What is Lyft?
Lyft is an on-demand transportation service platform with a tagline “Find a New Friend Everyday''. The company came into being in 2009 under the name ‘Zimride’ but was later renamed as “Lyft '' in 2012. Lyft lets people book their cab rides through smartphones and is emerging as a big player in the industry giving stiff competition to uber. So what has made Lyft so popular in the USA?
Features of Lyft
Some brownie points about Lyft are:
- Lyft matches customers with nearest drivers to avoid long waiting time and provides a live tracking system for the driver to easily locate the pick up location.
- Its business model has a rating system for both the drivers and passengers.
- It offers free rides and rides at discounted rates on certain occasions and usually the prices are often lesser than normal taxi fares.
- Drivers are taken care of and have flexible working schedules where they can choose their desired timings and are entitled to 20% share of the total ride costs.
- Lyft also has a dynamic pricing model called ‘Heat Maps’ through which it can set flexible prices for its services based on the market demand at that particular time.
- Those who are passionate about driving can pursue their hobby, earn money and also expand their network.
4 easy steps to enjoy your ride using Lyft:
- Request a ride using your smartphone and choose the taxi of your preference- Lyft, Lyft line or Lyft Plus
- The app will match the customer with the nearest driver
- Map based interface will help in tracking the live location of both customer and driver
- Hassle free payment through the app and a rating system for both customers and drivers
Lyft business model
- Lyft’s key partners- these include drivers with their own cars, company and independent investors, insurance companies, payment and map providers.
- Key activities- Lyft has an efficient product management system. It provides timely customer support and manages driver payouts. It is also involved in hiring drivers, background checks and enhancing its marketing strategies.
- Value propositions for customers and drivers- it tries to ensure minimum waiting time, lesser taxi fares and tracking maps on cabs. It also promotes cashless and hassle free payment. It provides additional income to its drivers with flexible working hours and easy payments.
- Unique cost structure- it gives salary to permanent employees and payouts to drivers. It covers insurance costs and has developed an advanced technological infrastructure.
- Revenue streams- it charges customers on a per mile basis and provides 3 taxi options of Lyft, Lyft line and Lyft plus.
Lyft revenue model
Lyft is a car aggregator that matches customers with the nearest available driver. The transactions between driver and customers are handled by their app and 20% of the revenue from each ride goes to the company while 80% is retained by the driver. Lyft’s revenue model includes:
- Lyft heat maps- it is a location and demand specific feature where prices change based on these two factors
- Lyft car ride- It includes 5-seater car cabs
- Lyft plus- it includes 7-seater cabs
- Lyft line- it is a car sharing platform when a passenger does not want to hire an independent taxi and can share a ride with someone.
A tussle between Lyft and Uber
Lyft is giving stiff competition to Uber in the business world of the cab industry. The two companies have massively scaled up their business and are now an inspiration for budding players who can follow their footsteps and gain ground in this industry. The two are practically the same and serve the same set of audience however, they differ from each other in a number of ways: Lyft has the tagline- Your friend with a car. It sees the passengers and drivers and friends who can sit beside each other. The logo is a huge pink moustache stuck on the grill. It is a friendly, community-based platform. Lyft is currently operational only in the USA and Canada. Uber has the tagline- arrive in style. Here the passenger usually sits in the rear seat. The logo is a smoking face sticker pasted on the wind shield. Uber has a vast expanse and is functional in 67 countries.
Lyft is emerging as a community oriented, purpose-driven ride sharing service company with a mission to ‘improve people’s lives by providing World’s best transportation.’ Just like Lyft, AppsRhino, a mobile app development company, also provides similar features of app building for entrepreneurs and enterprises. Both treat their clients in a very friendly manner. So what are you waiting for? Grab your moment now!