Lyft Inc at RBC Capital Markets Technology, Internet, Media and Telecommunications Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Brad Erickson - RBC Capital Markets - Analyst : <_ALACRA_META_ABSTRACT>Maybe let's start with kind of the elephant in the living room. Some news came out over the weekend that maybe they're going to start looking at autonomous regulatory approval at a federal level. And I think the big question in the space, and we're certainly getting it, and I imagine you guys are too is, does this sort of change the fluidity with which these technologies will get approved? And further, given that stuff is very regulated, right, at a state level, does this mean that maybe the federal aspect of it would supersede that or anything? So yeah, what are your thoughts, latest and greatest?

Question: Brad Erickson - RBC Capital Markets - Analyst : Got it. And just maybe, to put a finer point on the federal versus state oversight, just anything you can share in terms of your guys' thinking along those lines?

Question: Brad Erickson - RBC Capital Markets - Analyst : Moving forward. Yeah, got it. And then I think the other big question we've been feeling just even in the last week or so is there's a company based out in, I think, Mountain View, California, that has a self-driving unit that's done fairly well and created some stir in San Francisco, maybe Phoenix, and coming to Texas and Atlanta, I think, coming up. They've gained a material amount of share or that's what investors believe based on third-party data, right? And if that's true, but that's what's out there. And yet, it hasn't seemingly affected you guys. It hasn't affected your biggest competitor here in the U.S. How do we reconcile that? Is it incremental? What's going on there? Why are we not seeing that change anything?

Question: Brad Erickson - RBC Capital Markets - Analyst : Sure. And then let's talk about the 1P approach, right? The captive brand only, which Waymo has. I think some others are slated to roll those out soon versus the third party of the marketplace, which would be you guys and Uber, obviously. Why -- I think people understand sort of like the utilization argument, but why isn't the 1P sort of a bigger threat? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 19, 2024 / 7:40PM, LYFT.OQ - Lyft Inc at RBC Capital Markets Technology, Internet, Media and Telecommunications Conference And I guess, just curious like in your conversations when you're having with industry participants, like, I don't know, what are some of those entities do they believe like they can -- and I'm not asking you to speak from their perspective per se, but like is the logic that they can run both channels or they need to run a 1P channel to sort of learn how to run the business when they work with you? What do you think the mentality is from the individual players of deciding to work with you versus not work with you?

Question: Brad Erickson - RBC Capital Markets - Analyst : Got it. Okay. And then just on the Mobileye front, obviously, they have a deal with Volkswagen slated for, I want to say, it's '26 or '27 on level 4? Anything you can comment on timing-wise when that could come to market, early tests, that sort of thing?

Question: Brad Erickson - RBC Capital Markets - Analyst : Yeah.

Question: Brad Erickson - RBC Capital Markets - Analyst : Got it. I'll take one second, open it up. Any other questions on the AV topic? We can move on. All right. Let's move to pricing. Another topic you've never probably addressed. And this is a little bit more of a near-term question, but obviously, want to zoom out a bit to -- it seemed like -- so you guys had a good Q3, right? And I don't think anyone was intentionally necessarily doing this, but you ended up executing well, maybe even gaining a point or two of share, right? And I know you don't like approach it from with the desired effect of taking share. But with pricing things sort of move around, talk about how proactively or reactively you have to be in the competitive landscape. And it's tough, right? On the outside, we have to evaluate what we see with a very limited amount of information. But how should we take sort of those quarterly fluctuations, again, proactive, reactive, that type of thing, talk about that?

Question: Brad Erickson - RBC Capital Markets - Analyst : Yeah. Got it. And then you've -- I guess, as you guys talked about working with commuting pretty well and obviously, price lock, I think, is somewhat of a corollary there. I guess just on that point, what is it about those new products that's driving that growth? And is that, at some level, I think, because like -- take commuting as an example, it's not an area where maybe it was your bread basket historically, but it sounds like you're doing better now. So what is it about the new products or pricing or that type of thing that's allowing for that part of the incremental growth? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 19, 2024 / 7:40PM, LYFT.OQ - Lyft Inc at RBC Capital Markets Technology, Internet, Media and Telecommunications Conference

Question: Brad Erickson - RBC Capital Markets - Analyst : So I don't know if you can -- not to front run new products, but if you can share, I want to talk partnerships in a sec. But if you leave that aside, just product-wise, what would you say are some of the other opportunities where you could maybe go down the price curve a little bit and up that frequency?

