and then I'll come back on stage for a financial wrap-up of the day.
After that, all the speakers will come back on stage for a Q&A session, and as you know, the presentation has been uploaded to our IR website, and after today's event, there will be a replay available on our IR website. Before we get started, I need to share our legal disclaimers. We will make forward-looking statements related to our business strategy and performance, future financial results, and guidance. These statements are subject to risks and uncertainties that could cause our actual results to differ materially from those projected or implied today. These factors and risks are described in our Investor Day deck, in recent earnings materials, and SEC filings. All forward-looking statements that we make will be based on beliefs as of today, and we disclaim any obligation to update any forward-looking statements except as required by law.
Our discussion will include non-GAAP financial measures, which are not a substitute for GAAP results. Reconciliations of our historical GAAP to non-GAAP results can be found in our Investor Day slide deck, which is available on our IR website. Additionally, today, we're going to discuss customers. For Rideshare, there are two customers in every car. The driver is Lyft's customer, and the rider is the driver's customer. We care about both. All right, we're ready to get started. Please enjoy this short video before we welcome our CEO, David Risher, to the stage.
David Risher, Lyft picked you as the fresh pair of eyes.
This guy's just too smart to avoid. This is not the same Lyft. one, two, what you gonna do?
We've been growing every quarter.
Shares of Lyft are up around 80%.
Come on, can you feel that rhythm underneath your shoes?
Customer obsession is what drives profitable growth. Women+ Connect, On-Time Pickup Promise at the airport, 70% driver earnings guarantee. Our riders and our drivers are loving what we've done.
Show us what you got 'cause we're good to go. Good, good to go. Here is a $100 gift card.
Yay!
The best part of my day was my Lyft with LaRon.
Yes.
Oh, my God!
You can get a free Delta mile every time you ride Lyft. I love points. Do you love points?
Hey, can you feel that rhythm underneath your shoes? It's all about style and the way you move. Got the fire on lock, and we're ready to roll. Come on, show us what you got 'cause we're good to go. Good, good, to go, good, good, to go. Good, good, to go. Yeah, we're good to go. Good, good, to go, good, good, to go. Good to go! Good, good, to go, good, good, to go. Good to go.
Please welcome to the stage David Risher.
All right. Good morning, everyone. That's so lame. Come on, you guys, give me a little bit. Good morning, everyone.
Awesome to hear you. Awesome to hear you. It is great to be here. I am David Risher, the CEO of Lyft, and I have the best job in the world. Listen, before we start, I am gonna ask you guys to do something that's gonna make you super uncomfortable. It's actually the first of two things. I'm gonna ask you to close your laptops for a couple of minutes and just sort of focus on the big guy for a minute here. Really, the only deal is, it's like we do at Lyft. What we try to do when we focus is get off the laptop a little bit. You can use pen and paper. If you wanna keep it open, I'm not gonna call you out, but let's focus for a little bit. So here's what we're gonna do this morning.
Let me remind myself. Here's the thing: in order to understand Lyft, there are three things you really need to get. First thing you do is you need to get our customers. You really need to understand our customers because that's what drives our profitable growth, number one. Number two, you really got to understand the opportunity. The opportunity that we see is much bigger than maybe folks think. And number three, you have to understand the team. One of the things Jim Collins says is, "You gotta get the right people on the bus," and we've got the right people on the bus. So once you understand the customer, the opportunity and our vision for it, and the team, I think you really understand Lyft. So that's what we're gonna do today. Listen, most of you know, I've been in the job for about a year.
It's been a fantastic year, and I've really enjoyed every second of it. We've done some pretty foundational things over the last 14 months. We've really worked on some of the basics, right? We've got pricing right. We've got our driver pay right. We're picking you up faster than ever. We're basically, you know, in line with the other guys right now. Pretty amazing foundational work. So you've got to start with those foundations to be able to sort of innovate, right? Once you get the basics right, then you can really innovate. And think of the innovation we've done over the last 14 months. I mentioned some in the slides. Women+ Connect, incredibly important feature for us. Driver pay guarantee of 70%, foundational, and you'll hear Jeremy talk about that later. On-Time Pickup Promise.
I used it myself a couple days ago to get to the airport. Driver arrived five minutes early, easiest thing in the world. If he'd been 10 minutes late, would have had to pay $100 to me, and I would've been okay with that, too. So absolutely amazing progress, sort of at a foundational level.
and then at the innovation level. And then, as I say, really built out the team, and we've got an incredibly strong team. I'm really, really happy that you guys are gonna get a chance to meet them today, as part of this. So once we've done that, then we can kind of go into the future, right? Because that's the past. That's the last 14 months or so. So where are we gonna go? Where are we gonna go? That's today's real conversation, and again, we're gonna start with our customers. And the first customers I want you to understand are gonna be our drivers. Now, again, you're gonna hear a lot more. Jeremy's gonna be up here in a couple of minutes telling you a lot more about our drivers, who they are, and why they drive.
But I actually wanna set some context because I think it really matters. When I was growing up, I'm 58 years old. When I was growing up, my parents were of a generation where typically you might be in not only the same industry for your life, but the same company for your entire life, right? My father was a lawyer. He spent most of his life at the same firm. Many people spend their life at a company like General Motors or what have you, for many, many years. That was sort of a generation called the 1950s and 1960s. Then, you know, when I was growing up and when a lot of us were growing up, it was a different thing. You might stay in the same industry, but you probably will switch jobs, right?
You'll probably be, you know, at company one, then five or six years later, maybe go to company two. Maybe five or six years after that, you go to company three. That's actually my own career progression. Very, very common for people who grew up around the time I did. But you know what? The world is continuing to move forward. It's continuing to move forward. If you look at where a lot of drivers are today and a lot of people in their 20s and 30s are today, they're looking at a different environment, an environment where they're really putting things together so they can kind of balance work and life. They can integrate work and life.
They can do gig stuff, and then they can go on a vacation, and then they can do more gig stuff or take a part-time job, do gig stuff around the edge. Maybe they can save for a special occasion, you know, a wedding or whatever it might be. It's a different world. It's a different world, and it's a world we're very central to, as of course, everyone understands. I think what it does when you put yourself in that mindset is, is allow you to understand why it is, for example, that we have more driver hours and drivers on our platform now than we have ever had in the company's history, and that's at a time of record low unemployment. So if you think about that, what that suggests is that people are voting with their feet.
They're voting with their time every single day, and it really suggests an enormous opportunity for us to welcome more drivers onto the platform over time. Again, Jeremy will talk a lot more about that. And I will tell you, the more control you have over your life, the more that life makes sense. Some of you might know, if you follow me on LinkedIn, I actually drive for Lyft from time to time. I try to do it about every six weeks, in a car similar to that one right over there. And it's awesome. It's absolutely awesome. And you do, it's crazy, but you actually have a real sense of control it, of your, of your time. I just did this last weekend, and I will tell you that you have a lot more control.
I have a lot more control when I'm driving for Lyft than I do as CEO. That is absolutely for sure. So anyway, I actually invite you to do the same. Actually, come up and ask me afterwards about some of my hilarious driver stories. They're actually pretty funny. Okay, those are the drivers, super important customers of this. Bless you. If the drivers aren't happy, things aren't working well for us. But number two, the riders, right? So now you all probably have a pretty good sense intuitively of what being a rider is. In fact, I hope physically you have a sense of what being a rider is. In fact, if you aren't taking a Lyft, leave immediately. But anyway, the thing is, it's an experience that you all, you know, kind of understand.
But think about this for a second, and again, think of the context. So maybe some people, and I'm gonna look and make sure I get these right. Some people, you know, take a drive to the airport. Drive to the airport, right? Not take a Lyft, drive to the airport. How many times a year do people drive to the airport, to and from? About two billion times . Think about that number a second. Some other people in their transportation lives, they'll go to parties, they'll go to events, they'll go to a concert, they'll go to an NFL game, right? Guess how many times a year people do that? About 26 billion times in the United States alone. Take their own car, I'm talking about. And then people commute.
They go through that soul-crushing, terrible time that everyone just sort of hates with a fiery passion, and then they go to and from their work every day, 55-56 billion times a year. These are the sorts of numbers where we operate, right? Billions. That was about 80 billion, if you're sort of doing the math, of trips that people are taking just in those three. And guess how many the rideshare industry does in total, us and the other guys? three billion, maybe, a year. So we are very, as an industry, we are very, very underpenetrated in riders' lives, very, very underpenetrated. Now, again, you're gonna hear a lot from Audrey in a couple of minutes about what we're doing about that.
But I want you to ask yourself the question: Why might it be that this industry, that's been around for 10+ years, very innovative industry, is still so underpenetrated? And I will tell you one of the reasons, and maybe the reason, is there's been too much focus like this, too much focus like this. One guy competing against the other, super boring, super uninteresting in the grand scheme of things. If you want to create a small industry, spend a lot of time competing with each, with each other. But if you want to create a big industry, then you compete against habit, you compete against status quo, right? And that's what we're doing, right? That's why we're talking about the billions of rides people are taking, not just the hundreds of millions on rideshare already. So you're gonna hear a lot more about our riders.
I think you're gonna understand them pretty well by the time Audrey gets done. Here's the last customer set that I really want you to think about, and here you're probably gonna have to open your ears even a little bit more. These are our partners. Okay, so Lyft has had partnership in our DNA from day one. When I talk about partners, and again, you saw them very briefly on the introductory video, I'm talking about world-class companies. World-class, you know, the Chases of the world, the Delta Air Lines of the world, the NBCUniversals of the world. These are companies that have partnered with Lyft for year after year after year to try to create really interesting experiences for our shared customers.
You're gonna hear a lot from Zach coming up in a couple of minutes about that, and why we think the media landscape, and here I'm gonna ask you to sort of open your brain a bit, is gonna be so transformed by the work we do. If you think about people riding in their car, and think about the data that we get when a person gets picked up or dropped off at a place, and then think about all these ways that brands can communicate with our customers, I think you begin to get an understanding of why we think this is actually an entire category that we're gonna help create of mobile media, mobile advertising, and kind of partnership-driven experiences. So a lot more to hear there.
Again, you'll hear about that in a little bit, but think about our partners and, of course, their own customers as part of the customer set that we're very interested in, and I think there's an enormous enormous unlock. You know, like the old saying says, "If you wanna go far..." Excuse me. "If you wanna go fast, you go alone, but if you wanna go far, you go together." And this is a really important part of our strategy, going together with some of the world's best brands. So now let's put it all together. Let's put it all together.
What you've heard around our customers is not just a set of customers, but almost a customer obsession engine, something that can understand, and you'll hear much more about this over the course of the day, understand our riders, our drivers, our partners' needs, and do amazing things for them, and that fundamentally is what drives our profitable growth, particularly when you add some of those key elements you see around the edge. The product innovation that we're getting really good at, the growth partnerships that I just started to mention, the operational excellence that we have brought over the last year, again, which is why our pickups are so much faster and our cancel rates are so much lower, and so on, and so on. You'll hear Sid talk about that after the break briefly. Lyft Media, which I just began to allude to, and then our brand.
Our brand. Our brand is iconic, and people say this often. I get a chance to hear this often when I say what my job is, and they, they say, "I love you guys. I love you guys." Here's what's interesting. We actually looked at some brand research that was done by a company called, Brand Finance, and they rate our brand in the top 300 in the United States, right around Kraft, HBO, and Coors. This is what we've built over the years by our actions, not so much by our advertising, frankly, but by our actions. You put all these things together, and you get a real customer obsession engine that just powers over and over again, about two million trips a day today and many, many more, tomorrow. And that, in turn, is what drives our profitable growth. You've seen these numbers already.
I think we put them out in a release about 45 minutes, half hour ago. You'll hear Erin and the rest of the team talk about them later today. You'll see and understand how that top-line growth gets driven at about 15% CAGR, year-on-year, the next three years, and how our margins will expand to 4%. Super, super proud of the team for the work we've done to kind of undergird all this, and again, you'll hear a lot more about this. Okay, so now maybe you understand at least a little of the context of our customers, and we're gonna come back to those guys later. But now I want you to start thinking about the opportunity we have. Remember those 80 billion rides I've already mentioned? That's only half the story. That's only half the story.
161 billion rides that people take every year in their own vehicles. Remember, you know, Lyft maybe does 700 million rides or so last year, 709 million, if I'm not mistaken, in cars like that or in bikes like wherever our cool bikes are, somewhere over there. Oh, thank you very much. Yeah. By the way, anyway, I can go off about Citi Bike for a second. Amazing, amazing. If you guys, that's the other thing, if you don't take a Lyft, at least take one of our bikes. Unbelievable experience. Anyway, so 700 million versus 161 billion. You guys, we are just scratching the surface of what is possible if you think of private, you know, vehicle use.
But here's the thing, even that I don't think fully describes the opportunity we have, the opportunity we have, because let's, Well, actually, maybe I'll talk about, just for 30 seconds, my own background. So, you know, I'm a guy, when I graduated from business school, I went to work for a company called Microsoft back in the early 1990s, I met my wife there, by the way, who's in here in the audience, and we found the following. We found that there was room in the market for a computer on every desktop and in every home running Microsoft software. That was Bill Gates's vision, and that was a big part of my sort of formative years.
Then I worked for a small company, a little internet bookstore you might have heard of, $15.6 million store, in fact, when I started, called Amazon.com. That store actually did pretty well over time and created a, a sort of everything store. That was my job. By the time I left, we were doing billions of dollars in sales. And then I started a little company called Worldreader, which is a nonprofit to try to get kids reading, using digital technology, and ran that for about 12 years, and that now gets about 22 million people reading around the world. Why do I tell you this? I tell you this because either temperamentally or experientially, whatever it is, I tend to think big, and I want you to think big as well. So look at this chart for a second.
This chart has nothing to do with Lyft, but it does. It's actually a chart of how people spend their time as they go through their life. You see on the X-axis, you'll see your age, 15, 20, 30, 40, 50. You'll see on the Y-axis, the number of minutes a day you spend with other people. Now, if you look carefully, you'll see charts. You'll see, you know, lines that kind of go like this, I guess from your perspective, like this, right? That might be time you spend with your, your family, right? You, you, you get married, you spend time maybe with your kids. Over time, people have their own lives.
You'll see lines that show how you spend time with your friends, which actually tends to peak relatively earlier in your life, maybe around high school and college age, and then tends to go down a little bit like this. You'll see time you spend with your colleagues or coworkers. I have a massive, massive pleasure to be able to spend a lot of time with them, but here's what happens there, too. You spend time with them, and of course, then you retire. The line that should probably worry you the most is the top line. That's the time, the number of minutes people spend alone every day as they get older, and that is a sad line. That's a sad line. And I don't just mean sad, sort of like bummer sad.
I mean sad like it is species-level sad, it's population-level sad, because that is the sort of thing that creates isolation and frustration with others and a sense of, "I don't know what my place is or my purpose is in the world." Social connection is so important to us, literally as a species. And remember... And by the way, those are, Well, I'll come back to that in a second. Here's the thing: We can play a role. We can play a role. Technology actually tends to do something kind of bad in a sense, right? It tends to affix us to our screens, and, and it does, and it's very effective at it. We have literally hundreds of thousands of data scientists who wake up every morning and say, "How can I get you to spend more time here?" But that's not our business. That's not our business.
Our business is the opposite. If you spend time here, we're failing, right? We gotta get you out. We gotta get you out. That's our thing, right? That's. We are physically attaching you to the physical world, not just to the virtual world. That is a very, very big idea. Again, sort of a, almost a population-level idea, and I think we can play a real role. It's not to say it's the only thing we're gonna do, but it's to say it's really important for us. So if you think about that as the opportunity, you almost come up with something that's sort of unlimited. Maybe another way to say it, before I finish up here, is in the first slide, the prior slide, we're competing with your car. Here, ultimately, and this is maybe the day after tomorrow, we're competing with your couch.
