BMC and VPC - Lyft

The business model canvas is a shared language for describing, visualizing, assessing and changing business models. It describes the rationale of how an organization creates, delivers and captures value. The Value Proposition Canvas is a tool which can help ensure that a product or service is positioned around what the customer values and needs

1. BUSINESS
MODEL
CANVAS
VALUE
PROPOSITION
CANVAS

2. LyftisaCarpoolingmarketplacethataggregatesriders
withdrivers.Userscansearchforanearbytaxithrough
theirappandbooktherideforcommutingthrough
PointAtoB.Ontheotherside,theLyftdrivergetsa
notificationwhenauserbooksacab.Accordingto
convenienceandavailability,thenearbycommunity
driverscanacceptordeclinetheride.
Lyftriderscanselectfromthepoolofdifferentmodes
likeLyft,LyftLux,SharedSaver,Sharedandbooka
trusted/highlyrateddriver.Thisaggregatormodel
allowstheridertotrack,rateandpaythedriverthrough
theappsotherewon’tbeanyhassleofcash
transaction.

3. Ride Share Market
Ridesharingisaconvenientaccesstopersonalmobilitywheneverandwhereverneededbyusingthe
transportationnetworksystem.Ridesharinghasevolvedprimarilyinthelastdecadewiththeadventofthe
internetandsmartphones.Modernridesharingindustrydisruptedthemobilityasaservicelandscape.
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
❖Indiaisthesecondmostpopulatedcountryandworld’s
largestdemocracyandthedemandformobilityis
increasing.
❖Theride-sharingmarketisstillinnascentstageandoffer
greatopportunityforthenewoperators.
❖RegulationinIndiaismoreliberalthanAPACandother
Europeancountries.Soofferbetterflexibility
❖IndiaiswitnessinggrowthofUrbanpopulationand
emergenceofnewmillion-pluscities.
❖GrowthofAirTravel,absenceoforganizedserviceand
risingincomelevelareincreasingdemandformobility
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
Driversareaninseparablepartofanyridesharingcompany.Theyaretheheartoftheridesharebusiness.So,to
haveanidealbusinessmodelthatenforcesdriver’strustisnecessary.Withthehandsomerewardsandperks,
driverswouldlovetodriveforthecompanythatallowsflexibilityandfreedom.
❖Thosewholovetodrivecouldmakenewfriendsontheirrides.
❖Flexibleworkingmodelletsdriversworkattheirconvenience.
❖ThefasterpaymentsystemattractsmoredriverstoworkwithLyft.
❖Apartfromthetripdrivertakes,theycouldalsoearnfromtipsandbonusesforgoingtheextramile.
❖Lyfthelpsitsdriverstoearnmorebysuggestingareaswheretheycouldgetmorecustomers.
❖Thecompanyprofferinsurancepolicyforthedriverswhichcoversliability,injuries,andotherdamagesto
thevehicle.

12. Value Proposition

13. Products and Services
❖Passenger Mobile Application or Web
Application
❖LyftLuxury
❖LyftSharedSaver
❖LyftShared

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?
WhileLyft,havetwokeypartners(driversandriders)theirbusinessmodelsuccessdependsontheability
todealwithlocalcommunities.Thus,theoverallimplementationofthisnewtransportationbusinessmodel
requirestheunderstandingofcomplexdynamicsthathelpbuildecosystems.Theproblemwiththeride-
sharingmarketisitslowentrybarrier.Asof2019,Lyfthasseenafairgrowthinitsridersandaverage
revenueperdriver.

18. Thank You
Karthik Kumar