Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2019	Oct. 30, 2019
Entity Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Entity Registrant Name	Lyft, Inc.
Entity Central Index Key	0001759509
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity File Number	001-38846
Entity Tax Identification Number	20-8809830
Entity Address, Address Line One	185 Berry Street
Entity Address, Address Line Two	Suite 5000
Entity Address, City or Town	San Francisco
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94107
City Area Code	844
Local Phone Number	250-2773
Document Quarterly Report	true
Document Transition Report	false
Entity Incorporation, State or Country Code	DE
Title of each class	Class A common stock, par value of $0.00001 per share
Trading Symbol	LYFT
Name of each exchange on which registered	NASDAQ
Class A Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		286,463,787
Class B Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		11,232,629

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Current assets
Cash and cash equivalents	$ 543,871	$ 517,690
Short-term investments	2,572,568	1,520,180
Prepaid expenses and other current assets	426,384	282,572
Total current assets	3,542,823	2,320,442
Restricted cash and cash equivalents	139,440	187,374
Restricted investments	1,237,314	863,713
Property and equipment, net	159,986	109,257
Operating lease right of use assets	411,962	0
Intangible assets, net	90,218	117,733
Goodwill	150,781	152,085
Other assets	2,637	9,439
Total assets	5,735,161	3,760,043
Current liabilities
Accounts payable	36,210	32,343
Insurance reserves	1,374,935	810,273
Accrued and other current liabilities	880,769	606,203
Operating lease liabilities — current	88,875	0
Total current liabilities	2,380,789	1,448,819
Operating lease liabilities	359,160	0
Other liabilities	5,698	30,458
Total liabilities	2,745,647	1,479,277
Commitments and contingencies (Note 6)
Redeemable convertible preferred stock, $0.00001 par value; no and 227,328,900 shares authorized as of September 30, 2019 and December 31, 2018, respectively; no and 219,175,709 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively	0	5,152,047
Stockholders’ equity (deficit)
Preferred stock, $0.00001 par value; 1,000,000,000 and no shares authorized as of September 30, 2019 and December 31, 2018, respectively; no shares issued and outstanding as of September 30, 2019 and December 31, 2018	0	0
Common stock, $0.00001 par value; 18,000,000,000 Class A shares and 340,000,000 shares authorized, 286,350,943 Class A shares and 22,438,472 shares issued and outstanding, as of September 30, 2019 and December 31, 2018, respectively; 100,000,000 and no Class B shares authorized, 11,232,629 and no Class B shares issued and outstanding, as of September 30, 2019 and December 31, 2018, respectively	3	0
Additional paid-in capital	8,176,401	73,916
Accumulated other comprehensive income	4,629	133
Accumulated deficit	(5,191,519)	(2,945,330)
Total stockholders’ equity (deficit)	2,989,514	(2,871,281)
Total liabilities, redeemable convertible preferred stock and stockholders’ equity (deficit)	$ 5,735,161	$ 3,760,043

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2019	Dec. 31, 2018
Preferred stock par value	$ 0.00001
Preferred stock shares authorized	1,000,000,000	0
Preferred stock shares issued	0	0
Preferred stock shares outstanding	0	0
Common stock par value		$ 0.00001
Common stock shares authorized		340,000,000
Common stock shares, issued		22,438,472
Common stock shares outstanding		22,438,472
Redeemable Convertible Preferred Stock
Temporary equity par value	$ 0.00001	$ 0.00001
Temporary equity shares authorized	0	227,328,900
Temporary equity shares issued	0	219,175,709
Temporary equity shares outstanding	0	219,175,709
Class A Common Stock
Common stock par value	$ 0.00001
Common stock shares authorized	18,000,000,000
Common stock shares, issued	286,350,943
Common stock shares outstanding	286,350,943
Class B Common Stock
Common stock par value	$ 0.00001
Common stock shares authorized	100,000,000	0
Common stock shares, issued	11,232,629	0
Common stock shares outstanding	11,232,629	0

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenue	$ 955,598	$ 584,951	$ 2,598,890	$ 1,487,051
Costs and expenses
Cost of revenue	580,714	322,614	1,673,707	876,409
Operations and support	149,794	92,481	489,004	219,752
Research and development	288,272	77,168	1,229,065	204,775
Sales and marketing	163,858	241,015	619,938	584,829
General and administrative	263,820	120,348	907,842	308,974
Total costs and expenses	1,446,458	853,626	4,919,556	2,194,739
Loss from operations	(490,860)	(268,675)	(2,320,666)	(707,688)
Interest income	28,651	19,615	78,284	46,367
Other income, net	641	409	476	65
Loss before income taxes	(461,568)	(248,651)	(2,241,906)	(661,256)
Provision for income taxes	1,909	510	4,283	1,147
Net loss	$ (463,477)	$ (249,161)	$ (2,246,189)	$ (662,403)
Net loss per share, basic and diluted	$ (1.57)	$ (11.58)	$ (11.05)	$ (31.72)
Weighted-average number of shares outstanding used to compute net loss per share, basic and diluted	294,784	21,508	203,199	20,884
Cost of revenue
Costs and expenses
Stock-based compensation expense	$ 12,078	$ 139	$ 68,625	$ 381
Operations and support
Costs and expenses
Stock-based compensation expense	8,553	48	68,178	145
Research and development
Costs and expenses
Stock-based compensation expense	153,830	1,110	842,954	2,353
Sales and marketing
Costs and expenses
Stock-based compensation expense	7,969	63	65,213	237
General and administrative
Costs and expenses
Stock-based compensation expense	$ 59,746	$ 1,486	$ 349,930	$ 3,227

