Lyft is an on-demand taxi booking app that lets you get a ride from your phone. All you have to do is open the Lyft app, enter your destination and request a ride. When you request a ride, a driver near you will get the request and he can accept or decline it. If the driver accepts you will get an estimated time of pickup.
Lyft was found in 2012 by Logan Green and John Zimmer. “Finding Friends with Cars” was the main idea behind Lyft. Lyft is one of the fastest-growing on-demand taxi companies in the USA.
Lyft is an online taxi booking app similar to Uber. It is competing with an aim to become the best in the on-demand taxi industry. Now Lyft is present in more than 200 cities in the USA.
Lyft had completed 3 million rides on the year of 2013. And today it is 1 million rides every single day. The company is providing 24/7 on-demand service. They will take you anywhere as long you are ready to pay the cab fare.
How Lyft Works?
The reason for the success of Lyft is its special services offered to the users and drivers. At that time none of the other organizations offered those services.
The Lyft app is available for both Android and iOS. Once you download the app, you need to create an account. You have to add the full name, address, username, password, payment information. After filling all these you are ready to take your first ride.
Value Proposition
Lyft offers the best value propositions for both users and drivers.
For Customers
- Get a ride in a single tap
- No need to wait for a taxi
- Lyft offers free and discounted rides
- Cashless and economical rides
For Drivers
- Additional source of income
- Flexible working hours
- Lyft pays 20% of total ride cost to drivers
- People who love driving can pursue their hobby
Business Model of Lyft
Step 1: Request a ride is the initial step a user has to do. Anyone with a smartphone with the Lyft app can request a ride instantly.
Step 2: When the user sent a request, a notification will receive to the nearby drivers. The driver can either accept or decline the request.
Step 3: When the driver accepts the request he is able to track your location and the customer can also track the driver location. Live tracking is also available during the ride.
Step 4: The rating and feedback system is an important part of Lyft’s business model. Customers can rate the driver once he completes the ride.
Lyft Revenue Generation Model
Lyft is a ridesharing app that connects people who want a ride with drivers who have a car that can seat up to 4 people.
Lyft Car Ride: Lyft takes only 20% of the total amount and the rest 80% will go to the driver.
Heat Maps: Heat maps define the area that has more demand. In case of high demand in any particular area then the company charges more price. Heat maps are location and time-specific.
Lyft Plus: It is basically 7 seater vehicles that charge a higher price compared to Lyft. Lyft earns 20% of each ride.
Lyft Line: Lyft line allows the users to travel along with other ina pre-specified route. It acts as an alternative to public transport.
Lyft Premier: In the premier case Lyft offers Mercedes and Audi with best interiors and style.
Lyft Multimodal strategy: Lyft is expanding to numerous sets of transportation modes. Other than cars it is moving to scooters and bikes for shorter rides.
Features of Lyft
- Lyft connects the customers with the cab drivers available in the same area instantly.
- Users could request the ride with a single tap on the smartphone and will get the driver details with ETA ( Expected time of Arrival).
- Users are able to track the driver location in real-time.
- Payment gateway modules are available in the Lyft app.
- Lyft only takes 20% of the total trip as commission and the rest 80% goes to the driver itself.
- Both customers and drivers have the option to rate and review within the app.
- Lyft provides multiple cab options like Lyft Mini, Lyft Line, Lyft Plus, etc..
- Lyft also accommodates the surge pricing concept in the name of heat maps
How does Lyft work for users?
- After you fill-up the required details, you are ready to take your first ride. Now you have to open the Lyft app and enter your destination.
- Then the app will show the price based on your current location to the destination.
- If you are ready to take the ride then you need to ‘confirm pick-up’ to book your ride.
- After booking the ride, you will get the live updates of the driver location and ETA.
- When the driver arrives the ask to confirm you by your name. You can also confirm the driver by photo and the cab number.
Once you arrived at your destination you have an option to thank your driver, rate your ride, and leave comments after they dropped you off.
How does Lyft work for drivers?
- Drivers are able to work at their schedule and this is an excellent way to earn money.
- You can use the Lyft driver app to pick-up and drop people in your vehicle.
- Once you are a driver you will have 24/7 access to the support team of the company.
- All Lyft drivers are independent contractors. Which means you are not an employee of Lyft to get paid. Instead of that, you will earn a percentage for your every ride.
Lyft is a great option for those who are looking for additional income. As a rideshare driver, you are flexible to drive whenever you want and how much you want.
How to build an app like Lyft?
So, you have found all about How does Lyft work?
Let’s also have a look at the business model of Uber.
For those who want to make a new ride in the taxi space here is a Lyft clone script for you. Its iScripts UberforX. UberforX is an on-demand service platform that enables you to build Lyft of Uber-like on-demand marketplaces.
So are you ready to take a ride?
