ABOUT LYFT

Lyft platform offers a ridesharing marketplace, which connects drivers with riders to provide car sharing and transportation services via the Lyft mobile. The
Company's transportation network brings together rideshare, bikes, scooters, car rentals and transit all in one app.

It operates a peer-to-peer marketplace for on-demand ridesharing in the United States and Canada. The company operates multimodal transportation networks
that offer riders personalized and on-demand access to various mobility options. It provides Ridesharing Marketplace, which connects drivers with riders, Express
Drive, a flexible car rentals program for drivers.

Segment / Domain Transportation, Ridesharing, Vehicle for hire, Ride hailing

Modus Operandi Ridesharing app which connects drivers and riders on car sharing

Lyft's “big picture visions” is to reinvent cities “around people instead of cars and replace parking lots with green
Vision
spaces and parks.”

Mission 'To improve people's lives with the world's best transportation.

Founded June 9, 2012 (as Zimride in 2007)

Co-Founder Logan Green (co-founder, CEO), John Zimmer (co-founder, president)

Company Headquarters San Francisco, California, USA.

 Areas served • United States
• Canada

Revenue/ Turn Over $2,365 in FY20

Total Funding $4.9B (2019)

No. of Employees 4,369 (September 30, 2021)

No. of drivers over two million drivers

Business Model B2C

How Does Lyft work: -

• Lyft is the app-based ridesharing platform

• It uses the principle of ridesharing, customers who are matched to a nearby driver will take you to intended destination. This is all achieved using the Lyft
smartphone app.
• The app is light (less than 20 megabytes) and is downloaded and installed from the Google Play Store or Apple Store in less than a minute. The next step
is setting up an account, which is very quick and easy.
• Once account registered with Lyft app, we can take first ride.
• The app shows a top-down map view of your local area, just like Google Maps. Customer can select to be picked up at their current location
• With pick-up arranged, the next stage is to choose the type of car that customer want to ride in. There are currently 4 Lyft ride tiers:

Line – The cheapest tier. You’re matched with another customer that’s headed in the same direction, so be prepared to share. It’s not currently
available in all cities.
Lyft – This is the standard tier that has space for up to 4 people in total.
 Plus – This tier provides a bigger ride and has room for up to 6 passengers.
Premier – This is the luxury tier that provides a stylish 4-seater.
• Each of these options varies in price. Upon selecting pickup and destination points, the Lyft app will then give an estimated cost for your journey.
• With all the information input into the app, it will then match customer with a nearby Lyft driver. Customer is provided with a name and photograph of
the driver, as well as a picture of their car and the license plate.
• Upon reaching destination, the app requires customer to rate the driver (from 1 to 5) and then submit payment. Payment is all done through your Lyft app
and there is no cash option.
• Each transaction happening on Lyft's technology-based model is divided between the driver and the company. Lyft takes a 20% cut from the total amount
paid by a passenger and the rest 80% cut goes to the driver.
• Lyft has various options -

Lyft - The most basic version of the service that can seat up to 4 passengers and it's competitively priced.

Lyft plus - A vehicle that can carry at least six passengers.

Lyft line - You will be paired with a Line driver who already has other passengers in the car heading in the same direction as you.
BUSINESS PLAN FOR LYFT EXPANSION TO INDIAN MARKET
Indian market is huge being the second most populous country in the world .

Components of Lyft: -

• Product – Lyft is a rideshare business which connects riders to drivers. In the US, there are multiple verticals of Lyft (Shared,
normal, bikes, scooters). One should focus on one of these verticals to launch first to limit the scope and necessary infr astructure for
launch Indian market.
• Market – Most of the Metropolitan, rural and Suburban areas should be focused as there will be frequent movements and more
customers
• User – Make sure user understand app. This can be achieved by more promos through various means.
Provide assurance on security during the travel is major contributor and make comfortable especially to Women and Kids.
No rides cancellation by drivers, alternate rides are provided if cancelled due to une xpected reasons.
Discount on next rides for frequent travellers
• Competitors – Challenging part is having value addition when comparing with other competitors like Uber or Ola in Indian market.
In US, Lyft succeeded when it was launched in competition with Uber was it's branding as a "friend picking you up. ", it should be
maintained same in Indian market.
• Price - Other one would be price strategy comparing to other competitors. We should offer discounts, less price for initial days
until it gets adapted by users. we should take short-term revenue hits, if possible, to first establish our brand and infrastructure.
And additional component to be introduced in Indian market is pay through Cash, as most of the Indians prefer to pay after completion
of ride through cash.
No cancellation charges would be a good strategy to attract more market .
• Software Download – App should be light and should be downloaded within less amount of time. And setting up an account should
be quick and easy.
Pre-Launch Strategy: -

