Difference between revisions of "Lyft"

Revision as of 17:23, 8 April 2017 (view source) Sjreilly (Talk | contribs) (→‎Competitors) ← Older edit		Revision as of 17:32, 8 April 2017 (view source) Sjreilly (Talk | contribs) (→‎How to Start Using the Application) Newer edit →
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	===How to Start Using the Application===		===How to Start Using the Application===
		+	[[File:IMG_8526.PNG|150px|thumb|right| Homepage of Lyft on mobile application interface.]]
	In order to utilize the service, users must create an account linked to their phone number and credit card, Google Wallet, or PayPal account.  When using the phone app, Lyft uses GPS tracking to determine the location of the user and the availability of cars around them.  In order to request a ride, a user must confirm the pickup location and choose the class of car they prefer.  The user can then add their destination and view a price estimate including any “prime time” surge charges.  The user then taps the “Requests Lyft” button.		In order to utilize the service, users must create an account linked to their phone number and credit card, Google Wallet, or PayPal account.  When using the phone app, Lyft uses GPS tracking to determine the location of the user and the availability of cars around them.  In order to request a ride, a user must confirm the pickup location and choose the class of car they prefer.  The user can then add their destination and view a price estimate including any “prime time” surge charges.  The user then taps the “Requests Lyft” button.

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Revision as of 17:32, 8 April 2017

Lyft

"Lyft Application" text Type Ridesharing Application Launch Date 2012 Status Active Product Line Service Platform iOS, Android Website Lyft Official Website

L

yft is a ridesharing application created in 2012 that is used on mobile devices such as iOS and Android. Lyft helps passengers request a ride and arranges a driver. This ridesharing application operates in over 200 cities in the United States, is headquartered in San Francisco, California and is currently valued at $5.5 billion. The company has recently merged with another ridesharing start-up called Didi Kuaidi in China. Lyft has experienced several ethical and operational complications including issues involving the Disabilities Act, local regulations, insurance, privacy, passenger discrimination, and airport policies.

History

John Zimmer and Logan Green founded Lyft on May 22nd, 2012. They originally created a company called Zimride in 2007, which was very similar to Lyft but was geared towards long distance rides connecting people through Facebook. ^[2] The lack of short distance journeys was what seemed to be missing from this company, which is why they created Lyft in San Francisco. ^[3] Lyft has given Uber some serious competition in low-priced private drivers that are accessible with the click of a button. Lyft complemented Zimride as these companies were accessible to ridesharers for long and short distances. As Lyft was growing, Zimride was sold to Enterprise on July 10th, 2013 as Lyft was far more profitable for Zimmer and Green. ^[4]

John Zimmer attended Cornell University with a background in hospitality and was inspired by a class on green cities. When learning about cars and the road system he was intrigued by the low rate of occupancy of public transportation. He realized that if you could increase the occupancy by a mere ten percent it would create a more efficient society. Logan Green has a background in transportation hacking as he built the first car-share program, even before Zipcar, at the University of California at Santa Barbara. He was constantly frustrated with the public transportation system and how it was funded. He wanted to build a transportation system that was operated and financed in a better way. ^[5]

Passenger Application Features

How to Start Using the Application

In order to utilize the service, users must create an account linked to their phone number and credit card, Google Wallet, or PayPal account. When using the phone app, Lyft uses GPS tracking to determine the location of the user and the availability of cars around them. In order to request a ride, a user must confirm the pickup location and choose the class of car they prefer. The user can then add their destination and view a price estimate including any “prime time” surge charges. The user then taps the “Requests Lyft” button.