Okay, one thing I wanna do, and then I wanna turn it over to the team. I'm gonna ask you to do the second awkward thing. Here it goes. You guys ready? Okay, yeah, I can tell you're super ready. Okay, so here's what it is. I want you to actually find someone who's sitting next to you, where you can turn, look left or look right. It'll take you. Take a second. I want you to look awkwardly into their eyes, awkwardly into their eyes. And all I want you to do is share with that person either a place you love to visit or a person you love to see. That's it. But do it, and it's awkward, but just do it. I see you smiling. You're looking at me. Stop looking at me. Look at your, look at your neighbors. Do it right now. Take a second.
I'll give you, I'll give you 15 seconds. Awesome. All right, that's it. That's it. Let's bring it back, let's bring it back. Absolutely awesome. You guys, I hope you felt just a little bit, a little bit of the vision that we see and the opportunity we have to connect you to the people and experiences you love. It's really important for us, frankly, as a human species, and we expect to play a. We have a utilitarian role, yes, but I think we also have a bigger role. Okay, look, that's it for me. What I wanna do now is, you guys can open your laptops again, for those of you who are compliant. We appreciate that. Thank you very much. I have the huge, huge pleasure now to introduce the rest of the team.
As I say, you are only as good as your team, and I am so lucky to have some of the world's best people, and you're gonna hear from seven of them and then a bunch more here as well for schmoozing afterwards. So, here's who you're gonna hear from. You're gonna hear from Jeremy Bird, who runs our driver experience. You're gonna hear from Audrey, who runs our rider experience. They're sort of conjoined twins almost. Not technically true, but roughly. Anyway, you'll hear from Zach Greenberger, who's awesome. You're gonna hear about our media and partnership business. Then we're gonna take a quick break. You'll hear from Sid Patel, our EVP of Marketplace. By the way, if Sid comes up to you and says, "Hey, you wanna play a little blackjack?" Politely decline. Politely decline.
Do not take him up on the offer. Super bad news to do that. Anyway, then Kristin Sverchek will come up. She's our President. She'll tell you a little bit about the policy world. Max Feldman actually has the hardest job of the day, but I think he's up to it. He is going to rock your world, spin your mind with how fascinating insurance is. Super cool. And then Erin is gonna come, bring in, and, and bring it home for all of us. So, you guys, thank you so much. I know everyone here is busy. You got 1,000 things to do, but we really appreciate your time together, or our time together. And, now I'm gonna introduce you to our drivers, and then Jeremy's gonna take it away. Thank you all for being here.
Rolling.
This is my first time, so please bear with me.
I got my first car in 2015. That same day, I applied for Lyft.
In the beginning, it was hard. It was like, you know, I've never really drove people around, and you have to deal with so many personalities.
Every single day is a learning day for me, and I'm learning a lot from the customers.
Some riders, they just treat it as getting a ride, and you just have to respect that. Some people wanna talk, so you can just feel it out.
I pay attention to folks, so when I'm doing airport rides, I might play jazz or contemporary. If I have a young person, of course, I'm gonna go to the R&B, hip-hop station. Anything that can help me connect with folks, I will do it.
Flexibility means a lot, especially for me as, as a father of a 2.5-year-old baby boy. I always check the app, and the app always notify me what, like, the bonus hours. So based on that map, I just decided where I went to go and just make more money.
I started driving at nighttime really with women in mind, coming from clubs. It makes me feel great that the ladies are now able to connect and feel safe with another woman driver or even with another woman passenger.
I'm originally from Ethiopia, and I've been here six years. I set my own financial goals, and Lyft helps me, you know, to achieve that goal so I can be able to support my family here and back home.
I can still work on my business in the morning before I drive, so then being in control of your time is a right that, you know, people should have.
I've been going through a period where I find myself missing my family often, and everything that I do here, I definitely have them in mind, so I've never had to call home and say, "Mom, I need help with my rent." I'm able to say, "Mom, do you need money?" With gig work, you know, nothing's really promised. What is guaranteed is when I turn on that app to make the money, I know that I'm gonna make the money.
Please welcome to the stage Jeremy Bird.
Hey, everyone. Good morning. It's a pleasure to be here. I'm Jeremy Bird. I'm the Executive Vice President of the Driver Experience at Lyft. I started with Lyft about five years ago. I came on to our policy team, where I was working with our talented policy folks, fighting alongside them. You'll hear from Kristin later, talking about this, to protect the driver independence and flexibility that you just heard those drivers talk about. I have the pleasure today of working with the incredibly talented Driver Experience team, with our focus on providing the best experience possible on the Lyft platform in order to bring in new drivers, in order to retain those drivers on the platform, in order to engage them in a way that they'll spend more time on the platform. So I'm gonna do three things in the presentation today.
First, I wanna ground you a little bit more in the stories of those drivers you saw in the video. Who are our drivers? What are their demographics? Why are they coming to the Lyft platform? The second thing that I wanna talk to you about is that flywheel that David mentioned and how we're doing the product innovation and the operational excellence in order to create the best experience for those drivers. And then lastly, I want to give you some recent proof points that demonstrate how we are going to see driver growth in line with the overall business growth that David talked about, and then Erin will mention later in the presentation. All right, so first, let's get into talking about our drivers. First, I want to put it in terms of context and scale. Every...
Over the last 365 days, 1.3 million drivers have come to the Lyft platform. That's every week, over 500,000 drivers on the platform. To put that in context, yesterday, on the Lyft platform, there were more drivers than there are Starbucks baristas worldwide all year. That's sort of how you think a little bit about scale, but it's really about the individual stories of these drivers. It's the men and women. It's the mothers and fathers that are driving on the Lyft platform in order to work around their childcare so they can show up for their kid's game, so they can be there for their kid's recital. It's the entrepreneur who's driving on the Lyft platform while they're getting their startup off the ground.
It's the immigrant who came into this country recently, who's driving on the Lyft platform, so that he can get back to the job that he had in his home country. It's the retiree who's driving on the platform to get out of the house, to, because they have pride in their community. They want to drive around folks just for a couple of hours a week. There are so many stories, the tapestry of stories across the country, of these drivers. I want to talk a little bit more about the diversity of the group. So you can see here some of the diversity of the folks who are on the platform, and 90% of drivers who are on the platform are driving on Lyft platform for less than 20 hours a week.
Why do they come to the platform? Small percentage are coming, and the focus is their, their main source of income is driving on the Lyft platform. Others are coming as they're driving on multiple platforms in the rideshare industry and the, and the delivery network companies. A biggest group of them have another job, have a W-2 job or other caregiving duties, and they're driving in order to make ends meet. It's the grocery worker who's got a shift of 29 hours a week, and they're driving on the Lyft platform, those other 10 hours a week, so they can pay the bills, so they can go on that trip, so they can pay for their child's schooling.
It's my brother, who drove on the Lyft platform for about six months, years ago, so that he could pay for the wedding that he wanted to have. It's also folks who are going through life transition, and a huge part of the way we show up in the American economy is somebody who just lost their job and drives on the Lyft platform while they're trying to get back on their feet or the immigrant that I mentioned earlier, who's come to this country as they're transitioning. And then it's also other folks who are coming just for the community, the social aspect of it. So I want to talk a little bit about how that all fits together to what David talked about.
As we think about those drivers, as we do user research, as we get out and drive ourselves, as we talk to drivers, whether it's in the airport parking lot, the queue or, in roundtables that we host across the country. We are looking at how we build products, the product innovation and the operational excellence in order to drive that customer obsession, so that we can understand why someone's coming to the platform and then build those products, in order to grow the market. So as we've done that research, really three key reasons I want you to go away with in terms of why folks are what they care about when they're coming on the platform. The first, and we see this no matter what we're looking at, qualitative research, quantitative research.
The first thing is to maximize earnings on the platform, and we're focused, like a laser beam on that. The second is recognition, really, for all the hard work, and that recognition comes in various forms, right? It comes in, the extra tip that somebody gives because they went out of their way, to provide a great service. It comes in some of the rewards programs that we're putting out there. And then the third thing is really that if you think about drivers on the platform, is, they really care about providing a good service to their riders, and Audrey is going to talk much more about that cohort in a few minutes. Those are our priorities. As we understand, and we are obsessed with our customers, we develop products, we create operational excellence that will, that will fill those needs.
So I want to talk specifically about that. The first thing I'm going to talk about is earnings. This is paramount to drivers on the platform. Earlier this year, in about 20 markets, we launched what is an industry-leading, differentiating commitment that David mentioned earlier, the earnings commitment. That's a commitment that says, a driver on the platform will always take home, at the end of every week, 70% of the rider fare after external fees. Now, that's a floor. On average, it's over 85%. But it's a huge commitment, as that's been now launched nationally, in the last couple of weeks, we've seen already a 20% increase in our sentiment tracker of drivers saying that their earnings are fair. We can see that continuing to grow.
What does it mean in terms of actual outcomes? It means we've seen an increase in weekly active drivers and driver hours attributed to the earnings commitment through our data science and research. That's huge. As we see things like this happen, we see driver hours go up. That ultimately leads to better ETAs. It ultimately leads to more rides, and it creates that flywheel that David talked about earlier. You'll hear much more about how that all comes together with Sid's presentation later. That's one way we're really focused on maximizing the earnings that a driver, that drivers have when they're coming into the platform.
The second thing is we're trying to figure out other innovative ways that drivers will earn more on the platform, and I, I just want to use one example here to talk about our partnership with Lyft Media, which Zach will talk about later, and Flexdrive. Flexdrive is the program if you don't have a car and want to drive on the platform, you can rent a car through our partners at Flexdrive and Hertz. And in that program, we've been able to put out 1,000 tablets in cars, and that's connected to our Lyft Media program that you'll hear about later. Through that program, drivers are earning more for the ads on every ride, and in addition to that, they're seeing 6%-12% more tips through this program.
So that's just one example of a way that we're using sort of innovation, product innovation, and our partnerships in order to increase driver earnings. The next thing I want to talk about is connected to driver earnings and that second piece around recognition. And this is I want to talk a little bit about our driver rewards program. So about 80% of our drivers on the platform are eligible for one of our rewards programs. And earlier this year, we launched Elite, which is the sort of top-tier program for drivers who are the most productive on the platform. And through our industry-leading cashback program, drivers are receiving cashback on gas. We have roadside assistance, EV charging assistance.
What this does is it, if we're working on increasing earnings on the platform, also working on decreasing the expenses so that the overall take-home earnings for a driver, drivers are maximized. Just one way that we're connecting earnings with, the rewards and sort of recognition that drivers are seeking on the platform. The last thing I want to talk about in terms of our product innovation is around that last piece, the service piece. Drivers really want to provide good service to their riders. One of the ways we're doing this and working with Jason's great team is on Lyft Maps. This is our proprietary mapping that we built for rideshare, for Lyft, in order to provide the best experience for drivers so that they can provide the best experience for their riders.
So maybe just three examples of how Lyft Maps are helping, drivers, and these are just three of the examples. Building highlights. This is just very simply allowing the driver to pull up on the right side of that venue, or at that apartment complex, so that they have the most seamless pickup, or drop-off, of their riders. One of the other pain points we heard from drivers is that some of the hardest riders to pick up are those who live in gated communities. And so we've created an ability for the rider to share that code with the driver in order to make that pickup and as easy and seamless as possible.
And then the last thing here, we call it contextualization, but that's just allowing the rider to see what's happening with the driver as they're picking up. Are they at a stoplight? Are they in traffic? In order to reduce cancels, which is better for the rider experience, better for the driver experience. And we're continuing to innovate on Lyft Maps in all sorts of different ways to make this an experience that is specific for Rideshare and specific to Lyft in order to create preference for drivers. Another thing I want to talk about in the innovation space as it relates to drivers is around AI. And AI can really supercharge the driver experience. And one of the ways I want to talk about it today is just around customer care, customer experience.
Many of the questions that a driver has in order to provide the best experience for their riders can be answered quickly through AI, but we can go way beyond just answering questions. Drivers can talk on the chat about, "I'm not finding rides here," and the AI can tell them where to go, or it can ask them if that's actually the, this ride, right? Make it so much easier. Or as I mentioned earlier in the slides, 41% of drivers speak a language other than English at home. So making sure that we're speaking to drivers in their language, and there's so much more we can do in this space to innovate. These are just a few examples of some of the product innovation, some of the operational excellence that we're creating in the driver space.
Now, I want to talk about how all that adds up, and what we're seeing. So number one is new drivers. We're seeing drivers coming in, and David mentioned this, at an all-time high. And this is just looking real briefly at the last 14-day, new driver sign-ups at an all-time high. Okay, so new drivers are coming in. We're also looking at retaining those drivers, keeping those drivers on the platform for a longer period of time. Now, not all. Some are coming, as I mentioned earlier, as transition, and our job is to make that time, that transition in life, as meaningful as possible and to be the most useful as possible on the platform. But, but also we're looking at those folks who are looking to stay on the platform.
Just a 3% increase in retention can lead to six million more rides a year. So we're focused like a laser beam on that, and we've seen again, those numbers going up. All of the numbers we've seen on the driver side are going up to the right. We've seen from Q1 2022 to Q1 2024, 77% growth... in driver hours on the Lyft platform. It's coming from two places: 44%, that's new drivers, increase in drivers, and the other 23% is an increase in the driver hours per active drivers, because we're creating those products that are meeting the needs and understanding what drivers want on the platform, and ultimately this will lead to success overall. But we've only just begun.
There is so much more possibility, so much more possibility in terms of the market, so much more opportunity. If you just look at these statistics, there are some recent data out. There's about seven million drivers on rideshare and delivery platforms in the U.S. alone. We only have about 18% penetration of the existing driver supply pool. So much more to gain there with some of the product innovation I mentioned earlier. And then we found, through our own research, that about 70% of drivers are driving on multiple apps. And that's just within the existing pool, that you're gonna hear from Audrey talk about things like Women+ Connect, that are bringing new drivers in, who weren't driving on any of the platforms before. So much possibility.
Through that innovation and excellence, we can translate into the durable driver hours growth. And we're gonna do it very simply in these two ways: more active drivers and more time on the platform. We're gonna create preference, continue to create preference, continue with that retention, and then continue engagement so that we get more time from those drivers. I'm just gonna leave you with three takeaways on this. We're focused like a laser beam. We are maniacally focused on creating that meaningful and transparent ways for drivers to earn. And as we do that, we're seeing more new drivers come to the platform, retaining those drivers, and seeing more engagement out of those drivers. We're gonna use that those innovations I talked about to create preference.
And then finally, our goal, our overall goal, is to make sure driver hours are in line with the overall business growth that you're gonna hear much more about from Erin later. It is my incredible privilege every day to be able to work with the product managers, the engineers, the data scientists, the analysts, the designers, the researchers, and the operations experts on my team in order to build the driver experience that drivers on the platform deserve, so that they can serve the riders who are coming to that platform, so that they can have the best experience. Let's hear from some of those riders now.
Thank you. Hi, my name is Ariana. I'm 31, and I am a program manager. I can be in as early as 7:00 AM or 8: 00 A.M. Like, I think, typically pretty busy.
My name is Dominic. I am 24 years old. I work with a nonprofit here, primarily focused on serving underserved youth.
I'm Ryan, I'm 29 years old, and I work as an app developer, substitute teacher, and high school basketball coach.
Day in the life is go, go, go, 24/7. Work usually will take me to schools all over the city.
I do typically take a rideshare into the office, just because it helps to extend my prep time for getting ready, and so that can look like a little bit of makeup and putting on mascara in the backseat.
I think it just takes one thing off your plate. Like, if I had needed to get this presentation done before this meeting, when I'm calling a Lyft, I can be like: Okay, I know I can work on this in the car. So then I can have more time earlier in my day to do other things.
I feel like after quarantine, honestly, like, I had a really big drive to really get out and do as much as I can in my twenties because I had so much time stuck inside where I wasn't doing a whole lot. So there's always something I can do. There's always somewhere I can go.
My social life is very important. I have been nicknamed Social Butterfly. I definitely use rideshare for social events. My friends are located all over.