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Statement Of Income And Comprehensive Income [Abstract]
Net loss	$ (463,477)	$ (249,161)	$ (2,246,189)	$ (662,403)
Other comprehensive (loss) income
Foreign currency translation adjustment	431	(75)	1,098	165
Unrealized gain (loss) on marketable securities, net of taxes	(1,295)	(21)	3,398	538
Other comprehensive (loss) income	(864)	(96)	4,496	703
Comprehensive loss	$ (464,341)	$ (249,257)	$ (2,241,693)	$ (661,700)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) (Unaudited) - USD ($) $ in Thousands	Total	Redeemable Convertible Preferred Stock	Common Stock	Common Stock Common Class A And B	Additional Paid-In Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)
Beginning balance at Dec. 31, 2017	$ (1,979,438)				$ 55,568	$ (2,033,995)	$ (1,011)
Beginning balance, shares at Dec. 31, 2017		199,815,000
Beginning balance at Dec. 31, 2017		$ 4,284,049
Beginning balance, shares at Dec. 31, 2017			19,916,000
Issuance of Series H redeemable convertible preferred stock, net of issuance cost		$ 54,193
Issuance of Series H redeemable convertible preferred stock, net of issuance cost, shares		1,364,000
Issuance of common stock upon exercise of stock options	1,169				1,169
Issuance of common stock upon exercise of stock options, shares			335,000
Vesting of early exercised stock options	13				13
Stock-based compensation	1,996				1,996
Other comprehensive income (loss)	(1,013)						(1,013)
Net loss	(234,339)					(234,339)
Ending balance at Mar. 31, 2018	(2,211,612)				58,746	(2,268,334)	(2,024)
Ending balance, shares at Mar. 31, 2018		201,179,000
Ending balance at Mar. 31, 2018		$ 4,338,242
Ending balance, shares at Mar. 31, 2018			20,251,000
Beginning balance at Dec. 31, 2017	(1,979,438)				55,568	(2,033,995)	(1,011)
Beginning balance, shares at Dec. 31, 2017		199,815,000
Beginning balance at Dec. 31, 2017		$ 4,284,049
Beginning balance, shares at Dec. 31, 2017			19,916,000
Other comprehensive income (loss)	703
Net loss	(662,403)
Ending balance at Sep. 30, 2018	(2,626,504)	$ 5,126,707			70,202	(2,696,398)	(308)
Ending balance, shares at Sep. 30, 2018		218,640,000
Ending balance, shares at Sep. 30, 2018			21,907,000
Beginning balance at Mar. 31, 2018	(2,211,612)				58,746	(2,268,334)	(2,024)
Beginning balance, shares at Mar. 31, 2018		201,179,000
Beginning balance at Mar. 31, 2018		$ 4,338,242
Beginning balance, shares at Mar. 31, 2018			20,251,000
Issuance of Series H redeemable convertible preferred stock, net of issuance cost		$ 199,969
Issuance of Series H redeemable convertible preferred stock, net of issuance cost, shares		5,032,000
Issuance of Series I redeemable convertible preferred stock, net of issuance cost		$ 553,207
Issuance of Series I redeemable convertible preferred stock, net of issuance cost, shares		11,684,000
Issuance of common stock upon exercise of stock options	2,928				2,928
Issuance of common stock upon exercise of stock options, shares			1,005,000
Issuance of restricted common stock upon early exercise of stock options, Shares			5,000
Vesting of early exercised stock options	19				19
Stock-based compensation	1,501				1,501
Other comprehensive income (loss)	1,812						1,812
Net loss	(178,903)					(178,903)
Ending balance at Jun. 30, 2018	(2,384,255)				63,194	(2,447,237)	(212)
Ending balance, shares at Jun. 30, 2018		217,895,000
Ending balance at Jun. 30, 2018		$ 5,091,418
Ending balance, shares at Jun. 30, 2018			21,261,000
Issuance of Series I redeemable convertible preferred stock, net of issuance cost		$ 35,289
Issuance of Series I redeemable convertible preferred stock, net of issuance cost, shares		745,000
Issuance of common stock upon exercise of stock options	3,994				3,994
Issuance of common stock upon exercise of stock options, shares			625,000
Issuance of restricted common stock upon early exercise of stock options, Shares			21,000
Vesting of early exercised stock options	168				168
Stock-based compensation	2,846				2,846
Other comprehensive income (loss)	(96)						(96)
Net loss	(249,161)					(249,161)
Ending balance at Sep. 30, 2018	(2,626,504)	$ 5,126,707			70,202	(2,696,398)	(308)
Ending balance, shares at Sep. 30, 2018		218,640,000
Ending balance, shares at Sep. 30, 2018			21,907,000
Beginning balance at Dec. 31, 2018	(2,871,281)				73,916	(2,945,330)	133
Beginning balance, shares at Dec. 31, 2018		219,175,709
Beginning balance at Dec. 31, 2018	$ 5,152,047	$ 5,152,047
Beginning balance, shares at Dec. 31, 2018	22,438,472			22,438,000
Issuance of common stock upon exercise of stock options	$ 1,599				1,599
Issuance of common stock upon exercise of stock options, shares				7,121,000
Issuance of common stock upon settlement of RSUs, shares				17,688,000
Shares withheld related to net share settlement	(785,004)				(785,004)
Shares withheld related to net share settlement, shares				(11,415,000)
Vesting of early exercised stock options	2				2
Stock-based compensation	859,486				859,486
Other comprehensive income (loss)	2,053						2,053
Net loss	(1,138,473)					(1,138,473)
Ending balance at Mar. 31, 2019	(3,931,618)				149,999	(4,083,803)	2,186
Ending balance, shares at Mar. 31, 2019		219,176,000
Ending balance at Mar. 31, 2019		$ 5,152,047
Ending balance, shares at Mar. 31, 2019				35,832,000
Beginning balance at Dec. 31, 2018	(2,871,281)				73,916	(2,945,330)	133
Beginning balance, shares at Dec. 31, 2018		219,175,709
Beginning balance at Dec. 31, 2018	$ 5,152,047	$ 5,152,047
Beginning balance, shares at Dec. 31, 2018	22,438,472			22,438,000
Other comprehensive income (loss)	$ 4,496
Net loss	(2,246,189)
Ending balance at Sep. 30, 2019	2,989,514			$ 3	8,176,401	(5,191,519)	4,629
Ending balance, shares at Sep. 30, 2019		0
Ending balance at Sep. 30, 2019	0
Ending balance, shares at Sep. 30, 2019				297,584,000
Beginning balance at Mar. 31, 2019	(3,931,618)				149,999	(4,083,803)	2,186
Beginning balance, shares at Mar. 31, 2019		219,176,000
Beginning balance at Mar. 31, 2019		$ 5,152,047
Beginning balance, shares at Mar. 31, 2019				35,832,000
Issuance of common stock upon exercise of stock options	940				940
Issuance of common stock upon exercise of stock options, shares				250,000
Issuance of common stock upon settlement of RSUs, shares				3,476,000
Shares withheld related to net share settlement	(80,076)				(80,076)
Shares withheld related to net share settlement, shares				(1,478,000)
Issuance of common stock in connection with initial public offering, net of offering costs, underwriting discounts and commissions	2,483,623			$ 1	2,483,622
Issuance of common stock in connection with initial public offering, net of offering costs, underwriting discounts and commissions, shares				35,497,000
Conversion of redeemable convertible preferred stock to common stock in connection with initial public offering	5,152,047			$ 2	5,152,045
Conversion of redeemable convertible preferred stock to common stock in connection with initial public offering, shares		(219,176,000)
Conversion of redeemable convertible preferred stock to common stock in connection with initial public offering		$ (5,152,047)
Conversion of redeemable convertible preferred stock to common stock in connection with initial public offering, shares				219,176,000
Cancelled escrow shares related to a business combination	(90)				(90)
Cancelled escrow shares related to a business combination, shares				(2,000)
Stock-based compensation	293,238				293,238
Other comprehensive income (loss)	3,307						3,307
Net loss	(644,239)					(644,239)
Ending balance at Jun. 30, 2019	3,277,132			$ 3	7,999,678	(4,728,042)	5,493
Ending balance, shares at Jun. 30, 2019				292,751,000
Issuance of common stock upon exercise of stock options	12,449				12,449
Issuance of common stock upon exercise of stock options, shares				2,562,000
Issuance of common stock upon settlement of RSUs, shares				3,772,000
Shares withheld related to net share settlement	(77,902)				(77,902)
Shares withheld related to net share settlement, shares				(1,501,000)
Stock-based compensation	242,176				242,176
Other comprehensive income (loss)	(864)						(864)
Net loss	(463,477)					(463,477)
Ending balance at Sep. 30, 2019	2,989,514			$ 3	$ 8,176,401	$ (5,191,519)	$ 4,629
Ending balance, shares at Sep. 30, 2019		0
Ending balance at Sep. 30, 2019	$ 0
Ending balance, shares at Sep. 30, 2019				297,584,000