• Drivers - This can be achieved buying out local travels, providing more incentives to attract drivers in initial phase, referral bonus
to drivers, Extra money on good ratings. Driver behaviour is the most attractive point in retaining the customers, this can be achieved
by providing some soft courses on behaviour aspects with customers. Encourage female drivers
• Awareness in Market – Raise awareness in market by promoting brands on Lyft physically like hoardings. Promotions in social
media with branding "friend picking you up."
• Car Cleanliness and Sanitisation – This is most crucial part after pandemic, commitment on hygiene and cleanliness will attract
customers
• Easy Maps and Navigation – App should be user friendly with easy user flow and easy access to maps and navigations

Launch Strategy: -

• Promotional offers for new riders

• Ads in local new papers / hoarding
• Launch offers
• Social media and local blogs posts
• Referral bonus to customers
• No cancellation charges, before specific amount of time
• Provide assurance on security during the travel
Post-Launch Strategy: - Below are the points to be considered post-launch and one should closely monitor acquisition as well as the overall
customer experience and retention to determine areas for optimization .

• Apps downloaded
• No. of users with atleast one ride
• Frequent users count
• App downloaded users without a single ride
• Rating of users and Drivers
• Waiting time and its challenges
• Number of cancelled rides
• Revenue strategy
• Retention of users
 BUSINESS MODEL CANVAS
Customer Segments – Customer segment consists of two categories

User:-
• Who don’t want to drive in heavy traffics or who hates driving
• Don’t have a car/vehicle to travel
• Daily travellers - Who always look for a comfortable commute and relax during travel
• Those who look for cost efficient travel at their doorstep
• Who like to make new friends while travel

Drivers:-

• Those who love to drive

• Who own a car and want to make additional income
• Daily travellers – Can make friends with people in their same route to work/school

Value proposition: - Value proposition to both Users and Drivers.

User: -
• Users enjoy ride at their doorstep, Lyft app provides cars available to nearby location with less waiting time for cab to
arrive.
• Offer discounts and referral bonus
• Prices are very less compared to other ride sharing apps
 • No Cancellation charges for cancelled rides within specific period of time
• Lyft makes customer feel comfortable with security and hygiene aspects
• As branding says, "friend picking you up."Lyft makes customers feel as if they are riding with a friend instead of traditional
cab
• Friendly and convincing driver behaviour
• No rides cancelled by driver, if cancelled due to unexpected reasons alternate driver is provided
• Payment through cash along with online payments
• Discount on next travel for frequent travellers

Drivers: -

• Adds up additional income to drivers

• Referral bonus to drivers
• Flexible working schedules as per their convenience
• Who would love to enjoy driving and make friends while pursuing their hobby
• Extra income for good rating
• Female drivers are welcome
• Easy payments

Revenue streams: -

• Various car options – Lyft, Lyft plus, Lyft lite

• Retain user by enhance rider experience by playing their comfortable music, water, snacks, Sanitizer, Emergency
medication
• Female drivers attract female users or minors
• Cost based on Kilometers
• Heat maps
 • Attract customers through referral benefits

Channels: -

• Lyft website
• Android and iOS mobile app
• Social media, discount coupons

Customer Relationships: -

• Social media, physical ads to reach out to customers

• Good Customer support
• Encourage and retail customers and drivers with referral bonus
• Reviews, ratings, and user feedbacks

Key Activities: -

• Product enhancements and app experience to users / drivers

• Fast bookings and driver connectivity with users
• Easy download and registration of mobile app
• Easy payments
• Exceptional customer support
• Security and Hygiene
Key Resources: -

• User friendly App

• Skill and Safe drivers
• Friendly drivers
• Security and Hygiene

Key Partners: -

• Travel agencies
• Drivers with own car
• Maps API – Apple & Google maps
• Insurance companies
• Investors

Cost Structure: -

• Technology cost for developing and enhancing app

• Driver payments
• Permanent employee salaries
• Insurance cost
• Marketing cost
• Additional referral, Incentive costs
 Value Proposition Canvas
In general, for any ride sharing app, below four stages are crucial.

1. Installing app
2. Using app
3. During ride
4. After ride

Following are pains and gains addressed by Shared ride with Lyft

• Easy commute with less price

• Alternative to public transport
• Avoid drink and drive
• Relax in car, more productive before work and plan thins before hand.
• Easily accessible to cab at doorstep
• Avoids finding parking and payments
• Can easily pre-book cabs and can fixed time in advance
• No surge rates for pre-booked cabs
• Relieves stress driving self owned car in huge traffic
Customer Profile: -

Customer Jobs: -

• Commute easily with privacy

• Relieves stress of self driving
• Not to worry about parking
• Can track driver location
• Can pickup friends
• Reach destination on time with pre-booked cabs

