Hello and welcome to Modern CEO! I’m Stephanie Mehta, CEO and chief content officer of Mansueto Ventures. Each week this newsletter explores inclusive approaches to leadership drawn from conversations with executives and entrepreneurs, and from the pages of Inc. and Fast Company. If you received this newsletter from a friend, you can sign up to get it yourself every Monday morning.
Last week, Modern CEO shared reader recommendations of books leaders should read to get ready for 2026. Lyft CEO David Risher submitted a classic, writing: “If you’re looking for inspiration on how to write a comeback story for your company, there’s no better tale than The Odyssey.”
Risher knows a bit about penning comeback stories. He’s undertaking the Homerian task of reviving rideshare company Lyft and narrowing the gap between the company and rival Uber.
Taking on a turnaround
When Risher became CEO of Lyft in April 2023, after serving on its board of directors for almost two years, the company’s stock was trading at about $9 per share, well below its IPO price of $72 per share. At the time, its U.S. market penetration was about 26% or 27%. Lyft, once hailed as an innovator and a whimsical alternative to Uber, was stagnating.
Risher had previously worked at Amazon, where founder Jeff Bezos instilled an ethos of customer obsession, and he quickly assessed that Lyft had lost sight of its riders. Its employees also tended to overthink issues.
Risher has sought to address both issues: Early in his tenure, for example, he noted that customers experienced a cancellation about 15% of the time. When Risher expressed concern over the stat, employees shrugged it off. Eventually a driver would show up, and rides were completed 99% of the time. “I said, ‘Okay, but 100% of the time, it’s annoying,’” Risher recalls.
When some team members suggested they address Risher’s concerns by conducting research, he replied: “I don’t think we have to do a study. I can tell you right now, it’s just really annoying. So, let’s stop doing that, please.”
Getting driver cancellations down required operational and technical work, but Lyft has made progress, with rates now below 5%. Risher believes that reliability helps customer loyalty. Other rider-centric moves include the national rollout last year of Lyft Silver, a service for older adults, and Women+ Connect, an opt-in feature that increases the odds of pairing female and nonbinary riders with female and nonbinary drivers.
Still, Lyft has been called out on safety issues: A recent New York Times investigation into sexual assault by Uber drivers noted that Lyft bans all drivers with convictions for violent felonies but it, too, is facing sexual assault lawsuits from passengers. “We’re committed to continuously strengthening our systems and working with safety experts, advocates, and regulators to set the highest standards for our industry,” the company told The Times.
Risher has also worked to expand Lyft’s reach via the recent acquisition of Freenow, a European mobility platform, a move that he says doubles the company’s addressable market. “Now we truly are a global company,” he says.
Under Risher’s leadership, Lyft has eked out gains: Its market share has climbed to about 30%, and the stock now trades at about $19 per share, up about 40% over the past 12 months, outperforming Uber and the broader market.
Some analysts have speculated that Lyft could be an attractive acquisition for Amazon, Tesla, Google, or Waymo as they look to expand their autonomous transportation ambitions. “As a public company, we’re on sale every day on the market,” Risher responds. “People can buy our shares anytime they want, but we’re not out looking for suitors.”
Indeed, Risher—who was a comparative literature major at Princeton University—sounds like someone who hasn’t finished writing Lyft’s comeback story. When I asked what stage the turnaround is in, he says, “It might well be 10%.”
What’s left to be done? “Having really focused on people, customer obsession, and a deep culture of operational excellence,” he says, “now, frankly, it’s asking: How do we grow in new ways?” He calls autonomous vehicles “one of the biggest opportunities we’ve had since the beginning of the company” and envisages a hybrid network that allows riders to decide whether they want a self-driving car or one with a driver. “I think that’s going to be a big unlock,” he adds.
Tell us your turnaround tales
Are you trying to turn around a company? What are some of the tactics you’re deploying to increase sales, grow market share, or restore your brand? Send me a few lines about what you’re doing at stephaniemehta@mansueto.com. We’ll publish top insights in a future newsletter.
Listen and read more: comeback kids
- Brian Niccol, Starbucks’s $100 million man, shares his vision
- Elliot Hill on his mission to “make epic shit” at Nike
- How to turn your company around after a crisis