Lyft Inc

Previous wording

Riders and drivers want and value choice, and we believe there remains an opportunity for growth in our marketplace. In September 2023, we launched Women+ Connect, a new feature that offers women and nonbinary drivers the option to turn on a preference within the Lyft App to prioritize matches with nearby women and nonbinary riders. In February 2024, we made the commitment to drivers that after external fees are subtracted, their guaranteed share of rider payments will be 70% or more each week. We are focused on delivering a great rideshare experience and will continue to innovate for drivers and riders, creating an increasingly differentiated service over time. We are committed to building a durable, healthy and profitable business for riders, drivers and shareholders.

Current wording

Riders and drivers want and value choice, and we believe there remains an opportunity for growth in our marketplace. In September 2023, we launched Women+ Connect, a new feature that offers women and nonbinary drivers the option to turn on a preference within the Lyft App to prioritize matches with nearby women and nonbinary riders. In February 2024, we made the commitment to drivers that after external fees are subtracted, their guaranteed share of rider payments will be 70% or more each week. We are focused on delivering a great rideshare experience and will continue to innovate for drivers and riders, creating an increasingly differentiated service over time. We are committed to building a durable, healthy and profitable business for riders, drivers and shareholders. In the second quarter of 2024, we achieved net income for the first time in our operating history.

Previous wording

The improvements in net loss as a percentage of Gross Bookings and Adjusted EBITDA margin (calculated as a percentage of Gross Bookings) in the three months ended March 31, 2024 as compared to the three months ended March 31, 2023 were due primarily to increased ride frequency, which is demonstrated by Rides growth exceeding Active Riders growth, as well as our cost-restructuring efforts initiated in previous years which helped us to partially offset the impact of increasing insurance costs and competitive pricing to net loss and Adjusted EBITDA.

Current wording

The improvements in net income (loss) as a percentage of Gross Bookings and Adjusted EBITDA margin (calculated as a percentage of Gross Bookings) in the three months ended June 30, 2024 as compared to the three months ended June 30, 2023 were due primarily to Rides growth as well as our cost-restructuring efforts initiated in previous years which helped us to partially offset the impact of increasing insurance costs to net income (loss) and Adjusted EBITDA.

Previous wording

The increase in the number of Active Riders in the three months ended March 31, 2024 as compared to the three months ended March 31, 2023 was due primarily to our improved marketplace health and competitive pricing.

Current wording

The increase in the number of Active Riders in the three months ended June 30, 2024 as compared to the three months ended June 30, 2023 was due primarily to our focus on rider engagement and improved retention.

Previous wording

Research and development expenses primarily consist of personnel-related compensation costs and facilities costs. Such expenses include costs related to autonomous vehicle technology initiatives. Research and development costs are expensed as incurred.

Current wording

Research and development expenses primarily consist of personnel-related compensation costs and facilities costs. Research and development costs are expensed as incurred.

Previous wording

Comparison of the three months ended March 31, 2024 to the three months ended March 31, 2023

Current wording

Comparison of the three and six months ended June 30, 2024 to the three and six months ended June 30, 2023

Previous wording

Revenue increased $276.7 million, or 28%, in the three months ended March 31, 2024, as compared to the three months ended March 31, 2023, primarily due to an increase of 23% in Rides and 12% in Active Riders as we benefited from increased ride frequency, which is demonstrated by Rides growth exceeding Active Riders growth, and continued improvements in marketplace health. Investments in driver supply, which are recorded as a reduction to revenue, decreased by $78.6 million for the quarter ended March 31, 2024 as compared to the same quarter in the prior year as driver supply on the platform benefited from organic growth and drivers spending more time on the platform.

Current wording

Revenue increased $414.9 million, or 41%, in the three months ended June 30, 2024, as compared to the three months ended June 30, 2023, due primarily to an increase of 15% in Rides and 10% in Active Riders as we benefited from increased ride frequency, which is demonstrated by Rides growth exceeding Active Riders growth, and continued improvements in marketplace health. Investments in driver supply, which are recorded as a reduction to revenue, decreased by $126.0 million for the quarter ended June 30, 2024 as compared to the same quarter in the prior year as driver supply on the platform benefited from organic growth and drivers spending more time on the platform.

