Lyft hires new CEO as co-founders step back amid competition struggles

March 27 (UPI) -- Lyft's co-founders plan to step down in a leadership shake-up as the ridesharing company struggles to compete against rival Uber. A former retail executive at Amazon will take over as Lyft's new chief executive officer next month.

Lyft co-founders, chief executive officer Logan Green and president John Zimmer, will step back from their roles over the next few months, the company announced Monday.

David Risher, a former retail executive at Amazon, will take over as Lyft's CEO on April 17, when Green will become chair of the rideshare's board. Zimmer will become vice chair of Lyft's board on June 30. The company's current chairman, Sean Aggarwal, will step down from his role, but remain on the board.

"I am honored to step into the CEO role at such an important moment in the company's history, and am prepared to take this business to new levels of success," Risher said in a statement.

Risher, who already serves on Lyft's board of directors, was Amazon's first head of product and head of U.S. retail. Risher was Amazon's 37th employee and helped lead the company from an online bookstore with $15 million in annual sales to the "everything store" with over $4 billion in sales. Risher also served as a general manager at Microsoft.

Green and Zimmer started Lyft in 2012 and took the rideshare company public in 2019. Lyft's shares have fallen more than 70% over the last year. Lyft's shares on Monday rose 5% after hours on news of the leadership change.

"Building Lyft with John over the last 16 years has been the adventure of a lifetime," Green said in a statement Monday.

"Billions of rides later, our industry is defined by the model of ridesharing that Lyft pioneered. All founders eventually find the right moment to step back and the right leaders to take their company forward," Green said, adding "David is the absolute right person to build on our foundation."

"Logan and I were told we were crazy to think people would share a ride in another person's car," Zimmer said in a statement Monday. "Over a decade later, Lyft is creating economic opportunity, building a sustainable future and helping people make meaningful connections -- with the support of millions of riders and drivers."