A driver within the vicinity is connected to the user and the application provides the driver’s estimated arrival time based upon the distance and current traffic conditions. As the Lyft approaches, the rider is provided the driver’s name, rating, type of car, and the license plate number. A user can track the location of their car on the application’s map. Users can view the estimated time until the car arrives, can contact the driver, split the fee for the ride with friends, send the ETA to others, and cancel the ride from this screen. ^[6]

In March 2015, Lyft made it possible for users to add personal profiles including where they are from and favorite music to encourage connections between passengers and drivers. ^[7]

Different Cars

Lyft

This is Lyft’s most basic car service and lowest cost option. This car seats up to four-passengers. ^[8]

Lyft Plus

This car seats up to 6 passengers and is more expensive than the basic Lyft car. ^[9]

Lyft Premier

This car is a luxury sedan that seats up to 4 passengers and is only available in New York City, San Francisco, and Los Angeles. These luxury vehicles have premium features like leather interiors made by manufacturers like Audi, Mercedes, BMW, and Jaguar. ^[10]

Lyft Line

This service is similar to a carpool service that pairs you with other nearby passengers that have a similar end destination. This service is helpful to users who are commuting or travel to popular end destinations such as the airport. Lyft pairs you with a driver along your route and picks up and drops off users along the way. This service tends to be up to 60% less expensive than a regular Lyft as passengers share the fee in the big city markets. ^[11]

Pricing Equation

Pricing

Calculating ride payments are based off five different factors: cost per mile, cost per minute, base charge, service fee, and prime time. The distance is the cost per each mile and the time is the cost per minute during the trip. The base charge is the flat charge assessed at the beginning of the trip and the service fee is the Lyft platform charge for each ride. Prime time is an additional surcharge added during the busy times. ^[12]

Lyft Prime Time

Prime time encourages drivers to be on the roads during the busy times of the day where demand is high. Prime time varies each second depending on how many people are requesting Lyft. If there is a Prime Time surge happening in the location, the user will receive a notification pop up with the added percentage requiring confirmation of their ride. For example, if a ride costs $10 (before other fees) and there is a 150% Prime Time, the ride will cost $25 (+ other fees). ^[14]

Two-Way Ratings

At the end of the ride, the driver and the passenger have the chance to rate each other on a scale of 1-5 stars. If either the passenger or the driver rates under 3 stars, they will never be paired again. If a driver is consistently getting low ratings, Lyft may deactivate the driver from the application. Each driver receives a weekly summary of their ratings with comments left by passengers. ^[15]

Competitors

Lyft is considered a ridesharing company which is an arrangement where passengers travel in a private vehicle driven by its owner for a fee. Lyft's biggest rival is Uber who has dominated the ridesharing industry since 2009. Uber has a similar setup to Lyft as both companies require a ride-hailing application. Uber is worth $68 billion and dominates the industry in over 60 countries. ^[16] In order to compete with Uber, Lyft merged with a Chinese ridesharing application called Didi Kuaidi. Didi Kuaidi controls about 80 percent of the ridesharing market in China. This partnership will allow Didi Kuaidi to function in the United States and Lyft to operate in China. Lyft users will be able to use the Lyft application in China to find Didi Kuaidi drivers rather than redownloading a new service. ^[17]

In the early months of 2017, Uber was the subject of a lot of negative press. In that time, they were accused of cheating both riders and drivers by using manipulative navigation data, sexual harassment claims from senior management surfaced, they were accused of using a secret tool to deceive authorities and more^[18]. They're working diligently on repairing the company's tarnished reputation and company culture and leadership. This slew of bad publicity for their competitor opened an opportunity for Lyft to get a major boost in this market. They've seen large increases in ride requests and have secured $500 million in a new round of funding, as of April 2017^[19].

In the News

Lyft is donating $1 million over the next four years to the American Civil Liberties Union (ACLU). This pledge is in response to the executive order that places limits on travel to the U.S. from certain countries signed by President Donald Trump to temporarily assess the risk of terrorists infiltrating the immigration system into the U.S. ^[20]

Recently, Lyft has also agreed to pay $27 million to settle a lawsuit against the company. Lyft considers their drivers as contractors rather than employees. Under the new deal that was just signed, Lyft drivers will continue to be considered independent contractors and pay for their own gas and expenses while not being covered under minimum-wage laws. 100,000 drivers could be eligible to receive part of the $27 million depending on how many hours they have driven for Lyft. ^[21]

Lyft and Uber representatives in Oregon are promoting a bill that would allow the state of Oregon to regulate the companies instead of individual cities. This type of regulation would set uniform rules for the companies throughout the state. ^[22] These regulations would allow Lyft to treat drivers as independent contractors. Meaning that the companies would not have to pay payroll taxes on these employees, or provide them with benefits or workers compensation insurance. ^[23]