Sometimes I'm really chatty, and I would love to have drivers that I'm able to, like, know about their life and also just hear some of their funny stories. Then on other days, when I'm, like, really tired, it's sometimes nice to be able to just sit and have that moment to take a deep breath, listen to some music, have some nice calm.
There are times where maybe if it's, like, really late at night, and I'm maybe taking the shift home alone, that there is a preference for a female driver.
We go to a lot of drag shows here in San Francisco. I have a couple friends that are performers, and so it's always great to go support them. It's always just nice to be able to fall back on to rideshare, just overall, to get home safely.
It's one of those things where you can kinda just work the budget in based off the time that you take, rather than being like, "I'm gonna allot this amount of dollars to rideshare every single week." It's just more like: When am I taking it? What are the prices gonna be?
If it helps me to, I think, be on time for something, particularly when it's professionally, then I always think that cost is gonna outweigh anything else.
I'm my best self when I have a whole bunch of things going on. You know, with rideshare, I can put more energy and effort into my goals and aspirations. I know that if I need to get somewhere, it will always be there for me.
Please welcome to the stage, Audrey Liu.
Hi, everyone. It's great to be here today. I'm Audrey Liu, and I'm the Executive Vice President of our Rider Experience. As the former head of design and research, you know, we talk about customer obsession a lot at Lyft. Well, it really does run in my blood. I've spent years talking to, learning about, and learning from all of our customers, and what I love most is really hearing their stories and hearing about how Lyft fits really meaningfully into their lives. Since stepping in to lead the rider business in January.
I have been blown away, but not at all surprised, by the curiosity, the focus, and the dedication that the team brings to their work and to our riders each and every day. They care about the details, and they care about creating products that really matter. They care about creating a compelling experience for our riders. So today, I'm gonna share some of the improvements that we're making to the rider experience, and I'm gonna help you understand three things. One, we really know our riders. Two, with that knowledge, we're building the products and the partnerships that they want and that they need. And three, those in combination will lead to annual active rider and ride frequency growth for Lyft. But let's start with where we are right now.
Every week, 5.5 million riders rely on Lyft to get them where they need to go. In 2023, we saw 40 million people, including, I hope, many, all of you in the room today and online watching, take a ride on the Lyft platform. As David mentioned, Lyft plays a really important role in connecting each and every one of them to their lives. While we've seen more people try rideshare every year, we still know that there's a lot of room for growth. I want you to think about the trips that you take each month, trips to the airport, trips to run errands, to go out, to get to work, even the trip that you took to get here today. When you tally all of those up, the average person takes about 50 trips a month.
When you look at the average Lyft rider, they're taking about one and a half trips with Lyft a month. Even when you look at our top 20% of riders, they're still only taking about five trips a month with Lyft, which is only 10% of their total trips. We're focused on proving that we have the right to win more of their everyday rides by really raising their expectations of what transportation has to offer for them and the lives that they live. Our goal is to get more people taking more of their rides with Lyft. Specifically, we're focused on driving annual rides growth through 2027.
We know that once we give a rider a really great reason to consider and then choose Lyft, and we deliver an excellent experience when they do, we can get them to ride with us again and again, and that is how we build habituation, and that's how we drive active rider and ride frequency growth every year. Now, I'm not saying that this is easy, right? As David mentioned, we're competing against people's habits. I don't know about you, but the last time I tried to change or build a habit, it was pretty hard. There are many different ways to achieving our target. For example, if you just got that 20% of riders who take around five rides with us per month to take one more ride with us a month, you'd grow rides by millions.
All of our paths to reaching our target really start from the same place. It all starts with customer obsession. Our customers lead complex lives. Like you, they are not one-dimensional, and they really rely on solutions that can meet them where they are. So to create those, we need to understand the nuances and the complexity of the lives that they lead, because once we do, we can actually develop the products and experiences that will give them great reasons to choose Lyft and to keep choosing Lyft. So let's talk a little bit about who our 40 million riders are today. Like you just saw in the video, they're riders like Ariana, who takes rides to and from the airport, or Ryan, who takes rides to work, or Dominic, who relies on Lyft to get him home safely after a night out with friends.
39% of our riders don't own or lease a car, and a majority of them live in urban areas. Collectively, they take 14 million trips with us a week, and like I said earlier, our top 20% of riders are taking around five trips a month with Lyft. We have riders who take Lyft because there aren't any other transportation options available to them, or riders, like a friend of mine, who will take a Lyft home from work sometimes so she can shave off that extra time from her commute and spend it with her kids before they go to bed. For so many of our riders, not only is Lyft a foundational part of their lives, but it's really helping them get so much more out of it. Like Ariana, Ryan, and Dominic, our riders use Lyft for a variety of different reasons.
In fact, 71% of them use Lyft for three or more use cases, most often trips to the airport, to get to and from work, and to go out. The other thing about our riders to know is that they're mode mixers. With our focus on rideshare, we've worked so hard to build products that really deliver on all of their trip needs. So a rider like Ryan, who's running late to work, he might take a Priority Pickup, but on the way home, when time is on his side, it's most likely a Wait & Save. If he's headed to the airport, he's usually picking a Standard, but if he's traveling with friends, definitely Lyft XL. And if he's going out, it's Extra Comfort or Lyft Black all the way.
However they choose to use Lyft, what, when it comes to what matters to our riders, it's fairly straightforward. They want fair and predictable prices, reliable ETAs, and convenience. So my job in rider experience is not only to work with Jeremy, Zach, Sid, and others to deliver on these fundamentals, it's to give riders reasons to choose Lyft that go above and beyond the fundamentals, above and beyond simply what they tell us they want. To do that, and to increase active riders and ride frequency, we're focused on three key priorities for our riders. The first is building compelling partnerships that bring new riders to the platform, and really help them maximize the value that they get out of Lyft. The second is expanding the addressable market by delivering solutions that really cater to the needs of a specific segment.
The third is building differentiated products that increase ride frequency. I'm gonna share a few examples about how these are coming to life for us today. Partnerships, which Zach is going to go into a lot more detail on in a little bit, are a key source of new rider activations for Lyft. In talking to our existing riders, we know that our riders are value maximizers, and really, what that means is they don't mind spending money if they feel like they're getting value in another way. A majority of our riders are members of multiple membership programs. Rather than tie them down to just one, we've built partnerships with Chase, Hilton, Delta, Alaska Airlines, and others, that really help them maximize the value they're getting on either side of that partnership.
So, for example, if you're a Delta SkyMiles member, you earn miles for every $1 that you spend on Lyft. And if you're a new rider to the platform, you'll get discounts on your first two rides. In 2023, we saw the business impact of these partnerships, with over 850,000 new riders using a partnership for their first ride. Our partnerships really help us deliver value that our riders care about, like earning miles, which gives them a great reason to consider and then choose Lyft. Another way we get people to choose Lyft is by creating solutions that really deliver on their unique needs, and capture more of those personal vehicle trips that David mentioned earlier, and this leads us to our second priority.
We know that about 45% of our riders are women, but only 14% of women 18 and over in the United States are using Lyft. In talking to women riders, we learned that beyond ETA reliability and price predictability and convenience, what really matters to them is comfort and confidence when they're choosing a transportation option. More specifically, women riders and drivers wanted to ride with other women. So in 2023, we launched Women+ Connect, a preference that prioritizes matching women riders and drivers, and we scaled it nationally in Q1 of this year. Since launch, we've given millions of Women+ Connect rides on our platform, and our riders and drivers love it. In fact, 30% of riders say that they will use Lyft more often because of Women+ Connect.
For our Women+ drivers, we've seen Women+ Connect increase driver activations by 24%, which is huge. By really listening to women, not only did we create a solution that makes rideshare more approachable to women everywhere, but we gave our active riders more reasons to choose us for their everyday trips. Now, let's talk about our third priority, which is all about building products that increase ride frequency. Over 18% of first rides on the Lyft platform are to or from an airport, and the top use case for scheduled rides are airport trips, making up about 17% of total scheduled rides. As David mentioned, you know, airports are a huge opportunity for Lyft and for rideshare, but these are high-stakes moments.
If you've ever missed a flight, or you've come close to missing one, like I tend to do, then you know exactly what I'm talking about. If we can get this moment right, we can get you to take more of your trips with Lyft, but if we get it wrong, we risk losing a rider for life. And above all else, riders heading to the airport want two things: they want peace of mind, and they want reliability. So in 2023, we invested in increasing scheduled rides reliability by improving dispatch policies and shifting from a pickup window to a specific pickup time, by launching a driver commitment policy to reduce cancels, and by increasing driver earnings for scheduled rides. And when we had reliability where we wanted it, we didn't even stop there.
On top of our improvements, we launched the On-Time Pickup Promise, which guaranteed that for your scheduled ride headed to the airport, your ride would arrive within 10 minutes of the pickup time, or we'd pay up to $100 in Lyft credits just to make up for it. Together, our reliability improvements and our On-Time Pickup Promise drove huge impact. During the campaign, we saw scheduled rides to the airport increase by 21%. In Q4 alone, we completed 1 million scheduled rides to the airport on the Lyft platform, an all-time high for us. On top of that, we saw 11% growth of scheduled rides in general, and 2% of growth in overall rides on the Lyft platform.
So if you remember that flywheel I showed you earlier, our On-Time Pickup Promise gave riders a great reason to consider and then choose Lyft for their scheduled ride to the airport. Then, with our improvements on scheduled rides reliability, we were able to deliver an excellent experience to them when they did. And by doing so in a high-stakes moment, like heading to the airport, we built trust with our riders, trust in them to take more rides on the Lyft platform with us. This is the last example I'm gonna share, but it's one that the team and I are super excited about. So in addition to trips to the airport, another use case that we're really focused on is commute, and this is where we're really trying to create a habit for riders.
35% of riders are commuters, and we know that they're using multiple platforms for their rides. In talking to them, we know that a key pain point for riders who are commuters is a lack of price predictability and stability. What that means is market conditions would sometimes cause Prime Time to kick in, which would increase prices on riders unexpectedly. So what were riders doing? They were keeping their options open, checking multiple apps, checking the train schedule, until the moment that they left the door. Talk about stressful! So late last year, we launched a test, and we tested a pilot of a product for commute riders to really address their need for predictable prices and price stability for their regular routes. We've seen a great response, so we're scaling it later this year.
By offering a way for riders to really lock in prices for their rides, not only did we wanna create this worry-free experience for them, but we wanted to convert more of those commute rides over to the Lyft platform. To put this in perspective, we expect commuters who use our commute product to take 40% more of their commute rides on the Lyft platform. I just talked through a few examples of how we're laser-focused on growing active riders and ride frequency through our investments in key partnerships, market expanding products that address the needs of specific segments, and differentiated products that really focus on increasing ride frequency. We see that our investments and our overall approach, it's really working.
In 2023, we saw rides reach post-COVID highs, and from Q1 2022 to Q1 2024, we saw a 9% increase in rides per quarterly active rider, a 6% increase in new rider retention, and a 23% increase in quarterly active riders. On top of that, people are going out more, and they're taking Lyft to get there. We saw a 45% increase in trips to the movies, 68% increase in trips to the gym, 37% increase in drop-offs at stadiums. Huge thanks to Beyoncé and Taylor for all of their work. And all of this really just reinforces what David was talking about earlier, and that is that Lyft has a really important role to play in getting people out there and living their lives, and connecting them to the people and the experiences that matter to them most.
That is why we do what we do. Before I hand things off to Zach, I wanna leave you with a few key takeaways. The first is that our riders lead complex lives, and there's no one that understands that complexity better than our team. The second is that with that understanding, we're investing in bringing new riders to the platform and engaging our active riders more through partnerships, through products that really expand the market, and through products that increase ride frequency. Our overall goal is to get more riders choosing to take more of their rides with Lyft. The final thought that I'll leave you with is that with our focus on rideshare, our team is constantly trying to push the envelope of what rideshare really has to offer to people, and how rideshare can meaningfully improve people's lives.
This team has heart, they care, and they bring it to their work every single day. And while my last six and a half years have been a wild ride, within the last year, we've really renewed our focus on our purpose and our promise to our riders in a way that's driving great momentum and huge impact for all of our customers. We've hit our stride, and I couldn't be more excited to be on this journey with all of them. So with that, I will hand things over to Zach, who will take us on a deep dive of our partnership strategy. Thank you.
Please welcome to the stage, Zach Greenberger.
Hello, everybody. It's so great to see everyone. David said earlier that he has the best job in the world, but I think mine's, mine's pretty fun, and we're gonna talk about that today. So, I'm the Executive Vice President of our Partner Experience. I've been at Lyft for five and a half years, most recently as Lyft's Chief Business Officer, focused on our partnership portfolio, our B2B businesses, and some of our emerging businesses, like healthcare and media. I have the best job. I love my job. I get to come to work every single day and work with a best-in-class partnerships team on how we create differentiated value and drive differentiated experiences and drive interesting value to our customers.
David said at the beginning in his opening remarks, that if you wanna go fast, you go alone, and if you wanna go far, you go together. My team is the best in the business at finding the perfect intersection between how we work with our partners and how we deliver value to our customers.... You've heard some really amazing stats and insights from Audrey and Jeremy, but I'm excited to have some fun with you all and talk you through our strategy, and give you some real-life examples of how we're seeing our differentiation play out in the market today. Our partner ecosystem is just another way that we are customer-obsessed to drive profitable growth. This is a unique differentiator. Our partnerships give, give new and existing riders more reasons to choose Lyft every single day.
We look at partnerships in two distinct categories: our growth partnerships category, and then our ad tech platform, Lyft Media, which I'm going to talk a little bit about. So like I said, the foundation of our strategy is built on really creating these differentiated experiences. They drive top-of-funnel awareness and engagement, which lead to preference, retention, and conversion, all through enabling these experiences that people love and care about. This is done through more efficient customer and demand acquisition, higher retention and incrementality, and ad margins. In the next few minutes, I'm gonna talk about growth partnerships, give some real examples, as I mentioned, and then we'll switch over to talk about Lyft Media, which I know everyone's excited to hear about. So our strategy takes shape in multiple partner categories, verticals, and products. This includes integrated experiences, venue partnerships, business travel, healthcare, and our university and transit programs.
We take pride in working with the best brands in the world, Delta, Chase, Hilton, numerous WNBA and NBA teams and their venues, like the Footprint Center with the Phoenix Suns and the Mercury. You've heard me talk about how we've seen this, the power of this strategy play out in our data, so we're gonna share, I'm gonna share a little bit about that now. Simply put, we see more value to the business when riders take advantage of our partnership programs. Rides linked with partners drive retention and frequency faster than non-partner-linked rides. In fact, partner-linked rides drive 18% more incrementality per user, and the rides are more than 10% higher in margin versus unlinked rides. This also includes our advertising partnerships, which feature personalized incentives for our riders.
Combined, we expect our partner ecosystem to drive incremental rides and revenue with more attractive margins for the business. Our partnerships also deliver value that are partially paid for by our partners. This means that Lyft benefits, our partners benefit, our customers benefit, and we're both investing in one another to really create differentiated experiences and value. It's a symbiosis that's really unique, and it is a special balance that we strive to strike, and our team is the best in the world at doing it. Audrey briefly mentioned this, but in 2023 alone, we saw over 850,000 new riders linked to a partnership, and we see no signs of slowing growth of our partnership portfolio and its impacts on the business. So why do we think there's so much room for upside?
We have millions of users linked to partner accounts today, and we're barely scratching the surface as we think about our existing partner portfolio and the new partners that we can bring into the ecosystem. Just a 1% improvement in linked member penetration, we would see roughly $300 million in incremental gross bookings per year based off of usage patterns today. I've given a bit of an overview on our partner categories, but I want to spend a few minutes talking about two real examples. I'll take you through our Delta partnership, and then I'm gonna switch over to talk about healthcare a bit. So Delta has roughly 22 million actively engaged SkyMiles members, millions of which are linked to Lyft today. Users with linked SkyMiles accounts earn points on every dollar they spend on Lyft.
