Lyft (LYFT) Faces Engine Capital’s Push for Board Refresh Amid Value Destruction and Shareholder Dilution

The Engine Capital presentation (April 29, 2025) argues that Lyft has destroyed shareholder value, underperformed Uber and the market, and suffers from entrenched governance and poor capital allocation. Engine highlights the dual-class share structure that gives founders ~30% voting power despite minimal ownership, equity dilution of ~8% annually, and an overcapitalized balance sheet with ~$1B net cash that is not being deployed effectively. It criticizes Lyft’s lack of experienced public company directors, resistance to shareholder input, and insufficient buyback plans. Engine urges shareholders to elect its nominees, Alan Bazaar and Daniel Silvers, who bring governance and capital allocation expertise, while voting against incumbent directors Sean Aggarwal and Betsey Stevenson. Its proposals include eliminating the dual-class structure, de-staggering the board, optimizing cash use (including a $750M accelerated share repurchase), reforming equity compensation, and exploring strategic alternatives, even a potential sale.