Lyft co-founders to step down from board, end dual-class structure

SAN FRANCISCO - Lyft, Inc. (NASDAQ:LYFT), the rideshare company with a market capitalization of approximately $6 billion, announced Thursday that co-founders Logan Green and John Zimmer will step down from the company’s board of directors on August 14, 2025, completing a two-year leadership transition plan.

The co-founders will also convert all their Class B common stock to Class A common stock on August 15, 2025, eliminating the company’s dual-class structure and establishing equal voting rights for all shareholders. Following the conversion, Green and Zimmer will collectively own approximately 9.69 million shares of Lyft Class A common stock. According to InvestingPro data, Lyft’s stock has delivered a strong 44.6% return over the past year, significantly outperforming broader market indices.

Sean Aggarwal, who joined Lyft’s board in 2016 and previously served as Chair from 2019 to 2023, has been elected to serve as the new Board Chair. The board will reduce its size to seven members, six of whom are independent.

"Lyft has experienced outstanding growth and execution over the last two years under David Risher’s leadership," Green and Zimmer said in a statement included in the press release. "It’s clear that Lyft has the right team in place, which gives us confidence that it’s time to complete the succession process we began two years ago." The company’s financial performance supports this view, with InvestingPro data showing nearly 20% revenue growth and positive earnings in the last twelve months. InvestingPro analysis indicates the company is currently undervalued, with 12 additional key insights available to subscribers.

Lyft CEO David Risher, who took over in 2023, noted that the company is "in its strongest position to date, with record results in 2025."

Green will continue to serve as a Venture Partner at Autotech Ventures, while Zimmer is launching a new consumer-focused business venture called YES&.

The announcement marks the final phase of the leadership transition that began two years ago when the co-founders stepped back from their executive roles at the rideshare company they founded in 2012.

In other recent news, Lyft has reported mixed second-quarter results, with gross bookings and revenue slightly below expectations. Despite this, the company has provided strong guidance for the third quarter, projecting gross bookings of $4.65-$4.80 billion, which represents a 15% year-over-year growth at the midpoint and exceeds analyst estimates by 3%. The third-quarter guidance also includes two months of operations from the Freenow acquisition, finalized on July 31. RBC Capital has reiterated an Outperform rating on Lyft, maintaining a price target of $21.00, following discussions with the company’s VP of Investor Relations and Financial Planning & Analysis. Conversely, Susquehanna has lowered its price target for Lyft to $14.00 from $18.00, while maintaining a Neutral rating, citing the company’s European expansion. Bernstein has also reduced its price target to $16.00 from $18.00, maintaining a Market Perform rating due to concerns over growth. DA Davidson has adjusted its price target to $14.20 from $15.50, describing the quarterly performance as mixed. Meanwhile, Benchmark has reiterated a Buy rating and maintained a $20.00 price target, despite the mixed results.

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