Prepared remarks
Good afternoon, and welcome to the Lyft First Quarter 2025 Earnings Call. At this time, all participants are in listen-only mode to prevent any background noise. Later, we will conduct a question-and-answer session, and instructions will be given at that time. As a reminder, this conference call is being recorded. I would now like to turn the call over to Aurelien Nolf, VP, FP&A, Investor Relations. Please go ahead.
Thank you. Welcome to the Lyft earnings call for the first quarter 2025. On the call today, we have our CEO, David Risher, and our CFO, Erin Brewer. Starting with this call and going forward, our full prepared remarks will be available on the IR website before the call, and we will use this time to answer more of your questions. We'll make forward-looking statements on today's call relating to our business strategy and performance, partnerships, future financial and operating results, trends in our marketplace, and guidance. These statements are subject to risks and uncertainties that could cause our actual results to differ materially from those projected or implied during this call. These factors and risks are described in our earnings materials in our recent SEC filings. All of the forward-looking statements that we make on today's call are based on our beliefs as of today, and we disclaim any obligation to update any forward-looking statements except as required by law.
Additionally, today we are going to discuss customers. For rideshare, there are two customers in every car. The driver is a Lyft customer, and the rider is the driver's customer. We care about both. Our discussion today will also include non-GAAP financial measures, which are not a substitute for our GAAP results. Reconciliations of our historical GAAP to non-GAAP results can be found in our earnings materials, which are available on our IR website. And with that, I'll pass the call to David.
Thank you, Aurelien. Well, hi, everyone, and thank you, as always, for joining. Q1 2025 was our strongest Q1 ever. We're innovating for drivers and riders. We're expanding outside the U.S. in a meaningful way, and our partnership strategy continues to fuel our momentum. Lyft had year-on-year growth across regions, across modes and across use cases, resulting in a record Q1 for active riders, rides, and driver hours. Looking at our financials, we delivered Q1 records in gross bookings, adjusted EBITDA, and free cash flow. A note on gross bookings, this was Lyft's 16th consecutive quarter of double-digit year-on-year growth, demonstrating the resilience and momentum of our customer-obsessed strategy. And we approached nearly $1 billion in cash generation over the last 12 months. That demonstrates our winning formula of growth with discipline. It's this financial strength that has enabled us to increase our share repurchase program to $750 million while maintaining the ability to invest in our most promising growth initiatives.
With our expansion into new demographics via Lyft Silver and into Europe with our REENOW acquisition, we are positioning ourselves for sustained growth to build on our incredible momentum. I am so impressed and proud of the work our team has done over the last 2 years to build a strong foundation, fueled by customer obsession and operational excellence. I am very confident we are well positioned for 2025 and beyond. And now with that, let's get to your questions.
Questions and answers
Your first question comes from the line of Brad Erickson of RBC Capital Markets. Please go ahead.
Thanks for taking the questions. First, just talk about the pricing environment. What are you seeing and maybe just the puts and takes between sort of things within your control versus things out of your control? And then second, just on insurance. I know it's a little early to talk about this, but just maybe any update you can give on how you're thinking about that adding into the pricing formula through the year? Thanks.
Hi, Brad, it's Erin. Why don't we start with pricing? I'll start there and turn it over to David, and then we can come back and I'll chat about insurance. So let me just start with some facts around pricing. Obviously, we talked about it last quarter about some dynamics in the market, generally resulting in lower prices in the U.S., which we started to see late in the fourth quarter. And as of our last earnings call, we were persistent at that time. So here we are today, average prices in Q1 were still lower than average prices in the fourth quarter, although they were up modestly year-over-year. David?
Yes. I'll just say to remind everyone on the call that our pricing strategy remains the same. It's always to be competitive for sure and then to be reliable. And of course, we've talked in the past about how we're trying to sort of get prime time out of the system, introduce features like Price Lock and so forth to sort of even further increase that reliability, but really no change. And as Erin has said, modest differences from what we've seen in the past, but we feel good about where things are.