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities
Net loss	$ (2,246,189)	$ (662,403)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization	84,352	5,419
Stock-based compensation	1,394,900	6,343
Amortization of premium on marketable securities	342	448
Accretion of discount on marketable securities	(31,209)	(15,277)
Loss on disposal of assets	24,332
Other	801	296
Changes in operating assets and liabilities
Prepaid expenses and other assets	(141,401)	(56,230)
Operating lease right-of-use assets	70,551
Accounts payable	(733)	(20,288)
Insurance reserves	564,663	315,264
Accrued and other liabilities	283,902	278,848
Lease liabilities	(63,822)
Net cash used in operating activities	(59,511)	(147,580)
Cash flows from investing activities
Purchases of marketable securities	(4,836,182)	(4,350,848)
Purchase of term deposit	(105,000)
Proceeds from sales of marketable securities	893,429	827,838
Proceeds from maturities of marketable securities	2,656,249	2,927,079
Purchases of property and equipment and scooter fleet	(128,431)	(28,430)
Purchases of other intangible assets		(2,200)
Cash paid for acquisitions, net of cash acquired	(1,801)
Other investing activities	4,007	(28,000)
Net cash used in investing activities	(1,517,729)	(654,561)
Cash flows from financing activities
Proceeds from issuance of common stock in initial public offering, net of underwriting commissions, offering costs and reimbursements	2,484,101
Proceeds from issuance of redeemable convertible preferred stock, net of issuance costs		842,658
Proceeds from exercise of stock options and other common stock issuances	14,914	8,486
Payment of deferred offering costs		(6)
Taxes paid related to net share settlement of equity awards	(942,780)
Net cash provided by financing activities	1,556,235	851,138
Effect of foreign exchange on cash, cash equivalents and restricted cash and cash equivalents	196	(109)
Net decrease in cash, cash equivalents and restricted cash and cash equivalents	(20,809)	48,888
Beginning of period	706,486	1,178,919
End of period	685,677	1,227,807
Non-cash investing and financing activities
Purchases of property and equipment, and scooter fleet not yet settled	9,316	5,187
Deferred offering costs accrued, unpaid	72	$ 164
Right of use assets acquired under operating leases	196,730
Conversion of redeemable convertible preferred stock to common stock in connection with initial public offering	5,152,047
Reclassification of deferred offering costs to additional paid-in capital upon initial public offering	$ 7,690

