David Risher: Eric. Okay, got you. Nice to have talk to you, Eric. So, let me start from the end of the question and work backwards. Long-term pricing, look, we’re pricing in line with the market. That’s our strategy. And that’s where we’ll stay. So I only think pricing is a super interesting areas of focus once you’re in line. So then the question becomes, how do you compete in other ways? And part of it, of course, is we do have a brand that people like, it’s really quite an iconic brand. And this is maybe easy to dismiss. But it’s quite important, riders make a choice every single time they open their app, some of it’s based on price. But once you take that away, it turns out to other things. Some of it is just brand impression, how much they like you versus the other guys.
And then some of it is differentiated service. So on that side, we’re building out some really interesting products. And I can maybe allude to a couple, just very, very high-level. One, of course, as we enter the summer travel season, you’ll see us make some noise there. In fact, I think we’ve got an event plan next week to make some announcements on how we’re going to make life easier, particularly for riders as they enter the summer travel season. And then another sort of secular thing that’s happening is, bosses are trying to get employees to come back to work, we’re doing the same here at Lyft where we’re making that extra requirement of the job. And so that’s a really interesting opportunity, because it gives us a way to introduce ourselves in a different way to take a non-productive commute ride into a productive commute ride.
So those are real areas of growth, I think we’re just beginning, as I say, to scratch the surface on. Might be looking for sort of a framework, it’s kind of price in line with a market, differentiate on brand, for sure. And again, you can see some evidence of that, just what we’re doing now and that’ll grow over time. And then really start to build some service levels, or — excuse me, some products that meet head on people where they are in 2023, which might be a little different from where they were in 2019.
Operator: Your next question is from the line of Nikhil Devnani with Bernstein. Your line is open.
Nikhil Devnani: Hi, there. Thank you for taking the question. I had a couple please. Just on the Q2 revenue outlook, could you please unpack some of the underlying pieces there and maybe provide some color around trip growth or bookings growth? Just trying to understand how much of this low single-digit revenue outlook is really a function of pricing and incentives, maybe which are some near-term drags on revenue that you can lap at some point down the road? And then maybe, David, on the back of the recent cost cuts, could you talk about some of the tradeoffs you might be making going forward or had to make between kind of driving incremental efficiency and maybe giving up some longer term growth opportunities like locks or shared rides? Thank you.
David Risher: Yes, let’s do this, Nikhil. Thanks for the question. Let me — Elaine is going to sort of tackle the first part, and I will tackle the second.
Elaine Paul: Hi, Nikhil, thanks for the question. In terms of what is behind our 2Q revenue guide, let me give you some more color there. We’re assuming significant acceleration of the rides growth in Q2 to at least 15% year-on-year. So significant acceleration of our growth. And we anticipate that that’s faster than the overall market growth. In terms of bookings, we’re assuming in our Q2 guidance, assumes that gross bookings grow at a faster rate quarter-on-quarter and year-on-year than revenue. And as a result, that means that our take rate is moderating quarter-on-quarter and year-on-year. So hopefully that gives you some color behind our single-digit revenue growth. Thanks for the question.
David Risher: Yes. And then on sort of the cost cutting and kind of where does that lead, I guess, is was sort of the question. Let me start with two things. The first is, why did we cut costs? We cut costs so that we could be more competitive for riders and drivers and pass along great prices and great earnings. So that was the rationale. The second piece was accelerating decision making. So it’s maybe a little counterintuitive, but sometimes less is more. And in this case, we think we can move faster now that we’ve right sized organization, which I think sort of gets to the other point. I didn’t so much think of it as a tradeoff. And I certainly did not, let me say it just affirmatively. I am very focused on the long-term health of this business, very focused on the long-term health of this business.
So I’m really not so interested in making short-term tradeoffs that jeopardize the long-term health and growth of business. It doesn’t make any sense to me at all. Now, if you look very specifically, you kind of alluded to a couple of things like, for example, Wait & Save. And I want to actually bring this up even a little proactively because I think it’s an interesting case study. So Wait & Save is our mechanism for giving riders something they really like, a segment of our riders, which is a way to save money, and it’s something we’ve leaned into. We’re quite excited about it. It’s a different approach from what Uber is taking. We can talk about that if that’s of interest, but I bring that up as an example of we’re very focused on what our riders and our drivers want.
And that’s really the primary lens I used to make the cuts.
Nikhil Devnani: Great. Thank you both for the color.
David Risher: Sure.
Operator: Your next question is from the line of Mark Mahaney with Evercore ISI. Your line is open.
Ian Peterson: Hi, guys. This is Ian Peterson on for Mark. One quick question here. Great if you could provide an update on how Lyft Pink is tracking? I know, membership growth doubled in Q4, if you could just provide us an update there. And any progress in some of your new key segments including enterprise, universities and health care? Thanks.
David Risher: Sure. I’ll speak a little general here. I’m not actually sure whether we have much to report kind of on a more detailed basis, but we can find out. Unless Pink what’s really interesting is if you look at those members, they take more than double the rides on average. And so what that tells me is that if you are Lyft loyal for whatever reason, you’re really important to us, you’re really important to us. So we’re going to double down on that. Now I think of it and this might be slightly differently from the way we’ve talked in the past. So I’ll acknowledge that. I’ll think of this as how can we make sure we build a strong, fervent base of people who are linked — Lyft loyal. And people, I mean, riders, but I also mean drivers.
And I think that’s going to be a real area of focus of ours over time, because not the economics are such that rider and driver acquisition is one thing, but retention is very different thing. So anyway, that’s a little bit theoretical, I really — I’m speaking — liking a lot what I see. But I think we’ve got a lot more work to do there and I love the fact that we’ve got such loyal riders. I don’t know, Elaine, do we want to go into any detail on the other segments or maybe not for today? I can tell you that on our B2B side, we’ve had really strong momentum with health care. And as I’ve kind of alluded to, we see some real opportunities to drive enterprise usage on our network. And there, I think I just have to say, stay tuned for more on that.
But that’s what we got.