And then, Brad, back to your second question around insurance. We continue to move forward with our programs, everything that we work on across our risk team here at Lyft. We highlighted a whole bunch of that at Investor Day and have talked about it since, but it's just continuing that momentum. We have unique industry-leading capabilities. We are continuously innovating to make our platform safer through technology, products, partnerships. We innovated things like the Smooth Cruiser score, which gives drivers feedback on how they're doing and how to provide better rides. We will continue that. We are recognized by our partners, our long-standing partners for all of those advancements. And so we feel really good about our program. You heard us talk about our renewal, our 10/1 renewal. As you know, we've got a 6-month cycle. No new updates there. It's reflected in how you see our guide in the second quarter. So I don't have anything specific to call out there. We continue to make great progress. We've got a great team, and we've got great long-term partnerships.
Thanks.
We'll go take the next question.
Your next line comes from the line of Ken Gawrelski of Wells Fargo. Please go ahead.
Hi. Thank you for the question. Really appreciate it. I'm curious, just a couple of things. One is the other guys, I think as you referred to them, has talked a lot about affordability initiatives in the U.S. I'm just curious as just as you think about the go forward and the many innovations you've rolled out on the product side, how you're thinking about just the go forward there and your positioning in the market? And kind of from a pricing standpoint, how you - what the pricing outlook is for the remainder of the year? And then the second, if I may, please, you made an announcement to enter Europe. Could you just talk to us a little bit more and you're expanding in Canada. Could you just talk a little bit about your broader international ambitions? Should we think of this as the extent of it for the next select period of time? Or could we see more? Thank you.
Sure. Yes, good questions, both. So on pricing, I don't have much more to say than what Erin said. But maybe zooming out just a little bit. I mean, look, in a marketplace like this, you always want to be able to provide the best price you possibly can. I mean, let's be clear. That's always important. But I feel good about where our pricing is. And I don't see it being a major area of focus or competition. And really, all I mean by that, you know, is like - as you mentioned, innovation is kind of a big thing, right? And at a certain level, there's only so much you can do with pricing. The market sets a clearing price millions of times a day, and we sort of follow the market lead on that as they say, we're competitive and reliable. So once you sort of have that and you kind of take that a little bit off the table, then it becomes much more interesting to think about things like the Silver or Price Lock or the earnings guarantee for drivers or whatever you can do to really drive preference for your platform.
And I think it's really because we've been so focused on that customer obsession and the operational excellence required to continue to execute on that, that we've seen our growth be powered sort of independent of pricing sort of bouncing around a little bit. So maybe not much more to say about that. On international, you're right to point out that we've seen great, great growth in Canada, roughly doubled year-on-year and now up, I think, another 50%. In fact, I think literally just today, we opened up the funnel for driver onboarding in Quebec, the province of Quebec, which just gave us authorization to expand there later this year. So super excited about that. And then looking at that, which obviously gave us a certain amount of confidence that our kind of customer-obsessed formula can work outside the United States, we acquired FREENOW, and I can talk more about that if you're interested.
But I don't think I'm going to be able to say much beyond that just now. Obviously, that deal hasn't even closed. It won't until the second half of the year. So a bit premature to think about further international expansion. I will say more likely than not, the near-term focus will be kind of infill in the 9 countries where FREENOW is operating rather than thinking about further expansion. But that's not a never say never. It's simply the focus right now is on making sure the FREENOW acquisition exceeds its already great potential.
Next question comes from the line of Eric Sheridan of Goldman Sachs. Please go ahead.
Thank you so much for taking the question. Maybe I'll just ask one. You obviously made the announcement with May Mobility, and we're seeing a lot of different announcements in the broader EV landscape. Would love to continue to sort of click down on how your views are evolving in terms of going to market with partners and what you think that might do in terms of the supply and demand dynamic in the cities where you bring that type of supply into your ecosystem? Thanks so much.