Condensed Consolidated Statements of Cash Flows (Parenthetical) (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018
Reconciliation of cash, cash equivalents and restricted cash and cash equivalents to the condensed consolidated balance sheets
Cash and cash equivalents	$ 543,871	$ 1,088,645
Restricted cash and cash equivalents	139,440	139,162
Restricted cash, included in prepaid expenses and other current assets	2,366
Total cash, cash equivalents and restricted cash and cash equivalents	$ 685,677	$ 1,227,807

Description of Business and Basis of Presentation

9 Months Ended

Sep. 30, 2019

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Description of Business and Basis of Presentation

1.	Description of Business and Basis of Presentation

Organization and Description of Business

Lyft, Inc. (the “Company” or “Lyft”) is incorporated in Delaware with its headquarters in San Francisco, California. Lyft operates multimodal transportation networks in the United States and Canada that offer access to a variety of transportation options through the Company’s platform and mobile-based applications.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and the requirements of the U.S. Securities and Exchange Commission (the “SEC”) for interim reporting. The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

The condensed consolidated balance sheet as of December 31, 2018 included herein was derived from the audited financial statements as of that date. The accompanying unaudited condensed consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to state fairly the Company’s financial position, results of operations, comprehensive loss, redeemable convertible preferred stock and stockholders’ equity (deficit), and cash flows for the periods presented, but are not necessarily indicative of the results of operations to be anticipated for any future annual or interim period.

These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and notes included in the prospectus dated March 28, 2019, as filed with the SEC pursuant to Rule 424(b) under the Securities Act of 1933, as amended (File No. 333-229996).

Initial Public Offering

The Company’s registration statement on Form S-1 (the “IPO Registration Statement”) related to its initial public offering (“IPO”) was declared effective on March 28, 2019, and the Company’s Class A common stock began trading on the Nasdaq Global Select Market on March 29, 2019. On April 2, 2019, the Company completed its IPO, in which the Company sold 32,500,000 shares of Class A common stock at a price to the public of $72.00 per share. On April 9, 2019, the Company sold an additional 2,996,845 shares of Class A common stock at a price to the public of $72.00 per share pursuant to the exercise of the underwriters’ option to purchase additional shares. The Company received aggregate net proceeds of $2.5 billion after deducting underwriting discounts and commissions of $70.3 million and offering expenses of $7.7 million subject to certain cost reimbursements.

Immediately prior to the completion of the IPO, 219,175,709 shares of redeemable convertible preferred stock then outstanding converted into an equivalent number of shares of common stock. Immediately prior to the completion of the IPO, the Company filed its Amended and Restated Certificate of Incorporation, which authorizes a total of 18,000,000,000 shares of Class A common stock, 100,000,000 shares of Class B common stock, and 1,000,000,000 shares of preferred stock. Upon the filing of the Amended and Restated Certificate of Incorporation, 255,007,393 shares of the Company’s common stock then outstanding were automatically reclassified into an equivalent number of shares of the Company’s Class A common stock. Immediately after the reclassification and prior to the completion of the IPO, a total of 12,779,709 shares of Class A common stock held by Logan Green, John Zimmer and their respective affiliated trusts were exchanged for an equivalent number of shares of Class B common stock pursuant to the terms of certain exchange agreements. As a result, following the completion of the IPO, the Company has two classes of authorized and outstanding common stock: Class A common stock and Class B common stock.

Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2019

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2.	Summary of Significant Accounting Policies

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and reported amounts of revenues and expenses during the reporting periods. The Company bases its estimates on various factors and information which may include, but are not limited to, history and prior experience, expected future results, new related events and economic conditions, which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results could differ materially from those estimates.

Significant items subject to estimates and assumptions include those related to losses resulting from insurance claims, fair value of financial instruments, goodwill and identifiable intangible assets, leases, indirect tax obligations, legal contingencies, valuation allowance for deferred income taxes, and valuation of stock-based compensation.

Revenue Recognition

The Company generates substantially all of its revenue from its ridesharing marketplace that connects drivers and passengers. The Company also generates revenue from its network of shared bikes and scooters, and its Express Drive program. Beginning in 2018, the Company generated revenue from subscription fees paid by riders to access its network of shared bikes and single use ride fees paid by riders to access its network of shared bikes and scooters. Subscription fees are recognized on a straight-line basis over the subscription period. Single-use ride fees are recognized upon completion of each related ride. Revenue from the network of shared bikes and scooters was not material for the three and nine months ended September 30, 2019 and $0 for the three and nine months ended September 30, 2018. For its Express Drive program, the Company primarily generates revenue from lease income earned under an arrangement with one of its third-party Express Drive partners.

The Company recognizes revenue for its rideshare marketplace in accordance with Accounting Standards Codification Topic 606 (“ASC 606”), “Revenue from Contracts with Customers.”

Rideshare Marketplace

The Company generates revenue from service fees and commissions (collectively, “fees”) paid by drivers for use of the Company’s proprietary technology platform (the “Lyft Platform”) and related activities to connect drivers with passengers to facilitate and successfully complete rides via the Lyft mobile application (the “App”) where Lyft operates as a Transportation Network Company (“TNC”). The Company recognizes revenue upon completion of each ride. Under the Terms of Service (“ToS”), drivers agree that the Company retains the applicable fee as consideration for their use of the Lyft Platform and related activities from the fare and related charges it collects from passengers on behalf of drivers.

