(Bloomberg) -- Lyft Inc. on Tuesday launched its rideshare service in Puerto Rico as the next step in an expansion across North America and Europe.
The company began recruiting drivers in late May on the Caribbean island, promising $100 bonuses to those who complete 50 rides in the first month in the capital of San Juan.
"There's obviously a deep connection between many folks who are in mainland in the United States who have connections in Puerto Rico," said Jeremy Bird, an executive vice president overseeing driver experience and the company's international expansion.
He cited demand for Lyft's service from locals, as well as tourists from places like New York and Chicago who were opening the app before service was available. Since the company began signing up drivers there, the number of people checking their Lyft apps has been up more than 30%, Bird said.
Shares of Lyft jumped as much as 2.8% after Bloomberg reported on the news.
San Francisco-based Lyft has been working to push beyond the US after becoming profitable and free cash flow positive on an annual basis in 2024. It has expanded into the 10 most populous cities in Canada, most recently in Montréal and Québec City. It is also expected to operate in some of the largest taxi markets in Europe, including the UK and Ireland, through its $197 million acquisition one of the region's largest taxi apps, Freenow. The deal is expected to close later this year and would nearly double Lyft's total addressable market, the company said when it announced the deal in April.
Lyft does not currently have a corporate office in Puerto Rico, but Bird said the company may open one in the future as it brings in different business functions, such as driver operations and the airports team. In addition to its US offices, it also has some in Toronto and Montréal, Bird said.
Lyft's larger ride-hailing rival, Uber Technologies Inc., has long since expanded to more than 70 countries and has adapted its business model to different markets, each of which has different regulations. Uber has similarly made deals and partnerships to increase its market share internationally, including putting taxis onto the app in cities where regulators or labor groups aren't friendly to ridesharing.
Lyft's expansion plans mark an inflection point for the company, which cut jobs and carried out a restructuring as it came out of the pandemic with a goal of becoming profitable. Since achieving that milestone last year, the company has been keen to tap additional revenue streams to achieve profits consistently.