Lyft was founded in 2012 in San Francisco by Logan Green and John Zimmer. It is a transportation company that operates in over 650 cities in the US and Canada. Lyft currently has a 28% market share in the US ride-sharing industry, second to Uber's 68% share. Lyft is valued at $16 billion and had $2.15 billion in revenue and over 4,800 employees in 2018. Lyft offers various ride options at different price points and is working to grow its market share through partnerships and acquisitions while maintaining a friendly image to distinguish itself from competitors like Uber.

1. LYFT
Group 4:
Ankush Chandak
Konark Malik
Manu Aggarwal
Sajal Gupta
Soubhik Chaterjee

2. Agenda
Style
About Lyft
01
Industry Structure
02
Competitor
03
Unit Economics
04
Valuation
05

3. About Lyft
Logan Green (CEO)
and John Zimmer
(President)
Founder Members
Lyft is a transportation
company founded in
2012 in San
Francisco , California
2012
Lyft currently operates
in 640 cities of USA
and 9 cities of Canada
Operation
Lyft currently has 28%
market share in USA.
Market Share

5. LYFT MANAGEMENT
Logan Green
(CEO)
John Zimmer
(President)
Ran Makavy
(Vice President)
Brian Roberts
(CFO)

6. About Lyft
2.15 Billion $
Employees Revenue (2018)
4,854 in 2018

7. Ride Options
Lux
Lux matches passengers with a luxury
vehicle that can seat 4 passengers.
Lux Black
It matches with a luxury vehicle that has
a luxury black exterior which can seat 4
passengers.
Lyft XL
Lyft XL matches passengers with a
vehicle that can seat 6 passengers.
Shared Ride
It is not available in all cities but it is the
cheapest option and will match
passengers with other riders if they are
going in same direction.
Lyft
Lyft is the basic and most popular
offering that matches passengers with
nearby drivers
Lux Black XL
Lux Black XL matches with a vehicle
that has luxury black exterior which can
seat 6 passengers.

8. Industry Structure
Today
Current market
share of Lyft is 28%
Market Leader is
Uber having around
68 % market share
2019
After 5 Yrs
Lyft is expected to
rise and the
expected ride share
would be 34%
Uber market share
will fall to 60%
2024
After 10 Yrs
After 10 years lyft is
expected to have
40% market share.
Uber share will
further decline to
55%
2029
• Company is having a very friendly
image as opposed to other
competitors.
• The price is comparatively less
compared to the competitor.
• People prefer Lyft for small rides
as they are easily available and
pocket friendly
LYFT USP:

9. Competitor
Indirect
Competitor
68%
Uber 76B $
Uber is the current competitor of Lyft.
Direct Competitior Uber current evaluation stands at 76
Billion $ wheras Lyft is valued at 16 Billion.
Uber is currently having 68% market share
in USA
The indirect competitors are local
transport like Bus service , Metros and
local taxis.

10. TAM
In 2009 the TAM was 51 Billion $ and so applying a 10% gain in each
year the total addressable market in 2019 as 132 Billion $.
TAM in 2019 = 132 Billion $
51
56.1
61.71
67.881
74.6691
82.13601
90.349611
99.3845721
109.3230293
120.2553322
132.2808655
145.508952
160.0598472
176.0658319
193.6724151
213.0396566
234.3436223
257.7779845
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

11. Unit Economics Per Rider
The year on year marketing
expenses incurred by the
company divided by year on year
incrementing number of
customer.
The customer acquisition cost for
Lyft is coming around 98.02$.
Customer Acquisition Cost
01 Value added per rider
02
Value added per rider comes
from total value added /
Number of active riders.
The value added per rider
comes around 141.67$

12. Unit Economics
Customer Lifetime Value
03
The customer Lifetime value comes
from the value added per existing rider
less customer acquisition cost.
The customer lifetime value comes
around 43.65$.

13. Unit Economics Based on
Per Ride
Sales and Marketing cost = 275.1 Million -(A)
Active Rides = 196.24 Million -(B)
Sales & Marketing cost Per Ride = 1.4 $ -(A/B)
Active Riders =20.5 Million -(C)
Revenue per Rider =37.86 $ -(D)
Revenue per Ride =3.955$ - ((C*D)/B)

14. Growth Model
• Although the Lyft model is widely popular, it is not profitable as of yet. In that respect, a
growth model is required to reach the break-even.
• Growth usually can be achieved by a combination of 3 strategies: run, team-up and
block. In case of Lyft, the block strategy is lesser hard to implement, as the fixed costs
entailed are very low. It can engage run and team-up strategies.
• Run essentially means to innovate, and team-up can be either strategic partnerships
with other firms for cross-selling, or consolidations with positive synergies.
• Lyft has strategic partnerships with Hilton, Starbucks, Humana, MasterCard and
others. Lyft has acquired Motivate, Blue Vision, Cherry, Yesgraph, DataScore and
others.
• Although a breakout disruptive technology is always appreciated, ‘Less is more
innovations’ (LIMI) works well for Lyft so as to not alienate existing customers and
innovating at the same time.
• Salient features may be re-emphasizing on Lyft being a friendly car that you can rely
on, rather than a car where there is a strategic disconnect. This can also point to
reverse positioning where Lyft is not merely a taxi, but your friend, and the moods can
be light.

15. Valuation
The current market share of Lyft
is 6% and is assumed to be 40%
in terminal year.
• Using these assumptions we
estimated the operating
margin and thus the operating
income and after accounting
for reinvestment needs
calculated the FCFF of the
company, present value of
those is then calculated to
reach to the EV which is
20billion and share price of
the firm is coming out to be
$72.90.
Discounted Cash Flow
Model
01
We used many qualitative and
quantitative assumptions to
estimate the industry size, risk
associated, growth of the market,
chances of failure for valuation
using DCF and Comparables both.
The valuation ranges from 5 Billion
to 20 Billion based on the
methodology.
Valuation using
Comparable
02

16. VALUATION USING COMPARABLES

17. Term Sheet