We drive top-of-funnel awareness by leveraging Delta's strong marketing placements and channels that reach millions of their members daily. We then go further down the funnel to drive engagement by way of linking your Lyft and Delta SkyMiles accounts. We reinforce that value that the customer sees by reminding them that they are earning SkyMiles on every single ride. This is one of the many examples why users choose Lyft every single day, but the magic does not stop there. This is where the differentiation of our strategy really becomes apparent. We go beyond linking and rewards. We take our customer obsession to the next level by building on top of integrations to create new experiences. With Delta specifically, we ingest flight information to inform our marketplace and help create a better experience overall.
We prompt our user to schedule their ride when we know when their flight is on time, and to the extent that their flight's delayed, we will proactively reach out and suggest they change their scheduled ride so you spend a little less time at the airport. Airport travel is one of the highest anxiety-inducing experiences for our customers, so we make getting to the airport painless in a way that makes it easy for the rider, sets the driver up for earnings opportunities that they can plan on, and also addresses a pain point that our partners tell us they hear from their customers every day. You couple this with amazing innovations, like the On-Time Pickup Promise that Audrey spoke about. We are eliminating pain from the airport experience.
I could speak of examples similar to Delta across our partner categories all day, but I really want to take a moment to talk about one of our most emerging businesses, healthcare, quickly growing and a business that we're gonna continue to invest in. We have a multiyear head start over our competitors in the space, and that advantage continues to yield benefits. These rides are paid for by healthcare organizations and government programs, who are using our B2B platform to order rides to and from medical appointment, to and from medical appointments on behalf of the rider. These rides are longer distances, provide more consistent demand during off-peak hours, and do not have any payment transaction costs, which yield higher margins. In 2023, Lyft Healthcare grew bookings by 40% year-over-year. We doubled our service.
Our serviceable market doubled over the past 12 months as we've launched new products like Lyft Assisted, an elevated service for riders who want a little extra help getting in and out of the car, and to and from their front door. Today, we service Medicaid patients in 23 states and Washington, D.C., leaving plenty of room for growth. The addressable market is also expanding to over $10 billion as the underlying need and membership continues to grow. Right now, we are the largest rideshare player in the non-emergency medical transportation market, with over 4,000 partners. For example, let's look at the Medicaid market within our healthcare business. Today, utilization of the transportation benefit within Medicaid is around 5%. As awareness and need for transportation grows, we expect that utilization percent to increase.
Based on our size and leadership position today, an increase from 5%-6% would yield $90 million in incremental annual bookings to the business. You can expect us to continue to lean in on our great momentum in healthcare. So before I jump into Lyft Media, there are really three key takeaways that I want everyone to really focus on as it pertains to our growth partnership strategy. One, growth partnerships add unique value and differentiate experiences for our customers and our business. Two, rides linked to partnerships grew 60% from Q1 2022 to Q1 2024, and these are more frequently higher margin rides. And three, rides with linked partnerships drive retention and frequency. They also take about 18% more rides than before linking their account within our partner programs. Really amazing stats.
So now I want to switch gears to talk about Lyft Media and the foundational component of our partnership strategy that is really going to supercharge everything we do. So when we think about Lyft Media, we think of it as far more than just a traditional ad tech platform serving ads to riders. We have a huge opportunity ahead of us that will allow us to take the partner ecosystem to the whole next level, and it is using a highly unique set of first-party data to bring better experiences to the platform. Our platform gives us the ability to partner with a broad portfolio of brands, businesses, venues, restaurants, bars. It really, the opportunities are endless. We have data that allows us to uplevel the customer experience while also delivering value back to the advertiser.
We can use a host of first-party data, user profile, purchase intent data, transportation and location history, timing of relevant ad placements, even the ability to closed-loop survey users at the perfect moment in their transportation journey. It all comes together in a way that allows us to work with our partners to provide value to Lyft, value back to the partner, and most importantly, value to the user in a way that doesn't feel like a traditional ad experience. On average, riders open their app for approximately five minutes or five to six times during a ride. Brands and merchants have the ability to message to relevant riders during the course of that ride.
In a world where cookies are going away, it gives our competitive strategy an opportunity to capture a part of the rising retail media landscape that is expected to double by 2027. Today, we built an omni-channel platform that enables partners to reach customers at any point during their transportation journey, and as we look into the future, we are building a best-in-class platform to continue to scale this business. This is a really big deal. So looking ahead, think about features like closed loop attribution, business insights, self-service tooling, offline off-network supply, and audience extension. That will really take this platform to the next level. We've seen really nice growth in the business, with top line growing 250% year-on-year in the first quarter and becoming a core part of our future strategy.
You've likely seen this experience already when you've taken a Lyft over the past few months, and we've launched a suite of in-app poster and video products that are already seeing great traction in the market. In fact, the results are far better than we expected. Since launching our digital in-app poster and video products, we've seen click-through rates that are multiples of industry benchmarks and viewability that also surpasses industry benchmarks for these types of products. These results are driving how we think about future integrations for targeting and measurement, which we know are the things that advertisers really care about and are the things that empower us to continue delivering better experiences to our customers. We have a world-class team. They are focused on innovating daily on new ad-enabled experiences for our customers.
See here how a partner can directly sponsor and subsidize rides that give brand halo and improve brand preference during the course of a Lyft ride, while also reducing the cost directly for the rider. These are unique experiences, some of which have already been launched with household brands like IHOP and Kroger. It's really important that you hear that this is just the beginning. Experiences like these take our platform to the next level, and there is unlimited innovation that can happen in this space. Now, I want to take a step back for a second, and I want everyone to think really big with me. So we've already launched in-app and in-car experiences that delight riders and help drivers earn more, as you've heard Jeremy talk about.
But imagine a world where we can help drive foot traffic to merchant locations through ride incentives and work directly with them to extend the experience from a store's front door all the way to a customer's home. To give you an idea of what this could look like, it could be providing a coupon for fans to go to the best women-owned bars on the block after a Taylor Swift concert. Or it could be a bar owner opening the Lyft app to pack his bar when it might be on a little slower of a night. Imagine even bigger than that. We can leverage our anonymized data to help brands and tens of millions of local stores better understand their customer demographics by helping drive foot traffic directly to them.
Maybe even a New York steakhouse that wants to use Lyft's anonymized data to target one of the 5,000 rides we give to Peter Luger's a year. This is really exciting stuff, and we are just at the beginning. So before I finish, I want everyone to take three key things away from this presentation on Lyft Media. One, we have robust first-party data and high-fidelity transportation data and engage customers on the platform that really help us create curated experiences. Two, we're building a full-service ad platform that has already seen great results in forming improved target and measure targeting and measurement. And lastly, we are building a world-class team. We've already brought in some of the best talent in the world from some of the largest retail media networks that everyone knows and loves today.
The possibilities here are endless, and I'm so excited that you all are on this journey with us. We're now gonna take a 15-minute break, and then we're gonna come back and hear from Sid, talk about Marketplace.
Sid Patel.
I requested Metallica for the intro music. Clearly, it didn't happen. Okay, my name is Sid. I'm very happy to be here. My background is in physics and the sciences, and that's why I don't have a video that's gonna pull at your heartstrings. But, after grad school, I worked in different domains like retail, ad tech, and media, and I joined Lyft in 2019, and I've been here for close to five years now. Today I'm going to talk to you about our marketplace organization, which I have the privilege of managing, and some of its inner workings. The goal of our organization is to grow and balance the marketplace. You heard from my colleagues about all the amazing products that we are building for our customers, the riders, the drivers, and our partners.
In marketplace, we leverage heavy machine learning and technical infrastructure to bring all those pieces together and create reliable, consistent, and amazing experiences for our customers, while also ensuring sustainable margin for Lyft. We do this at massive scale in what is a very, very physical marketplace. Ride intent here is when a rider logs on and enters a destination. In a given day, on average, we have more than three million of those, out of which we convert more than two million into rides. Behind the scenes, we are making billions and billions of technical decisions, almost instantaneously, to create optimal experiences for our customers. Operational excellence in marketplace means building, managing, and fine-tuning all the different technical and complex levers that we have to grow and balance the marketplace.
The goal for my organization last year, this year, and the next three years, is to increase the efficiency of our marketplace by at least 10%. 10% each year, which essentially entails building new and better levers, improving our current levers, and very importantly, improving the way these levers work in conjunction with each other. All right, let's imagine that the day has ended, and you need to get to a restaurant. If you're getting late, so you hop onto the app. If you're getting late, you might request a Priority Pickup, or you might request a Wait & Save if you wanna have that one last conversation with David and Erin. Or you might request an Extra Comfort because your journey is long, and you want a nicer car with more legroom.
So you request the mode that works for you, the right car shows up with the driver, you hop in, you get dropped off at your destination on time, no hassles, five stars. Seems very simple, but remember, we do this at massive scale, and just in Manhattan, in a typical commute hour, we have to fulfill more than 16,000 rides. So while you are requesting a ride for yourself, the likelihood is very, very high that lots of others are, too, around you and competing for the same driver pool. So preparation for your ride and the rides around you starts weeks beforehand, and that's because there's only so much we can do to create Marketplace balance in real time. And why is Marketplace balance critical?
Just very quickly, if there are too many riders and not enough drivers, then prices and ETAs shoot up, which is detrimental to our riders. If there are too many drivers and not enough riders, then there are not enough rides to go around, and driver earnings suffer. So it's very important to have the right marketplace balance in all regions at all times. And we use acquisition and engagement levers to fill the gaps that we foresee on either side of the marketplace. Right? So essentially, our ability to forecast at different time scales on either side of the marketplace becomes very, very critical. And I'm not just talking about forecasting the daily patterns, like rush hours and so on. This is more about the special moments and the special occasions in our customers' lives, like concerts or back to school in Syracuse.
Or what's gonna happen in Kansas City if the Chiefs win the Super Bowl? Or it's gonna rain in Eugene, and the kids need to get dropped off to school, right? That focus on operational excellence and advanced machine learning techniques have led to an increase in our forecasting accuracy by over 20% over the course of the last one year. What that does is it enables better allocation of incentives to balance the marketplace on either side of the market, either side of the marketplace. Okay, we did all the preparation. Let's come back to the current state. There are three variables that our customers care the most about when they are making decisions in real time. Think of it as a triangle, and the three vertices are price and ETA on one side, for riders, and earnings for the drivers.
Right? It's very critical for us to get these three variables right all day and every day, because when we don't, it's a defect, and our customers suffer. Let's start with pricing. In what is a very complex marketplace, pricing is the most technical thing that we do. A big reason for that is that pricing at Lyft is inherently uncertain. Let me explain. Imagine there's a ride intent, so a rider logged on and entered a destination. We need to get back to the rider now with all the modes, with the right prices associated against every mode. But at that point in time, we don't know which driver is gonna get matched to this rider, and there are two reasons for that. First, we don't know which mode this rider is gonna request.
Secondly, while this rider is making their decision, there might be other riders who are getting matched to drivers in the vicinity. So we don't know the exact marginal cost of this ride when we are pricing it. It's probabilistic in nature, and this is a big reason why pricing at Lyft is very different from pricing in retail. Now, add on top the fact that our supply and demand are literally moving around in unpredictable fashion because our marketplace is very stochastic, which means that it's very dynamic, and you get the idea.... There's a second aspect I want to talk about around pricing, which Audrey alluded to, which is that riders want consistency, which brings us to Prime Time. Prime Time is a defect.
Don't get me wrong, it's inevitable, because our marketplace is very, very stochastic, and the marketplace balance in all regions at all times is never gonna be 100% correct, right? So it's inevitable, but it's still a defect, and our goal is to continuously reduce this defect. And this focus on operational excellence and better marketplace balance has resulted in our Prime Time, on average, coming down by close to 40% over the course of the last two years. You all, you all probably, probably can experience that. And this is a big reason that's driving the growth that we currently see in our business. All right, second, driver earnings. If pricing is the most technical thing that we do, driver earnings is probably the most important thing that we do.
You heard Jeremy talk about features like upfront pay and earnings commitment, which have really increased the amount of trust that drivers have in the Lyft platform. What that has done, in turn, is that it's made them more resilient to different earning structures, and that, in turn, has enabled us to be more innovative on this front. Let me give you an example. Recently, we launched a feature called Turbo, and what Turbo does is that it gives drivers a better idea of what the marketplace is gonna look like in the coming week. So now drivers can plan better and drive more when it matters more. As a result of that, driver earnings per hour has gone up because they are driving more when it matters more. The result of that is that our ETAs are much faster because we have more supply when it matters more.
Faster ETAs are leading to higher conversions and rides, and for a multitude of reasons, this is cost neutral. So it's a win-win-win-win situation. Turbo is just the beginning, right? It's the foundation on which we are gonna build a lot more features to help drivers maximize the time that they spend on the Lyft platform. The third vertex of the triangle, ETAs. As you can see from the graph, our ETAs are faster substantially because of better marketplace balance, which is coming from increased driver hours, which is coming from features like earnings commitment, and Turbo, and so on. Our ETAs today are faster by close to 10% year-over-year. There's a second aspect I wanna talk about around ETAs, which is price versus time.
Lyft has this unique ability to segment our riders in a way that allows them to trade off price versus time, and it's also very beneficial to our marketplace. Let me give you a very simple example. Imagine there's rush hour, too many ride intents, not enough drivers. Okay? Prices normally shoot up, but now, if there is a rider who is price-conscious, who is price elastic, they have the ability to request a Wait & Save at a lower price, provided they are willing to wait longer. And what that does is flattens the demand curve. It removes a lot of tension, a lot of contention from the marketplace.
And so now, if there's a rider who's in a hurry in their context, they can actually request a Priority Pickup, and we can serve Priority Pickup rides better because a lot of contention has been removed from the marketplace. And we can serve the price-conscious riders better via Wait & Save. And remember, Priority Pickups have higher margin. So this is just one of the ways that we use mode mix, not just to generate really good experiences for our customers, but also to drive margin for Lyft. After a long, long time, we are highly, highly competitive, as David said, on all the three vertices of the triangle: price, ETA, and driver earnings. And the really good thing about that is that this is not just true about the markets in which we have operated for a while.
As we shared in our Q1 earnings call, we are seeing significant growth in Canada, to the tune of, in Q1, we doubled our rides year-over-year in Canada. And the main reason for that is that we are not only using operational excellence as a muscle to improve the health of our marketplace in our focus regions, but now we are able to use that to go to new regions and quickly establish healthy marketplaces. And this bodes really well for Lyft. Last slide. We take on a lot of complexity to create easy, simple-to-understand experiences for our customers. And for an outsider looking into our marketplace, it's easy to get lost in the math and the technical complexity of it.
So in a similar vein, just to simplify all of this, remember, we talked about using acquisition and engagement levers and also features like Women+ Connect to drive more ride intents. And then it is very critical to grow supply in tandem so that these ride intents have good service levels. Good service levels, in turn, drive more conversions and rides. And rides beget more rides. Not just because increased density improves the health of the marketplace, but more importantly, when a rider takes a ride, when a rider finishes a ride, and they had good service levels, and they enjoyed a good experience, the likelihood of this rider coming back to our platform increases, thus increasing our ride intents again. And that creates this virtuous cycle, and the goal for us to, is to continuously drive this virtuous cycle forward and grow it.
2023 was a year of transformation for Lyft, and I'm gonna leave you with some data on the screen that shows how far we have come in the last 12 months. Customer obsession and marketplace means attention to detail and nailing the details. That focus, that obsession, has led to significant growth in our business. Lastly, my friends often ask me what it feels like to be at Lyft, given my background in the sciences. My answer is always that this is the hardest set of problems that I've personally been involved in since my PhD. And David, it's way, way, way harder than blackjack, right? But it's also very, very meaningful because we get to work on products that matter to everyday people every day. Like, operating a marketplace like ours is certainly challenging, no doubt.