Principal vs. Agent Considerations: The Company evaluates the presentation of revenue on a gross vs. net basis based on whether it acts as a principal by controlling the transportation service provided to the passenger or whether it acts as an agent by arranging for third parties to provide the service to the passenger. The Company facilitates the provision of a transportation service by a driver to a passenger (the driver’s customer) in order for the driver to fulfill their contractual promise to the passenger. The driver fulfills their promise to provide a transportation service to their customer through use of the Lyft Platform. While the Company facilitates setting the price for transportation services, the drivers and passengers have the discretion in accepting the transaction price through the platform. The Company is not responsible for fulfilling transportation services being provided to the passenger nor does the Company have inventory risk related to these services. The Company is acting as an agent in facilitating the ability for a driver to provide a transportation service to a passenger. The Company reports revenue on a net basis, reflecting the fee owed to the Company from the driver as revenue, and not the gross amount collected from the passenger. The Company determined that it is not primarily responsible for the services since it does not promise the transportation services, does not contract with drivers to provide transportation services on the Company’s behalf, does not control whether the driver accepts or declines the transportation request via the Lyft Platform, and does not control the provision of transportation services by drivers to passengers at any point in time either before, during or after the ride.

The Company applied the following steps to achieve the core principle of ASC 606:

1. Identification of the Contract, or Contracts, with a Customer: The Company considered the ToS and its customary business practices in identifying the contracts under ASC 606. Drivers accept the ToS with Lyft to use the App. The ToS defines the fees the Company charges drivers for each transaction, each party’s rights and obligations regarding the services to be transferred and payment terms. The driver agrees to perform the transportation service as requested by the passenger upon acceptance of a passenger’s request for a ride via the App. As the Company’s customary business practice, a contract exists between the driver and the Company when the driver’s ability to cancel the ride lapses, which typically is upon pickup of the passenger. The duration of a contract with a customer is typically equal to the duration of a single ride. The Company does not earn any fees from the passengers to access the App and the Company has no obligation to the passengers to provide the ride. The Company collects the fare and related charges from passengers on behalf of drivers using the passenger’s pre-authorized credit card or other payment mechanism and retains its fees before making the remaining disbursement to drivers; thus the driver’s ability and intent to pay is not subject to significant judgment.

2. Identification of the Performance Obligations in the Contract: The Company provides a service to drivers to complete a successful transportation service for passengers. The service includes on-demand lead generation that assists drivers to find, receive and fulfill on-demand requests from passengers seeking transportation services and related collection activities using the Lyft Platform. These activities are not distinct from each other and are not separate performance obligations. As a result, the Company’s single performance obligation in the transaction is to connect drivers with passengers to facilitate the completion of a successful transportation service for passengers.

3. Determination of the Transaction Price: The Company earns fees from the drivers either as the difference between an amount paid by a passenger based on an up-front quoted fare and the amount earned by a driver based on actual time and distance for the ride or as a fixed percentage of the fare charged to the passenger. In an up-front quoted fare arrangement, as the Company does not control the driver’s actions at any point in the transaction to limit the time and distance for the ride, the Company takes on risks related to the driver’s actions which may not be fully mitigated. The Company earns a variable amount from the drivers and may record a loss from a transaction, which is recorded as a reduction to revenue, in instances where an up-front quoted fare offered to a passenger is less than the amount the Company is committed to pay the driver. The Company records certain payments to drivers, such as refunds and ride incentives, as variable consideration which results in a reduction to the fee earned by the Company at the time such payments are earned by the driver. Taxes, municipal and airport fees assessed by governmental authorities that are both imposed on and are concurrent with specific revenue producing transactions, and collected from drivers and passengers, are excluded from the transaction price. Such amounts are not included as a component of revenue or cost of revenue.

4. Allocation of the Transaction Price to the Performance Obligations in the Contract: The Company’s single performance obligation in the transaction is to connect drivers with passengers to facilitate the completion of a successful transportation service for passengers and, as a result, there is no allocation of the transaction price.

5. Recognition of Revenue when, or as, the Company Satisfies a Performance Obligation: Revenue is recognized at the time the performance obligation is satisfied by transferring the control of the promised service to a customer in an amount that reflects the consideration that the Company expects to receive in exchange for the service. The Company recognizes revenue upon completion of a ride as its performance obligation is satisfied upon the completion of the ride. The Company does not have contract assets or contract liabilities as the payment of the transaction price is concurrent with the fulfillment of the services. At the time of ride completion, the Company has the right to receive payment for the services rendered. Accordingly, there are no partially satisfied or unsatisfied performance obligations for the three and nine months ended September 30, 2019 and 2018.

As part of the adoption of ASC 606, the Company evaluated the use of practical expedients as required under the standard. New driver referral bonuses paid are contingent upon a new driver completing a certain number of rides and represent the incremental cost of obtaining a contract with a customer. The Company applied the practical expedient under ASC 606-10-45-1 and expenses new driver referral bonuses as sales and marketing expense when the referral bonuses are earned because the amortization period would be one year or less. The Company has no significant financing components with customers and did not utilize the practical expedient under ASC 606-10-32-18.

Express Drive Program Revenue

Under the Express Drive program, the Company connects drivers who need access to a car with third-party rental car companies. The Company facilitates the car rental transactions between car rental companies and drivers. During 2018, the Company expanded its Express Drive program with an Express Drive partner, a third-party rental car provider (the “Select Express Drive Partner”). Under the Company’s agreement with the Select Express Drive Partner (the “head lease”), the Company is required to pay fleet operating costs over periods ranging from two to three years for vehicles that the Company has committed will remain in a dedicated fleet to be ready to be rented by drivers using the Lyft Platform. Fleet operating costs include monthly fixed payments and other vehicle operating costs. Such payments are required to be made regardless of whether the vehicles are rented by drivers using the Lyft Platform. Drivers who rent vehicles through the arrangement with the Select Express Drive Partner are charged rental fees for which the Company collects from the driver. The Company collects rental fees by deducting such amounts from the driver’s earnings on the Lyft Platform, or through charging the driver’s credit card.