Question: Brad Erickson - RBC Capital Markets - Analyst : Yeah. Got it. And then just talking about shared rides was kind of on my mind as well. And then even into the public transit realm, I don't know, talk about is that things you guys think about in the future? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 19, 2024 / 7:40PM, LYFT.OQ - Lyft Inc at RBC Capital Markets Technology, Internet, Media and Telecommunications Conference

Question: Brad Erickson - RBC Capital Markets - Analyst : Got it. Talk Canada real fast, actually. It was not a part of the business that gets a lot of attention, and I think it's actually starting to become so they're warranting anyways. What's the distribution path look like or the footprint expansion, I should say, look like as you roll out up there? And what are some of the challenges or anything you guys have encountered that might be different than the US business? Or is it just kind of a matter of sort of landing and expanding from here?

Question: Brad Erickson - RBC Capital Markets - Analyst : Got it. Any sizing or growth rates you can share on that front or --?

Question: Brad Erickson - RBC Capital Markets - Analyst : Hopefully at some point. Got it. And then just on the partnership front, obviously, the DoorDash announcement was pretty cool whatever it was a month ago now, I guess. It's been a long time since earnings. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 19, 2024 / 7:40PM, LYFT.OQ - Lyft Inc at RBC Capital Markets Technology, Internet, Media and Telecommunications Conference I guess, the basics of what that relationship is, seems pretty straightforward, right? You're going to get a look at their Dash pass customers. They're going to look to your customer base to try sign up more Dash pass customers. Where is the real like work going to come from in the relationship? Like, where are you guys hoping where it can really kind of catapult you?

Question: Brad Erickson - RBC Capital Markets - Analyst : Got it. It was a little surprising. I think you guys have with low-20 million active riders. I think you've said 40 million total riders in any sort of given year. DashPass has, I don't know, not quite, say, 20 million DashPass subs what you've said. There actually isn't that much crossover or as much crossover as you might think. Why is that? Is it like a suburban urban mix or something? Or it just seems that seems counterintuitive? Why is that?

Question: Brad Erickson - RBC Capital Markets - Analyst : Yeah. Got it. Real quick on the media business, which ironically, we all dinner with your team last night and a group of investors and this did not come up in a single question, kind of interesting. So on the media front, obviously, David's talked about that opportunity, super attractive. You put out long-term targets is clearly going to be a profit driver. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 19, 2024 / 7:40PM, LYFT.OQ - Lyft Inc at RBC Capital Markets Technology, Internet, Media and Telecommunications Conference I think the one question we get from investors on that is, if you look at the numbers relative to your targets, so like media revenues relative to sort of the booking targets, the numbers do imply you're over-indexing maybe relative to some of the others we've seen in the industry. And I'm just curious like why that is. Not that you're speaking for others, but just from your perspective, why would that be?

Question: Brad Erickson - RBC Capital Markets - Analyst : Got it. And what verticals are you doing well so far in? And any you can call out where you think there's big opportunities?

Question: Brad Erickson - RBC Capital Markets - Analyst : Got it. Okay. Let's move to insurance, everyone's favorite sexy topic.

Question: Brad Erickson - RBC Capital Markets - Analyst : So all right. Everybody knows insurance costs have been going up a lot, right, 40%, something like that per ride two years ago. I think it was 17% last year, and obviously, it's going to be up on a per ride basis but less than sort of 17% this year. But then as you guys compete, right, you have to maintain that balance with pricing. So how do you kind of -- how do you balance that? And I guess, like related to the latest insurance renewal, how did you handle either passing along that price or absorbing it or that type of thing? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 19, 2024 / 7:40PM, LYFT.OQ - Lyft Inc at RBC Capital Markets Technology, Internet, Media and Telecommunications Conference

Question: Brad Erickson - RBC Capital Markets - Analyst : Got it. And so given that it's still delevering technically on a per ride basis, what are the primary offsets to that as you build because you've obviously guided for variable cost leverage overall? What are the primary offsets to that deleverage?

Question: Brad Erickson - RBC Capital Markets - Analyst : Got it. Would you -- on the incentive piece you just mentioned, is that you guys were able to obviously guide up on the margins here in most recent quarter. Was that the single biggest reason would you say?

Question: Brad Erickson - RBC Capital Markets - Analyst : Got it. And then one last one, I guess, just back to the fixed cost. We do get asked about this from a head count perspective. You basically said you're kind of at the right place or whatever. I mean, that plus inflation, is that kind of the right way to think about on the G&A line in particular?

Question: Brad Erickson - RBC Capital Markets - Analyst : Got It. Got it. I guess, on that point, maybe if you could just break out the variable versus the fix just as a percentage?

Question: Brad Erickson - RBC Capital Markets - Analyst : Got it. Okay. I think we're out of time. We'll leave it there.