Lyft’s Profile and Background
Lyft is an American online transportation firm it is a car-hiring company that grounds its services on a mobile app. The San-Francisco-based firm is the second-best in online transportation industry behind Uber. However, Uber outshines Lyft in almost all facets of online transportation network ranging from marketing to revenue generation. For instance, while Uber is swiftly running internationally with even successful operations in developing countries, Lyft is still contained in the US but expanding on the scale of cities (UPI NewsTrack 1). Nevertheless, the company is showing immense efforts to improve and maintain its competitive edge.
One of the promising strategies for securing this objective is emphasizing friendliness in ride-sharing. Unlike Uber which approaches ride-sharing formally and professionally, Lyft employs causal models in engaging its drivers and passengers. The goal is to create an environment in which drivers and riders perceive the company as their second home. Although the company is still far from matching the capacity of Uber, it has gradually grown since its inception in 2012, three years after the foundation of Uber.
Description of the New Service
Besides the informal-oriented approach, Lyft follows Uber’s footsteps and its new developments usually reflect the previous works of Uber. The new service, in this case, was no different and Early 2016, Lyft launched a new service dubbed the Lyft Carpool Service. With this service, the company aimed at increasing the number of passengers with fewer rides through the connection of people heading in the same directions or destinations (Close 2). The service was to engage people who drive to work every day. The company would pay these drivers for picking up and dropping passengers who are headed in the same direction. Riders and drivers were to provide information about their destination and the estimated time of setting off and arrival. Lyft would then assess the information and connect drivers with riders whose information significantly match.
Clearly, the drivers were not involved in a long-term relationship with Lyft. Even better, since the service would enable the transportation of more than one passengers, the charges would be super-cheap compared with other rides observing the traditional way of riding a single passenger (Close 1). Again, the drivers would be motivated to leverage this service because it will be an additional source of income. As they drive to work, they are being paid. Hence, Lyft developed the idea with much vigor that it would survive and thrive. The case is especially so since Uber had developed a similar product in 2015 and it was remarkably received. The only challenge is whether the drivers were willing to ride with strangers in their car for additional income. However, it was worth the risk.
Analysis of the Service before Design and Production
The analysis had it that Lyft Carpool Service would not only revolutionize the online car-hiring industry but also improve environmental friendliness. Today, traffic jams and gas emissions are among the top public concerns and with this service, the two would be reduced. Since the idea is shifting from the traditional taxi of ferrying one rider at a time, the online transportation network would reduce the number of cars on the road. For instance, a single car would carry up to 4 or 5 passengers heading in similar directions. More passengers would be carried in fewer trips and in less time while the company makes the same amount of money. Moreover, the reduction of cars on the road also means that there will be fewer emissions. Hence, the Lyft Carpool Service would promote cleaner air, less traffic, and less stressful commutes altogether. Additionally, the Lyft also evaluated the success registered by their leading rival following the launching of Uberpool Service.
Going by the information released by Uber regarding this service, the multinational company claimed that the ride-sharing service had reduced distance coverage of their cars by over 600,000 miles, and saved about 13,000 gallons of gasoline (Solomon 3). As such, this means that the service was environmental friendly owing to the translated minimization of gas emissions. Importantly, San Francisco, the home city for Lyft, was among the top five cities that positively responded to the ride-sharing service (2). From the hindsight of this reality, Lyft deemed it fit to launch the service, which would first operate in San Francisco before being dispatched in other active cities in terms of ride sharing, mainly New York and Los Angeles. The respond in these areas would thus boost the momentum to incept the same in the over 200 US cities in which Lyft runs.
Marketing Role in Design and Production
Marketing played a pivotal role in the designing and production of this service. Currently, the world is advocating for mechanism and innovation which sit well with environmental sustainability. With this service being environmentally friendly, this was a promising marketing line. More so, surveys conducted insisted that the move to ride sharing would reduce the road congestion caused by the vehicles by around 75%. In New York only, it was estimated that the introduction of four-car passengers would displace around 14,000 taxis (UPI NewsTrack 1). Hence, marketing shapes the designing and production of a service.
The idea was to associate the service with the reduction of road congestion and gas emissions. That way, a majority people, including potential investors, would relate with this. In fact, various environmental agencies embarked on ways of pushing the implementation of the service (Solomon 1). It was equated to an evolution ideal for environmental sustainability. Therefore, marketing cannot be undermined. It potentially fosters the reception of a product or service thus influencing its success. However, good marketing does not guarantee success. It is important to consider the possible challenges and act accordingly.
The Level of Success
Despite the good marketing, the service did not attain substantial success. Its existence was short-lived. After initiation in March 2015, Lyft halted the service in August the same year. The reason behind the shut was the unwillingness of drivers to continue with the service. It was revealed that most drivers opted out of this service thus destabilizing it. Lyft also came out to agree with this revelation. The company cited failures in matching supply and demand. It was difficult to adequately balance commuting drivers and riders (WashingtonPost). Sources intimate that the company launched the service in haste and with assumptions that drivers would sufficiently respond thus making it a success.
Unlike Uber, Lyft did not critically evaluate how to ensure the cooperation and attraction of more drivers, especially given that they will be driving with strangers (WashingtonPost). There was also a substandard connection between drivers and riders. To this end, most drivers perceived the service as a burden to them thus exiting the program. Nevertheless, Lyft claimed that it was a lesson learnt and it would soon re-initiate the service with more vigor and strategic formulation.
Works Cited
Close, Kerry. "Lyft Just Launched A New Casual Carpool Service." Money.Com (2016): 1. Business Source Ultimate. Web. 30 Jan. 2017.
WashingtonPost. "Lyft ditches casual carpooling, citing a lack of driver interest." Washingtonpost.com 2016: Academic OneFile. Web. 30 Jan. 2017.
Solomon, Brian. "Can Lyft Finally Make Carpooling A Reality?." Forbes.Com (2016): 15. Business Source Complete. Web. 30 Jan. 2017.
UPI NewsTrack. Uber and Lyft coax commuters to carpool with new service." UPI NewsTrack 2014: General OneFile. Web. 30 Jan. 2017.
