Lyft Plus for groups bigger than 5 Lyft Plus offers 7 seater vehicles The

Lyft plus for groups bigger than 5 lyft plus offers 7

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Lyft Plus: for groups bigger than 5, ‘Lyft Plus’ offers 7-seater vehicles. The charges for Lyft Plus are higher as compared to normal Lyft option. But, Lyft still takes the 20% as they also do in the ‘Lyft’ option. Lyft Line: it enables a user to share a cab on a pre-specified route. It can be thought of as an alternative to public transport but the service provided by Lyft. Key activities Lyft’s business model entails maintaining a robust common platform between two parties: passengers and drivers. They keep focused on things like: Product development (for example, keep updating the app) Hire drivers by doing many background check if they are suitable to prevent risk and unsafety issues Managing driver payouts (80% of the payments are going to drivers) Customer support Key resources Lyft’s main resource is its (technological) software platform, which serves consumers in over 68 cities. It also depends on its human resources, namely the network of skilled drivers it hires to transport passengers in their own cars. Lastly, as a relatively new startup it has relied heavily on investment funds from outside, raising approximately $2 billion from these investing parties. Key partners There are several key partners: Investors (from outside parties) Insurance companies Drivers with their cars and payment processors Ambassadors. Lyft invites (important) people to promote the company by acting as an ambassador. These ambassadors receive materials for marketing and represent the firm at events in major cities Business partners. Companies can give their customers discounted (or even free) Lyft rides for visiting their stores on location and earn side income for helping to promote Lyft in the ridehailing market Cost structure Lyft has a cost-driven structure, aiming to minimize their expenses through noteworthy automation and very low-price value propositions. Lyft’s biggest cost driver are the transaction expenses, which is a fixed cost. They have to pay their drivers a standard 80% of the fare. Other major drivers are in the areas of their sales and marketing activities, customer support and insurance costs, which are also both fixed costs. Related to, for example, marketing activities, they also have permanent employees who they have to pay.
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