Lyft Explained

Lyft, Inc.
Type:Public
Industry:Vehicle for hire
Foundation: (as Zimride)
Revenue: (2023)
Operating Income: US$ million (2023)
Net Income: US$ million (2023)
Assets: US$4.56 billion (2023)
Equity: US$541 million (2023)
Num Employees:2,945 (2023)
Subsid:Motivate
Footnotes:[1]

Lyft, Inc. is an American company offering mobility as a service, ride-hailing, vehicles for hire, motorized scooters, a bicycle-sharing system, rental cars, and food delivery in the United States and select cities in Canada.[1] [2] Lyft sets fares, which vary using a dynamic pricing model based on local supply and demand at the time of the booking and are quoted to the customer in advance, and receives a commission from each booking. Lyft is the second-largest ridesharing company in the United States after Uber.[1]

Lyft classifies its drivers as independent contractors, a practice that has drawn criticism and legal challenges because it allows the company to withhold worker protections that it would have been required to provide to employees.[3] [4] Studies have shown that, especially in cities where it competes with public transport, Lyft contributes to traffic congestion, reduces public transport use, has no substantial impact on vehicle ownership, and increases automobile dependency.

History

Lyft was launched in the summer of 2012 by computer programmers Logan Green and John Zimmer as a service of Zimride, a long-distance intercity carpooling company focused on college transport that they founded in 2007 after Green shared rides from the University of California, Santa Barbara campus to visit his girlfriend in Los Angeles and was seeking an easier way to share rides.[5] [6]

In May 2013, the company changed its name from Zimride to Lyft.[7] In July 2013, Lyft sold the original Zimride service to Enterprise Holdings, the parent company of Enterprise Rent-A-Car.[8]

Lyft's marketing strategy included large pink furry mustaches that drivers attached to the front of their cars and encouraging riders to sit in the front seat and fist bump with drivers upon meeting.[9] In November 2014, the company distanced itself from the fist bump.[10] [11] In January 2015, Lyft introduced a small, glowing plastic dashboard mustache it called a "glowstache" as an alternative to the large fuzzy mustaches on the front of cars. The transition was to help overcome the resistance of some riders to arrive at destinations, such as business meetings, in a car with a giant mustache.[12]

In August 2014, the company introduced shared transport.[13]

In December 2017, Lyft expanded into Canada, with operations in the Toronto, Hamilton and Ottawa metropolitan areas.[14]

In March 2018, Lyft partnered with Allscripts on a platform allowing healthcare providers to arrange rides for patients who lack transportation to appointments with plans to roll out the service to 2,500 hospitals, 180,000 physicians, and approximately 7 million patients.[15] [16] Lyft acquired Motivate, a bicycle-sharing system and the operator of Capital Bikeshare and Citi Bike, in November 2018.[17] [18] The company also announced plans to add 28,000 Citi Bikes and expand its service.[19]

In March 2019, Lyft became a public company via an initial public offering, raising $2.34 billion at a valuation of $24.3 billion.[20] The company set aside some shares to be given to long-time drivers.[21]

In March 2020, Lyft acquired Halo Cars which pays drivers to display digital advertisements on their vehicles.[22] In April 2020, during the COVID-19 pandemic in the United States, Lyft laid off 982 employees and furloughed an additional 288 to reduce operating expenses.[23] The company continued to offer scooters for rent in San Francisco, while Miami government asked Lyft to halt operations.[24]

In August 2020, Lyft partnered with rental car company Sixt to provide users access rental cars, in exchange for a commission. Most of the rental cars are owned and operated by Sixt, with 85 locations in the U.S.[25] [26]

In December 2020, Lyft announced plans to launch a multi-city U.S. robotaxi service with Motional.[27] Lyft sold its self-driving car division to Toyota for $550 million in April 2021.[28] [29] The division had partnerships with General Motors,[30] [31] NuTonomy,[32] Ford Motor Company,[33] [34] GoMentum Station,[35] and Magna International.[36] It also owned Blue Vision Labs, a London-based augmented reality startup, acquired in 2018 for $72 million.[37]

In April 2022, Lyft announced an agreement to acquire PBSC Urban Solutions, a Canadian bike-share equipment and technology supplier.[38] In November 2022, the company announced layoffs of approximately 700 employees, or about 13% of its staff.[39]

In March 2023, David Risher was named CEO of the company.[40] [41]

In April 2023, the company announced layoffs of 1,076 corporate workers, or 26% of its staff. This came after job cuts announced in July and November 2022.[42] [43] [44]

In September 2023, Lyft discontinued Lyft Rentals and stopped offering car rental services. [45]

Criticism

The legality of ridesharing companies by jurisdiction varies; in some areas they are considered to be illegal taxicab operations.

