Lyft Co-Founders Step Down from Board, Shares Surge 10%

Lyft's co-founders, Logan Green and John Zimmer, are stepping down from the board of directors in 2026, completing a two-year transition plan. They will convert their Class B shares to Class A shares, eliminating the dual-class structure and establishing equal voting rights for all shareholders. The company's stock has jumped 10% on the news, with a consensus Hold rating among 28 Wall Street analysts and an average price target of $16.86.

Lyft Inc. (NASDAQ: LYFT) has announced that its co-founders, Logan Green and John Zimmer, will step down from the company's board of directors on August 14, 2026, completing a two-year transition plan. This move is part of a broader effort to streamline the company's governance and enhance its voting structures.

As part of the transition, Green and Zimmer will convert their Class B shares to Class A shares, eliminating the dual-class structure and establishing equal voting rights for all shareholders. This change is expected to strengthen the company's governance and reflect its commitment to best-in-class practices [1].

The announcement has sparked a significant reaction in the market, with Lyft's shares jumping 10% on the news. The stock has been volatile in recent months, with 22 moves greater than 5% over the last year. However, the market appears to consider this news as meaningful but not fundamentally altering its perception of the business [2].

The company's recent second-quarter results show revenue of $1.59 billion, which was slightly below estimates. However, the number of rides on the platform grew 14% to a record high of 234.8 million. Management has signaled a 'thriving marketplace' and expects a stronger second half of the year [1].

Sean Aggarwal, who previously served as the chair of the board from 2019 to 2023, will be re-elected as the new board chair. His appointment enhances the board's independence and operational expertise [1].

Green and Zimmer have been instrumental in Lyft's growth since its founding in 2012. Green will continue to serve as a venture partner at Autotech Ventures, while Zimmer is launching a new consumer-focused business venture named YES& [1].

The transition plan includes the conversion of all Class B shares to Class A shares, which will give all shareholders equal voting rights. This move is part of Lyft's commitment to best-in-class governance and reflects the company's confidence in its future [2].

With these changes, the board will reduce its size to seven members, six of whom are independent. Lyft's CEO, David Risher, who has been leading the company since 2023, expressed his gratitude for Green and Zimmer's leadership and confidence in the company's future [2].

The stock has been volatile in recent months, with 22 moves greater than 5% over the last year. However, the market appears to consider this news as meaningful but not fundamentally altering its perception of the business [2].

References:
[1] Reuters. (2025). Lyft co-founders Logan Green and John Zimmer step down from board. Retrieved from https://finance.yahoo.com/news/lyft-co-founders-step-down-210724015.html
[2] Business Wire. (2025). Lyft announces updates to board of directors and enhanced voting and governance structures. Retrieved from https://www.businesswire.com/news/home/20250814348726/en/Lyft-Announces-Updates-to-Board-of-Directors-and-Enhanced-Voting-and-Governance-Structures