Ian Peterson: Great. Thank you.
David Risher: Sure.
Operator: Your next question is from the line of Benjamin Black with Deutsche Bank. Your line is open.
Benjamin Black: Hey, David, perhaps this is a bit of a follow-up. You spoke about in your blog, this narrow focus, discontinued share locks, what gives you the confidence to this narrow focus or narrow rideshare offering can fuel growth? And also, is there any way that you can help us size the revenue contribution of shared or locks? And then from a marketplace bounce perspective, how do you feel positioned today? And where do you feel the need to grow incentives on either side of the marketplace, either being on the consumer side or on the driver side? Thank you.
David Risher: Yes, again, thanks for the question, Benjamin. And we’ll see if we can divide and conquer this one. I’m actually going to bring up shared rides. You just mentioned it. And I want to say a little more about that, because I know that’s a change of what you’ve heard in the past. We introduced shared rides, of course, pre-COVID. One of the things we found though, is it was — let’s say, it was a little complicated because certainly as we moved into COVID, people were not at all interested in that product offering. But what they were interested in was saving money. So we came up with a new product called Wait & Save and in fact I can tell you about that which is Wait & Save is already more popular than shared drives ever was.
And I think we can explain that again, by looking at it through the lens of our riders and our drivers. From a rider’s perspective, it means you can save money without going out of your way. And people really don’t like that feeling of I’m headed to one place, and all of a sudden, I’m going in a different direction, they really don’t like that feeling. And from drivers, drivers also don’t love the added — the loss of control, let’s say, because I thought I was going in one direction, and then all of a sudden, I’m picking somebody else up. And by the way, pickup and drop offs are the least fun part of a drivers like. They’d much rather have you in the car, and have a good conversation with you or not, but at least to kind of stay on track. So we like our strategy there a lot.
And we’re really impressed with how fast customers have picked it up. So again, I’m using it as a sort of maybe example of kind of the bigger point of how we’re evaluating the types of opportunities we look at going forward, both to differentiate from the competition, as it turns out, but also to give our customers, our riders and our drivers what they really want.
Operator: Your next question is from line of Rohit Kulkarni with ROTH MKM. Your line is open.
Rohit Kulkarni: Hey, thank you for taking my questions. A couple of them. Maybe talk about driver incentives and how that feeds into your that algorithm of profitability versus growth over the near-term, as there has been history of kind of how driver incentives have sometimes been very short-term oriented, and drivers tend to be quite fickle. So we’d love to hear how you are thinking over the next, call it, critical period of summer to incentivize drivers to drive more on Lyft. And then just on bikes and scooters, maybe the latest thinking beyond the restructuring on how bikes and scooters fits into the portfolio. If you think strategically, you need to make any changes because sometimes it may lead to more seasonality than what some of the investors tend to compare you with Uber and have somewhat of a different .
Sonya Banerjee: Rohit, sorry, we can’t hear you.
David Risher: Rohit you faded out there a little at the end. But I think we got the essence of your question. Yes, let me — let’s do this. Let me let me say one quick thing about drivers. Elaine is going to go more into the incentive side, which is also the question we were hearing last, and then we’ll kind of end up with the bikes and scooters. On the driver side, I think a really important data point is that more drivers are choosing Lyft than ever before. So at least in recent memory, I can say more clearly. So in Q1, we have the most drivers in about 3 years, which is really pretty exciting for us. And we see that growth is accelerated in Q1 for the first time in a year on the driver supply side. So, we — obviously, it’s very important for our business for our riders as well. And so, Elaine, can give you a little color on the incentive side of it.
Elaine Paul: Yes. So on the incentive side, we are being helped by tailwinds to organic supply. To give you some color, in Q1, in absolute terms, incentives and contra revenue were $304 million. On a per ride basis, incentives were down 13% quarter-on-quarter. This is consistent with what we were anticipating. It’s also consistent with what we said in February that we’d be down quarter-on-quarter in absolute terms and on a per ride basis. And then looking forward to Q2, we currently anticipate that contra revenue incentives will be roughly flat with the level in Q1 and also down quarter-on-quarter on a per ride basis. So, of course, the extent of our investment is dependent on what we see with real time market conditions. But that’s our outlook.
And one other point of color to add, we’re seeing that our driver investments are more efficient. The cost per incremental driver hour was the lowest that it’s been in 2 years in Q1. And again that’s helped by tailwinds we see to organic supply.
David Risher: I’m going to say one more super quick thing on that one and then move to your bikes question. And this is a little bit more philosophical you guys. Of course, driver incentives will always play a role. They do. They help balance supply and demand in the short-term. I will tell you backing up just a touch. The drivers really like the work. They like the flexibility it gives them and the control it gives them over their time and they like the flexibility and control gives them over their earnings. One of the drivers said to me not so long ago, I love driving for Lyft because I know I’ll never go broke, I can just drive more. Everyone is saying that is because while again, incentives are important in a sense. Strategically, they don’t make for the best driver experience because they reduce visibility and earnings.
And so we’ll use them tactically and there’s nothing wrong with that. But it’s not — let’s say, strategically, it’s the tail of the dog. It’s not really the dog. create a great experience for drivers. Now on your question about bike and scooters and kind of other businesses. A couple of things I want to get to first. So we’ve — our focus is, I think, a real strength of ours. I mean we are effectively a pure play on rideshare. So that’s important for us to execute on as well. So what have we done? We’ve wound down the car services like what we call garage and the consumer rental business that we are — we experimented with it for a while. We’re spinning off loop, which is the infrastructure that we built in-house, not a material change economically, but it’s material in terms of our focus.
And now we get to bikes and scooters. The bike operation, and this is the sort of secular comment I’m about to make. E-bikes are a big deal. When people ride e-bikes, they like them a lot. But for us, I think we haven’t done the job we need to do to make sure that every time person rides the bike, they get welcomed into the Lyft ecosystem, and frankly, welcome into the rideshare side of things. So we’ll do some thinking on how to do that better. We’ve also got some work on the economics of the bike side of our operation. So tune up, it’s a capital-intensive business relatively, of course. So we’ve got some work to do there to kind of optimize. But I like the interplay we have, and I think we can do even better.
Operator: Your next question comes from the line of Steven Fox with Fox Advisors. Your line is open.
Steven Fox: Hi. Good afternoon. You’ve talked a lot about just making new decisions around product offerings. And I think the company has a pretty good history of introducing products with decent levels of success. So I’m trying to understand what you’re seeing that needs to change in terms of maybe how you introduce products into the rideshare space? What mistakes were made in the past? And what kind of selectivity is going into it now with — under the new structure? Thanks.
David Risher: Yes. Thanks, Steven, and thanks for your comment about the past as well, I agree. Look, in terms of changes, I think bigger and faster. So I think we have some big opportunities in front of us that, to a certain extent, COVID slowed us all down from, and now we’re kind on the other side of that, so we can think big again. And in the past is just — it’s a bit of a mantra internally of how can we move more quickly because drivers — excuse me, riders and drivers expectations are quite dynamic, they change. And so our focus, of course, is on building a profitable business. That profitability is going to be driven in large part by can we create products and services that our drivers and riders absolutely love. We’ve got a great brand. We’ve got great history to build on and a lot to do, and we want to do it with urgency.
Steven Fox: That’s helpful. And then just any comments on sort of how you think autonomy eventually fits into your network going forward?