Unwanted text messages

In November 2018, Lyft settled a class action suit filed in 2014 alleging that the company had sent large numbers of unwanted commercial text messages.[46] In addition to $4 million in payments to consumers, the plaintiffs sought $1 million in legal fees.[47]

See also

Notes and References

  1. Web site: Lyft, Inc. 2023 Form 10-K Annual Report . . 20 February 2024.
  2. Web site: Lyft: A ride whenever you need one . 2023-02-15 . lyft.com . en-US . February 15, 2023 . https://web.archive.org/web/20230215140622/https://www.lyft.com/ . dead .
  3. News: Sainato . Michael . August 27, 2021 . 'I don't like being treated like crap': gig workers aim to retool a system they say is rigged . live . https://web.archive.org/web/20211031160651/https://www.theguardian.com/business/2021/aug/27/gig-workers-massachusetts-lawsuit-independent-contractor-status . October 31, 2021 . The Guardian.
  4. News: Luna . Taryn . November 4, 2020 . California voters approve Prop. 22, allowing Uber and Lyft drivers to remain independent contractors . limited . live . https://web.archive.org/web/20210104231140/https://www.latimes.com/california/story/2020-11-03/2020-california-election-tracking-prop-22 . January 4, 2021 . Los Angeles Times.
  5. News: Farr . Christina . Lyft team gets $60M more; now it must prove ride-sharing can go global . . May 23, 2013 . September 4, 2017 . July 27, 2017 . https://web.archive.org/web/20170727185342/https://venturebeat.com/2013/05/23/lyft-races-ahead-with-60m-in-funding-but-what-challenges-lie-ahead/ . live .
  6. News: Green . Tomio . Lyft Raises $60 Million As Ride Sharing Competition Heats Up . . May 23, 2013 . September 4, 2017 . December 1, 2017 . https://web.archive.org/web/20171201044812/https://www.forbes.com/sites/tomiogeron/2013/05/23/lyft-raises-60-million-as-ride-sharing-competition-heats-up/ . live .
  7. News: How Lyft's Founders Listened to Their Gut (and Not Their Mentor) . Christine . Lagorio-Chafkin . . June 24, 2017 . April 13, 2019 . April 15, 2019 . https://web.archive.org/web/20190415155914/https://www.inc.com/magazine/201607/christine-lagorio/john-zimmer-logan-green-lyft-zimride.html . live .
  8. News: Gannes . Liz . Lyft Sells Zimride Carpool Service to Rental-Car Giant Enterprise . . July 12, 2013 . July 19, 2013 . July 15, 2013 . https://web.archive.org/web/20130715061921/http://allthingsd.com/20130712/lyft-sells-zimride-carpool-service-to-rental-car-giant-enterprise/ . live .
  9. News: Why Lyft is trimming its pink mustache . Seth . Fiegerman . . December 22, 2014 . April 13, 2019 . April 2, 2019 . https://web.archive.org/web/20190402162527/https://mashable.com/2014/12/22/lyft-marketing/ . live .
  10. News: Lyft distances itself from the fist bump . Carmel . Deamicis . . November 26, 2014 . April 13, 2019 . March 30, 2019 . https://web.archive.org/web/20190330204803/https://gigaom.com/2014/11/26/lyft-distances-itself-from-the-fist-bump/ . live .
  11. News: Lyft distances itself from fist bump during busiest week yet . Tracey . Lien . . November 28, 2014 . April 13, 2019 . August 4, 2020 . https://web.archive.org/web/20200804091129/https://www.latimes.com/business/technology/la-fi-tn-lyft-fist-bump-20141128-story.html . live .
  12. Lyft Is Finally Ditching the Furry Pink Mustache . VanHemert . Kyle . . January 20, 2015 . April 9, 2017 . February 11, 2017 . https://web.archive.org/web/20170211081538/https://www.wired.com/2015/01/lyft-finally-ditching-furry-pink-mustache/ . live .
  13. News: With Lyft Line, Passengers Can Split Fares For Shared Rides . Lawler . Ryan . . August 6, 2014 . September 4, 2017 . July 5, 2017 . https://web.archive.org/web/20170705172708/https://techcrunch.com/2014/08/06/lyft-line/ . live .
  14. News: Lyft's first market outside the U.S. will be Canada with a December launch in Toronto . Etherington . Darrell . . November 13, 2017 . November 14, 2017 . November 15, 2017 . https://web.archive.org/web/20171115015523/https://techcrunch.com/2017/11/13/lyfts-first-market-outside-the-u-s-will-be-canada-with-a-december-launch-in-toronto/ . live .
