Lyft is leaving the crowded Dallas e-scooter market, where there are reportedly 15K electric scooters already zipping around the streets. The ride-hailing company made the announcement after just entering the region in March with about 350 of its own e-scooters.
The Ride-hailing giant will be pulling its scooters from four other markets, including Nashville, Atlanta, San Antonio, Phoenix and Columbus, according to TechCrunch.
“We’re choosing to focus on the markets where we can have the biggest impact,” a Lyft spokesperson told TechCrunch. “We’re continuing to invest in growing our bike and scooter business but will shift resources away from smaller markets and toward bigger opportunities.”
The company said cities with the greatest population density are the best for micromobility, whereas the markets it’s pulling out of are not.
Lyft will continue to operate scooters in Austin, Washington, D.C., Alexandria, Arlington, Minneapolis, Denver, Miami, Los Angeles, Montgomery County, Oakland, San Diego, San Jose and Santa Monica.
About 20 employees from its bikes and scooters team, which consists of about 400 people total, in these markets will lose their jobs Contractors who pick up and charge Lyft scooters around the cities will also be out of a side hustle.
The company has not said whether the City of Dallas’ potential upcoming changes in regulations on dockless vehicles were part of its decision to leave the city. This week, the city was supposed to hear potential recommendations and changes from the city’s Department of Transportation, but pushed it back until March 31 next year to give more time. Dallas’s ordinances were put in place last year, including fees, permits and placing requirements for companies looking to get into the ecosystem. The recommended changes to the ordinance reportedly could include time restrictions at night, as well as stricter enforcement of companies and higher fees.
Atlanta Inno editor Madison Hogan contributed to this report.