I'm happy to address that, Eric. It's great to connect with you. Let's begin with the partnership with May Mobility, which we are thrilled about. It is set to launch this summer in Atlanta, and we believe it will provide valuable insights into market reactions. Additionally, we have announced partnerships in Texas that will be rolling out next year, involving Marubeni as a financing partner. This gives me the opportunity to touch on the broader value chain. Autonomous vehicles present an incredible opportunity for us, as they introduce new supply options and expand our service portfolio. This opens up previously unconsidered use cases for rideshare, creating excitement around these offerings. It's a reliable and safe product that we’re enthusiastic about. However, there are numerous aspects to consider, from ensuring equipment manufacturers and OEMs are engaged, to having the necessary financing in place.
Marubeni plays a crucial role in fleet financing and ownership, ensuring that there is a solid capital structure behind these operations. Fleet management is another critical aspect that we've discussed extensively. I recommend checking out a recent post on our Flexdrive subsidiary focused on fleet management, as it emphasizes the importance of effectively managing a large fleet. Managing a few cars may seem straightforward, but when scaling to thousands, maintenance, repairs, uptime monitoring, and cost control become far more complex, and Flexdrive excells in these areas. We're currently managing between 10 to 20,000 cars annually and look forward to integrating autonomous vehicles into that operation. Additionally, there is the marketplace aspect involving supply-demand management, ETA estimations, pricing, and demand generation marketing. We believe that an increase in supply is beneficial, and we anticipate diverse partners contributing to this growth.
May Mobility is just one of our early partnerships, with Mobileye providing technology support in Texas, and there are many others yet to be discovered. Our strategy remains consistent: we aim to be the premier platform for any autonomous vehicle supplier to effectively monetize their assets, and we are optimistic about our position moving forward.
Your next question comes from the line of Ben Black of Deutsche Bank. Please go ahead.
Hi. Thanks. This is Jeff on for Ben. Thanks for taking our questions. Just as a follow-up to that on AVs, kind of looking beyond getting the supply on the platform, what do you think the impact will be to pricing and frequency membership as AVs scale longer term? And also it would be great to hear your thoughts on the Waymo Toyota partnership for personally owned vehicles. It would be great to get your perspective if this could impact Lyft and I guess, the transportation market more broadly. Thank you.
Yes. Great questions, both. And sorry, the second one, I'm very clear on. The first one, again, say that one more time, Jeff?
Just kind of beyond getting the supply on the platform, what do you think the impact will be to pricing and frequency membership as AVs scale longer term?
It's difficult to predict the long-term effects of autonomous vehicles. Currently, we see them operating in various markets like San Francisco, Phoenix, Los Angeles, and Austin, each with unique dynamics. In some areas, they are priced as premium products, while in others, they are offered at a discount. Generally, their service levels do not meet those of traditional rideshare services, primarily due to limited operational design domains and inefficiencies in supply-demand management. While it's reasonable to expect that increased supply might lower operating costs over time, this is likely to take a significant amount of time. Insurance plays a critical role in this, as it can be pricey to repair AVs and they still face accidents caused by other drivers. Utilization rates remain uncertain, affecting profitability based on how frequently these vehicles are used daily. The insurance industry tends to be conservative in pricing, often seeking several years of data before determining rates, which can lead to higher prices initially.
Long-term expectations might suggest expansion and lower prices, though I wouldn't rely on that happening in the short term. What's more pressing is how differentiated AVs are from existing options and their potential to expand the market. Regarding individual vehicle ownership, we're currently in a pilot phase of AV adoption. Eventually, we might see fleet owners who typically manufacture the technology, like Waymo, owning their fleets. Over time, it's likely that more companies, including potential small-scale owners, will manage those assets. Our partnership with Mobileye is crucial as they have significant relationships with various manufacturers and a clear roadmap for progressing through different levels of autonomous driving. The ultimate goal is to make this technology widely available, possibly leading to a future where not buying an AV will feel akin to purchasing a car without a radio or in a more fitting analogy, a stick shift.
