I am sitting down with the CEO of Lyft today, David Risher.

We get into why the stock is down 32% this year, even after its best first quarter on record,

what autonomous driving will do to Lyft its business mode and its competitors like Uber,

whether David would entertain offers for an acquisition from Google or Tesla and much more.

This is a fantastic conversation.

I learned a ton in this from David.

I think you will too.

David, I'm so glad we're here today.

The first thing I have to ask you, what's going on with Lyft stock?

It's down about 32% this year.

Uber's down about 10%.

So something is mispprice there because Lyft

is also coming off its best first quarter ever, I believe. Yeah. Yeah. So let's start with the

sort of facts and then kind of maybe what's happening. So as you say, best first quarter ever,

you know, we're growing at about 15, actually I think about 18 percent this quarter year on a year.

Our profitability has never been higher generated about about $1.1,2 billion in cash over the last 12 months. So all that's great and the best customer stats we've ever had. Okay, so then the question is well, what else is going on? And the answer is there is an enormous transition in our industry to the self-driving car world. It's not here yet. It's in the future. But when markets, and I'm not an investor, but I kind of know this just an observer, when markets see uncertainty, they get super conservative. And I think there's a conservative view that says go with a big guy. I'm not sure that's the right move. But anyway, and frankly, this is where money gets made is people realizing that maybe things are a little more complicated than that.

So you think that something is mispriced as far as people are underestimating the upside with Lyft embracing the autonomous vehicle transition?

That's right.

Okay. Something that's interesting too is that the average Wall Street price target is about $19 a share and lifts about $13. Why do you think the market, let's say the broader market, has not cut up to Wall Street's estimates? I think there are two things. And again, I'm not an investor. So, you know, my job is to run the company. And we focus on customer obsession driving our profitable growth. And that's what's been happening over the last three years. When I took the company on, we were losing share, we were losing money, we were consuming cash, now we're gaining share. We actually gain share quarter on quarter versus the other guy, which is nice. Still a huge market ahead of us, but anyway, that's a nice little sign. And obviously, we're making money and generating cash. Okay. So what happens then? Then again, you have to sort of look farther out and you have to say, well, in a world of sort of platform transition, right, self-driving cars coming on and kind of shuffling the deck a little bit, who's better position? And I think the market is just kind of getting it wrong. What do you think Lyft is doing that makes you better positioned than Uber, which does have a much bigger market share? Yeah. Love how you're getting in right to the center of the questions. It's fantastic. I mean, look, let's talk about self-driving cars for a second, because it's so on people's minds. It's going to require me to zoom out a little and then I can answer the question. I think for the industry, it's going to be a huge tailwind, self-driving cars are. They are a new product, a novel product that a lot of people, once they take, really like. They find them safe, they find reliable. Okay, so that's on the demand side, let's say, more demand because it's a new

product. On the cost side, you know, a big cost of operating a ride chain network, for example, is insurance. Insurance will be lower with self-driving cars because self-driving cars, on average, will be safer than human drivers. Okay. So you have a product that people like, and you've got a cost that is, you know, sort of superior, let's say better cost position than maybe the,

you know,

sort of superior, let's say better cost position than maybe the, you know, what's currently available in the marketplace. So what has to happen for those, for this to be great for the industry and then for Lyft, we have to bring them onto our platform, right? We've got to give customers a choice, right? If you want a self-driving car, you should be able to get one. If you want a human-driven car, help with your groceries, help with your

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