Customer Gains: -

• Affordable
• Avoid self drive and be productive at work and plan things in advance
• Easy commute for users not owning a vehicle
• Can travel easily to unfamiliar places
• Good option during bad weathers
• Easily accessible at doorstep with more privacy than public transport

Customer Pains: -

• Ride cancellations by driver without proper reason

• Guiding driver for pickup point
• Cannot change pick-up point once booked
• Surge pricing
 • GPS might not show fast route
• Driver arrival time do not match with time displayed on app

Value Proposition: -

Products and Services: -

• Pre-book services
• Various option of Lyft – Lyft, Lyft plus and Lyft lite
• Rating and feedbacks along with co-riders
• Reach destination on time (except unexpected circumstances)
• Additional services to customer – Play music, Water, Snacks, Sanitizer, Emergency medicines etc.
• Female driver

Gain creators: -

• Commute easily in relaxed way

• More productive
• Save money with sharing ride with co-riders
• Reduce traffic and save environment
• Can make friends
• Reach destination on time
Pain Relievers: -

• Easy booking
• Reduce frustration and waiting with public transport
• Fixed cost at the time of booking, no surge pricing
• Commute with less price with privacy
• No cancellation by driver (except few uncertain conditions)
• Alternate driver assigned if get cancelled due to unexpected situations
 BUSINESS MODEL CANVAS
Key Partners Key Activities Value Propositions Customer Relationships Customer Segments
User: -
Travel agencies Product enhancements and app Social media, physical ads to User: -
Enjoy rides with less wait
experience to users / drivers reach out to customers
Drivers with own car time Who don’t want to drive in
Fast bookings and driver Discounts and referral bonus Good Customer support heavy traffics or who hates
Maps API – Apple & Google connectivity with users driving
maps Less price comparing to Encourage and retail customers
Easy download and registration competitors and drivers with referral bonus Don’t have a car/vehicle to
Insurance companies of mobile app travel
No Cancellation charges Reviews, ratings, and user
Investors Easy payments feedbacks Daily travellers - Who always
Branding says, "friend
look for a comfortable
Exceptional customer support picking you up." commute and relax during
Friendly and convincing travel
Security and Hygiene
driver behaviour Those who look for cost
No rides cancelled by driver, efficient travel at their
doorstep
Payment through o
Key Resources Channels Who like to make new friends
Discount on next travel for -
User friendly App Lyft website while travel
frequent travellers
Skill and Safe drivers Drivers: - Android and iOS mobile app Drivers: -
Additional income & Referral Social media, discount coupons Those who love to drive
Friendly drivers
bonus to drivers
Security and Hygiene Who own a car and want to
Flexible working schedules make additional income
Enjoy driving and make
Daily travellers – Can make
friends friends with people in their
Extra income for good rating same route to work/school
Female drivers
Easy payments

Cost Structure Revenue Streams

Technology cost for developing and enhancing app Various car options – Lyft, Lyft plus, Lyft lite
Driver payments Retain user by enhance rider experience by playing their comfortable music, water,
Permanent employee salaries snacks, Sanitizer, Emergency medication
Insurance cost Female drivers attract female users or minors
Marketing cost
Cost based on Kilometers
Additional referral, Incentive costs
Heat maps
Attract customers through referral benefits
 Value Proposition Canvas

Value Proposition Customer Profile

Gain Creators Customer Gains

1. Commute easily in relaxed way 1. Affordable

2. More productive 2. Avoid self drive and be productive
3. Save money with sharing ride at work and plan things in
with co-riders advance
4. Reduce traffic and save 3. Easy commute for users not
environment owning a vehicle
5. Can make friends
4. Can travel easily to unfamiliar
6. Reach destination on time
places Customer Jobs
Products & Services 5. Good option during bad weathers
6. Easily accessible at doorstep with 1. Commute easily
1. Pre-book services with privacy
more privacy than public
2. Various option of Lyft – Lyft, Lyft plus 2. Relieves stress of
transport
and Lyft lite self-driving
3. Rating and feedbacks along with co- 3. Not to worry about
riders
parking
4. Reach destination on time (except
4. Can track driver
unexpected circumstances)
Customer Pains location
5. Additional services to customer – Play
Pain Relievers 5. Can pickup friends
music, Water, Snacks, Sanitizer,
1. Ride cancellations by driver without proper 6. Reach destination
Emergency medicines etc. 1. Easy booking
reason on time with pre-
6. Female driver 2. Reduce frustration and waiting with
2. Guiding driver for pickup point booked cabs
public transport
3. Cannot change pick-up point once booked
3. Fixed cost at the time of booking, no
4. Surge pricing
surge pricing
4. Commute with less price with privacy 5. GPS might not show fast route
5. No cancellation by driver (except few 6. Driver arrival time do not match with time
uncertain conditions) displayed on app
6. Alternate driver assigned if get cancelled
due to unexpected situations
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