While manual cars will continue to exist, AVs are expected to become commonplace. In this future, the concept of 'Lyft ready' cars, where every vehicle can be easily integrated into our platform to generate revenue, becomes increasingly attractive. We are preparing for this shift with a long-term vision, aware that while the excitement around AVs generates short-term buzz, our focus needs to remain on the bigger picture.
The next question comes from the line of Michael Morton of MoffettNathanson. Please go ahead.
Hi, good evening. Thank you for the question. To the extent you can talk about it, I know it's just announced, but I wanted to hear your thoughts on the ability to invest behind FREENOW? And then maybe how you're thinking about the business mix between taxis and rideshare for FREENOW going forward versus where that mix shift stands today? And then just quickly, David, as pricing increases subside, I'd love to hear about any changes you're seeing in consumer behavior that might lead them to spend more per month just because there's less sticker shock, right? If you open, you look at your morning commute, wow, it's too much, but then you start opening, it's not going up as much, and they actually end up using it more than they would have in their prior budget. So if you're maybe seeing more shopping engagement at this point, maybe that haven't like transitioned into actual conversion yet, but anything there would be very helpful. Thank you.
Great questions, Michael. I'll briefly discuss how we view FREENOW and the mix question you raised. I’ll then hand it over to Erin to share some insights on our investments in this area, although there won't be too much to say at this moment. She's smiling at me, which is understandable. After that, I'll return to discuss our communication and what we're observing. Concerning FREENOW, it's important to remember that it operates as a taxi-first marketplace. I want to emphasize this because people's perceptions can be influenced by areas like New York City. In Europe, taxis are generally seen as a premium service in most regions; think of the London Black Cab or taking a high-end vehicle from an airport in Frankfurt. Many drivers are long-term professionals. Having lived in Barcelona for many years, I can attest that many taxi drivers are very experienced. Taxis play a significant role in the European landscape and are a major part of the ride-hailing market, which is estimated at around €40 billion, with about half still operating offline via traditional methods like phone calls.
From my own experience, despite my appreciation for technology, certain habits in Europe are hard to change. There's been limited innovation in the taxi sector, mainly due to numerous small fleet operators lacking the scale or capital for expansion. FREENOW addresses this and has become a leading player in the market. People often perceive rideshare services as less appealing compared to taxis, which seem more reliable and premium. We aim to capitalize on this distinction. However, dynamics vary by country; some places don't allow personal vehicle rideshare as it’s understood in the U.S. FREENOW operates in nine countries, each having unique challenges, but I anticipate their overall approach will remain consistent. Their business model is solid, and we can enhance it significantly with our understanding of pricing and market dynamics, gaining valuable insights from our experience. In return, FREENOW will bring fleet management expertise, which is crucial for taxi operations.
Lastly, while I won't delve into specifics regarding our work and investments in these markets, I think there are opportunities for growth in areas where we are already established. Now, I’ll pass it over to Erin.
Yes. In FREENOW, we found a partner through whom we see opportunities to accelerate growth, unlock potential for partners, and enhance the experience for both drivers and riders. We are enthusiastic about this. This acquisition effectively doubles our overall addressable market. The strategic purpose aligns perfectly with the strategy we presented at Investor Day. Specifically, we mentioned that our capital strategy includes responsible investment in appealing growth and margin expansion opportunities, which this acquisition fulfills. The first step is to finalize the deal, which we anticipate will occur in the second half of the year. Following that, we will begin foundational integration and continue to explore growth opportunities over time. Regarding the second part of your question about affordability, I want to emphasize that affordability is not a new concept for Lyft. Throughout our overall product portfolio, we have prioritized providing options for every situation.
