BUSINESS MODEL CANVAS

About Lyft: - Lyft, Inc. 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; Lyft Rentals that provides vehicles for long-distance trips; and a network of shared
bikes and scooters in various cities to address the needs of riders for short trips. The company also integrates third-party public transit data into the Lyft app to
offer riders various transportation options. In addition, it offers autonomous vehicles; concierge for organizations; Lyft Pass that allows organizations to create
custom transportation programs; enterprise programs, including monthly ride credits for daily commutes, supplementing public transit by providing rides for the
first and last leg of commute trips, late-night rides home, and shuttle replacement rides; and transportation solutions that can be customized for events, such as
recruiting events, conferences, celebrations, meetings, and company retreats. The company was formerly known as Zimride, Inc. and changed its name to Lyft,
Inc. in April 2013. Lyft, Inc. was incorporated in 2007 and is headquartered in San Francisco, California.

Lyft Founders, Funding & Facts

Founders: John Zimmer, Matt Van Horn, Logan Green & Marcus Cohn.
Company Headquarters: San Francisco, California, USA.
Founded: As Zimride in 2007 and became Lyft in year 2013.
Lyft Valuation: $12.54 billion as of January 21, 2022
Lyft Funding: $4.9 Billion (Their latest funding was raised on Mar 1, 2019).
Lyft Revenue: Lyft is currently operating at $864.4 million versus $499.7 million in the third quarter of 2020, an increase of 73 percent year-over-year, and versus
$765.0 million in the second quarter of 2021.
Number of Rides: $1 billion in August 2019.
Number of employees: 4,369 (September 30, 2021)
Number of drivers: $12.5 million, 2020
Logo / Mark: Pink Coloured Moustache on front grill of car.
Source for financial numbers: https://investor.lyft.com, https://www.similarweb.com/, https://www.crunchbase.com/.

Features of Lyft:
• Lyft matches customers who want a ride with nearest available drivers.
• They use the tag line – Find a new friend everyday.
• All Lyft cars have a big pink coloured moustache on their front.
• Customer gets to know the driver details and ETA when he requests a ride.
• Live tracking tells driver the exact location of the customer from where ride has been requested.
• Payment procedure is handled by Lyft itself from within the app.
• Lyft charges a commission of 20% from each ride and the rest 80% goes to the driver.
• Lyft business model has a rating system in place for drivers as well as customers where they can rate each other. Lyft just has 2 car options

Lyft and Lyft Plus and a ride-sharing option called Lyft Line
• Lyft also has surge pricing model called as heat maps.

Four Steps model about how Lyft works

Step 1 (Request a ride): The initial step in the business model of Lyft is about requesting a ride. Anyone having a smartphone with the Lyft app installed can
simply request a ride almost instantly with the help of few taps. User has the option to choose from Lyft, Lyft Plus and Lyft Line.

Step 2 (Matching): As soon as a request is made, a notification is sent to nearby drivers in that area. Driver has the option to accept or decline are quest.

Step 3 (Ride): Map based interface allows the customer to track the car while it arrives and also gives the ETA. On the other side, the driver can also track the
customer’s location from where the request was made. Live tracking is also available during the ride. Unlike Uber, Lyft works on a model where passenger
almost always sits in the front seat along with the driver. This is due to Lyft’s tagline – Your friend with a car.

Step 4 (Payment & Rating): Customers can rate the driver once the ride gets over. Rating system is an important part of Lyft’s business model.
Value Proposition Canvas
Amongst the top reasons for using rideshare apps, people cited:
• Avoid drinking and driving
• Avoid having to find and pay for parking
• To get to the airport
• Commuting

Preferred to public transport by adding in the feature of pre-booking a shared ride, Lyft can alleviate a lot of the anxiety that comes with booking a shared ride,
when the user needs to be somewhere at a certain time. This could be relevant to people getting to work, catching a flight, or any situation where the user has
affixed time in advance.