Previous wording

Cost of revenue increased $206.4 million, or 38%, in the three months ended March 31, 2024 as compared to the three months ended March 31, 2023. The increase was due primarily to a $194.5 million increase in insurance costs driven by recent economic factors including the high inflationary environment, increased litigation, and higher than expected paid losses across the commercial auto industry as well as an increase in ride volume. There was also an increase of $21.3 million in transaction fees driven by higher ride volume. In addition, the increases were partially offset by a decrease of $12.0 million in Light Vehicle related costs.

Current wording

Cost of revenue increased $212.9 million, or 35%, in the three months ended June 30, 2024 as compared to the three months ended June 30, 2023. The increase was due primarily to a $189.9 million increase in insurance costs driven by recent economic factors including the high inflationary environment, increased litigation, and higher than expected paid losses across the commercial auto industry as well as an increase in ride volume. There was also an increase of $16.6 million in transaction fees driven by higher ride volume.

Previous wording

We expect to see cost of revenue increase in the near term on a year-over-year basis due to higher insurance costs driven by uncertainties of recent economic factors.

Current wording

We expect to see cost of revenue increase in the near term on a year-over-year basis due to higher insurance costs driven by the renewals of our third party insurance agreements.

Previous wording

Operations and support expenses were relatively flat in the three months ended March 31, 2024 as compared to the three months ended March 31, 2023. Operations and support expenses included a $10.9 million decrease in facilities costs driven by restructuring events initiated in prior years, which included reductions in headcount and the cease use of certain facilities. These decreases were more than offset by increases of $10.0 million in Light Vehicle fleet operations support costs and $8.3 million in driver onboarding costs and rider and driver support costs.

Current wording

Operations and support expenses increased $8.1 million, or 8%, in the three months ended June 30, 2024 as compared to the three months ended June 30, 2023. The increase was due primarily to increases of $6.8 million in Light Vehicle fleet operations support costs, $6.5 million in driver onboarding costs and rider and driver support costs and $4.4 million Flexdrive related costs. These increases were offset by a $3.6 million decrease in facilities costs, a $3.5 million decrease in depreciation, a $2.3 million decrease in personnel-related costs and a $2.1 million decrease in stock-based compensation driven by restructuring events initiated in prior years, which included reductions in headcount and the cease use of certain facilities.

Previous wording

Research and development expenses decreased $96.9 million, or 49%, in the three months ended March 31, 2024 as compared to the three months ended March 31, 2023. The decrease was primarily due to a $63.7 million decrease in stock-based compensation and a $29.4 million decrease in personnel-related costs driven by a reduction in headcount after the restructuring events initiated in prior years.

Current wording

Research and development expenses decreased $152.7 million, or 43%, in the six months ended June 30, 2024 as compared to the six months ended June 30, 2023. The decrease was primarily due to a $85.7 million decrease in stock-based compensation and a $61.8 million decrease in personnel-related costs driven by a reduction in headcount after the restructuring events initiated in prior years.

Previous wording

Sales and marketing expenses increased $29.5 million, or 25%, in the three months ended March 31, 2024 as compared to the three months ended March 31, 2023. The increase was primarily due to a $44.7 million increase in rider, driver and Light Vehicle rider incentive programs. This increase was partially offset by decreases of $7.5 million in stock-based compensation and $5.5 million in personnel-related costs driven by a reduction in headcount after the restructuring events initiated in prior years.

Current wording

Sales and marketing expenses increased $67.2 million, or 62%, in the three months ended June 30, 2024 as compared to the three months ended June 30, 2023. The increase was primarily due to a $60.2 million increase in rider, driver and Light Vehicle rider incentive programs. This increase was partially offset by decreases of $6.8 million in personnel-related costs and $3.7 million in stock-based compensation driven by a reduction in headcount after the restructuring events initiated in prior years.

