Lyft is a carpooling marketplace connecting riders and drivers, allowing users to book rides through its app, while enabling drivers to accept or decline requests based on convenience. The rise of smartphones and internet has fueled the demand for ride-sharing services, particularly in India, where the market is still developing and offers significant opportunities due to a growing urban population and milder regulations. Lyft's business model relies on building trust with drivers and leveraging technology to provide convenient, cost-effective rides for users while ensuring multiple revenue streams.

1. BUSINESS
MODEL
CANVAS
VALUE
PROPOSITION
CANVAS

2. Lyft is a Carpooling marketplace that aggregates riders
with drivers. Users can search for a nearby taxi through
their app and book the ride for commuting through
Point A to B. On the other side, the Lyft driver gets a
notification when a user books a cab. According to
convenience and availability, the nearby community
drivers can accept or decline the ride.
Lyft riders can select from the pool of different modes
like Lyft, Lyft Lux, Shared Saver, Shared and book a
trusted/highly rated driver. This aggregator model
allows the rider to track, rate and pay the driver through
the app so there won’t be any hassle of cash
transaction.

3. Ride Share Market
Ride sharing is a convenient access to personal mobility whenever and wherever needed by using the
transportation network system. Ride sharing has evolved primarily in the last decade with the advent of the
internet and smartphones. Modern ride sharing industry disrupted the mobility as a service landscape.
Key Drivers:
❖ Increasing smartphone and internet penetration
❖ Increase in cost of vehicle ownership
❖ Reduction in car ownership among millennials
❖ Rising fuel prices
Key Restraints:
❖ Resistance from traditional transport services
❖ Varying transport policies of different countries
Top Players:
❖ OLA
❖ UBER
❖ BLABLA Cars

4. Demand for
Mobility
Weaker
Regulation
Untapped
Shared cab Market
❖ India is the second most populated country and world’s
largest democracy and the demand for mobility is
increasing.
❖ The ride-sharing market is still in nascent stage and offer
great opportunity for the new operators.
❖ Regulation in India is more liberal than APAC and other
European countries. So offer better flexibility
❖ India is witnessing growth of Urban population and
emergence of new million-plus cities.
❖ Growth of Air Travel, absence of organized service and
rising income level are increasing demand for mobility
service.
Why India is important for Lyft

5. Business Model Canvas
Key Partners Key Activities Value Propositions Customer Relationships Customer Segments
Key Resources Channels
Cost Structure Revenue Streams
Mobility Partners
● Car Divers
● Private Taxi owners
● Car Fleet owners
Technology Partners
● GPS/Maps provider
● Internet Provider
● Payment Gateway
Other Extended partners
● Driving schools
● Insurance
companies
● Car maintenance
companies
● Governance
compliance
● Platform growth
● Platform operations
● Sales & Marketing
● Finance
● Customer Support
● Driver background
checks
● Employees
● Brand Reputation
● Driver partners
● Technology
platform
For Drivers
● Flexible/Own
working hours
● Access to wider
customers
● Daily payment
● Instant bookings
● Leased cars
● Additional source
of Income
For Passengers
● High quality
service and
convenient rides
● Certified drivers
● Affordable and
lean fare
● Less waiting time
● Cash/Cashless
rides
● Ride tracked with
map for safety
● Promotions and
offers
● Customer
service
● Review and
Feedback
system
● Self serve
Application
For Passengers
● People who own
cars and don't
want to drive
themselves
● People who do
not own cars
● Cost-effective
ride at their
doorstep
For Drivers
● People who own
car and want to
earn extra money
● People who liked
to be called as
partner and not
driver
● People who likes
to drive
● Website
● Mobile app on
Android
● Mobile App on
iOS
● Technology infrastructure
● Operational cost - salaries, insurance, maintenance
● Marketing expenses
● Payout for drivers
● In cab promotion and advertisement commision
● Trip commision based on per km
● Different options like : Lyft, Lyft Lux, Shared saver, Shared
● Surge Pricing

6. Value Proposition Canvas

7. Customer Profiling

8. Customer Profile - Jobs
❖ Contacting a good cab service
❖ Control cost for the ride
❖ Waiting for the cab, unknown amount of
time
❖ Unknown drivers
❖ Give direction
❖ Payment for the trip

9. Customer Profile - Pains
❖ Low cabs availability
❖ Need to book a cab in advance
❖ Uncertified/Bad drivers
❖ Issue with payments cards machine not
working or no proper change
❖ Payment for the trip
❖ Overcharged by the cab service as it’s
variable

10. Customer Profile - Gains
❖ Single click Book or Cancel the cabs
❖ Tracking the cab
❖ On-time arrival
❖ Fair price
❖ Professional Drivers
❖ Background verified trusted drivers
❖ Zero time payment

11. Value Proposition for Drivers
Drivers are an inseparable part of any ridesharing company. They are the heart of the rideshare business. So, to
have an ideal business model that enforces driver’s trust is necessary. With the handsome rewards and perks,
drivers would love to drive for the company that allows flexibility and freedom.
❖ Those who love to drive could make new friends on their rides.
❖ Flexible working model lets drivers work at their convenience.
❖ The faster payment system attracts more drivers to work with Lyft.
❖ Apart from the trip driver takes, they could also earn from tips and bonuses for going the extra mile.
❖ Lyft helps its drivers to earn more by suggesting areas where they could get more customers.
❖ The company proffer insurance policy for the drivers which covers liability, injuries, and other damages to
the vehicle.

12. Value Proposition

13. Products and Services
❖ Passenger Mobile Application or Web
Application
❖ Lyft Luxury
❖ Lyft Shared Saver
❖ Lyft Shared

14. Pain Relievers
❖ Flawless automatic payments
❖ Driver Rating
❖ Arrival and travel time prediction
❖ 24 Hours cabs services
❖ 365 days cabs services

15. Gain Creators
❖ Navigating the trips on the map
❖ Ability to manage all trips details on single
platform
❖ Automatic Billing via credit/debit cards
❖ Rating system

16. Value Proposition Canvas

17. Lyft’s Business Model Sustainable?
While Lyft, have two key partners (drivers and riders) their business model success depends on the ability
to deal with local communities. Thus, the overall implementation of this new transportation business model
requires the understanding of complex dynamics that help build ecosystems. The problem with the ride-
sharing market is its low entry barrier. As of 2019, Lyft has seen a fair growth in its riders and average
revenue per driver.

18. Thank You
Karthik Kumar