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Lyft is ceasing scooter operations in six cities and laying off 20 employees – TechCrunch

In an industry where unit economics and rider utilization are key to running a profitable business, perhaps it’s better to cut your losses early on. Lyft notified employees today that it’s pulling its scooters from six markets: Nashville, San Antonio, Atlanta, the Phoenix area, Dallas and Columbus.

“We're choosing to focus on the markets where we can have the biggest impact,” a Lyft spokesperson told TechCrunch. “We're continuing to invest in growing our bike and scooter business, but will shift resources away from smaller markets and toward bigger opportunities.”

[...] Lyft landed on this decision because it found that cities with the greatest population density are best for micromobility, and those six markets are not included in that group. But Lyft is not the only company to pull out from markets this year. Competitor Uber has also pulled JUMP bikes and scooters from a handful of markets, including San Diego, Providence and Atlanta. In some cases, what led to ceasing operations were regulatory hurdles. For Lyft, however, the company said it came down to a lack of ridership.

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