Previous wording

General and administrative expenses decreased $20.3 million, or 8%, in the three months ended March 31, 2024 as compared to the three months ended March 31, 2023. The decrease was primarily due to a $20.5 million decrease in stock-based compensation costs and a $10.7 million decrease in personnel-related costs driven by a reduction in headcount after the restructuring events initiated in prior years. There was also $7.6 million in restructuring costs related to impairment charges related to real estate lease right-of-use assets and accelerated depreciation incurred in the first quarter of 2023. In addition, there were decreases of $4.2 million in certain loss contingencies including legal and tax accruals and settlements and $4.0 million in consulting and advisory costs. These decreases were partially offset by increases of $15.3 million in an accrual for self-retained general business liabilities, $6.4 million in bad debt expense and $5.5 million in claims administration fees.

Current wording

General and administrative expenses increased $31.0 million, or 7%, in the six months ended June 30, 2024 as compared to the six months ended June 30, 2023. The increase was primarily due to increases of $38.3 million in certain loss contingencies including legal and tax accruals and settlements, $23.0 million in an accrual for self-retained general business liabilities, $9.8 million in bad debt expense and $6.7 million in claims administration fees. These increases were partially offset by a decrease of $28.7 million in personnel-related costs and $19.2 million in stock-based compensation driven by a reduction in headcount after the restructuring events initiated in prior years.

Previous wording

Other income (expense), net increased $3.8 million in the three months ended March 31, 2024 as compared to the three months ended March 31, 2023. The increase was primarily due to a $5.1 million gain on extinguishment related to the repurchase of 2025 Notes and a $4.5 million increase in interest income in the first quarter of 2024 compared to the same period in 2023 due to higher returns on investments related to the Federal Reserve's increases in interest rates. These increases were partially offset by a $3.0 million decrease due to foreign currency exchange.

Current wording

Other income (expense), net decreased $11.1 million, or 21%, in the three months ended June 30, 2024 as compared to the three months ended June 30, 2023. The decrease was primarily due to a $12.9 million gain on an equity method investment incurred in the second quarter of 2023 and a $2.9 million decrease due to foreign currency exchange. These decreases were partially offset by a $5.6 million increase in interest income in the second quarter of 2024 compared to the same period in 2023 due to higher returns on investments related to the Federal Reserve's increases in interest rates.

Previous wording

Adjusted EBITDA is a key performance measure and Adjusted EBITDA margin (calculated as a percentage of Gross Bookings) is a key metric, both of which our management uses to assess our operating performance and the operating leverage in our business. Because Adjusted EBITDA and Adjusted EBITDA margin (calculated as a percentage of Gross Bookings) facilitate internal comparisons of our historical operating performance on a more consistent basis, we use these measures for business planning purposes. Net loss is the most directly comparable financial measure to Adjusted EBITDA. We calculate Adjusted EBITDA as GAAP net loss, adjusted for:

Current wording

Adjusted EBITDA is a key performance measure and Adjusted EBITDA margin (calculated as a percentage of Gross Bookings) is a key metric, both of which our management uses to assess our operating performance and the operating leverage in our business. Because Adjusted EBITDA and Adjusted EBITDA margin (calculated as a percentage of Gross Bookings) facilitate internal comparisons of our historical operating performance on a more consistent basis, we use these measures for business planning purposes. Net income (loss) is the most directly comparable financial measure to Adjusted EBITDA. We calculate Adjusted EBITDA as GAAP net income (loss), adjusted for:

Previous wording

We calculate Adjusted EBITDA as net loss, adjusted for:

Current wording

We calculate Adjusted EBITDA as net income (loss), adjusted for:

Previous wording

For more information regarding the limitations of Adjusted EBITDA, Adjusted EBITDA margin (calculated as a percentage of Gross Bookings) and a reconciliation of net loss to Adjusted EBITDA, see the section titled “Reconciliation of Non-GAAP Financial Measures”.

