Free Custom «The Lyft Business Model» Essay Sample
Based in San Francisco, CA., Lyft has become one of the best transportation network companies that is privately based and continues its expansion since the creation in 2012. The company has become a competitor to the giant business organization known as Uber, but Lyft has started to offer more innovative and improved solutions within its business models, such as avoiding delays through eliminating direct communication with cabs and limousines. Thereafter, the objective of the following paper is to discuss the Lyft business model as well as its famous mobile application along with others that have made this start-up project so successful.
As of 2015, Lyft has started to expand its area of service, while other private taxi companies have faced bankruptcy. The major components that is build around their business model is related to bringing down the prices and providing the services quickly, without unnecessary frustration, which has proven to be a successful strategy. Even despite the fact that Uber is one of the strongest companies on the marker, the Lyft business analysis have analyzed the business model of their competitor and have made improvements, which actually worked. The major instruction was the approach of Lyft that looked into those users who have car seats to share and those who are opting for cheaper and shorted way to get to their destination point. Thus, the major key is the fact that it is all done through the mobile application, which is in the center of the Lyft business model. It has proven its success through the expansion that has happened not only in San Francisco, but in Los Angeles, Seattle and as well as Chicago. The leverage is related to proper technical operation if the technologies that run the mobile application and this is extremely well perceived by the customers. Even though that there are many rich people within USA, everyone looks into getting the best options for travelling that would help to save the money, time and have comfortable journey, while the mobile application offered by Lyft has everything for that. Thus, this is relevant to mention that this is the similar business model that Uber uses, while it allows the customers to pay with the help of their Smartphones, but the major difference is related to the cars. The fact is that Lyft connects car users, who own the vehicles and are free to set their own tariffs, while the application still offers the potential cost as a hint to the driver. It gives Lyft a priority to positions itself as a server provider that does not use cab services and more and more people are seeing the benefits of that. The business model of Lyft is built on the innovative and intuitive marketing approach, while it has even mustachioed cars. It has the leverage that is based on service networking approach, as the benefits come not only to those who need a ride, but also to those, who can earn extra money once they have spare seats within the vehicle.
In conclusion, this is important to mention that Lyft was just a start up project that turned out to be e very successful one and this is a huge accomplishment. The mobile application of this company stays within the center of its business model, as it connects the nearby drivers and passengers that make it convenient to both parties. Thus, it is a peer-to-peer startup that bring multiple law and regulatory hardships to the business, but no one can blame it for bringing people what they really need.
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