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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 hired two firms to address regulatory barriers during the same year.
What is Lyft?
Lyft is an on-demand taxi booking application, which was founded in 2012 by Logan Green and John Zimmer. It is a ridesharing application; that offers different cab-hailing services. Lyft and Uber, both are applications that share a similar business model. However, Lyft does not end with cab services but provides food delivery services also.
The drivers use their vehicles to hail passengers and provide them with prompt ride-hailing services. The payments are done through application only. Now, Lyft is available in more than a hundred cities in North America. To become a Lyft Driver, one has to be 18+ years old.
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How Does Lyft Works?
Lyft Works for Riders/Passengers |
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| Look For The Ride | The passengers have to first look into the app and request a ride; be it a scooter, bike, Lyft, priority pick-up, preferred mode, Lyft XL, Transit, or Lyft Lux. |
| Find the Driver | Based on the raised request, Lyft will send a notification to the nearest drivers to match them with their needs. When the ride is confirmed, the drivers can see and acknowledge the request. |
| Track Throughout the Ride | Let’s ride now. Here the rider can track drivers coming and know the estimated time of arrival. Moreover, the app also ensures the sharing of live tracking throughout the ride till completion. |
| Pay and Rate the Ride | Once the ride is completed, the riders can use their suitable payment mode to make transactions. Afterward, the riders can also choose to review & rate their rides based on their personalized experience. |
Lyft Works for Drivers
Lyft made car rental services very easy and convenient for drivers by offering a dedicated app for drivers. Also, it has an Express Drive Program for those who do not own their cars. In this program, the folks or applicants have to go through the profile screening process. It is a test for drivers to pass screening, and later take cars on rent for driving:
| Create the Profile | The drivers need to sign up and create a professional driving profile for the car-hailing services. This profile includes information; such as name, contact number, email address, vehicle number, license, and other necessary documents. |
| Match the Driver | The Lyft application will notify and match the drivers with the nearest riders for the pick-up. |
| Accept/Decline the Ride | The drivers have the authority to either accept or reject the rides based on their schedules and convenience. |
| Payment and Done | When the ride is completed, the application processes payment through Express Pay in a few hours or days. There are times when the driver also receives reviews and ratings for their completed rides. |
Which is Better Uber or Lyft?
Lyft and Uber, both share similar business models. However, there are some differences in both the apps which make them separate from each other; such as:
| Lyft allows riders to pay tips to drivers within 72 hours of the ride, whereas Uber demands tips either in cash or just after the ride is completed. |
| Earlier, Uber struggled with some criticism, but somehow Lyft managed to maintain its customer and driver base. However, Lyft deducts the cost from driver’s amounts when they drive interstate highways |
| Uber and Lyft, both operate their services in Canada and the United States. On the other hand, Uber is expecting to expand its services into other cities though. |
Lyft and Uber are reputed ride share apps, which have delivered smooth car hailing services to riders. However, these applications are also streamlined and very opportunistic for drivers as well.
Deciding which is the best ride-sharing application is not possible, because both have their perks and lack. Based on the needs, requirements, and availabilities; riders and drivers can choose their preferred on-demand taxi booking app in real time.
What’s Cheaper – Uber or Lyft?
Whether it’s riders or drivers; everyone wants to know which is better and what’s cheaper. Hereby, Uber seems less expensive compared to the market standards and records stated. According to the estimation; the average cost of Uber is $20, whereas Lyft might cost you $27.
Which is Safer – Uber or Lyft?
Uber and Lyft Business Models, both share almost the same features. These ride-share apps are very popular in their targeted marketplace, and the giants also track the screens of their drivers continuously. There is still room to grow for both, and working on it.
Without any doubt, there are features for in-app protection to keep the passengers safe. On the very same side, the passengers or riders are also responsible for their safety. You can use other apps for your safety. In case any trouble occurs, do not just depend on Lyft or any other ride-hailing app. Guard yourself with your self-knowledge though. Follow the possible ways and legal paths to safeguard yourself. Rest, Lyft is also here to guard you with its possible protection measures.
How Much Does Lyft Driver Make?
The average cost paid to drivers on an hourly basis is $19.29 approximately in the United States. This is estimated to be 10% more than the national average salary.
This data is gathered from 423 data points, which are collected from employees, users, and past & present job advertisements on Indeed from the previous 36 months.
Lyft Business Model – How Does Lyft Make Money?
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. 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 generates revenue from various sources; such as:
Commission-Based Revenue:
Lyft makes a commission from the total amount of the driver’s money. It keeps 20% of the commission to itself and sends the remaining 80% to the drivers. (In some cases, Lyft also cuts more than 20%)
Revenue from Peak Hours:
Lyft has its heat map, which shows the high demand peak times and specific prime locations. By that time, the application increases its cost to balance monetization through demand and supply.
Subscription Model:
Riders can also opt for a subscription plan, named Lyft Pink. It costs $19.99; which includes multiple perks for the riders such as discounts, 15% off on rides, discounted scooter rates, etc. On the other hand, it also becomes a very advantageous revenue model for the application.
Multi Business Model:
Lyft offers multimodal on-demand transportation modes; ridesharing marketplace, ridesharing, autonomous vehicles, public transit, etc. The revenue is based on these transportation modes.
Lyft Revenue Model
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.
Service Offerings:
| Lyft | It is the simplest version of the ride-hailing platform. This ride allows up to four travellers at a time. |
| Lyft Plus | This ride allows carrying up to six travellers maximum. But it costs more than the standard ride price, based on additional settings and comfort. |
| Lyft Premier | Lyft offers premier vehicles for a ride like an Audi or Mercedes etc. It is a costly alternative. |
| Lyft Line | Riders are paired with line drivers, travelling in the same way. |
Conclusive – Want to Create An App Like Lyft?
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!
Frequently Asked Questions
Are there different modes of transportation available on Lyft for ride-hailing?
Yes, the riders can book for taxi, bike, scooter, Lyft XL, Lyft Lux, etc. There are different modes of transportation, and one can choose any one of these to suit their preferences at different costs.
What is there about the Lyft cancellation policy?
Yes, the passengers or riders are allowed to cancel the rides. However, they can cancel the rides within a specific timeframe. You cannot cancel the flights if the driver is at your doorstep. It will cost you a penalty amount.
How does Lyft ensure for riders and drivers quality services?
Lyft ensures full ride tracking for the satisfaction of riders and drivers. Also, the application cross-verifies the background checks of the drivers with everything; names, IDs, licenses, etc to ensure safe driving.Lyfy also makes sure that drivers are paid well and on time. They are also allowed to receive tips from riders within 72 hours of their rides. Lastly, Lyft opens possible gateways for riders and drivers to have a safe experience with the services.
How much does it cost to build an app like Lyft?
If any entrepreneur is interested in building an app like Lyft, there is an average of $15000-$30000 (approx) might cost. Also, the cost can increase if the app development includes extra features, additional complexities, unique customed intuitive designs, post-deployment support & maintenance, etc.