The Company is a principal in car rental transactions involving the Select Express Drive Partner as the Company becomes a lessee for each vehicle prior to its rental by a driver and is committed to the payment of fixed monthly amounts and other fleet operating costs. The Company subleases the vehicles to drivers when they are rented by drivers and, as a result, the Company considers itself to be the accounting sublessor in its arrangements with drivers. Vehicle leases with the Select Express Drive Partner are classified as operating leases and, accordingly, each sublease representing a car rental transaction with a driver is also an operating lease. Sublease income (revenue) and head lease expense for the Company’s transactions involving the Select Express Drive Partner are recognized on a gross basis in the condensed consolidated financial statements. The revenue recognized under the Select Express Drive Partner program was $32.7 million and $76.8 million for the three and nine months ended September 30, 2019, respectively, and $19.3 million and $33.4 million for the three and nine months ended September 30, 2018, respectively.

Incentive Programs

The Company offers incentives to attract drivers, passengers and riders of shared bikes and scooters (“Light Vehicle renters”) to use the Lyft Platform. Drivers generally receive cash incentives while passengers and Light Vehicle renters generally receive free or discounted rides under such incentive programs. Incentives provided to drivers and Light Vehicle renters, the customers of the Company, are accounted for as a reduction of the transaction price. As the passengers are not the Company’s customers, incentives provided to passengers are generally recognized as sales and marketing expense except for certain pricing programs described below.

Driver Incentives

The Company offers various incentive programs to drivers, including minimum guaranteed payments, volume-based discounts and performance-based bonus payments. These driver incentives are similar to retrospective volume-based rebates and represent variable consideration that is typically settled within a week. The Company reduces the transaction price by the estimated amount of the incentives expected to be paid upon completion of the performance criteria by applying the most likely outcome method. Therefore, such driver incentives are recorded as a reduction to revenue. Driver incentives are recorded as a reduction to revenue if the Company does not receive a distinct good or service in exchange for the payment or cannot reasonably estimate the fair value of the good or service received. Driver incentives for referring new drivers or passengers are accounted for as sales and marketing expense. The amount recorded as an expense is the lesser of the amount of the payment or the established fair value of the benefit received. The fair value of the benefit is established using amounts paid to third parties for similar services.

Passenger Incentives

The Company has several passenger incentive programs, which are offered to encourage passenger activity on the Lyft Platform. Generally, the passenger incentive programs are as follows:

(i)

Market-wide marketing promotions and discounts on shared rides. Market-wide promotions reduce the fare charged by drivers to passengers for all or substantially all rides in a specific market. This type of incentive effectively reduces the overall pricing of the service provided by drivers for that specific market and the gross fare charged by the driver to the passenger, and thereby results in a lower fee earned by the Company. In addition, discounted pricing on shared rides may result in a reduced fee earned by the Company. Accordingly, the Company records these types of incentives as a reduction to revenue at the date it records the corresponding revenue transaction.

(ii)

Targeted marketing promotions. Targeted marketing promotions are used in newly launched markets but may also be used in mature markets from time to time. An example is a promotion where the Company offers a number of discounted rides (capped at a given number of rides) which are valid only during a limited period of time to a targeted group of occasional passengers. The Company believes that the incentives that provide consideration to passengers to be applied to a limited number of rides are similar to marketing coupons. These incentives differ from the market-wide marketing promotions because they do not reduce the overall pricing from the service provided by drivers for a specific market. The intent of these incentives is to promote the use of the Lyft Platform to the targeted group of passengers.

During the promotion period, passengers not utilizing an incentive would be charged the full fare. These incentives represent marketing costs. When a passenger redeems the incentive, the Company recognizes revenue equal to the transaction price and the cost of the incentive is recorded as sales and marketing expense.

(iii)

Passenger referral programs. Under the passenger referral program, the referring passenger (the referrer) earns referral coupons when a new passenger (the referee) completes their first ride on the Lyft Platform. The Company records the incentive as a liability at the time the incentive is earned by the referrer with the corresponding charge recorded to sales and marketing expense. Referral coupons typically expire within one year. The Company estimates breakage using its historical experience. As of September 30, 2019 and December 31, 2018 the passenger referral coupon liability was not material.

Light Vehicle Renter Incentives

Incentives offered to Light Vehicle renters to access the Company’s network of shared bikes and scooters were not material for the three and nine months ended September 30, 2019 and 2018.

For the three and nine months ended September 30, 2019, in relation to the driver, passenger and Light Vehicle renter incentive programs, the Company recorded $126.1 million and $416.2 million as a reduction to revenue and $78.3 million and $282.7 million as sales and marketing expense, respectively. For the three and nine months ended September 30, 2018, in relation to the driver, passenger and Light Vehicle renter incentive programs, the Company recorded $138.3 million and $407.9 million as a reduction to revenue and $93.5 million and $214.4 million as sales and marketing expense, respectively.

Stock-Based Compensation

The Company estimates the fair value of stock options granted to employees, directors, and consultants and stock purchase rights granted under the Company’s Employee Stock Purchase Plan (“ESPP”) using the Black-Scholes option-pricing model. The fair value of stock options that are expected to vest is recognized as compensation expense on a straight-line basis over the requisite service period. The Company recognizes compensation expense related to the ESPP on a straight-line basis over the offering period, which is 12 months.

The fair value of restricted stock units (“RSUs”) is estimated based on the fair market value of the Company’s common stock on the date of grant, which subsequent to the IPO is determined based on the closing price of the Company’s Class A common stock as reported on the date of grant. Prior to the IPO, the Company granted RSUs which vest upon the satisfaction of both a service condition and a performance condition.