  15. News: Lyft deal with Allscripts lets 180,000 doctors call rides for their patients . della Cava . Marco . . March 5, 2018 . March 5, 2018 . March 5, 2018 . https://web.archive.org/web/20180305190102/https://www.usatoday.com/story/tech/2018/03/05/lyft-deal-allscripts-lets-180-000-doctors-call-rides-their-patients/389122002/ . live .
  16. News: Lyft and Allscripts want to make it easier to get people to the doctor's office . LaVito . Angelica . . March 5, 2018 . April 13, 2019 . September 25, 2018 . https://web.archive.org/web/20180925062457/https://www.cnbc.com/2018/03/04/lyft-and-allscripts-want-to-make-it-easier-to-get-people-to-the-doctors-office.html . live .
  17. News: Lyft completes acquisition of Portland's bike-share program operator . Carrie . Ghose . . December 3, 2018 . April 13, 2019 . January 17, 2020 . https://web.archive.org/web/20200117182740/https://www.bizjournals.com/portland/news/2018/12/03/lyft-completes-acquisition-of-portlands-bikeshare.html . live .
  18. News: Lyft Inks Deal With N.Y.C. and Becomes Largest Bike-Share Service in U.S. . Laura . Stampler . . November 29, 2018 . April 13, 2019 . April 11, 2019 . https://web.archive.org/web/20190411134822/http://fortune.com/2018/11/29/lyft-biggest-bike-share-service-citi/ . live .
  19. News: Lyft to Add 28,000 Citi Bikes and Expand Service . Berger . Paul . . November 29, 2018 . subscription . November 30, 2018 . November 30, 2018 . https://web.archive.org/web/20181130090405/https://www.wsj.com/articles/lyft-to-add-28-000-citi-bikes-and-expand-service-1543508558 . live .
  20. News: Lyft valued at $24.3 billion in first ride-hailing IPO . March 29, 2019. Reuters. September 10, 2019 . en . March 29, 2019 . https://web.archive.org/web/20190329155048/https://www.reuters.com/article/us-lyft-ipo-idUSKCN1R92P4. live.
  21. Lyft Announces Driver Bonuses and Directed Share Program Opportunity . . March 1, 2019 . March 21, 2019 . March 21, 2019 . https://web.archive.org/web/20190321231650/https://www.prnewswire.com/news-releases/lyft-announces-driver-bonuses-and-directed-share-program-opportunity-300805055.html . live .
  22. News: Lyft buys Halo Cars, a startup founded by four Penn students in 2018 . Anya . Tullman . . March 3, 2020 .
  23. Web site: Lyft, Inc. Form 8-K . . April 29, 2020 . December 14, 2020 . September 20, 2020 . https://web.archive.org/web/20200920200814/https://www.sec.gov/ix?doc=%2FArchives%2Fedgar%2Fdata%2F1759509%2F000119312520125193%2Fd848949d8k.htm . live .
  24. Web site: Electric scooter-sharing grinds to a halt in response to the COVID-19 pandemic . Hawkins . Andrew J. . . March 20, 2020 . May 22, 2020 . May 19, 2020 . https://web.archive.org/web/20200519123321/https://www.theverge.com/2020/3/20/21188119/electric-scooter-coronavirus-bird-lime-spin-suspend-bikes . live .
  25. News: Lyft Gets Into The Rental Car Business With Partner SIXT . Michael . Goldstein . . August 10, 2020 . https://web.archive.org/web/20200810005116/https://www.forbes.com/sites/michaelgoldstein/2020/08/07/rent-a-car-straight-from-the-lyft-app-with-partner-sixt/#3bca63b1952a . live.
  26. News: Lyft expands its rental business with Sixt partnership. Kirsten . Korosec . . August 17, 2020 . https://web.archive.org/web/20200817230747/https://techcrunch.com/2020/07/30/lyft-expands-its-rental-business-with-sixt-partnership/ . live.
  27. News: Lienert . Paul . December 16, 2020. Lyft, Motional to launch multi-city U.S. robotaxi service in 2023 . en . Reuters . December 16, 2020.
  28. News: Toyota to buy Lyft unit in boost to self-driving plans . Tina . Bellon . Eimi . Yamamitsu . . April 26, 2021.
  29. News: Lyft's quiet CEO Logan Green opens up on his wild ride . McFarland . Matt . . March 5, 2018 . August 3, 2020 . August 9, 2020 . https://web.archive.org/web/20200809144545/https://money.cnn.com/2018/03/05/technology/lyft-ceo-logan-green/index.html . live.
  30. News: GM invests $500 million in Lyft, sets out self-driving car partnership . Steve . Trousdale . . January 5, 2016 . April 5, 2019 . https://web.archive.org/web/20190405060852/https://www.reuters.com/article/us-gm-lyft-investment/gm-invests-500-million-in-lyft-sets-out-self-driving-car-partnership-idUSKBN0UI1A820160105 . live .
