David Risher: Yes, why don’t Kristin, Kristin, our President, will start with the first and then we’ll tackle the second separately.
Kristin Sverchek: Sure. Hey, there. This is Kristin. Happy to answer your question. And I’ll take each of those in-turn, Massachusetts, Minnesota and then California because we really have a particular strategy designed specifically for each market. You know, in Massachusetts, we will have a trial starting with the Massachusetts Attorney General in another week. But in parallel, we have two potential paths that we’re driving, a legislative proposal and a ballot initiative as well. And so, we really think that we have multiple options to continue operating in that market because we both have the legislative path and we have the ballot initiative. And so, in that market, we really want to focus on drivers voices being heard and supporting drivers’ voices who tell us that they prefer independence and flexibility to traditional employment.
In Minnesota, we’re working closely with city officials and state officials to find a solution. We’re optimistic that we’ll be able to do this. If we can’t do this, we will be forced to stop offering rideshare services on July 1, but that would only be because we wouldn’t be able to deliver the customer experience that drivers and riders want and expect with respect to the current rates proposed. However, we will still keep looking to work toward a new rate structure. And then, in California, just a reminder there, in California, the California Supreme Court is hearing oral argument in a couple of weeks on the very narrow issue of whether Proposition 22 is consistent with the California constitution. So, that initiative itself is not about reclassification.
It’s just about whether the ballot that was passed a few years ago overwhelmingly is constitutional. And so, in that case, we don’t have any immediate change to drivers independent contractor status and we will just continue again to listen to customer voices. We know that drivers value Prop. 22 deeply and we also heard from the California people in 2020 that they value driver independence with respect to passing Prop. 22 by a wide majority.
David Risher: Thanks, Kristin. And then, on your second question, Benjamin, about mode mix. I guess, what I would say — because I think you’re maybe looking for specific examples. I think one of the ones that — I’ll mention two very briefly. Wait and save, I’ve mentioned before, nothing really new to add there, but it’s a significant and important part of our business. And I — as I said before, I like it because I think it gives people a way to save a little bit of money, which who doesn’t like that. On sort of the exact flip side, we have actually a new mode that’s — we launched a couple of months ago and are still kind of fine-tuning, called Extra Comfort. And I think what’s so interesting about Extra Comfort, so it’s a nicer, slightly newer car, slightly nicer car with a more experienced driver.
And you know, I think you can sort of by analogy, you can think of it as a kind of comfort plus type kind of upgrade on an airplane in-between the business-class and the economy. And if you look at what airlines have done, it’s actually quite successful for them and it’s because customers like it, right? They like the extra leg room in that case and priority boarding and these sorts of things. And so, we’re thinking along the same lines. How can we create something that has that kind of value for our riders every day? And we’ve seen nice kind of early adoption of it. It’s still — it’s a relatively small mode in the grand scheme of things. But I think it’s one we can build-out as a sort of affordable everyday luxury. I’ll tell you, interestingly enough, one of the highest use cases is actually going to the airport because it’s a time where you’ve already got a lot of stress in your life.
And so, you sort of want the kind of quieter, bigger ride, a little bit more space for luggage and so forth. So, I think it’s an area, again, when I talk sometimes about, let’s say, innovation being a little bit stale in this category, I’m not saying this is the most innovative thing that we’re working on, but I think it gives you a sense that there is — there are new customer use cases that we can develop for and new modes and I think Extra Comfort is a good example. So, I recommend anyone on this call download Lyft immediately and put Extra Comfort for your next ride.
Benjamin Black: Wonderful. Thank you for that.
David Risher: Sure.
Operator: Your next question comes from Steven Choi with UBS. Please go ahead.