Current wording

For more information regarding the limitations of Adjusted EBITDA, Adjusted EBITDA margin (calculated as a percentage of Gross Bookings) and a reconciliation of net income (loss) to Adjusted EBITDA, see the section titled “Reconciliation of Non-GAAP Financial Measures”.

Previous wording

Adjusted Net Income (Loss) is a measure used by our management to understand and evaluate our operating performance and trends. Net loss is the most directly comparable financial measure to Adjusted Net Income (Loss).

Current wording

Adjusted Net Income (Loss) is a measure used by our management to understand and evaluate our operating performance and trends. Net income (loss) is the most directly comparable financial measure to Adjusted Net Income (Loss).

Previous wording

We define Adjusted Net Income (Loss) as net loss adjusted for:

Current wording

We define Adjusted Net Income (Loss) as net income (loss) adjusted for:

Previous wording

Net loss is the most directly comparable financial measure to Adjusted EBITDA. The following table provides a reconciliation of net loss to Adjusted EBITDA (in millions):

Current wording

Net income (loss) is the most directly comparable financial measure to Adjusted EBITDA. The following table provides a reconciliation of net income (loss) to Adjusted EBITDA (in millions):

Previous wording

(1)Includes $1.4 million related to the interest component of vehicle-related finance leases in the three months ended March 31, 2024. Includes $0.4 million related to the interest component of vehicle-related finance leases in the three months ended March 31, 2023. Refer to Note 5 “Leases” to the condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for information regarding the interest component of vehicle-related finance leases.

Current wording

(1)Includes $1.5 million and $2.9 million related to the interest component of vehicle-related finance leases in the three and six months ended June 30, 2024, respectively. Includes $0.7 million and $1.1 million related to the interest component of vehicle-related finance leases in the three and six months ended June 30, 2023. Refer to Note 5 “Leases” to the condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for information regarding the interest component of vehicle-related finance leases.

Previous wording

Net loss is the most directly comparable financial measure to Adjusted Net Income (Loss). The following table provides a reconciliation of net loss to Adjusted Net Income (Loss) (in millions):

Current wording

Net income (loss) is the most directly comparable financial measure to Adjusted Net Income (Loss). The following table provides a reconciliation of net income (loss) to Adjusted Net Income (Loss) (in millions):

Previous wording

Cash provided by operating activities was $156.2 million for the three months ended March 31, 2024, which consisted of a net loss of $31.5 million primarily offset by changes in working capital of $97.4 million. The year over year decrease in net loss from $187.6 million to $31.5 million was a result of increase in our revenues and the actions we have taken to reduce our operating expenses. Net loss was also offset by non-cash adjustments for stock-based compensation expense of $80.1 million, which decreased year over year due to a reduction in headcount driven by the restructuring activities initiated in prior years, and depreciation and amortization expense of $32.4 million. The changes in working capital were primarily driven by insurance, which saw (i) an increase in our insurance reserves due to a rise in commercial auto insurance rates on a per mile basis compared to the prior year and an increase in ride volume in the first quarter of 2024 compared to previous quarters and (ii) an increase in accounts payable which was primarily due to the timing of insurance claim payments.

Current wording

Cash provided by operating activities was $432.4 million for the six months ended June 30, 2024, which consisted of a net loss of $(26.5) million primarily offset by changes in working capital of $267.7 million. The year over year improvement to net loss for the six months ended June 30, 2024, from $(301.9) million to $(26.5) million was a result of increase in our revenues and the actions we have taken to reduce our operating expenses, which culminated in the achievement of quarterly net income for the three months ended June 30, 2024 for the first time in our operating history. Net income (loss) was also offset by non-cash adjustments for stock-based compensation expense of $165.8 million, which decreased year over year due to a reduction in headcount driven by the restructuring activities initiated in prior years, and depreciation and amortization expense of $70.1 million. The changes in working capital were primarily driven by insurance, which saw (i) an increase in our insurance reserves due to a rise in commercial auto insurance rates on a per mile basis compared to the prior year and an increase in ride volume in the first half of 2024 compared to previous periods, (ii) an increase in accounts payable which was primarily due to the timing of insurance claim payments and (iii) an increase in insurance-related accruals.