But as the data and the two graphs on the screen show, my amazing teams are really up for it. When it comes to technical ability, they're second to none, and they have grit to boot. So we're gonna use that and our really strong sense of purpose, not just to create really good experiences for our customers, but also increasing efficiency to drive sustainable margin for Lyft. Thank you for listening, and here's Kristin to talk about a different kind of operational excellence.
Please welcome to the stage, Kristin Svercek.
Hi there. I'm Kristin Svercek, and I'm the President of Lyft. I've been at Lyft for nearly 12 years, the longest of anyone here. I originally served as our first general counsel and then the President of Business Affairs before stepping into my current role in July of 2023. I'm incredibly proud to have been a big part of the evolution of this company and industry, and most proud of the incredible growth that I've seen over the past year under David's leadership. This has only reinforced my confidence in the future of Lyft, as I know we're poised for only greater growth and broader impact from here.
I'm here today to share a bit more about the legal and political challenges we've faced over the years, how we've overcome these through partnership with regulators and legislators, and how our experience and approach means we'll continue to do the same. One thing we've known from the start is that drivers value their independence. They want the flexibility to drive when they want, for as long as they want. No other type of work lets you clock in and clock out when it's convenient for you. This isn't possible for the typical barista. Drivers choose app-based work because it works for them. App-based work provides people with access to uniquely flexible opportunities that allow them to earn around their other commitments. This is backed up by significant data. 92% of drivers say a flexible schedule is very or extremely important to them.
68% who work full-time in addition to driving say it's because they can drive hours that do not conflict with their work schedules. 97% create their own schedules that work for them outside of the typical nine to five, and 91% support a policy under which drivers would remain independent contractors and receive some, but not all, benefits that employees receive. That's why we're working with cities and states to put regulations in place that ensure that drivers can maintain this independence. We know labor markets are changing. In fact, we're working with labor unions to ensure that we're able to contribute to the next wave of thinking, specifically by creating a category of independent contractor, a new category that we call IC+ Benefits.
We already have policies in California, Washington state, and right here in New York, that offer drivers benefits like guaranteed rates, paid sick time, and insurance for injuries. We've also put a deactivation appeals process in place. In Washington state, drivers on the Lyft platform were more than eight times more likely than not to say these policies have been good for drivers like them. That's why it's our goal to continue working on these IC+ benefits structures. Our history of supporting drivers goes back many years. We've spent significant time educating, advocating, and collaborating with policymakers and drivers to find solutions that work for all parties. In Austin, in 2017, this meant leaving the market when an unworkable requirement for fingerprinting background checks was put in place.
In this case, we exited, but continued conversations at both the state and local level, eventually working with legislators to pass a bill that allowed for background checks that all parties could live with, in New York last year, we reached a landmark settlement with the New York Attorney General to allow drivers to maintain independence and access new benefits in the IC+ model I mentioned earlier. And lastly, in our most recent win, just two weeks ago in Minnesota, we passed a bill to set minimum pay standards for drivers. This solution came after a previous local ordinance in the city of Minneapolis proposed an unreasonable pay rate and nearly drove rideshare out of the city. Throughout this process, we worked with officials, regulators, and key driver groups to reach compromise.
Each of these examples show our long and credible history as a partner to regulators, legislators, and organized labor. We know how to solve these challenges and work to find solutions that please all parties and put drivers first. Moving to today, I wanted to share with you two driver independence challenges that we're currently focused on. In California, we're working to defend Proposition 22, which was approved overwhelmingly by voters in 2020. This was a landmark win for the industry and even more so for drivers, as it guaranteed drivers the independence they desire to drive when and where they want, and also established labor and wage policies for these drivers. The law was challenged, but upheld by the appellate court in 2023. Now, the question is around the constitutionality of the law, and the ultimate decision lies with the California Supreme Court.
Oral arguments were held last month, and as you can see here, it was widely reported that the justices appear likely to uphold Prop 22. In Massachusetts, the Attorney General brought us to trial last month over driver classification status. We are just finishing the trial and expect a response this summer, and have two potential paths that we are driving in parallel: a legislative proposal and a ballot initiative. In either case, a decision that forces Lyft to change drivers' employment relationship will impact our ability to provide rideshare in the way we do now, and that means individuals in these states would be at risk of losing access to flexible earnings opportunities and transportation and delivery services. Ultimately, it's drivers' voices that should be heard, and the vast majority of drivers tell us they prefer independence and flexibility to traditional employment.
To wrap up, our approach of educating, advocating, and collaborating with regulators, policymakers, and drivers has proven enormously successful time and time again. When we advocate, we're advocating for Lyft, but more importantly, for drivers and their families. I've been a part of this team for nearly 12 years and have seen firsthand the success of this approach in driving numerous victories when drivers' needs have been challenged. I have enormous confidence in the team we have in place today to continue this legacy and prevail over any challenges that we encounter in the future. Now I'll pass it to Max to speak about another business area we're really focused on, and that's insurance. Thank you.
Welcome to the stage, Max Feldman.
Morning, everyone. I'm Max Feldman. I'm the head of risk at Lyft, and today we're going to take some time to demystify Rideshare insurance for you. I'll give you a sense of what Lyft has been up to for the past few years from a risk, tech, data, and product perspective. I'll also lay out our differentiated approach to managing insurance at Lyft, which combines our in-house expertise, models, and understanding of risk with the leading auto insurers in the U.S., scale, balance sheets, and claims handling. Some common sense policy initiatives to address the underlying drivers of insurance costs are also an important part of our strategy, so we'll spend some time there, too. And David set the bar high to make insurance fascinating. I promise I'll hit that mark. But first, let's get through some boring stuff. We'll do a history lesson.
Don't go to sleep, and then we'll move on past Rideshare Insurance 101, into some of the more innovative and interesting road safety work that we're doing at Lyft. All right, so how do we get here with insurance being such a meaningful component of Rideshare economics? In the U.S. and Canada, it's required by law to carry auto insurance when operating a vehicle on our roads. And before Rideshare, the difference between using a vehicle for personal use and using a car for commercial use, as well as personal insurance versus commercial insurance, was very black or white. Personal meant going to pick your kids up from school, going to get groceries. Commercial was, you know, transporting passengers for work, using your car for work.
The limits required for personal insurance vary state by state and tend to be around $100,000, while commercial carries 10 times this amount, $1 million or more. So you can imagine commercial insurance is much, much more expensive. So now rideshare comes along, and all of a sudden, that difference between using your car for personal use and commercial use was a little blurry. You could go from picking your kids up from school to pressing a button in an app and all of a sudden transporting passengers for work in the same vehicle.
And so regulators were concerned that those personal auto policies that were never intended to be exposed to commercial risk would be exposed to this new rideshare class of business. And at the same time, conventional commercial auto policies carried this large upfront cost, which was not really conducive to the on-demand and flexible nature of rideshare. So the industry worked with regulators and insurers to develop a framework of insurance and how it would apply to this new risk. Insurance would essentially be tied to the app, and they specified how coverages and limits would, would be applied across three different periods. Taking period zero and sort of setting that aside, that's personal use. The, the app is off. Clearly personal use. Now the app is on. Period one is when the driver has the app on, but no trips been dispatched yet.
Period two, driver's been dispatched a trip, and they're en route to pick up a passenger. Now period three, passenger's in their vehicle on the way to the destination. You can imagine the limits and coverages required across these three periods varied depending on the personal or commercial nature of the risk. The big result here, the key takeaway, is that the rideshare companies would be required to procure insurance on the driver's behalf during periods one through three. At the time, this risk was new, so it was difficult to price. Not only was the risk new, but the coverages and limits that were required were also well beyond what was required of other commercial risks like taxis or livery vehicles.
One example of this is the $1 million of uninsured or underinsured motorist coverage that's required in California, and that still exists today. It's been a large driver of costs in the state, and it's often associated with legal system abuse. So fast-forward to today, and two things have happened. One, inflation. So these are all the macro factors you read about in the papers, the cost of vehicle repair, replacement, healthcare costs, litigation rates. CPI for auto insurance is up 22.6% year-over-year in April. Rideshare is not immune to these factors, but they will moderate over time. In fact, we're seeing some signs of that recently. They won't go away. Auto insurance in CPI has run above overall CPI throughout history. The second thing that happened is the industry collected enough data and insights to be able to price this risk effectively.
Insurance typically likes maybe 20-30 years of data, and rideshare has about seven at scale now. So we've learned a lot in a very short period of time, and our ability and our carrier's ability to price this risk with precision has improved significantly, which narrows the range of potential outcomes and costs. So we have these requirements that are required by law, like the $1 million of uninsured motorists in California or $1.25 million of bodily injury insurance, uninsured motorist coverage in New York, and there's a few ways that we can combat them. One is we can work with other businesses, other organizations, trade associations, to bring coverages and limits in specific states more in line with national averages and insurance models in other industries.
The second thing we can do, is we can continuously make the platform safer through technology, products, and partnerships. And this is an area where Lyft has demonstrated some really unique capabilities. So I'll take a second to just brag on the team. Of course, we have insurance professionals. We have the best, most experienced in-house actuaries, claims professionals, data scientists, risk managers. We also have a team dedicated for product and engineering to solely making the platform safer. And Lyft's focus on U.S. and Canada rideshare allows us to develop solutions that are really tailored to our business. So on the policy side, we work closely with other businesses, insurers, policymakers, on common sense reforms that extract unnecessary costs from the system. The work is done across these three pillars. On one hand, you have insurance reform.
You have to remember, insurance is regulated at the state level, so any changes we want to make need to be done state by state. We've recently made some changes in Virginia, North Carolina, Arizona, and Georgia. These are all states where we've better aligned state-specific coverages and limits with national levels and industry averages. The second pillar is tort reform, and this includes direct or vicarious liability reforms, third-party litigation reforms. Even though Lyft procures those primary auto policies on behalf of drivers in compliance with the law, we see Lyft named unnecessarily in a large number of lawsuits. We're working with legislators to rein in this legal system abuse, and it affects not just rideshare, it affects all businesses in America, which is why we're building strategic coalitions. We work with many others to raise awareness of these issues.
For example, in partnership with many of our peers, transportation companies, other businesses, and the U.S. Chamber of Commerce, we recently delivered a message to the U.S. House Committee on Oversight and Accountability regarding the negative effects of third-party litigation funding, which is understood to be a big driver of costs, and it's one where few benefit at the expense of many. This is where Lyft can be a force for positive change in our country. Okay, now the more interesting stuff. On the tech side, our strategy is to continuously make the platform safer, and it begins with establishing a granular understanding of risk. I'm talking down to the specific driver level as measured through telemetry, things that we can sense in the environment at the intersection or road section level. Vehicle risk, like make or model.
We can even detect things like potholes or other road hazards and alert drivers to them in the app. This understanding of risk is helpful in two ways. It's helpful in underwriting, essentially preventing the accident from happening in the first place, and it's also helpful in resolving claims by establishing ground truth of what happened at the time of an accident. We take this understanding of risk, and we plumb it into decisions we make. Things like pricing, where we take our understanding of environmental risk, time of day, day of week, precipitation, population density, intersections traversed. These all get factored in, all aimed at reducing accident frequency, improving safety, and driving more efficient and fair claims resolutions. We're giving drivers more control. We share our understanding of risk through proprietary Lyft Maps. To the driver, it looks something like this.
We surface road hazards, like those potholes I mentioned earlier, and even better, we recommend routes around unsafe intersections or routes with fewer turns. We give drivers an understanding of their own behavior and driving patterns. Things like, how smooth are you braking? Are you accelerating harshly? Are you turning aggressively? This screen is available on the driver app now, and we're quite happy with engagement. Drivers crave this information, and they care deeply about safety, and this is an example of telematics, our contextual telematics, and our understanding of risk at Lyft, which is built with our customers in mind. Establishing and embedding an understanding of risk in core Lyft systems and products is central to our strategy, and the proof is in the pudding. In four years' time, we've reduced accident frequency by 10%.
This mitigates our exposure to increases in severity that were observed in the post-COVID recovery, and it also offsets some of those inflationary pressures that I mentioned earlier that are driving up the average cost per claim. But our view is that we will be stronger and more efficient if we leverage the unmatched scale, balance sheets, and claims-handling expertise of the leading auto insurers in the U.S. These are insurance partners like State Farm, Progressive, Liberty Mutual, Mobilitas. But with respect to partnerships, there's an important distinction I'd like to make, and that's between risk transfer and claims handling. Now, when we talk about risk transfer, we talk about what percentage of the dollars that show up on our PNL ultimately end up on our balance sheet versus our carrier's balance sheet.
When we retain risk in our captive, the dollars stay on our balance sheet, but so do the liabilities, and those liabilities can move up or down and take seven years or so to fully resolve. The point of this distinction is, even if we retained 100% of the risk in our captive, we would still need someone to handle the claims. The claims need to go somewhere. Our view is that the adjusters at the leading auto insurers in the U.S., who have been doing this for over 100 years, are best placed to deliver the best outcomes. Generally, we get better outcomes from those insurers when we also transfer some risk so that they have skin in the game, and they care about the outcomes of those liabilities.
Ultimately, a balanced approach to risk transfer is best, and our captive, as well as our internal pricing acumen, allows us to optimize our risk transfer decisions at competitive rates. So back to claims handling for a second. Stability in our partnerships is important. It allows us to accumulate and share a vast treasure trove of data and also build for the long haul. And we've been doing this with partners like Progressive and State Farm for over five years now. We're developing really proprietary ways of working, sharing our telematics data, things like the G-Force, speed, delta V, time, location, all to establish the who, what, when, where, how of an accident, so that we arm our adjusters with that information. And our approach to partnership with the insurance industry and sharing our data and understanding of risk has really improved the velocity and quality of claims outcomes.
We are increasingly confident that the work we're doing is making a difference, and our partners are also recognizing the better outcomes that we're able to achieve. So insurance is a reality of our business. But here's what I'd like you to take away. We have billions of miles of data, so we are well-equipped to beat macro headwinds, and we've demonstrated the ability to do so. Our unmatched proprietary technology powers products that make our roads safer and delight our customers. We are giving drivers all the tools they need to deliver safe rides, and through our differentiated approach to working hand-in-hand with the leading and largest U.S. auto insurers, we deliver more efficient claims resolutions, and our partners are recognizing these better outcomes.
Building this industry has been a once-in-a-generation opportunity, and Lyft has the leading risk tech, deep in-house expertise, and the best partners in the auto insurance industry working on these complex problems with us. This all makes for an incredibly interesting and compelling role that the Lyft Risk team has in making our roads safer, and I couldn't be more proud and excited to lead the charge. So now I'll pass it to Erin, who will wrap up the morning and tell you a little bit more about how what you've heard today translates to profitable growth for Lyft. Thank you.
Please welcome to the stage, Erin Brewer.
Hope you're all doing well. We're in the home stretch, I promise. Before I get started, I want to remind everyone that unless otherwise indicated, all income statement measures are non-GAAP and exclude selected items, which are detailed in the supporting pages to this presentation, and also published on our investor relations website. For me, customer obsession is about building a strong foundation that supports our profitable growth. This is important because it allows us to continue to invest for our drivers, our riders, and with our partners. As a company, we're operating in a healthy and competitive way, and our performance has improved. Over the past year, we've consistently reported financial results that are aligned with our guidance, and we've aligned our financial disclosures with our strategic priorities.
My goal today is to share our plans for the next few years, our next phase of growth, which reflects the way we're thinking about the business and our strategy today. We operate on the premise that customer obsession drives profitable growth. That means delivering the experiences, drivers, and riders love, supercharging it with partnerships and valuable opportunities to connect our customers and partners through Lyft Media. We believe our scale, our strong brand, and our laser focus on rideshare sets us apart. With all of this, Lyft is extremely well-positioned to achieve our business and our financial goals. You've heard a lot today about our three business priorities: product innovation and growth partnerships, operational excellence, and Lyft Media.