Compensation expense for RSUs with service and performance conditions is amortized on a graded basis over the requisite service period as long as the performance condition in the form of a specified liquidity event is probable to occur. The liquidity event condition was satisfied upon the effectiveness of the IPO Registration Statement on March 28, 2019. On that date the Company recorded a cumulative stock-based compensation expense of $857.2 million using the accelerated attribution method for the RSUs for which the service condition was satisfied as of March 28, 2019. The remaining unrecognized stock-based compensation expense related to these RSUs is recorded over their remaining requisite service periods. The compensation expense for RSUs granted after March 28, 2019, which vest upon satisfaction of a service-based condition only, is recognized on a straight-line basis over the requisite service period.

Stock-based compensation expense is based on awards ultimately expected to vest and reflects estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from initial estimates.

Insurance Reserves

The Company utilizes both a wholly owned captive insurance subsidiary and third-party insurance, which may include deductibles and self-insured retentions, to insure or reinsure costs including auto liability, uninsured and underinsured motorist, auto physical damage and general business liabilities up to certain limits. The recorded liabilities reflect the estimated ultimate cost for claims incurred but not paid and claims that have been incurred but not yet reported and any estimable administrative run-out expenses related to the processing of these outstanding claim payments. Liabilities are evaluated for appropriateness with claims reserve valuations provided by an independent third-party actuary on a quarterly basis. To limit exposure to some risks, the Company maintains additional insurance coverage with varying limits and retentions. The Company cannot predict whether this insurance will be adequate to cover all potential hazards incidental to its business.

Liability insurance claims may take several years to completely settle, and the Company has limited historical loss experience. Because of the limited operational history, the Company makes certain assumptions based on currently available information and industry statistics and utilizes actuarial models and techniques to estimate the reserves. A number of factors can affect the actual cost of a claim, including the length of time the claim remains open, economic and healthcare cost trends and the results of related litigation. Furthermore, claims may emerge in future years for events that occurred in a prior year at a rate that differs from previous actuarial projections. Accordingly, actual losses may vary significantly from the estimated amounts reported in the financial statements. Reserves are continually reviewed and adjusted as necessary as experience develops or new information becomes known. However, ultimate results may differ from the Company’s estimates, which could result in losses over the Company’s reserved amounts. Such adjustments are recorded in cost of revenue or general and administrative expenses depending on the nature of the reserves.

Recent Accounting Pronouncements

Recently Issued Accounting Pronouncements Not Yet Adopted

In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13 “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The new guidance amended guidance on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities. For available-for-sale debt securities, credit losses will be presented as an allowance rather than as a write-down. This standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for all entities. The Company is currently assessing the impact of adopting this standard on its condensed consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-15, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” This standard aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The implementation costs incurred in a hosting arrangement that is a service contract should be presented as a prepaid asset in the balance sheet and expensed over the term of the hosting arrangement to the same line item in the statement of operations as the costs related to the hosting fees. This standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for all entities including adoption in any interim period. The amendments should be applied either retrospectively or prospectively to all implementation costs incurred after adoption. The Company is currently assessing the impact of adopting this standard on its condensed consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-13, “Fair Value Measurement (Topic 820).” This standard modifies disclosure requirements related to fair value measurement and is effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. Implementation on a prospective or retrospective basis varies by specific disclosure requirement. The standard also allows for early adoption of any removed or modified disclosures upon issuance while delaying adoption of the additional disclosures until their effective date. The Company is currently assessing the impact of adopting this standard on its condensed consolidated financial statements.

Recently Adopted Accounting Pronouncements

In January 2016, the FASB issued ASU No. 2016-01 “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities,” which amends various aspects of the recognition, measurement, presentation, and disclosure of financial instruments. The Company adopted this ASU as of January 1, 2019, which did not have a material impact on its condensed consolidated financial statements.

In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” This ASU and subsequently issued amendments require a lessee to recognize leases with the term greater than 12 months on the balance sheet. The standard is effective for interim and annual reporting periods beginning after December 15, 2018, and early adoption is permitted. In July 2018, the FASB issued ASU No. 2018-11, “Targeted Improvements—Leases (Topic 842).” This update provides an optional transition method that allows entities to elect to apply the standard using the modified retrospective approach at its effective date, versus recasting the prior years presented. If elected, an entity would recognize a cumulative-effect adjustment to the opening balance of retained earnings in the year of adoption. The Company adopted the new standard as of January 1, 2019 using the transition method that provides for a cumulative-effect adjustment to retained earnings upon adoption. There was no impact on the Company’s accumulated deficit as of January 1, 2019 as a result of the adoption of this standard. The condensed consolidated financial statements for the three and nine months ended September 30, 2019 are presented under the new standard, while the comparative periods presented are not adjusted and continue to be reported in accordance with the Company’s historical accounting policy. The adoption of the new lease standard resulted in the recognition of operating lease right-of-use assets of $285.6 million and operating lease liabilities, including operating lease liabilities — current, of $314.1 million as of January 1, 2019. In connection with the adoption of this standard, deferred rent of $28.5 million, which was previously recorded in accrued and other current liabilities and in other long-term liabilities on the consolidated balance sheet as of December 31, 2018, was derecognized. See Note 5, “Leases,” for more information.

In August 2016, the FASB issued ASU No. 2016-15 “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” This standard clarifies the classification of certain cash receipts and cash payments in the statement of cash flows, including debt prepayment or extinguishment costs, settlement of contingent consideration arising from a business combination, insurance settlement proceeds, and distributions from certain equity method investees. The Company adopted this ASU on a retrospective basis as of January 1, 2019, which did not have any impact on its condensed consolidated financial statements.