  31. News: GM and Lyft Will Test Self-Driving Taxis Within the Next Year . . Kia . Kokalitcheva . May 5, 2016 . July 13, 2016 . https://web.archive.org/web/20160713140844/http://fortune.com/2016/05/05/lyft-gm-self-driving-pilot/ . live .
  32. News: Lyft teams up with NuTonomy to put 'thousands' of self-driving cars on the road . Hawkins . Andrew J. . . June 6, 2017 . July 5, 2017 . https://web.archive.org/web/20170705121536/https://www.theverge.com/2017/6/6/15742274/lyft-nutonomy-self-driving-car-partnership-boston-pilot . live.
  33. News: Lyft Adds Ford to Its List of Self-Driving Car Partners . Isaac . Mike . . September 27, 2017 . subscription . 0362-4331 . September 29, 2017 . https://web.archive.org/web/20170929045518/https://www.nytimes.com/2017/09/27/technology/lyft-ford-self-driving-cars.html . live .
  34. News: Ford and Lyft will work together to deploy autonomous cars . Andrew J. . Hawkins . . September 27, 2017 . April 14, 2019 . https://web.archive.org/web/20190414115552/https://www.theverge.com/2017/9/27/16373574/ford-lyft-self-driving-car-partnership-gm . live .
  35. News: Lyft's self-driving technology finds momentum in Concord . Rex . Crum . . March 8, 2018 . March 10, 2018 . https://web.archive.org/web/20180310074350/https://www.mercurynews.com/2018/03/08/lyfts-self-driving-technology-finds-momentum-in-concord/ . live.
  36. News: Lyft is building self-driving tech that can go in any car . Dara . Kerr . . March 14, 2018 . March 15, 2018 . https://web.archive.org/web/20180315061433/https://www.cnet.com/news/lyft-partners-with-magna-on-developing-and-manufacturing-self-driving-cars/ . live.
  37. News: Lyft unveils a new self-driving car and acquires an AR startup . Andrew J. . Hawkins . . October 23, 2018 . November 1, 2018 . https://web.archive.org/web/20181101095729/https://www.theverge.com/2018/10/23/18014200/lyft-self-driving-car-acquires-blue-vision-lab-ar . live.
  38. Web site: Bellan . Rebecca . Lyft doubles micromobility footprint with PBSC acquisition . . April 20, 2022.
  39. News: Lyft to Lay Off About 700 Employees in Second Round of Job Cuts . Rana . Preetika . Glazer . Emily . . November 3, 2022 . subscription.
  40. News: Glazer . Preetika Rana, Lauren Thomas and Emily . Lyft Hires New CEO as Founders Step Back Amid Struggles With Competition . 2023-04-03 . Wall Street Journal . March 27, 2023 . en-US.
  41. Web site: Genovese . Daniella . 2023-08-15 . Lyft CEO buys $1.15M of company stock: 'I am putting my money where my mouth is' . 2023-08-17 . FOXBusiness . en-US.
  42. News: Lyft to cut 1,072 employees, or 26% of its workforce . Rohan . Goswami . . April 27, 2023.
  43. Web site: Korosec . Kirsten . 2023-04-21 . Lyft to make 'significant' cuts across ride-hailing company . 2023-04-21 . TechCrunch . en-US.
  44. News: Preetika . Rana . Lauren . Thomas . Emily . Glazer. Lyft to Cut at Least 1,200 Jobs in New Round of Layoffs to Reduce Costs . 2023-04-21 . . April 21, 2023 . subscription.
  45. Web site: Introducing Lyft Rentals . Rafter . Alex . Dec 11, 2019 . Lyft . Dec 17, 2023 . "Update: As of September 1, 2023 Lyft Rentals no longer offers car rental services.".
  46. Web site: Pennington . Laura . Lyft, Consumers Seek Approval of $4M Texting Class Action Settlement . Top Class Actions . November 9, 2018 . March 15, 2019 . April 2, 2019 . https://web.archive.org/web/20190402042907/https://topclassactions.com/lawsuit-settlements/lawsuit-news/863072-lyft-consumers-seek-approval-4m-texting-class-action-settlement/ . live .
  47. News: Sinay . Reenat . 2 Firms In $4M Lyft TCPA Deal Seek Nearly $1M Attys' Fees . . February 14, 2019 . subscription . March 15, 2019 . April 2, 2019 . https://web.archive.org/web/20190402042925/https://www.law360.com/articles/1129378/2-firms-in-4m-lyft-tcpa-deal-seek-nearly-1m-attys-fees . live .

This article is licensed under the GNU Free Documentation License. It uses material from the Wikipedia article "Lyft".

Except where otherwise indicated, Everything.Explained.Today is © Copyright 2009-2024, A B Cryer, All Rights Reserved. Cookie policy.