Steven Choi: Okay. Thank you so much. So, David, Erin, I wanted to tie your comments about use cases to your prior comments about frequency. So, just doing a simple math of, I guess, rides divided by active users, it seems like folks took about 8.5 rides during the quarter. I think prior to the pandemic, it was probably 9.5 or so ballpark. So can we talk about the use cases like shared rides that are probably no longer in the picture and how much that impacted frequency? There might be some lingering regional considerations we may have to think about. But I guess more importantly, looking-forward, how some of the existing use cases can perhaps now grow faster or what new use cases you may be looking to add? So, I’m looking for reasons to why I should believe the frequency that we’re seeing prior to the pandemic. You know, should that be a ceiling or should we be thinking that it should be much higher than that? Thank you.
David Risher: Oh, yes. No, it’s no ceiling. So, it’s — and because it’s a — no, no. The whole — the thing about our — you know, I keep saying our strategy is working. And what I really mean by that is the more we understand what it is that our riders and drivers want, the better we can every single day get them that, even ahead of their own recognizing it. So, let’s take the data you were just using. So, right now, you’re right. Actually, a person who uses rideshare 10 times a month, that’s actually quite a heavy user already, right? So, let’s just start from the fact that a lot of people because with any distribution obviously, you’ve got tails on both sides. A lot of people who may be using it once a month. You know, maybe they only use it to go to the airport, for example.
So, gosh, there are a whole lot of other parts of their life that we can, without really much creativity at all, simply by reminding them of our existence we can grow into and that will just increase frequency just mathematically. And then, if you look at the other end, right? If you look at people who are already heavy users. What’s a typical heavy user? What might be someone who commutes to the office a couple of times a week? Well, today, maybe they switch between us and the other guys. So, maybe there are things we can do to make it easier for them to take more rides on Lyft versus doing something else, as an example, right? And you know, of course, then there’s a secular thing, right? As more and more offices, I think come to realize that there’s real value in having people in the office at least a couple of days a week.
If you look at the distribution there, there’s still quite a few people, and maybe some people on this call fall in this category, who are only going to the office once a week or maybe even less than that. And I think there’s a lot we can do to both to work with companies to make it easier for them to partner with us as we do with LinkedIn, for example or Starbucks example, Delta Airlines example. These are all companies in various different ways. Amazon that we work with part of their kind of commute strategy to help their employees come back to the office in a way that’s more productive than sitting in traffic driving for 45 minutes. So, that’s just a very long way of saying, I think there are a lot of use cases that we’re sort of just scratching the surface of.
And honestly, I would be very, very disappointed in us as a company. If we, over the next weeks, months, years can come up with other ways to get people using rideshare new ways.
Steven Choi: Okay. Thank you.
David Risher: Yes.
Operator: Your next question comes from John Colantuoni with Jefferies. Please go ahead.
John Colantuoni: Thanks for taking my questions. I wanted to start with a strategic one. As autonomous and robotaxi initiatives continue to move forward, talk about how Lyft is considering approaching balancing autonomous partnerships while maintaining its focus on maximizing — maximizing driver satisfaction and earnings? And second question, I believe Erin mentioned second-quarter guidance assumes 15% rides growth during the prepared remarks, which is a few hundred basis-points below the expectations for bookings growth. Can you talk about what’s driving the gap between bookings and rides growth in the second-quarter? And also walk-through sort of how that slowdown in trips growth versus the first-quarter breaks down between market-share versus broader industry trends? Thanks.
David Risher: Hey, John, it’s David. I’ll take the first part of your question and then Erin will tackle the second. So, I think maybe the first thing to say is, again, as I mentioned before, autonomous vehicles are going to happen, right? So, this is not one of these things where you can sort of decide whether or not they’re going to be part of the future. They will. There are too many, let just say, forces going in that direction for them not to happen. So, then the question for us becomes how do we incorporate them into our network. And the nice thing is that we are going to continue to grow as we’ve been talking about for a long, long-time. So there will be all kinds — and so it’s, I think 100% easy to predict that our network will turn-in over-time, and now here we absolutely are talking about years, into a hybrid network, right?