Supplemental Financial Statement Information

9 Months Ended

Sep. 30, 2019

Balance Sheet Components Disclosure [Abstract]

Supplemental Financial Statement Information

3.	Supplemental Financial Statement Information

Cash Equivalents and Short-Term Investments

The following tables summarize the cost or amortized cost, gross unrealized gain, gross unrealized loss and fair value of the Company’s cash equivalents and short-term investments as of the dates indicated (in thousands):

	September 30, 2019
	Cost or Amortized		Unrealized					Estimated Fair
	Cost		Gains		Losses			Value
Unrestricted Balances⁽¹⁾
Money market funds	$	395,002	$	—	$	—		$	395,002
Term deposit		105,000		—		—			105,000
Certificates of deposit		1,439,085		1,570		(33	)		1,440,622
Commercial paper		867,179		187		(55	)		867,311
Corporate bonds		224,118		473		—			224,591
Total unrestricted cash equivalents and short-term investments		3,030,384		2,230		(88	)		3,032,526
Restricted Balances⁽²⁾⁽³⁾
Money market funds		21,873		—		—			21,873
Certificates of deposit		502,985		345		(38	)		503,292
Commercial paper		732,569		142		(142	)		732,569
Corporate bonds		63,908		95		—			64,003
Total restricted cash equivalents and investments		1,321,335		582		(180	)		1,321,737
Total unrestricted and restricted cash equivalents and investments	$	4,351,719	$	2,812	$	(268	)	$	4,354,263

(1)	Included in cash and cash equivalents and short-term investments in the Company’s condensed consolidated balance sheet as of September 30, 2019 in addition to $83.9 million of cash.

(2)	Included in restricted cash and cash equivalents and restricted investments in the Company’s condensed consolidated balance sheet as of September 30, 2019 in addition to $57.4 million of restricted cash.

(3)	Included in prepaid expenses and other current assets in the Company’s condensed consolidated balance sheet as of September 30, 2019 is $2.4 million of restricted cash.

	December 31, 2018
	Cost or Amortized		Unrealized					Estimated Fair
	Cost		Gains		Losses			Value
Unrestricted Balances⁽¹⁾
Money market funds	$	38,528	$	—	$	—		$	38,528
Certificates of deposit		497,748		19		(213	)		497,554
Commercial paper		1,135,092		38		(409	)		1,134,721
Corporate bonds		119,043		19		(23	)		119,039
Total unrestricted cash equivalents and short-term investments		1,790,411		76		(645	)		1,789,842
Restricted Balances⁽²⁾⁽³⁾
Money market funds		4,620		—		—			4,620
Certificates of deposit		307,650		41		(87	)		307,604
Commercial paper		624,719		17		(227	)		624,509
Corporate bonds		65,616		6		(36	)		65,586
Total restricted cash equivalents and investments		1,002,605		64		(350	)		1,002,319
Total unrestricted and restricted cash equivalents and investments	$	2,793,016	$	140	$	(995	)	$	2,792,161

(1)	Included in cash and cash equivalents and short-term investments in the Company’s condensed consolidated balance sheet as of December 31, 2018 in addition to $248.0 million of cash.

(2)	Included in restricted cash and cash equivalents and restricted investments in the Company’s condensed consolidated balance sheet as of December 31, 2018 in addition to $50.2 million of restricted cash.

(3)	Included in prepaid expenses and other current assets in the Company’s condensed consolidated balance sheet as of December 31, 2018 is $1.4 million of restricted cash.

The Company’s short-term investments consist of available-for-sale securities and a term deposit. Available-for-sale investments are reported at fair value, with unrealized gains and losses, included as a separate component of stockholders’ equity (deficit) within accumulated other comprehensive income. The term deposit is reported at cost, which approximates fair value.

The weighted-average remaining maturity of the Company’s investment portfolio was less than one year as of the periods presented. No individual security incurred continuous unrealized losses for greater than 12 months.

Insurance Reserves

The following table provides a rollforward of the insurance reserve for the periods presented (in thousands):

	Nine Months Ended September 30,
	2019			2018
Beginning balance	$	810,273		$	376,538
Losses paid		(349,919	)		(149,847	)
Change in estimates for prior periods		198,348			3,392
Reserves for current period		716,233			461,719
Ending balance	$	1,374,935		$	691,802

Fair Value Measurements

9 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements

4.	Fair Value Measurements

The following tables set forth the Company’s financial instruments that were measured at fair value on a recurring basis as of the dates indicated by level within the fair value hierarchy (in thousands):

	September 30, 2019
	Level 1		Level 2		Level 3		Total
Unrestricted Balances⁽¹⁾
Money market funds	$	395,002	$	—	$	—	$	395,002
Certificates of deposit		—		1,440,622		—		1,440,622
Commercial paper		—		867,311		—		867,311
Corporate bonds		—		224,591		—		224,591
Total unrestricted cash equivalents and short-term investments		395,002		2,532,524		—		2,927,526
Restricted Balances⁽²⁾⁽³⁾
Money market funds		21,873		—		—		21,873
Certificates of deposit		—		503,292		—		503,292
Commercial paper		—		732,569		—		732,569
Corporate bonds		—		64,003		—		64,003
Total restricted cash equivalents and investments		21,873		1,299,864		—		1,321,737
Total unrestricted and restricted cash equivalents and investments	$	416,875	$	3,832,388	$	—	$	4,249,263

(1)	Included in cash and cash equivalents and short-term investments in the Company’s condensed consolidated balance sheet as of September 30, 2019 in addition to $83.9 million of cash and $105.0 million of a term deposit.

(2)	Included in restricted cash and cash equivalents and restricted investments in the Company’s condensed consolidated balance sheet as of September 30, 2019 in addition to $57.4 million of restricted cash.

(3)	Included in prepaid expenses and other current assets in the Company’s condensed consolidated balance sheet as of September 30, 2019 is $2.4 million of restricted cash.

December 31, 2018

Level 1

Level 2

Level 3

Total

Unrestricted Balances⁽¹⁾

Money market funds