The feature of pre-booking a shared ride also addresses the following pains and gains:
• No concern about surge at commuting hours (fixed price at booking)
• Expectations of arrival time are better managed — no one will be able to join the ride after the 24-hour booking window journey becomes alot more
predictable — uncertainty massively reduce
• Able to relax in the car — more time to be productive before work if needed becomes a lot easier to plan around the ride
• Potentially reduces the number of cars on the road (less traffic/ pollution)
• The feature to enable passengers to rate co-riders help alleviate stress and frustrations. The idea being, that if a passenger knows anotherrider can rate
them, and that there are repercussions for repeated negative reviews, they ensure they are being considerate for the durationof the ride. This would make
for a more pleasant experience for all users

In Summary,
• Save time while booking
• Want to be more productive
• Don’t want to deal with disrespectful people
• Can’t afford to get private cabs all the time
• No way to rate fellow passengers (only make a complaint)

There are essentially four phases of using Lyft. They are Before, Using the App, During the Ride, and After the Ride.
BUSINESS MODEL CANVAS
Key Partners
• Drivers
• Technology partners
• Corporate Partners
• Investors/Venture Capitalists
• Insurance Companies
Key Activities
• Marketing and customer
acquisition
• Hiring drivers and background
verification
• Product development and
management
• Loyalty programs
• Customer support
• Engaging more drivers and users
Key Resources
• Active users and drivers.
• Skilled Engineering staff for a
technologically
• Network effects (effects of a user
on the value of the network to
other users) between the drivers
and riders.
• Captured user data, algorithms
and the capability to analyse and
gain insights are essential.
Value Propositions
For Riders
• On-demand rides availability:
Cabs to be available on one tap
on the app; thereby reducing the
waiting time.
• Book ride in advance: Ability to
book rides in advance to avoid
last minute hassle and
guaranteed booking.
• Discounts: Offer coupons for
discounted and sometimes free
rides.
• Subscription pass: It can give
special features on each ride like
no surge pricing, connecting with
the best rated drivers etc.
For drivers
• Income generation: Helps to earn
additional source of income for
the drivers.
• Flexible work hours: Flexible work
timings can help the drivers work
as per their convenience.
• Driver Rewards program: Ensure
rewards to driver partners based
on work hours or number of trips
completed.
Customer Relationships
For Riders
• Ability to manage safety risks: By
having verified drivers and ability
to deal with customer issues in a
timely manner.
• Reviews, Rating and Feedback
system: Making sure that the
user’s reviews, rating and
feedback is heard, and
appropriate action is taken on it.
For Drivers
• Payouts and Flexible Work time.
Channels
• Social Media
• Media coverage
• Campaigns
• Digital ad campaigns
• App Stores (Android, iOS)
• Word of Mouth
Customer Segments
Passengers/Riders
• People who do not have their
own vehicle to commute.
• People who have a car but don’t
want to drive themselves.
• People who want a low-cost ride.
• People who need to rent cars for
weekend escape.
Drivers
• Full-time drivers (People who
own a car and want to earn
money).
• Part-time drivers (People who
love to drive and want to earn
some extra cash).
Corporate Communities
• Tie-ups with different corporate
where the driver picks and drops
the employees.

Cost Structure Revenue Streams

• Cost of Revenue: This includes insurance expenses, payment processing fees, data center • Price Surging
expenses. • Tie ups with Corporates
• Commission to drivers: This includes payouts to drivers for each trip. • Service fee from drivers including a percentage of each group
• Research and Development: Compensation expenses for engineering, product development and
design employees, maintenance of platform etc.
• Sales and Marketing: This includes advertising expenses, expenses for customer acquisition and
retention.
 VALUE PROPOSITION CANVAS

Value Proposition Canvas

Value Proposition Customer Profile

Gain Creators

1. Lower the price from Taxis

Customer Gains
2. Verified Drivers
1. Reliable and convenient
3. Shorter Waiting time and easy access
2. Low cost
to every geographical reach
3. Faster Service
4. Loyalty programs
4. Easy access with the unfamiliar
geographies
5. Perks for regular users

Customer Jobs
Products & Services
1. Book a cab
1. On-Demand cabs 2. Wait for cab to arrive
2. Upfront pricing without 3. On-board to a cab
fluctuations 4. Select a payment mode
3. Book a ride according to and make a payment
your time and need on reaching the
4. Feedback from the destination
costumers and drivers
Customer Pains
Pain Relievers
1. Price Surge
1. Pool rides available 2. Security reasons
2. Emergency SOS services and real 3. Driver behaviour and denies
time costumer support for certain areas.
3. Fixed riding cost at a time of 4. Processing Fee
booking a cab 5. Filthy Cabs/Not well
4. Regular check for cleanliness, maintained
Feedback and reviews of the last
rider.
5. Hassle free process
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