Lyft is a cab service provider, which has a large community of users all over America. The community has also expanded largely to other countries. It is an app-based car service working on the lines of Uber. However, it has been a great and competitive player in this sector so far and is presently on an upward trajectory with more than 1 million rides per day.
Lyft was launched by Logan Green and John Zimmer in the year 2012. Initially, it was part of a long-distance car services provider called Zimride. This company operated mostly through Facebook connect and focused on long rides, preferably cross-city or across states. When Facebook opened up its API to other developers outside of the organization, Logan Green found his inspiration.
In fact, his idea had germinated even earlier when he was on a trip to Zimbabwe where he had seen the locals sharing Minivans to make long trips, which inspired the name Zimride, a website he developed on his own through his past coding experiences, over a period of four months.
Zimride launched its first application in Cornell University. This application allowed the riders to know about each other as well as the driver and the driver could also get information about the riders because of its integration with Facebook profiles, which would allow for smooth information sharing and in turn provide a certain degree of comfort to the users of the platform, especially in cases of longer rides.
With its uniqueness, the app was able to capture a large user base within the campus. As a matter of fact, 20 % of the campus registered on the platform over the period of 6 months.
However, in 2013, the company’s name was changed from Zimride to Lyft, and this was meant to a ride over shorter distances. It operates as an on-demand app-based cab service network on which both riders and drivers can register along with a payment source, like an E-Wallet or a debit cart.
At the end of each ride, the funds are automatically transformed from the rider to the driver. A rating system is also there, which ensures the reputation of the drivers and passengers within the Lyft network.
Lyft is presently known for the pink furry mustaches that the riders attach in front of the cars, giving them a distinctive look. In April 2014, Lyft, with its new launch, spread its services to a total of 60 U.S. cities. By 2017, the company had decided to spread its services to 300 US cities, and in the process, they had managed to add several new features, like multiple stoppages, advance booking facility, and ride-sharing, giving its services an edge over the other players.
In 2017, Lyft also announced that they would be responsible for the minivan services for the Walt Disney World Resort and that these cars would have a Minnie Mouse inspired exterior designing. Lyft, in partnership with General Motors, has been part of the research for self-driving cars, which the company’s founder, Logan Green, considers would be the future of the company.
Lyft faces several competitions from app-based cab services, like Uber, Taxi, Fasten, etc., but with their unique community-based marketing strategy aimed at a younger demographic, they are expected to be profitable even in 2018.
Net Worth of Lyft
As of December 2023, Lyft is reportedly worth $30 billion. A fairly new player in the market, Lyft is bound to achieve newer heights with the passage of time.
Although Lyft has faced several competitions and even condemnations from traditional taxi services, which are supported by the government agencies and has been faced with many regulatory and legal challenges, it has managed to survive in the industry and make a niche for itself.