Previous wording

Cash used in operating activities was $74.0 million for the three months ended March 31, 2023 which consisted of a net loss of $187.6 million and changes in working capital of $(77.0) million. Net loss was offset by non-cash stock-based compensation expense of $180.4 million and depreciation and amortization expense of $27.2 million. The changes in working capital were primarily driven by (i) a decrease in our insurance reserves as insurance payments outpaced accruals in the period, which was offset by (ii) impairments of operating lease right-of-use assets as part of the restructuring activities initiated in the fourth quarter of 2022.

Current wording

Cash used in operating activities was $144.0 million for the six months ended June 30, 2023 which consisted of a net loss of $(301.9) million and changes in working capital of ($148.0) million. Net income (loss) was offset by non-cash stock-based compensation expense of $294.3 million and depreciation and amortization expense of $55.8 million. The changes in working capital were primarily driven by (i) a decrease in our insurance reserves as insurance payments outpaced accruals in the period, which was offset by (ii) impairments of operating lease right-of-use assets as part of the restructuring activities initiated in the fourth quarter of 2022.

Previous wording

Cash used in investing activities was $242.1 million for the three months ended March 31, 2024, which primarily consisted of proceeds from sales and maturities of marketable securities of $0.9 billion. This was partially offset by purchases of marketable securities of $1.1 billion.

Current wording

Cash used in investing activities was $317.2 million for the six months ended June 30, 2024, which primarily consisted of purchases of marketable securities of $2.1 billion partially offset by proceeds from sales and maturities of marketable securities of $1.8 billion.

Previous wording

Cash provided by investing activities was $449.4 million for the three months ended March 31, 2023, which primarily consisted of proceeds from sales and maturities of marketable securities of $1.1 billion. This was partially offset by purchases of marketable securities of $598.6 million.

Current wording

Cash provided by investing activities was $840.9 million for the six months ended June 30, 2023, which primarily consisted of proceeds from sales and maturities of marketable securities of $2.1 billion. This was partially offset by purchases of marketable securities of $1.2 billion.

Previous wording

Cash used in financing activities was $31.4 million for the three months ended March 31, 2024, which primarily consisted of repayment of loans of $20.6 million and principal payments on finance lease obligations of $11.5 million. This also included a net cash inflow of $0.2 million related to transactions related to the issuance of our 2029 Notes which included $460.0 million in proceeds from the issuance of the 2029 Notes and expenditures of $350.0 million related to the settlement of the 2025 Notes, $50.0 million related to the repurchase of Class A Common Stock, $47.9 million related to the purchase of capped calls and $11.9 million in payments of debt issuance costs.

Current wording

Cash used in financing activities was $66.9 million for the six months ended June 30, 2024, which primarily consisted of repayment of loans of $41.0 million and principal payments on finance lease obligations of $23.6 million. This also included a net cash inflow of $0.2 million related to transactions related to the issuance of our 2029 Notes which included $460.0 million in proceeds from the issuance of the 2029 Notes and expenditures of $350.0 million related to the settlement of the 2025 Notes, $50.0 million related to the repurchase of Class A Common Stock, $47.9 million related to the purchase of capped calls and $11.9 million in payments of debt issuance costs.

Previous wording

Cash used in financing activities was $27.7 million for the three months ended March 31, 2023, which primarily consisted of repayment of loans of $21.1 million and principal payments on finance lease obligations of $5.7 million.

Current wording

Cash used in financing activities was $83.4 million for the six months ended June 30, 2023, which primarily consisted of repayment of loans of $48.5 million and principal payments on finance lease obligations of $24.9 million.