For example, the Wait & Save feature has proven to be beneficial for the company. It's important to note that Wait & Save users utilize this option about a third of the time and tend to take twice the number of rides. Thus, affordability is not a new topic for us, and the diversity of our portfolio, along with the growth we highlighted in our higher-end offerings, is a strong asset. We achieved over 16% ride growth in the quarter, which is something we take great pride in. David shared some statistics in his opening remarks. David, would you like to add anything regarding affordability?
I'll build on what Michael mentioned about affordability. It's interesting to note that people often associate it simply with lower prices, which is important, but that's just the baseline. We previously reduced our costs by $330 million to enable competitive pricing while benefiting drivers. However, innovation is essential beyond that point. Price Lock is a great example of this innovation. Commute has become our largest use case, representing about a third of our rides now, which is significant considering it once accounted for nearly nothing in rideshare. The challenge is that despite 160 billion annual rides, only a tiny fraction are consistent commute rides. Many users are deterred by past issues with rideshare, such as the frustration of surge pricing; no one wants fluctuating costs for a consistent daily routine. On the flip side, the convenience of being in the backseat while you work or communicate is a definite advantage.
Price Lock addresses some of these concerns by stabilizing costs. Since we introduced the Price Lock membership a few quarters ago, we've seen a 21% increase compared to Q4, and the retention rate has risen to about 75%. This signifies that once users subscribe, they continue to utilize the service. Essentially, it represents a form of affordability, providing predictable pricing that can be integrated into daily life. It's encouraging to see such strong product-market fit, indicating we've tapped into something valuable.
Thank you.
The next question comes from the line of Nikhil Devnani with Bernstein. Please go ahead.
Hi. Thank you for taking my questions. I had two, please. First, on the taxi initiative you're rolling out in the U.S., do you think this can accelerate your growth in '25 and '26? Just trying to get a sense for the scale of it. And is there a long process to bring more taxis online in more markets? Or do you think this is something where you can move fairly quickly with new cities beyond St. Louis? And then my second question is around AV partnerships. Do the deals that Uber is striking, do they actually accelerate your ability to onboard partners because there is a playbook for these AV providers to rinse and repeat, so to speak? Or do you feel like you need to be the first front in the door because fleets are still really small and experimental, so there aren't enough cars to go around just yet? Thank you.
Yes, Nikhil, those are two good questions. Let me address both. I apologize for getting so focused on your last question that I forgot the first one. Could you please repeat the first question?
Just on the taxi initiative in the U.S. and the rollout of more cities.
Yes, of course. I apologize for any confusion. The two-part question is always challenging. To clarify, we began in St. Louis, and it’s promising. Regarding whether this will accelerate growth, I won’t comment specifically. However, when we evaluate our strategic initiatives for the year, which we established at the end of last year, expanding our access to fleet was quite crucial. This is significant for a couple of reasons. The diversity of supply is essential, particularly with taxis, and also when we consider what we refer to as the high-margin segment, especially black cars that typically belong to fleets. These have solid economic benefits as they are insured differently compared to standard insurance with us. I won’t speculate beyond St. Louis at this point, but it is an important element of our strategy in the U.S. Furthermore, with the FREENOW acquisition, their expertise will be very beneficial to us.
Regarding autonomous vehicles, it is not a requirement to be first in this space. Despite potential limitations in fleet numbers, every autonomous vehicle provider is eager to collaborate with multiple partners to avoid dependence on any single relationship. Therefore, exclusivity is unlikely as it contradicts their interests. While there may be temporary supply constraints where one provider might excel in a particular city, this will be short-lived. More importantly, for me as an equipment supplier, it’s crucial to identify a partner who can effectively monetize and collaborate on shared goals. We believe we possess a unique asset with our integrated fleet management solution for rideshare, which gives us a significant advantage. Ultimately, most suppliers aim to engage at least two partners to ensure diversification and reduce reliance on any single entity.
Thanks, David.
Your next question comes from the line of Stephen Ju with UBS. Please go ahead.
