Shares of rideshare company Lyft (LYFT) are up 10% on news that co-founders Logan Green and John Zimmer are stepping down from the company’s board of directors.
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LYFT stock is experiencing its biggest one-day gain since May of this year on reports that Green and Zimmer will exit the board of directors in 2026, completing a two-year transition plan. Additionally, the two founders will convert all of their Class B shares to Class A shares effective immediately, eliminating the dual-class structure and establishing equal voting rights for all shareholders.
After the conversion, the co-founders will own a combined 9.69 million shares of Lyft Class A common stock. As part of the leadership transition, Sean Aggarwal has been elected to serve as Chair of the Board at Lyft. Aggarwal joined Lyft’s board in 2016 and previously served as Chair from 2019 to 2023. He previously worked at both PayPal (PYPL) and Amazon (AMZN).
Share Restructuring
“Logan and John’s decision to eliminate the dual-class structure and establish a one-share, one-vote standard for Lyft stockholders delivers yet another benefit for our stockholders,” said Aggarwal in a news release announcing the changes.
Following these changes, Lyft’s board will be reduced to seven members, with six being independent directors. The governance changes come as Lyft works to improve its market position against rival Uber Technologies (UBER) and bolster its share price. LYFT stock has declined 46% in the last five years.
Is LYFT Stock a Buy?
Lyft stock has a consensus Hold rating among 28 Wall Street analysts. That rating is based on seven Buy, 20 Hold, and one Sell recommendations issued in the last three months. The average LYFT price target of $16.86 implies 5.05% upside from current levels.