Previous wording

As of March 31, 2024, our principal sources of liquidity were cash and cash equivalents of approximately $507.9 million and short-term investments of approximately $1.2 billion, exclusive of restricted cash, cash equivalents and investments of $1.2 billion, and a revolving credit facility in an aggregate principal amount of $420 million as described below. Cash and cash equivalents consisted of institutional money market funds, certificates of deposits, commercial paper, corporate bonds and U.S. government securities that have an original maturity of less than three months and are readily convertible into known amounts of cash. Also included in cash and cash equivalents are certain money market deposit accounts and cash in transit from payment processors for credit and debit card transactions. Short-term investments consisted of commercial paper, certificates of deposit, corporate bonds, term deposits and U.S. government securities, which mature in 12 months or less. Restricted cash, cash equivalents and investments consisted primarily of amounts held in separate trust accounts and restricted bank accounts as collateral for insurance purposes and amounts pledged to secure certain letters of credit. That portion of our cash and cash equivalents that is not invested is held at several large financial institutions and our investments are focused on the preservation of capital, fulfillment of our liquidity needs, and maximization of investment performance within the parameters set forth in our investment policy and subject to market conditions. The investment policy sets forth credit rating minimums, permissible allocations, and limits our exposure to specific investment types. We believe these policies mitigate our exposure to any risk concentrations.

Current wording

As of June 30, 2024, our principal sources of liquidity were cash and cash equivalents of approximately $604.4 million and short-term investments of approximately $1.2 billion, exclusive of restricted cash, cash equivalents and investments of $1.3 billion, and a revolving credit facility in an aggregate principal amount of $420 million as described below. Cash and cash equivalents consisted of institutional money market funds, certificates of deposits, commercial paper, corporate bonds and U.S. government securities that have an original maturity of less than three months and are readily convertible into known amounts of cash. Also included in cash and cash equivalents are certain money market deposit accounts and cash in transit from payment processors for credit and debit card transactions. Short-term investments consisted of commercial paper, certificates of deposit, corporate bonds, term deposits and U.S. government securities, which mature in 12 months or less. Restricted cash, cash equivalents and investments consisted primarily of amounts held in separate trust accounts and restricted bank accounts as collateral for insurance purposes and amounts pledged to secure certain letters of credit. That portion of our cash and cash equivalents that is not invested is held at several large financial institutions and our investments are focused on the preservation of capital, fulfillment of our liquidity needs, and maximization of investment performance within the parameters set forth in our investment policy and subject to market conditions. The investment policy sets forth credit rating minimums, permissible allocations, and limits our exposure to specific investment types. We believe these policies mitigate our exposure to any risk concentrations.

Previous wording

We have $1.7 billion in unrestricted cash and cash equivalents and short-term investments as of March 31, 2024. We also have the ability to borrow an aggregate principal amount of up to $420.0 million under the Revolving Credit Facility, none of which has been drawn as of March 31, 2024, and $59.1 million in letters of credit were issued under the Revolving Credit Facility as of March 31, 2024. We believe that this provides sufficient liquidity to meet our working capital and capital expenditures needs for at least the next 12 months. In the quarter ended March 31, 2024, we reported a second consecutive quarter of positive free cash flow. We plan to continue to actively manage and optimize our cash balances and liquidity, capital expenditures, working capital and operating expenses. In particular, we continue to actively monitor the impact of the uncertain macroeconomic environment, including tightening credit markets, inflation and changing interest rates and have made adjustments to our expenses and cash flow which include headcount reductions announced in the fourth quarter of 2022 and second quarter of 2023. We have also incurred restructuring charges related to the exit and sublease or cease use of certain facilities to align with our anticipated operating needs in the first quarter of 2023. Refer to Note 12 “Restructuring” to the condensed consolidated financial statements for information regarding these reductions in workforce.