Ethics

Lyft claims to be "committed to maintaining an inclusive and welcoming community...ensuring people who need rides most are able to get them”. Their anti-discrimination policies prohibit against discrimination against passengers on the basis of race, national origin, religion, gender, gender identity, physical or mental disability, mental condition, marital status, age, or sexual orientation. ^[24]

Passenger Discrimination

Recently, Lyft and other ride sharing applications including Uber have been accused of failing to comply with the Americans with Disabilities Act (ADA). Allegedly, Lyft drivers have discriminated against people in wheelchairs or with service animals, either refusing to transport them or charging excessive prices to do so. Outlined on Lyft's website are policies that explicitly state that drivers are responsible for transporting all passengers in wheelchairs, so long as the wheelchair can safely and securely fit in the car. If a wheelchair cannot be accommodated for some reason, the driver must cancel the ride and contact the Critical Response Line for further help. ^[25] Policies also state that drivers cannot deny service to passengers with service animals, even if that driver is allergic or afraid of such animals or has cultural objection toward them. According to Lyft, discrimination can result in deactivation from the platform.^[26]

On the app, there is a feature called "Access Mode" that passengers with accessibility needs can enable. Once the passenger enables "Access Mode", they must request permission to be able to request rides with local accessible vehicles. "Access Mode" dispatches a wheelchair accessible vehicle instead of a standard Lyft vehicle when a passenger with accessibility requests a Lyft. However, "Access Mode" is not available in all markets and these accessible vehicles are not available 24/7 like standard Lyft cars. The registration process aforementioned may take several weeks to complete and accessible vehicles often have to be requested at least 24 hours in advance. Passengers with accessibility needs may not always be guaranteed fast and easy transportation when needed, defeating the purpose of the application. ^[27]

Local Regulations

Lyft operates all over the United States; however, some local governments require extra steps in order to become a Lyft driver. Most Lyft driver applications meet with a representative from Lyft to have their car inspected and to take a practice ride. A few cities require applicants to go to an inspection facility or meet with a mechanic in order to be approved to be a Lyft driver. Approved applicants are not required to display a Lyft emblem in their windshield, only encouraged. If a Lyft driver chooses not to display the Lyft emblem in their car and is caught, the only potential consequence includes receiving a citation. ^[28]

Airport Policies

Some airports have strict policies regarding where passengers are allowed to be picked up and dropped off, and some even prohibit Lyft drivers from transporting passengers to and from the airport all together. This is because airports are one of greatest sources of profit for taxi and limo companies, since taxis and limo drivers need to have city licenses or permits and pay fees for each airport pickup or drop off. Ride-sharing services such as Lyft and Uber can be cheaper and easier to request than taxis, especially for longer trips, which has led to many airport travelers and Lyft drivers to find ways to get around these restrictions. For example, some people take shuttle buses to rental car lots and call Lyft rides from there and often Lyft drivers remove the Lyft emblem from their cars and/or ask passengers to sit in the front seat so that it appears less like a Lyft ride. ^[29]

Lyft has partnered with airports across to country to make the pick-up and drop-off processes easier for both Lyft passengers and drivers. On Lyft's website, there is a list of airports that allow passengers to be picked up and dropped off by Lyft drivers, with a set of detailed instructions for each airport for drivers to follow when doing so. ^[30] Also on the website is a guide for passengers to use when determining which airports allow Lyft pickups and drop offs, the coverage area for the corresponding cities, and pricing details for the ride itself.^[31] Regardless, travelers are motivated to disobey airport policies to save money and Lyft drivers are motivated to disobey airport policies to make money.

