Lyft stock rises as co-founders to step down from board

Published 15/08/2025, 17:18
© Reuters.

Investing.com -- Lyft (NASDAQ:LYFT) stock rose 9% Friday, marking its biggest gain since May, following the announcement that co-founders Logan Green and John Zimmer will step down from the company’s board next year.

The rideshare company revealed that Green and Zimmer will exit the board on August 14, 2025, completing a two-year transition plan. Additionally, they will convert all their Class B shares to Class A shares on August 15, 2025, eliminating the dual-class structure and establishing equal voting rights for all shareholders. After the conversion, the co-founders will collectively own approximately 9.69 million shares of Lyft Class A common stock.

As part of this leadership transition, Sean Aggarwal has been elected to serve as Chair of the Board. Aggarwal, who joined Lyft’s board in 2016 and previously served as Chair from 2019 to 2023, brings extensive experience from senior roles at companies including Trulia, PayPal, eBay, and Amazon.

"Logan and John’s decision to eliminate the dual-class structure and establish a one-share, one-vote standard for Lyft stockholders delivers yet another benefit for our stockholders," said Aggarwal in the announcement.

Following these changes, Lyft’s board will be reduced to seven members, with six being independent directors.

The governance changes come as Lyft works to improve its market position against rival Uber (NYSE:UBER), which has significantly outperformed Lyft since 2022, with Uber delivering a 173% total return compared to Lyft’s -60% during the same period.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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