bus 5411 case 3

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Nov 24, 2024

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Introduction : As a service for Zimride, a long-distance vehicle company launched in 2007, two computer programmers, Logan Green and John Zimmer, founded Lyft in the summer of 2012. After taking trips with the University of California, Santa Barbara campus in Los Angeles, Green came up with the concept for Zimride. Although he had previously utilised Craigslist, he didn't want to be concerned about not knowing the passengers or the driver. When Facebook opens up its API to other developers, "that component is missing," claimed Green. Drivers and riders have been connected via Zimride using the Facebook Connect app. Passengers and student drivers can get to know one another better by using information from their Facebook profiles. Over time, Zimride grew to be the biggest automaker in the nation. Green and John Zimmer first connected on Facebook before Green introduced them to one another. When he visited Zimbabwe in 2005, he noticed folks sharing vans, which served as the source of the company's name. Zimmer began at Cornell University, where 20% of the student body entered six months later. The competitive edge of Lyft Long a rival of Lyft, Uber Technologies currently controls the ride-hailing market. When they couldn't find a taxi in Paris one cold night, Garrett Camp and Travis Kalanick decided to start their own company. In 2017, Uber experienced a slew of moral and legal issues. As the media victory mounted, Lyft started to take advantage of Uber's problems directly. According to Kerr (2018), Lyft increased the number of drivers and passengers by half, added more than 160 new cities, and increased the number of trips offered to customers by 130% to 375.5 million. Three fundamental tenets underlie Lyft's competitive advantage: 1) upholding a sterling reputation; 2) promptly resolving client and employee grievances; and 3) offering a reliable, reasonably priced transportation service that encourages drivers to choose Lyft. The ability of a company to support the overall strategy goal of offering more value for the products and services of the company's chain than competitors determines the effectiveness of an overall strategy to establish a competitive advantage (Porter, 1985). By allowing customers to review the driver and submit anonymous feedback about potential areas for development, Lyft may increase consumer comfort during the ride and maintain its competitive advantage in the market (Lyft Website, 2020). In comparison to an Uber membership, a Lyft membership offers greater benefits, such as 15% off all trips, priority transportation from the airport, waivers of cancellation fees for three rides, and lost and found expenses. Compared to Uber drivers, Lyft drivers are 5% more likely to be pleased with their driving experience. In contrast to Uber, which charges roughly $2 per hour, Lyft pays its drivers no commissions or fees and provides monthly bonuses ranging from $500 to $5,000 (Farrington, 2020). Lyft Value proposition

o Offer Lyft drivers an additional source of money. o Time can be adjusted. It can be used whenever the driver wants. o Easy payment. Drivers receive 20% of the whole fare through Lyft. o People who enjoy driving have the chance to make new friends and earn a living doing what they enjoy. Technology Innovation and Lyft Companies that focus on digital first have the advantage of scaling operations appropriately and quickly. Due to the high demand for online orders and the enormous number of drivers who are no longer receiving rides, Lyft has teamed up with Amazon to manage its contractors while exploring the possibility of long-term cooperation rather than a digital battle for gig economy drivers. The infection has caused an 11% decline in the stock price and a 20% decline in total demand, endangering Lyft's ability to make money. Home deliveries are also increasing as more people shop online as a result of brick-and-mortar establishments closing down. Since Amazon and the online store announced their partnership, 100,000 online Lyft drivers have signed up to work for them. If Amazon recruits drivers from its own network, this current strategy puts Lyft in danger, but it also has a lot of promise if technical advancement, digital integration, and the correct mix of products are coordinated to maintain products mutually useful. If Lyft can effectively leverage machine learning and artificial intelligence to link real-time ride- sharing services with Amazon merchandise, it may have a significant competitive advantage over Uber. One-hour, one-day, and two-day delivery options are available from Amazon, and Lyft's AI/ML algorithm may lead drivers by giving the highest priority to routes with the highest income potential. This symbiotic partnership with the power of machine learning could grow over time, diversifying Lyft's revenue stream and assisting the company to hedging against the risks of concentrated transportation services because Amazon lacks the autonomous delivery and revenue generation that gives Lyft a price advantage. Additionally, the increase in transportation may reduce human-to-human interaction since there is no longer a need for more drivers to operate, or because drivers and passengers are frequently kept apart in enclosed settings, which speeds the spread of COVID-19. Technology disruption and Lyft What, as it was once called, is disruptive innovation? Lyft has completely changed the game for the transportation sector. Over time, they started to cater to the wants of high-end clients while also creating a market for those with low incomes. Without owning a car or requiring customers to park, Lyft has employed technology to deliver outstanding service, as was covered in the preceding section.

Conclusion With the help of cutting-edge technology, Lyft achieves its objectives and maintains its competitiveness. References : Kerr, D. (2018). Lyft grows gangbusters in 2017, bringing competition to Uber. https://www.cnet.com/news/lyft-sees-massive-growth-brings-uber-competition/ Lyft Website (2020). Lyft privacy policy. https://www.lyft.com Porter, M. E. (1985). Competitive advantage: Creating and sustaining superior performance. New York: Free Press

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bus 5411 case 3

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