Current wording

We have $1.8 billion in unrestricted cash and cash equivalents and short-term investments as of June 30, 2024. We also have the ability to borrow an aggregate principal amount of up to $420.0 million under the Revolving Credit Facility, none of which has been drawn as of June 30, 2024, and $72.9 million in letters of credit were issued under the Revolving Credit Facility as of June 30, 2024. We believe that this provides sufficient liquidity to meet our working capital, inclusive of short-term commitments such as the current portion of our convertible senior notes, and capital expenditures needs for at least the next 12 months. In the quarter ended June 30, 2024, we achieved net income for the first time in our operating history and reported a third consecutive quarter of positive free cash flow. We plan to continue to actively manage and optimize our cash balances and liquidity, capital expenditures, working capital and operating expenses. In particular, we continue to actively monitor the impact of the uncertain macroeconomic environment, including tightening credit markets, inflation and changing interest rates and have made adjustments to our expenses and cash flow which include headcount reductions announced in the fourth quarter of 2022 and second quarter of 2023. We have also incurred restructuring charges related to the exit and sublease or cease use of certain facilities to align with our anticipated operating needs in the first quarter of 2023. Refer to Note 12 “Restructuring” to the condensed consolidated financial statements for information regarding these reductions in workforce.

Previous wording

Our future capital requirements will depend on many factors, including, but not limited to our growth, the effectiveness of our efforts to align our expenses with our current operating needs, our ability to attract and retain drivers and riders on our platform, the continuing market acceptance of our offerings, the timing and extent of spending to support our efforts to develop our platform, actual insurance payments for which we have made reserves, and the expansion of sales and marketing activities. Further, we may in the future enter into arrangements to acquire or invest in businesses, products, services and technologies. For example, we intend to invest further in EVs in order to achieve compliance with the California Clean Miles Standard which sets the target that 90% of rideshare miles in California must be in EVs by the end of 2030; the Massachusetts’ Climate Bill; New York City's goal to get to 100% of rideshare rides in EVs or wheelchair accessible vehicles by 2030, and the City of Toronto’s push to bring the industry to 100% electric by 2030. From time to time, we have and we may in the future seek additional equity or debt financing to fund capital expenditures, strategic initiatives or investments and our ongoing operations, or to refinance our existing or future indebtedness. In the event that we decide, or are required, to seek additional financing from outside sources, we may not be able to raise it on terms acceptable to us or at all. The terms of any additional financings or refinancings may place limits on our financial and operating flexibility. If we raise additional funds through further issuances of equity or equity-linked securities, our existing stockholders could suffer dilution in their percentage ownership of us, and any new securities we issue could have rights, preferences and privileges senior to those of holders of our common stock. If we are unable to raise additional capital when desired, our business, financial condition and results of operations could be adversely affected.

Current wording

Our future capital requirements will depend on many factors, including, but not limited to our growth, the effectiveness of our efforts to align our expenses with our current operating needs and short-term commitments, our ability to attract and retain drivers and riders on our platform, the continuing market acceptance of our offerings, the timing and extent of spending to support our efforts to develop our platform, actual insurance payments for which we have made reserves, and the expansion of sales and marketing activities. Further, we may in the future enter into arrangements to acquire or invest in businesses, products, services and technologies. For example, we intend to invest further in EVs in order to achieve compliance with the California Clean Miles Standard which sets the target that 90% of rideshare miles in California must be in EVs by the end of 2030; the Massachusetts’ Climate Bill; New York City's goal to get to 100% of rideshare rides in EVs or wheelchair accessible vehicles by 2030, and the City of Toronto’s push to bring the industry to 100% electric by 2030. From time to time, we have and we may in the future seek additional equity or debt financing to fund capital expenditures, strategic initiatives or investments and our ongoing operations, or to refinance our existing or future indebtedness. In the event that we decide, or are required, to seek additional financing from outside sources, we may not be able to raise it on terms acceptable to us or at all. The terms of any additional financings or refinancings may place limits on our financial and operating flexibility. If we raise additional funds through further issuances of equity or equity-linked securities, our existing stockholders could suffer dilution in their percentage ownership of us, and any new securities we issue could have rights, preferences and privileges senior to those of holders of our common stock. If we are unable to raise additional capital when desired, our business, financial condition and results of operations could be adversely affected.