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Lyft’s revenue model includes 20% service commission and 80% driver’s salary. Fostering an inclusive culture, Lyft converted its “uplifting” company culture into an external feature “it matters how you get there”. However, the take-home salary of Lyft drivers is below their minimum wage limit, which requires attention.
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Lyft is an on-demand taxi booking platform, considered one of the quickest developing companies in the USA; Lyft is giving tough competition to ride-hailing businesses and trying its service continues to make itself BIG in the taxi industry. They also introduced the shared-ride concept in 2014. They also hired two firms to address regulatory barriers during the same year. They launched a fleet of electric scooters in 2018.
As the riders request for a cab -> nearby drivers get notified about the service request -> drivers reach the location to provide the service -> riders make the payment -> rate the driver according to their ride experience.
Lyft business model depends upon the base charge, the distance covered, the per-minute charges, the per-mile cost, time of day, ride type, the chosen route, number of available drivers, current demand for rides, and any local fees or surcharges. All this is calculated and decided in advance except the time required to reach the destination. The time can be higher than normal during traffic. Alternatively, the driver can take a short cut to reach their destination. The travel time multiplied by the cost per mile will give the exact payable amount. The 20% goes to Lyft and 80% to the Lyft driver. Lyft revenue does not depend upon the voluntary tips given to the drivers. The Lyft business plan also does not include the ratings or reviews that drivers receive from their customers.
Lyft Partners
| Customer Relationship
| Activities
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Resource
| Channels
| Expenditure Structure
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Consumer Section
| Earning Source
| Customer Segments Riders
Drivers
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Lyft looked for creative ways to cut its costs. They learnt their routes. Not every minute that they were not riding was a waste. They keep devising new ways to traverse and bide their time. They enabled their destination filters, educated their drivers to act as tour guides. Taking their driving to the next level, they advertised their products during the rides. Lyft drivers also earn during prime times – when the demand for the rides exceeds supply. The drivers make adjustments to the routes to reach their destinations on time.
Lyft identifies the areas with high-demand and increases their ride prices accordingly. This feature is time and location-specific.
Lyft expands to enter various transportation modes like bikes, scooters, electric scooters, public transit, ridesharing marketplace and autonomous vehicles.
Lyft targets the domestic market, focussing on on-demand carpooling and taxi services. It initiated self-driving vehicles, values multi-modal transportation and brand authenticity. We wish to share our efforts on ride sharing apps for on-demand business services; connect with us to create a cab booking app like Lyft!
Vipin Jain is the Co-Founder and CEO at Konstant Infosolutions and is in charge of marketing, project management, administration and R&D at the company. With his marketing background, Vipin Jain has developed and honed the company’s vision, corporate structure & initiatives and its goals, and brought the company into the current era of success.
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