Engine Capital pushes Lyft to explore strategic options, possible sale

Reuters

Tue, Apr 29, 2025, 6:33 AM 2 min read

(Reuters) -Activist concern steadfast Engine Capital pushed ride-sharing level Lyft connected Tuesday to see strategical alternatives, including a sale, amid a proxy battle.

The investor, which owns astir 1% of Lyft, besides called for governance and superior allocation reforms astatine the institution and accused its committee of lacking fiscal expertise.

Engine criticized the committee for rejecting each 4 of its manager suggestions without interviews and claimed that 7 of Lyft's 10 directors deficiency anterior nationalist institution committee experience.

Earlier this month, Engine nominated 2 directors to the committee of Lyft and said its attempts to prosecute with the ride-hailing company's enactment were rebuffed.

Engine said connected Tuesday its manager nominees would promote Lyft's committee to research strategical alternatives that could perchance pb to the merchantability of the institution oregon parts of it.

It projected Lyft execute a $750 cardinal accelerated stock repurchase to counterbalance banal underperformance and awesome assurance to the market.

Lyft's currency equilibrium and short-term investments totaled astir $2 cardinal astatine the extremity of past year.

The company's shares person fallen astir 83% since its archetypal nationalist offering successful 2019, compared to crisp gains by larger rival Uber Technologies and broader indices.

Lyft has a marketplace worth of astir $5.2 billion, compared to Uber's $164 billion.

Lyft did not instantly respond to a Reuters petition for comment.

Engine besides criticized Lyft's dual-class stock structure, which concentrates 30% of voting powerfulness successful the hands of its co-founders, who present clasp astir 2.3% of the company's equity.

The activistic called for the committee to destruct staggered elections and code excessive equity dilution, which it said has averaged astir 8% annually, undermining shareholder value.

(Reporting by Akash Sriram successful Bengaluru; Editing by Shilpi Majumdar)