Our business priorities form the foundation for our financial priorities, driving durable gross bookings growth, expanding our profitability, including higher margin offerings and cost leverage, and a disciplined approach to capital allocation. So it all starts with gross bookings growth. The roadmap we've outlined related to driver and rider growth and growth in frequency underpin this. Next, it's about expanding profitability, including achieving greater leverage. Growing profits depends on growing rides, as scale matters in our business, and mix matters as well. We'll also grow the mix of premium rides, which will have a higher contribution to our overall profit. And finally, we'll grow adjacent revenue streams like Lyft Media, and we'll do all of this while maintaining strong cost discipline. And finally, we'll maintain a disciplined approach to capital allocation to drive shareholder value.
Before I go into our plan, I want to take just a moment and reflect on where we are today and what gives us confidence in the future. At Lyft's IPO, we were the innovator in peer-to-peer rideshare, but we were also in a number of business lines that were generally more capital intensive. Then the pandemic came, and the world turned upside down. The company began to divest certain businesses and focus primarily on rideshare. Oops. While the past 12 months have been a time of renewed growth, it's really also been a journey back to the heart of the company, delivering great experiences that are, to our customers as they increasingly get out into their communities and connect. Over the past five quarters, we've also reshaped the financial trajectory of the company. Our cost structure is in the right place.
Cost restructuring actions in the second half of 2022 and in the second quarter of 2023 have delivered more than $500 million in annualized savings. We've generated consistently positive Adjusted EBITDA, and we've turned a corner on free cash flow and have generated positive free cash flow in our most recent two quarters. We set a target and are on track to achieve healthier levels of stock-based compensation of approximately $340 million in 2024, significantly reducing the related dilution. We have a strong liquidity position. We've successfully refinanced a portion of our convertible debt at favorable terms, and we've updated the covenants associated with our untapped revolving credit facility. Our focus on improving results has been important in our ability to achieve leverage in our financial model.
Operating expenses as a percentage of gross bookings went from approximately 18% in the first quarter of 2022 to approximately 14% in the first quarter of 2024. And as a result of a much stronger and healthier marketplace, we've been able to achieve greater efficiencies from our combined contra revenue and sales and marketing incentive spend. Total incentive spend went from approximately 14% of gross bookings in the first quarter of 2022, to approximately 8% in the first quarter of 2024. And while I'm really proud of what we've accomplished in terms of setting the foundation for Lyft to continue to seek, succeed financially, there's so much more opportunity ahead. Our next phase of growth is here, and I'm excited to lay out for you what that translates to in terms of financial goals over the next few years through 2027.
Today, we reaffirmed the full-year directional guidance that we previously provided for 2024. Looking ahead, we've set targets for our business looking into 2027. We expect 15% gross bookings growth on a compound annual basis from 2024 to 2027, supported by a belief that customer obsession will enable us to bring more of those 161 billion personal vehicle trips that David discussed to the Lyft platform. The framework includes our current primary markets in the United States and Canada. Second, we expect to expand our adjusted EBITDA margin as a percentage of gross bookings each year toward our objective of approximately 4% adjusted EBITDA margin in 2027. And finally, we expect to drive an annual conversion of adjusted EBITDA. More color.
We operate in a large market with significant untapped potential, and it's been our premise that there's been a lack of customer-focused innovation. Lyft is changing that. Our formula is simple. Customer obsession drives preference, retention, and engagement for the Lyft platform with drivers and riders. Through our continued focus on being an innovator in the market and creating and growing partnerships that our riders love, we will grow quarterly active riders and grow frequency by giving riders more great reasons to choose Lyft for more of their transportation needs. Growth on our platform is enabled by our ability to grow driver hours over time. We'll do this through a combination of growing active drivers and providing such a rewarding experience that drivers will choose to spend more time on the Lyft platform.
As we earn more rides, and as our marketplace operates better and better, it will mean higher reliability, lower ETAs, and better earnings opportunities for drivers. Now, let's turn to how we expect that gross bookings growth to translate into profit growth. In our next phase of growth, we'll expand our margins through multiple levers in our business. By 2027, we expect to reach adjusted EBITDA margin as a percentage of gross bookings of approximately 4% on a full-year basis, driven by the pillars of our customer-obsessed strategy. As I shared a bit earlier, the progress we've made over the past 5 quarters has largely come from our laser focus on operational excellence and operating in a healthier and more competitive way.
Specifically, our plan to expand adjusted EBITDA margins as a percentage of gross bookings from our target of approximately 2.1% in 2024 to approximately 4% in 2027, will be supported in roughly equal parts by our three business priorities. Innovation and partnerships will bring more riders to our platform, give them more reasons to consider rideshare for more of their transportation journey, and grow our mix of premium rides. Operational excellence remains at the center of everything we do. We will continue to achieve efficiencies in our marketplace through cost discipline and technology that will continue to improve the way we operate and scale our platform. And by 2027, Lyft Media will represent an important growth contribution to our business by enabling experiences for our riders and bring strong value for our partners.
Let's talk a little bit more about each of these and how they contribute to profit expansion. I'm gonna start with operational excellence. We operate one of the largest transportation networks in the world, and growing scale on a foundation of customer obsession drives efficiencies. Sid gave a great overview of the sophistication and complexity of our marketplace, and the tremendous innovation we've delivered to improve the daily experiences for drivers and riders. We expect to continue to drive better and better experiences for our customers, and as a result, we expect to achieve 10% more efficient spend per year, as measured by our total contra revenue and sales and marketing incentive spend on a per-ride basis. As we build scale, we'll maintain our focus on cost discipline and continued leverage of our operating expenses as a percentage of gross bookings.
Our operating expenses consists of costs that are mostly fixed, like those related to headcount, facilities, and other corporate costs, and also costs that are mostly variable and related directly to our rides growth. When you add these two things together, we expect to achieve approximately 50 basis points of operating expense leverage as a percentage of gross bookings every year from 2025 to 2027. Now, turning to how growth through our focus on innovation and partnerships will contribute to our profit expansion goals. Growing our profitability is a function of both growing the number of rides and growing the mix of premium rides. You've heard today about a number of different products and partnerships that are just part of our broader portfolio. Audrey talked about a number of differentiated, customer-obsessed ways Lyft is innovating in the market, like Women+ Connect and our commute product.
You heard Zach go deeper into how partner-linked accounts are more profitable, because when riders link their Lyft account to one or more of our partners, they tend to take more rides and a higher mix of premium rides. You've heard about our leading position in healthcare and the opportunity for strong growth in that market. Finally, you heard Sid talk about the efficiency and reliability of our marketplace and how we can consistently deliver for our riders with things like our On-Time Pickup Promise, and effectively help riders shop within the app for the mode that suits their needs. We expect to continue to grow our portfolio of innovative products, features, and partnerships over the planning horizon, further contributing to overall profitable rides growth. Finally, we expect our Lyft Media Platform to become an increasingly important contributor to profit expansion.
We expect our Lyft Media Platform to grow significantly from approximately $50 million in gross bookings in 2024 to approximately $400 million in gross bookings by 2027, maintaining an attractive margin profile. We're growing Lyft Media into a powerful tool for companies to connect with Lyft riders in increasingly personalized and relevant ways. Bringing that all together, we've built a customer-obsessed engine at Lyft against this opportunity, driving durable bookings growth and delivering strong profit expansion. We'll eventually go to the next slide. There we go. Importantly, we expect that conversion of Adjusted EBITDA to Free Cash Flow will grow from at least 70% in 2024 to more than 90% from 2025 to 2027, driven by our growing profitability, our asset-light model, and contributions from working capital, supported by the progress in our insurance strategy.
Our capital allocation priorities include responsible investments to fuel our growth, maintaining a strong liquidity profile, and optimizing shareholder returns. I'll touch on each of these. Clicker problems. I'm gonna switch clickers. Thank you. All righty. As we think about our capital allocation priorities, our top priority is to invest responsibly in the business to fuel growth. This means investing in products and technology to drive preference among drivers and riders, investing in our growth partnerships, and investing in scaling our advertising platform to fuel growth and margin expansion. We have a strong liquidity position. As of the end of Q1, we had more than $2 billion in liquidity, including our untapped revolving credit facility, and we've reached an inflection point in terms of free cash flow generation.
We see a number of options to address the convertible notes due in May 2025, and we have a roughly five year runway on the $400 million in newly issued convertible notes. We've also been reducing stock compensation expense to bring down dilution. We expect to manage net share dilution below 6% by the end of 2024, and below 5% by the end of 2025. We expect to reach dilution of less than 4% in the next three to four 4 years, and we will continue to evaluate strategies to make even further progress. We're committed to fostering long-term shareholder value creation and generating consistent, positive free cash flow. In summary, our next phase of growth is here.
When you put that all together, we expect that in 2027, Lyft will grow to a company with approximately $25 billion in gross bookings, approximately $1 billion in adjusted EBITDA, and generate over $900 million in free cash flow. It's important to note that we expect to achieve annual GAAP profitability in the earlier part of our 2025 to 2027 planning horizon. In case you haven't heard it enough, I'm gonna leave you with a few things. Our premise is that customer obsession drives profitable growth. We operate in attractive markets, and we see strong opportunities to grow preference, engagement, and retention with drivers, riders, and our partners. We have multiple levers to grow gross bookings and adjusted EBITDA and drive growing free cash flow, while maintaining strong focus on cost discipline and a commitment to delivering long-term shareholder value.
If you'll give us just a few moments to reset the stage, I'll invite the rest of my colleagues up to the stage, and we'll do a little bit of Q&A.
Happy to take questions. We have a couple of mic runners, so if you could just get their attention, we will get the microphone to you. Ask you to kindly limit to one question so everyone has a chance, and Frankie, take it away.
[crosstalk]
If you could-
Oh.
Just state your name and firm, that'd be-
Thank you, Frankie. Yeah.
Okay. Mark Mahaney with Evercore. I love the big picture view on where we are in the S-curve and the number of rides, and the total number of rides. Other than What do you think most changes consumer behavior over the next five to 10 years? How much of it is price? How much do you think that... Coming into New York today, it's pretty expensive. How much do you think the price needs to come down, or is it just getting ETAs to a certain, you know, guaranteed two-minute level for any rides you do? Like, what do you think are the biggest changers to consumer behavior over the next five, 10 years? Is it convenience? Is it price? Is it these other intangibles? Thanks.
Yeah. Hey, Mark, it's David. Maybe I'll take that one, and then if anyone else wants to jump in, I'm happy to do it, and I know you guys are all super excited about jumping in to answer these things. So I think it's a couple things. I mean, first, there's some just basics, right? And you mentioned getting price right. Super important. I don't know that price is gonna go down much, if I'm honest. You know, inflation tends to be a thing over, you know, any period of time. But we can do a lot to keep it from going up, fast, for sure. But then I think it's really all about, frankly, differentiation and innovation, right? It's how can you figure out new ways to sort of, you know, grab people's attention and build new habits?
Let's use Commute as an example that Audrey talked about, as a great example. So I mean, most people today, you know, if you're going into the office, you're probably commuting two, three days a week, maybe four, depending, something like that. There's actually a big article in the Wall Street Journal, I think, a couple of days ago, about sort of super commuters, people who live further and further away to get cheaper housing, and then they do longer commutes. These commutes can be 45 minutes, an hour a day. No one wants to do that in a personal vehicle. No one wants to do it.
So if we can figure out ways, like the price lock feature that Audrey talked about, to remove some of the variability, to make it a great experience, maybe it's an Extra Comfort experience at the end of a long day, it just builds a, you know, a habit. So, you know, look, consumer habits are hard to change. Let's be clear. We've done an amazing amount of work to change them in 10 years. I mean, when I grew up, getting in a stranger's car was, like, completely out of the question. Now, people do it literally just on Lyft, two million times every single day. And I still think we're early in the S-curve there. But it's, it'll be a long journey of a whole bunch of different things.
Hey, Ross Sandler from Barclays. You guys mentioned that you have 1.3 million active drivers in 2023, and that you've got about 500,000 weekly kind of actives.
Yeah.
What do you feel like is the optimal number of drivers to manage ETAs, pricing, all the kind of metrics that Sid was talking about to drive that efficiency? What's the right number?
I can give a high-level answer. I think maybe Jeremy or Sid might have a more precise way to think about it. I mean, I'll tell you the right answer. The right answer is, you want enough drivers to satisfy ride demand. I mean, that's just full stop. That's it. It's just tautological. Why don't I. I'll stop there, and maybe you guys can kind of jump in and talk a little about-
Yeah. I'll take it and,
Yeah, for sure.
Thanks for the question. I think it's, well, what I mentioned in my talk is about if the growth of driver hours that we've seen, if we can continue to pace that with the overall growth of the business, with the rides, we're in a good place. It's also not just about the number of drivers, but it's about when those drivers are on the platform. And, you know, Sid talked about that with some of the product innovation like Turbo. So it's also shaping the supply at the right times when there's the most riders, and so continuing to innovate on that will be as important as just the overall number of drivers. If you want to say more.
No, I mean, that was perfect. Essentially, you have to think of marketplace balance ebbs and flows a lot, right? And it's not just, like, overarching seasonality, summer, winter and all. Like, even within a week, even within a given day, the marketplace balance shifts a lot, right? It ebbs and flows. And so the really critical thing is how do you shape supply? How do you get drivers to drive, and it really matters more? And that's why features like Turbo are really critical. So, so volume is important, but the shaping is equally important. Yeah.
Hi. It's Rob Sanderson from Loop Capital. Over here
Thank you, everyone, for great presentations. I wanted to continue on the supply side of it. So back to something that Jeremy was talking about, the 77% growth over the past two years in-
Yeah
In driver hours. Obviously, ETAs are down a lot, Prime's down 39%, so you're, you're much better positioned, but total rides are only growing by 35% over those two years. So are we in a position now where you have excess supply? Are there too many drivers on? Is this? You know, it's probably not a great condition for drivers if, you know, the marketplace is that much out of balance. So how should we think about supply versus demand, given the statistics that you put up?
Yeah, I can take that. Thanks for the question. I think, you know, we were coming out of the, the COVID era, and so I think the growth in driver hours outpacing the growth in rides in the last couple of years is a bit of an anomaly based on that. But, you know, I think, what we've seen, you know, as you mentioned, the service levels have really gone up because we have the right supply to, to meet the demand. So I'm not worried about sort of where we are. And again, as, as, as those driver hours grow over the next couple of years, as long as we're pacing that with ride, with ride demand, I think we'll see a really healthy marketplace that Sid talked about.
I want to just add one thing to this sort of notion, and it's something Sid said as well: rides beget rides. Rides beget rides. And so the better an experience you have, the faster the pickup, the better the pricing, the more likely, again, as Sid mentioned, you are to take another ride. And we've seen this. We've actually seen some of our highest growth rates in some of our most frequent riders. And the reason that's so important is because it suggests that's a leading indicator, right? Like, it's hard to change a person's behavior if they only do it one a month, you know, take a ride a month. But if you take them two or three times a month, you start to see that better service level, and you come back more often.
And then the person who takes it, you know, three times a month, four, two, three, one, two. So, you know, it's always a balance, as we keep saying, and, you know, you're sort of trying to keep these sort of in level. But it's a really good. Growth tends to beget growth, so we feel good about that.
Hi, Ken Gawrelski from Wells Fargo. Over here.
Hey.
On the insurance side, it's been a major headwind to margins over the last couple of years, a lot of inflation there. When you think about in the scope of your 2027 margin target and the progression that Erin just laid out, how do you should we think about the real major headwinds are kind of behind us on insurance inflation? Or how do we think about what's embedded in that expectation through 2027? And anything you could, you might be willing to offer on the upcoming October first renewal. Thank you.
For sure. Yeah. Max, why don't you take the lead, and then, Erin, you might want to jump in.
Yeah, I'll start, and then Erin can walk through how this layers up into the go-forward plan. So, we have really good visibility into our costs going forward, and there's really three reasons for that. One is the range of potential outcomes, as I mentioned earlier, has really narrowed from the past, just 10 years of data. You know, every incremental year, when you've got seven years at scale, matters a lot. And so we've really had a step change, I would say, in the last two years in terms of our understanding of risk, our partners' understanding of risk, and how to price it. The second thing is inflation.
