Lyft was founded in 2007 as Zimride and became Lyft in 2013. It is a ridesharing platform that connects passengers who need rides to nearby drivers using their personal vehicles. Key aspects of Lyft's business model include matching riders and drivers through their mobile app, offering multiple car options and payment processing within the app. Lyft generates revenue primarily through commissions from each ride completed through the platform. It focuses on providing affordable, convenient transportation to users while also offering drivers a flexible way to earn additional income.

1. Business model Canvas
Find a new
friend everyday

2. About LYFT
 Founded As Zimride in 2007 and became Lyft in year 2013.
 Valuation : $23 billion (March 18, 2019).
 Revenue: In 2018 it was $2.2 billion and in 2019 it is about to
reach $3.0 billion.
 Rides: To achieve its 375 million rides, Lyft saw a 92% increase
in its number of passengers compared to 2016.

3. How Lyft works

4. Salient 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 colored 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.
• Unlike Uber, Lyft just has 3 car options – Lyft, Lyft line & Lyft Plus.
• Lyft also has surge pricing model called as heat maps.

5. THE BUSINESS MODEL CANVAS

6. Customer Segments Users:
• Those who don’t own a car.
• Those who don’t want to
drive by themselves.
• People who like make a
new friend while traveling.
• Those who want a cost
effective drive from their
doorstep.
Drivers:
• People who own a car and want to earn
money.
• People who love to drive.

7. Value Proportion
Customers:
Minimum waiting time
Cashless rides.
Less price than normal taxi.
ETA easily available
GPS tracker to track the car.
Drivers:
Additional source of income.
Flexible working schedule.
Easy payments.
They are not treated as a cab
driver.

8. Channels
Website.
Mobile app for Android
Mobile app for iOS.
Customer Relationships
Social Media.
Customer Support.
Reviews, rating and feedback
system.

9. Revenue streams
Car rides on km/Mile
basis
Car options: Lyft, Lyft
Line, Lyft Plus.
Key resources
Technological
platform
Skilled drivers.
Key activities
 Product development
and management
 Marketing and
customer acquisition
 Background checking
of new drivers
 Managing drivers
payout
 Customer support

10. Key partners
Drivers with their cars.
Payment processors.
Map API providers : Google
Insurance companies
Investors : General Motors,
Alphabet
Cost structure
Technological Infrastructure
Salaries to payment employees
Payouts of drivers
Marketing expenditure
Insurance cost

12. References
https://help.lyft.com/hc/en-us
https://www.lyftbusiness.com/?&utm_medium=web&utm_source=headernav
https://davidcummings.org/2011/05/28/the-9-building-blocks-of-a-business-model/
http://www.ecommerce-digest.com/cost-structure.html