Thank you. David, when you presented the Lyft Media targets at the Investor Day, there seemed to be some skepticism about whether those goals could be achieved in the coming years. However, I found the strategy of offering retailers and merchants traffic based on the user's destination, particularly if they are headed to their store, quite intriguing. This could potentially allow you to attract performance ad budgets. Could you provide an update on how this is progressing, particularly regarding your outreach to performance advertisers as well as awareness and brand advertisers? Thank you.
Sure, that's a great question, and I appreciate your recall. Let's start with the overall view first. I remember the doubts I had at that time. We are indeed on track to achieve a $100 million run rate by the end of the year, and I feel optimistic about that. I also want to highlight Susie, our leader driving this progress. She has a strong background, having contributed significantly to building YouTube's advertising platform and then Wave. While I'm at it, I want to commend the whole team, which is exceptional, and we're also bringing in new talent — in fact, we just welcomed someone new recently. The early results we’ve seen are very promising. As I mentioned, we are set to hit the $100 million milestone. This success can be partially attributed to our significant brand partnerships. Third-party measurement platforms show that we have an impact on brand perception that is seven times higher than the norm, and our click-through rate is about ten times the average.
That's very encouraging. We're also diversifying our ad formats. Erin previously mentioned Wait & Save, which allows consumers to save money by waiting longer, and it also gives us more time to engage with riders. We now have a new video ad format that engages users while they wait, allowing them to check out movie trailers or brand promotions. We’re quite excited about this. It's still early in our journey, but I feel very optimistic about our platform and the opportunities ahead. Regarding what we call sponsored rides, we're still very enthusiastic about this initiative, which is currently in an experimental phase. I can't share the partners we're working with just yet, but we’re seeing encouraging results. Some experiments are small-scale, and we don’t have complete clarity yet, but I remain confident about its potential. Businesses that rely on attracting customers are very interested in solutions that can effectively drive foot traffic. So, while there’s nothing concrete to share at this moment, I remain convinced of the value in this area based on what we've observed.
Thank you.
Your next question comes from the line of Doug Anmuth with JPMorgan. Please go ahead.
Thanks for taking the questions. I have two. Just as you continue to see strength in rides with the 200 basis points of acceleration, but pricing was down 3% year-over-year. Can you just talk about what's driving the lower gross bookings per ride, particularly as you continue to grow luxury modes? And are you seeing more discounts and promotions or just industry-wide pricing dynamics tied to insurance easing? And then maybe on 2Q and just thinking about Delta, is there any shift or change from kind of how you were thinking about the 100 basis point impact to rides and 200 basis point impact from gross bookings? Thanks.
Thanks, Doug. This is Erin. I'll address the question, starting with gross bookings overall. I want to emphasize that we are very focused on entering the $161 billion private vehicle market that we discussed at our Investor Day. We're seeing growth in our top markets, especially in commuting, which David mentioned earlier, and we're proud of that strength. One of our greatest opportunities lies in expanding our reach in historically underrepresented markets. We've been discussing Canada for some time now and our achievements there, having grown that market by 100% in 2024, with ride growth of 55% in Q1. We are about to launch in Quebec and a few other cities, so our growth there will continue. In that market, the overall gross bookings per ride are lower than the U.S. average. Additionally, we noted underpenetrated markets in the U.S. in our prepared remarks. This strategy isn't new; we've been applying our operational excellence and customer focus more broadly in the U.S., yielding impressive results.
For instance, in Indianapolis, we mentioned growth exceeding 30% year-over-year in Q1, with similar growth in Charlotte. This is exciting as we maintain strong growth in active riders and rideshare frequency across various markets, complementing the growth in our top markets. However, there is a mix effect to consider as you observe the overall gross bookings per ride dynamics. Regarding your second question about Delta, I want to highlight that the Delta partnership concluded on April 7, so it's still early. Typically, entering or exiting a partnership like this impacts performance over time. This curve will depend on the offers they provide, along with our focus on retention and competitiveness. Our service levels are excellent, but pricing and benefits are just one aspect of a rider’s decision-making process. It's important to note that our past partnership with Delta had more benefits than the current one with their new partners. Riders will weigh various criteria in their decisions. While it’s early, we believe this will ultimately impact us by about 1% in rides and about 2 percentage points in gross bookings over time.