So some of those temporary effects that affected auto insurance more broadly in the, you know, the rideshare industry, just need time to work our way through the system, and we are seeing some signs of that, okay. It's not gonna happen overnight, like I said, but it is, We're seeing some promise there. And then our technology. You know, all of the innovation we've been doing takes years to pan out and really get confidence that the data is showing, and that's where we are now. So, in terms of accident frequency reduction and in terms of claims resolutions and efficiency and better outcomes.
With respect to 10-one, it's still early in the RFP, so I'm not gonna say anything specific there, but I will say that, you know, that our partners are also recognizing the better outcomes that we're able to achieve.
Yeah, happy to add on to that, and just echoing what Max has said. You know, certainly, the effects of COVID had an impact, but you can see from what we've shared today, there's been tremendous progress across our program, not only in our embedded technology, but Max also spent a fair amount of time talking about partners. That's a really important piece of this. So we have a captive. We also transfer some of our risks, so we have a mix in that business overall. But we've made tremendous progress. We think we've made prudent assumptions in the outlook that we've provided that underlie the plans that we've shared today overall.
You know, I'll just maybe share our most recent couple of renewals last year in the fourth quarter, and then early here in 2024, have been right in line with our expectations. So I think that's consistent with Max's comments about just the range having a deeper understanding, better sort of range of outcome understanding overall.
Can I add one quick-
Sure.
One quick thing here, just for yucks. Yeah. This is sort of inside baseball stuff. One of the changes that we made a little bit over a year ago is we actually moved Max's risk management team, which is phenomenal, into the CFO's team, into Erin's team. And just when you hear Erin say, you know, "Our visibility into this is so much improved," part of it is all that matters. Also, frankly, we're working super well together, and that seems like maybe a small thing, but man, prediction in this business, rideshare prediction, insurance prediction, so important, and kind of creating those bounds really, really matters as well. So inside baseball, but it helps.
Hi, Ben Black from Deutsche Bank, all the way in the back.
Oh, hey.
Sorry.
Yeah, yeah.
I came late.
We're in the spotlights here. Anyway, yeah, good to see you.
All right, so Lyft Media, $400 million by 2027. That seems to be about 2% of your gross bookings. You know, I guess, at the time, you know, what gives you the line of sight to make that sort of, you know, bold forecast, I guess? And, you know, it's a lot higher than other platforms have sort of pointed to in terms of a % of gross bookings. So I'm curious sort of what gives you that confidence?
Sure.
Oh, yeah.
Yeah, so I wanna touch on something that David said. I wanna touch on something David said earlier, where we think we have an opportunity to create a new category.
It's just pointed out.
Cool. Thank you.
Excuse us.
It's part of the job description.
I'm not professional at this, to be clear. Yeah, I'm gonna try.
Yeah, I'll speak loudly. Okay. So David, David addressed in his opening remarks that we think we have an opportunity to create a new category, and I wanna touch on that for a moment because it actually drives a lot of how we're thinking about the future of the business. So when you look at the anticipated cookie deprecation for web browsers, you're seeing it. It speaks to how important first-party data is and really controlling your own destiny in the space. Now, if you couple that with the incredibly high-fidelity transportation data that we have, we can really create really interesting experiences that are not only interesting to, for advertisers, but look to consumers very different than a traditional, you know, advertisement.
So when we think about our growth trajectory, we're referencing all of the success that we've seen today, plus all of the compounding product improvements that we're gonna make, that we know are gonna take the platform to the next level. Things like self-serve capability, audience extension, off-network supply. All of these things we know are what is required to build a world-class media platform, and that is how we think about our growth over the next couple of years.
Hi, on the, On your right, all the way on the back. Right here.
Oh, yeah. Hey.
Hi, it's Youssef Squali at Truist.
Hey.
Thank you guys for doing this. So maybe I just wanna go back to something that Audrey spoke about, which was that 15 rides per month, at a high level that you guys gave, and obviously you guys have, I think, 1.5 rides per week is what you mentioned. So I'm assuming that's mostly through owned and leased cars. I was wondering if maybe you have a more refined number of that number of people that actually don't own their cars, 'cause it seems to me that could be, you know, that is today kind of the core, plus obviously airport rides, etc .
And then, if that's the way you think about it, the opportunity is 50, potentially 50 rides a month, that, that would imply that you ultimately will wanna convince, and your competitor will wanna convince the world that, you know, taking rides with Uber and Lyft, etc , is more economical in the long run. Is that the way to think about it? And how are you guys going about that, if that's the plan? Thank you.
Um...
Yeah. Thank you for the question. I can't tell if my mic is on either. Okay, great. So, you know, I don't have an exact breakdown of what those 50 trips per month, you know, where they're taking them, but we know that it is across different modes of transportation. I think your assumption that probably a majority of them are personal vehicle miles, just given the number of personal vehicle trips that David referenced in his presentation, is largely correct. We know that we won't necessarily win all of those, but our goal is to make rideshare more valuable in many different ways than taking your own car to the airport or taking your own car to work, so that we can convert more of those trips over to the Lyft platform.
That's really how we think about it as an opportunity.
Thanks for doing this. Brian Nowak, Morgan Stanley. Just wanted to sort of get a little more into the kitchen when you guys did the forward bookings forecast, the 15% growth. Can you just sort of help us a little better understand the contribution from new user growth versus frequency growth over that period? And how do you sort of think about, you know, which of those may be more pragmatic than the others?
Yeah, sure. Erin, do you wanna take it or
Yeah, sure. I'm happy to. Either Audrey or I could, but you can think about it as roughly half, right? So roughly half coming from, for example, new rider growth, half coming from frequency. That's the best way to think about it.
Thank you very much. Jeff Kauffman from Vertical Research Partners. Thank you as well for doing this today. Erin, I don't want to sound greedy—but, 50% gross bookings growth and only two hundred basis points of EBITDA to gross bookings, the last 50% growth was a lot more than that. What kinds of things can happen that could lead to those margins being better than 4% ? What kind of costs, I guess, or growth costs, come on the platform, things that would make it be lower than the four percent, assuming you can hit the fifty percent growth you're targeting in gross bookings?
Sure. So, you know, couple of areas around our, Well, first of all, I wanna say that, spending time together as a team, obviously navigating the last five quarters and achieving what we've achieved, and then focusing as a team on our strategy looking forward, has been important for us to go through as an organization. So we think we've set out a very prudent way to think about this next phase of growth overall, as we lay out the financial targets and our strategic and our business goals. And so as you think about the ways that perhaps we could outperform that-
we could execute a little bit better, a few more opportunities, you know, big partnerships, additional opportunities in Lyft Media. Those are some of the things that could drive us north of the plan. You know, then if you think about things like, we've continued to assume a healthy backdrop overall for ride share. So if there was some larger macroeconomic shock, obviously, that would be something that would be a headwind overall to our overall plan. So I think those are a few ways to think about how we could potentially do better, where we could, you know, what some of the challenges might present itself over the next couple of years. Overall, you were also asking about operating expenses in particular.
So the leverage I mentioned that our operating expenses as a category consists of expenses that are largely fixed. We're achieving fantastic leverage over those expenses, being very, very disciplined over those pieces. There's also a portion of our operating expenses that are more variable and more directly attributable to our growth in rides. And so, when you put those together, that's where you see the 50 basis points of leverage overall over the plan.
Over here, Bernie McTernan from Needham, on your right side.
Right.
Sid, you mentioned two million rides per day, 3.3 million intents per day. Can you just talk about maybe what's driving that delta, whether that's pricing or, or time, what you can do to close it? And then, maybe importantly, how many people do you think are actually actively checking, or how many riders are actively checking both your app and Uber's every time they take a trip?
Yeah, good question. Insightful question. So the difference is essentially the conversion rate, right? So you have ride intents, and you have rides, and there's a conversion rate that takes ride intents to rides, right? And conversion rate, again, so not to belabor the point, but conversion rate also varies a lot. It varies by time of day, day of week. There's a lot of seasonality. Back to school is awesome, and we are starting to do a much better job for some of these peak events, getting ready for it. But when you have this deluge of ride intents, right, you are somewhat constrained, right? So there's a lot of variability in conversion rate. So I don't have, like, a definitive answer, but what we actually focus on is rides, right? The outcome, which is rides.
And conversion rate is one of the factors that leads to rides growth, right? So, And just so, so in the last one year, actually, our conversion rate did grow by, on average by about three a little north of, north of 3% in the last one year. So it wasn't just the growth in ride intents, but there was also growth in conversion rate last year.
I'm gonna add on just one thing to what Sid said. Absolutely the right framework. It is very interesting, just conceptually, to imagine what's happening effectively. If you put it in physical terms, it's like a person walking into your store with their credit card out and a pretty good idea of what it is that they wanna buy, and only, you know, two-thirds, roughly, completing the transaction. And so that's very interesting. Now, there is a ceiling there. There's no question. It's not clear exactly what it is for all the reasons Sid said. You can't, But it does suggest that there's opportunity there, and I'd, This is the way I think about it, is anytime I don't mind people cross-checking. In fact, I kinda like it.
If every single person cross-checked from Uber to us, I don't even like to say their name, but anyway, I just said it. Anyway, the other guys. So anyway, but if that were the case, then we'd, we'd be doing pretty well right there. So it's not actually such a bad thing for people to be cross-checking, as long as they're ending up on us. And then on the other hand, I don't mind if they look at the other guys, but I want them back with us, you know? And that's, I sort of think of it as a defect. Every time they, they choose the other guy, they've, they've opened us, but they choose the other guy. That's our bad. We gotta fix that, so we will.
Doug Anmuth, JP Morgan. David, just given your focus on customer obsession and the various product initiatives you talked about, is it fair to think you're assuming share gains in your mid-teens gross bookings outlook through 2027? And then maybe you could just comment on bikes and scooters. We really didn't hear much this morning, just how you're thinking about that strategically.
Sure, yeah. The old two-part question. I heard. I got it. I love that. It doesn't say, He didn't even say a two-part question. I'm not gonna give you any, any, grief for that. Anyway, on the, Now I've forgotten the question. Oh, share. Yeah, sure. You know, it's, this will sound a little strange to say, but my interest in tracking share versus the other guys is somewhat low. The reason I say that is because it's just all it really is, a trailing indicator of, like, are you doing a bunch of other things well? So we're much more focused. Here would be one way to think about it.
You know, we sort of compete against the other guys in sort of a small way, and that does its thing. Then maybe a medium way would be we compete against, you know, private vehicle trips, which I think is sort of more interesting. Large way, as I said before, is we sort of compete against your couch and your inertia, and we're coming for you, big couch. We really are. I want you to hear that loud and clear. So anyway, back to your question. I wouldn't be surprised if things bounced around a little bit, and obviously, I hope it moves north. I think it's a pretty good case to make that a focused company focused on customer obsession and focused on rideshare can make really meaningful gains there.
I wouldn't say it's a requirement, but it's certainly something that we would be interested in seeing, and sure, why not? On bikes and scooters, super. So a couple quick data points. So we didn't talk that much about it today, but just to kind of paint a little bit of a picture. We operate, and some of this is just level setting. I think we operate in eight markets, if I got that number right? Yeah, here in the United States, our bikes and scooters system, including right here, of course, in New York City. We're a very significant part of the public transportation network, almost the social infrastructure of the city, giving maybe on good days, I think it's about 160,000 rides, 170,000 rides.
In fact, actually, I think the last three days, we've eclipsed all-time records. Over the last couple of weeks, system-wide, we've also eclipsed all-time records. What does that tell you? It tells you that people really like bikes, and in particular, as e-bikes come into the system, that's a really, It's almost a viral thing. It really is. If you take an e-bike, and I hope you guys do, I guarantee you'll start telling all your friends about how awesome e-bikes are. It's kinda like, kinda like pickleball in that way. Once you do it, you just can't stop talking about it. So anyway, so that has a sort of nice natural virality to it.
You know, e-bikes are sort of expensive and kind of they're, you know, somewhat asset-heavy, so, but we've got the best e-bike in the business. It lasts a long time, and so forth. So, the long way of saying, or, yeah, I guess there's a long way of saying, we actually are quite committed to offering bikes and scooters to our customers. We can see that they really care about it. It's growing, not just in the U.S., but internationally, where we support hundreds of cities around the world through some hardware and software work that we do. Nothing particular to report, you know, anything beyond that, but it's super important to our customers, and we like a lot of the trends we're seeing.
Hi, John Blackledge, TD Cowen, over here.
Yeah.
So on the partner program, 20% of all rides last year associated with the partner program, do you expect the rides associated with partner programs to rise over time, so that mix shift to rise? What percentage of rides could that be by 2027? And then, you know, relatedly, what areas should we expect to see new partnerships?
Yeah, Zach.
Yeah, happy to take it.
Sure.
So the short answer is yes, we do expect that to grow, and for the main reason, as I mentioned kind of in my presentation, we're actually only 10% penetrated when you look across our existing portfolio. If you take all of the active members across all of our active partners today, we're only 10% penetrated. So from our perspective, there's not only a huge opportunity to increase linked accounts within our existing portfolio, but an opportunity to expand our partner portfolio in other key use cases that matter to our customers, which will also drive partner-linked accounts.
I'm actually, Hey, before the next person speaks, I'm gonna make a request. So, one of the things I always look for is, are men and women asking questions at the same rate? So there are many more men here than women, but if there's a woman who wants to answer a question or ask a question, soon would be a good time. Doesn't have to be the next person, but don't be shy.
Hi, Stephen Ju, UBS. Hi.
Yeah.
Over here. All right, thanks. I can't help but notice that with the exception of, I think, David and Erin, all of you sitting on the stage are pretty long-tenured at Lyft, right? So I guess under David and Erin's leadership, like, what has changed the most over the last year plus? And I think, Sid, I can't help but also notice in your presentation, you seem to have, like, this real aversion to the marketplace being out of whack, supply and demand out of whack. So
Yeah.
Since there was so much Prime Time before, it suggests that the Marketplace was really out of balance for a while. So what allowed you to change from the past into now, where the Marketplace is definitely a lot more in balance? Thanks.
Ooh, that's an interesting one. Yeah, why don't we, It's, it's kind of a cool question. Sid, you should definitely talk because you were named, and then, and then anyone else who was. Kristin, you've been the longest one here. You might have the best perspective, but anyway, at least the two of you and then anyone else who wants to talk.
Can I confirm the second part of the question? What is creating all the momentum in terms of reducing the defect of Prime Time? Was that the question?
Yeah.
As an example.
Yeah.
Oh, as an example. Yeah. Okay, so Prime Time is one example, but again, just think of the, Look, I know that the whole thing is all mathy, and it's complicated, but let's consider a simple model again, right? Let's consider you have ride intents flowing in. You grow supply in tandem so that service levels are really good, and price is a big part of that, right? Probably the biggest part of that. And that leads to more conversions, and they come back and add to ride intents, and you have this virtuous cycle, and you got to grow that cycle, right? You got to add more ride intents, also through features like Women+ Connect. But that requires sort of more handling and optimizing the marketplace because more ride intents are coming in as well.
And so what I'll say is the biggest reason, and this is not really a cop-out, it's like the true thing, is that every point of that cycle is better today than it was three years ago. Like, take any example. Take ETAs. Our matching algorithms are better. Or take, engagement levers, like driver incentives. We have something called single ride bonuses, which are proven to be much more efficient than the previous bonuses that we had, and that, in turn, creates greater supply at a lower cost because it's more efficient. And so just like focusing on that excellence at every point in that virtuous cycle is what is driving a lot of momentum, and a big consequence of that is that Prime Time is coming down because our Marketplace is so better balanced today than it was two years ago.
As far as change, you know, I've been here a long time, and what I think we have really experienced a step change in over the past year has been consistency, discipline, and focus. And consistency, that customer obsession drives profitable growth line that you've heard today numerous times, that's something that we say every day at Lyft. And so we truly are thinking about what is best for the customer at the end of the day. It's a lens we apply to everything. I think that has been a step in the right direction.