See Also

External Links

References

1. ↑ 40 Under 40. "Logan Green and John Zimmer."
2. ↑ Russell, Jon. "Zimride Is Closing Its Public Ride-Sharing Service To Focus On Corporates And Students". 2015. Retrieved on 1 March 2017.
3. ↑ History. "Lyft Success Story." Retrieved on 1 March 2017.
4. ↑ Gallagher, Billy. "Founders John Zimmer & Logan Green Explain How Lyft Was Born Out Of Zimride." 2013.Retrieved on 1 March 2017.
5. ↑ Lynley, Matt. "Meet Lyft, A Startup Trying To Change San Francisco's Decades-Old Transportation System." 2012. Retrieved on 19 March 2017.
6. ↑ How to Request a Ride. "All about Lyft." Retrieved on 15 February 2017.
7. ↑ Company Site. "Lyft Official Site." Retrieved on 15 February 2017.
8. ↑ Dough. "What’s the difference between Lyft, Lyft Plus, Lyft Line, and Premier?" 2016. Retrieved on 15 February 2017.
9. ↑ Dough. "What’s the difference between Lyft, Lyft Plus, Lyft Line, and Premier?" 2016. Retrieved on 15 February 2017.
10. ↑ Dough. "What’s the difference between Lyft, Lyft Plus, Lyft Line, and Premier?" 2016. Retrieved on 15 February 2017.
11. ↑ Dough. "What’s the difference between Lyft, Lyft Plus, Lyft Line, and Premier?" 2016. Retrieved on 15 February 2017.
12. ↑ "Calculating the Cost of a Lyft Ride." Retrieved on 17 February 2017.
13. ↑ Dough. "Get a Lyft fare estimate" 2016. Retrieved on 17 February 2017.
14. ↑ "Prime Time for Passengers" Retrieved on 19 February 2017.
15. ↑ Lyft. "Driver and Passenger Ratings." Retrieved on 19 February 2017.
16. ↑ Johnson, Madeline. "Competitors." 2016. Retrieved on 19 March 2017.
17. ↑ Isaac, Mike. "Lyft Announces Deal With Didi Kuaidi, the Chinese Ride-Hailing Company" 2015. Retrieved on 19 March 2017.
18. ↑ Reuters. Uber’s board is still backs CEO despite a slew of screw-ups. New York Post http://nypost.com/2017/03/22/ubers-board-is-still-backing-ceo-despite-a-slew-of-screw-ups/ Retrieved on 8 April 2017
19. ↑ Isaac, Mike. New York Times. Lyft Gets $500 Million in New Funding as Its Rival Uber Wobbles https://www.nytimes.com/2017/04/06/technology/lyft-gets-500-million-in-new-funding-as-its-rival-uber-wobbles.html 2017. Retrieved on 8 April 2017
20. ↑ Liptak, Andrew. "Lyft is donating $1 million to the American Civil Liberties Union" 2017. Retrieved on 18 February 2017.
21. ↑ Dave, Paresh. "Union-backed Lyft drivers object to $27-million settlement" 2016. Retrieved on 19 March 2017.
22. ↑ Liptak, Andrew. "Uber, Lyft Representatives Push for State Regulations" 2017. Retrieved on 5, April 2017.
23. ↑ Liptak, Andrew. "Uber, Lyft Representatives Push for State Regulations" 2017. Retrieved on 5, April 2017.
24. ↑ Lyft, Inc. "Anti-Discrimination Policies." Lyft Help. N.p., n.d. Web. 04 Apr. 2017..
25. ↑ Lyft, Inc. "Wheelchair Policy." Lyft Help. N.p., n.d. Web. 04 Apr. 2017.
26. ↑ Lyft, Inc. "Service Animal Policy." Lyft Help. N.p., n.d. Web. 04 Apr. 2017.
27. ↑ Lyft, Inc. "Accessible Vehicle Dispatch" Lyft Help. N.p., n.d. Web. 05 Apr. 2017..
28. ↑ Lyft, Inc. "All City and State Requirements Overview." Lyft Help. N.p., n.d. Web. 07 Apr. 2017.
29. ↑ Close, Kerry. "This Is Why You Can't Take An Uber Home From The Airport | Money." Time. Time, 7 July 2016. Web. 07 Apr. 2017.
30. ↑ Lyft, Inc. "Airport Information for Drivers." Lyft Help. N.p., n.d. Web. 05 Apr. 2017.
31. ↑ Lyft, Inc. "Airport Information for Passengers." Lyft Help. N.p., n.d. Web. 05 Apr. 2017.