Okay. Thank you, Erin.
Yeah.
Your next question comes from the line of Steven Fox of Fox Advisors. Please go ahead.
Hi, good afternoon. Just one question, just following up on that last one. If we think more deeply about the Q2 guidance in terms of ride growth and monetizing per ride basis, like what would be the sort of how you would directionally talk about it? Is there any consideration for any consumer spending risk? And then where would be some of the things you've highlighted on this call about growth on different platforms, what would be the major drivers? Would it still be commute leading the way or something else? Thanks.
Yes, sure. So again, starting at a high level, we provide range overall for our guide. Our intention is for that range to bracket, of course, for a number of different scenarios overall. We expect commute to continue to be strong. We think this mix of the result of our efforts in some of these underpenetrated markets, we continue to see great momentum there. So we think that will have an impact in the second quarter, as well as growth in our top markets. So some of those similar dynamics that I just talked about for Q1, I would expect to consider for Q2. And maybe I'll start with the consumer sentiment side. David, if you want to add anything. I think the headline here is we are just not seeing anything in our data. As you know, we don't have a lot of leading indicators, but we are not seeing in our data signs of weakening. We see continued growth across modes, across different use cases overall. So David, do you want to add anything to that?
I mean you just said. It's so interesting. We can all probably talk openly about this. We all read the same headlines. But at the same time, when we look at the data, we had our strongest ride week, I think, the last week of March ever. And then even as recent as this past week, when we look at Syncomayo, which is another area where people tend to take rideshare, super, super strong. So again, everyone understands the uncertainty in the future. And of course, we have a business that's sort of resilient to that. We can talk about that separately if you're interested. But in terms of sentiment so far, things look strong.
Yes. Thank you. If you did want to follow up, I'd love to understand just the key headlines on how resilient the business could be in a downturn. Thanks.
Sure. Let's discuss the sector before diving into Lyft. I believe this sector has some inherent resilience. When examining demand, it's clear that it exists and we observe it consistently week after week. This has become an integral part of people's daily routines. We've often mentioned commuting, but we can also look at the health care aspect. Our health care rides, known as nonemergency medical transportation, have increased by around 30% year-over-year. This involves people traveling to medical appointments, often paid for by others. Essentially, rides have become essential for many individuals, indicating strong demand. Now, if we consider potential increases in car prices due to tariffs, it’s plausible that people might gravitate more towards rideshare options, as a $10 or $15 ride becomes much more appealing compared to a significantly more expensive car. It's interesting to note that generally, in any economic downturn, services tend to be more reliable compared to durable goods, which can fluctuate more.
Rideshare fits within that framework. Looking at the supply side, there's nothing new here. We have 1.4 million drivers on our platform who enjoy it. This is crucial as it represents a stable component of many people's lives. On an almost macroeconomic level, this is stabilizing for the U.S. economy because if someone loses their job—something that can occur in downturns—they can be back driving and earning in just 48 hours. Overall, it feels like we are in a very stable position. Although we can't predict the future with certainty, we strongly believe we are well-positioned to handle whatever comes our way.
With no further questions at this time. With that, I will now turn the call to David Risher, Chief Executive Officer, for closing remarks. Please go ahead.
Yes. Thank you, everyone. Thank you, Aurelien. Thank you, Erin. Thank you, everyone on the team who's worked so hard to do all the work we've done to put together a great quarter. So really appreciate everyone on the call, as always, and your support in Lyft. We've never been in a stronger position as we continue to deliver on our mission to serve and connect. Thank you all very much, and we will see you next time.
Ladies and gentlemen, this concludes today's conference call. We thank you for participating and ask that you please disconnect your lines.