Discipline. A year ago, we took quite a bit of costs out of the system. Operating expenses, you heard about, you know, stock-based comp reduction, and maintaining those reductions with discipline. And then focus. You know, when David stood up at the beginning, he talked about, we have this focus on these three distinct areas: the driver, the rider, the partner. Before, we thought about it a little bit more as sort of a hodgepodge, and now we're able to be laser-focused on these individual areas. And I think we've already seen tremendous strides from that in just over a year's time.
I'll maybe add a quick thing from my own observation here. Thank you, Kristin. Yeah, that's nice to hear you summarize it. Well, yeah, exactly. I mean, look, so I've been in this job 14 months, right? So really interesting, and I'll just be a little personal for a second, to go from being on the board, where I was, to being on the inside. The personal insight, turns out, from board perspective, you don't always see the full picture. No newsflash there. But you see some things. You see some incredible strength. You see some amazing people. But maybe you also see, like, the company working on a few too many things, kind of hard for you to really be super 'cause you're not an operator, so anyway, you maybe have a suspicion there.
Maybe you have a suspicion that people aren't in exactly the right roles. Maybe you have a suspicion that the company isn't organized in the most efficient way. Then you come in and, you know, if you're lucky, you get to make some of those changes. And, you know, as you point out, you know, the people on the stage, with the exception of Erin and me, it's the same folks. But I think this is true, every single person here is in either a slightly, with the exception of Max, who's old time, but most people are in slightly different jobs, sometimes radically different jobs, like in the case over here. We have a new org structure that supports what Kristin was saying around customers, riders, drivers, partners. We have an insane focus on customer obsession.
That's something maybe I bring from my Amazon days and from other things. We have an insane focus on operational excellence, also something I've learned over the years, how it matters. Man, does it matter when you're working at the scale we are. And these are things that were sort of latent in the organization, but maybe just not brought up to the right place. So I feel just amazingly strong, confident in the ability of this team to execute on what I think is a very, very clear and focused strategy.
Up here in the front, Brian Kraska from Wolfe Research. Just going back to the partnership penetration that we were talking about earlier, particularly on the media side, can you talk about some of the early learnings in these new sponsored ad products, like the sponsored rides and the gated Wait & Save? Like, what are you seeing from them initially, and how is that rollout, and what particular markets are in today, and how do you expand that further? Thank you.
Sure. I'm gonna. I think there's two parts, so I'm gonna address both of them. The first is partner penetration. So to drive partner penetration, there's basically two ways to do it. One is, penetrate existing accounts, which we actually lean on partners that have world-class brands, that have very strong top-of-funnel marketing, that help us get our riders more engaged with the partnership today. And then, of course, is new riders, and as Audrey mentioned, and I briefly mentioned, 850,000 new riders actually took their first ride while into a partner, so that's one.
On the media side, you know, I talked a bit about results on multiples of industry benchmarks, on click-through rate, strong benchmarks on viewability rate, and these are all informing how we think about the success of where the platform is going. So we know we have a highly engaged user, and now it's about supercharging the platform to really build out the functionality, to curate the experiences in a better and better and better way, which, you know, will lead to even higher engagement than we already have.
I'm gonna say one quick thing there, too, and, you know, I'm trying to do this every time. But one of the things I really learned at, from Jeff Bezos, actually, was if you want to build big businesses, you need to sort of ground them in things that are very, very durable, that, you know, needs that are not gonna change. There will never be a time in human history, going forward, where big brands don't wanna connect with their customers. Never gonna happen! And in fact, the converse is actually what does happen, is you go through a wave, and you go through a wave, and you go through a wave.
You know, you put your billboards up, then you put your, you know, your TV ads on in black and white, then you put your TV ads on in, in color, then you put your streaming ads on, you know, in YouTube, and then you, then you do your TikTok ad. Like, this is just like, it's, it's gravitational, right? It's gravitational. And so you can't not do this as a, as a, as a company. And now we have this platform that two million rides, two million times a day today, and more tomorrow, connects with people in very physical ways, where they're literally driving to the CVS to buy the toothpaste that might be Crest or might be Colgate. I just want you to think about that.
Eric Sheridan from Goldman Sachs over here on your left. Thanks for all the information today. When you think about the compounded profit growth that you guys laid out now over the next three to four years, but we are still talking about dilution of 3%, 4% on an annualized basis, which has improved, how should we think about capital allocation and buyback as a potential to drive that dilution even lower, to maximize free cash flow per share for shareholders over the next three to four years as a priority for the team? Thank you.
Thanks for the question. Thanks for the question. Appreciate that. I've got, first of all, nothing to announce specifically today. However, as we execute our plan over the next couple of years, and we get into consistently higher and higher levels of annual Free Cash Flow generation, I think that provides us with a number of opportunities as we think about further progress, both on the net share dilution, and then over a longer period of time, capital allocation, and consider that as a leadership team, and obviously with our board. But again, nothing specific to announce today, so I'll leave it there.
Rohit Kulkarni from Roth, all the way to the back. One big picture question and one on GAAP profitability. I guess, would love to get your take on the macro factors that, people, at least investors, believe that should be a tailwind to ride-sharing over the longer arc. Fewer people have cars at their homes, fewer 18-year-olds have a driver's license, and so maybe talk about the. Is this affecting your outlook? If so, how, how do you think about that over the longer term? And then, Erin, just on GAAP profitability, you said early part of your three year period of forecasting. Any way to fine-tune that, and just a pathway, just, just tell us which quarter. That would be nice.
Love that.
I, I missed the color, though. What was the color commentary that every you're laughing at? I missed that piece.
That was just a light way of asking the GAAP profitability comment that you made. You expect that to reach between, in the early part-
Yes
of your three-year forecasting period. Maybe just fine-tune that early part, please, for us.
Oh, fine-tune early.
Fine-tune. We'll fine-tune, exactly. Yeah. Do you have a date that you have in mind? Let's let Erin contemplate that answer for a sec. Audrey, do you wanna not talk at all about kind of overall, you know, show car ownership and those sorts of trends are. I'm welcome to take as well, but I know you love answering questions, so
Yeah.
Yeah.
Thank you, David.
Sure.
So generous of you.
Yeah. You're welcome.
Yeah, I mean, you pointed to several macro trends that we, you know, obviously, are very favorable for rideshare, and that we do see happening overall, especially given that a majority of our riders do live in cities. And so what we tend to see is that they are relying more and more on rideshare for those fundamental needs of theirs, for going to work, for going out to see friends. So for us, like, as we evaluate the overall landscape, and we think about our opportunity, those macro trends certainly work in our favor. And they're ones that we continue to monitor as people are getting back into habits, as new habits are changing, and as they're relying more on rideshare.
I'll say just a tiny, tiny little bit there, too. It's, I mean, human habit, gosh, you can spend, you know, a lot of energy just looking at how these things move. Like, like, for example, here's a tiny trend that happens here in New York City that actually one of my daughters was reminding me about last night. It's called, subway there and Lyft back, right? So in the past, it's kinda like, "Okay, I could take a subway, but, coming home, I feel a little uncomfortable. Maybe I'm just not gonna go." And now it's, "Yeah, I could... I'll take a subway during the day, no problem, and I know I'm gonna get a rideshare back. No problem at all." So that's an example, a little less than obvious than the personal...
And no question, kids today have less of a desire to get that driver's license at age 15.5 or 16. And it's not because they necessarily hate cars. It's just because what were they really getting? They weren't really getting a driver's license. They were getting independence. They were getting independence. That's what they were getting, and now they have other ways to do it. Same with older people, that my team is now gonna just, you know, they'll roll their eyes right now. But I spend a lot of energy thinking, like, as the population ages, how do we figure out a way to make them continue to be part of the community on both sides, right? Driver, get out of the house a little bit.
You know, maybe it's a, you know, a, whatever, one spouse saying to the other, "Why don't you get out a little more? Like, go ahead and, you know, spend some time not with me right now." So. Or on the other hand, older folks who are, like, a little less comfortable driving, in the past, they didn't really have a lot of options. So I think you can look at a lot of trends and see areas where if we're smart, and we can kinda look a couple steps ahead, we could be there as those trends emerge, and it could be a huge, huge accelerant for our business. All right, Erin, GAAP.
Yes. Thank you.
Yeah.
So, I'll decline to give a specific quarter, but I'll. Let me spend a minute or two explaining why. So, you know, we're at this really interesting and exciting place in the evolution of the company. I talked about the last five quarters consistent, delivering consistent, positive, Adjusted EBITDA, and then we talked about turning a corner on free cash flow, and we guided to free cash flow for the full-year. And so, as we go through this arc of our overall growth, as some of you might have noticed, we in certain quarters have gotten quite close to that GAAP profitability mark. But it's my interest that we get there in a consistent way as you think about the company on an annualized basis.
And so that's how you should sort of interpret my remarks and the earlier part of the planning horizon, and hopefully that gives you some sense of color over how I think about it, reaching that mark.
Hi, right here in the middle. Michael Morton from MoffettNathanson. This question is for Sid, while we have you here today, and it's on autonomous, which is something that's coming up in our conversations frequently. When you look at a daily frequency and kind of volume cadence, could you talk about the percentage of your trips, maybe that occur in the morning rush hour, in the evening rush hour? Basically, it's another way of asking: What's the ability of, like, a autonomous network
to serve the peak hour demands?
Today?
Today, three, five years, whatever window
you'd like to address.
Yeah. Okay. I don't wanna pontificate too much in this very public forum, but what I'll say is that... Okay, AVs are obviously an incredible technology, and, living in San Francisco, we see Waymos all the time. It's an incredible technology. I would not underestimate the difficulty of operating a rideshare business, right? I mean, we try to cover it today, but
It is, it is incredibly difficult. It's in our DNA, and we have, we have been doing it for a long time. And sort of understanding all our customers on both sides of the marketplace, plus our partners, and understanding how it I was explaining to my I, I'm going a little rogue, but I was explaining to my kid the other day on, like, rideshare. And so, like, it's almost like an amoeba. It's almost like an amoeba, where it, like, shifts and ebbs and sort of evolves its shape through every hour, right? And it's not a straightforward problem. So the way I see it is that AV is an incredible technology that will need a rideshare business, expertise in rideshare business, and that union, that partnership, will help our customers the most. Yeah.
Being Sid's kid.
Pause on that part for a second. I'm gonna add on for 30 seconds, Sid. Just because as you, I actually didn't see who asked the question. I know it was somewhere. Oh, yeah, there you are. Okay, great. Just a moment, 'cause you talk about autonomous vehicles, of course, and let's maybe zoom out just to touch on that. As Sid said, like, it's one thing to build. So think about this for just a second. You got to build the technology. It's hardware and software. Then you got to build a car. That's a thing. People do that already. Then you've got to. Someone has to own this thing, and then you've got to run a rideshare network. So those are each one of those is interesting.
Now, if you, as Sid said, and I hope you understand today, a rideshare company, I think sometimes people say, "Oh, well, it's just an app." Well, y'all, it's more than just an app. I mean, I definitely hope you get that sense coming away from today. It is a very, very complex system that you have to run. So that's our expertise, and that will continue to be our focus. Now, autonomous vehicles are very interesting for us, of course, because they can potentially add to the supply. But again, remember, someone's got to own those things. They're somewhat expensive. So anyway, but that's fine. Like, we can—there are different ownership models, and that can work.
But I would say if you're maybe thinking that there's someone who's gonna do all those things at once, gosh, that's a very expensive proposition. Very, very expensive proposition. So we feel actually quite good about our position, not that you were sort of suggesting otherwise, but we like the fact that we have this incredible network, this incredible, in this side, demand, you know, side network, that can incorporate all sorts of things over time. But it will be over time, and that is the last thing. And some of that's regulatory, and some of that's habit, and some of it's just expense. They're expensive, both the R&D and also, you know, car by car, expensive.
We have time for about one more question.
Great. Justin Patterson, KeyBanc, over here. Thank you very much. Very informative session today.
Right.
I just wanted to go back to advertising one last time. You know, as you're looking at growing this business, how are you thinking about just internal investment versus partnering with the broader ad tech community? And then as you know, surpass this $400 million target, how are you thinking about advertising potentially as a lever to just drive more utilization of the marketplace? Thank you.
Sure. So I'm gonna first start with saying kind of my last point on the takeaways, which is we've built a world-class team that has done this before. So we have the ability to deeply understand very quickly where we have been successful already and where we can leverage strong partnership to help continue to grow. And of course, as the leader of the partner experience and organization, it is within our DNA to figure out how to find the one plus one equals three with every partnership. So I would by no means say that we are trying to go at it alone. If anything, I would double down and say, we're gonna go further together.
There's a lot of areas where we see partnership playing a key role in how we build out our ad tech infrastructure and helping continue to scale the business.
We're gonna squeeze in one more really quick. Okay.
Say that one more time.
Frankie says we're gonna squeeze in one more.
One more question.
We'll do what Frankie says.
Awesome, and Frankie is a very-
Yeah.
the hit bomb.
This is, John Colantuoni at Jefferies. Thanks for squeezing me in.
Sure.
David, you, you think a lot about macro trends, and I'm curious to get your perspective on one in particular. Right now, high interest rates are sort of locking people into their homes, and specifically, the millennial cohort is a very big generation. A lot of them are locked into apartments. They're living in cities. And I'm curious if you sort of thought about the impact of how lower interest rates over the next three, four years could cause this sort of deurbanization of this cohort and increased car ownership, and how you think about that potential macro trend and what you could do to help keep driving frequency over time if this ends up happening. Thanks.
Hmm. Interesting question for Jay Powell. Yeah. Okay. So, I think it was a suggestion, to be honest, is what it really was, drive interest rates down. Look, a couple of things there that I think are sort of embedded in the question. First of all, I actually happen to believe, not to sort of counter the premise, but just to maybe sort of balance it out, I think cities are around for a long time. I think cities are around for a long time. I think there's something around that urban density and that mixed use and things that actually make things, it's sort of a good long-term value proposition for many people. That said, no question, as interest rates decline, we sort of see this. People go to...
And, you know, they have kids, and, you know, they tend to move out. And so then the question again becomes like: So once we see that, and there's a completely reasonable theory of the case that you just sort of advanced, then it's like, well, what do we do about it? You know, how can we create products that are about Like, how can we create a world where maybe you don't have zero cars in your suburban house, but maybe you have one car instead of two, right? 'Cause the one car is the one you use for the longer trips and the family trips and the times when you're all in the, But then the other one is a Lyft. The other one is a Lyft, right? That serves your other needs.
And we actually see this today in one of our kind of target areas around, you know, people call them 20-35. A lot of them are balancing, you know. Let's say they have two kids, and but there's only one person and one car. So they'll use one car to drive one child, and then the other one, it'll be Lyft that picks them up at the soccer game or whatever. I think you're gonna see a lot more of those, you know, kind of hybridized approaches. And, you know, maybe this is sort of a general statement about, you know, a society where, you know, we used to think about work and home very differently, and now there's sort of a blend.
We used to think about car ownership and maybe public transportation as the alternative, and now there are these kind of hybrid options, and we're sort of designing for exactly the type of future you're referring to. All right, you all. Frankie gives us now... That's the zero sign. Listen, here's what we want to say. Number one, remember at the beginning, we kind of said you have to understand three things. You gotta understand customers, you gotta understand what we think the opportunity, customers, and how customer obsession drives profitable growth, you gotta understand the opportunity that we see, much, much bigger than just rideshare, but really, as I say, ultimately, I think population scale, and you really have to understand the team.
I hope you come away with a really good understanding of all three of those. We've really enjoyed preparing for all this. It's been a lot of work, as I think you can probably imagine, but it's also a lot of fun, and it helps us sharpen our own thinking. Super confident in the plan that we've laid out, and I'm really excited to execute on it, and we look forward to keeping you all up to date. So thanks for your time and your energy, and we'll see you next time.