Lyft

**Lyft, Inc.** develops, markets, and operates a mobile app, offering vehicles for hire, motorized scooters, a bicycle-sharing system, and food delivery. The company is based in San Francisco, California and operates in 644 cities in the United States and 12 cities in Canada.

With a 30% market share, Lyft is the second-largest ridesharing company in the United States after Uber.

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

## Product overview[edit]

Service is generally accessed via mobile app. Users set up a personal profile with a name, phone number, other information, and payment preference, which could be a credit card, e-commerce payment system or, in some cases, cash. After the service is complete, the customer may be given the option to provide a gratuity to the driver, which is also billed to the customer's payment method.

The status of drivers as independent contractors is an unresolved issue. Drivers provide a vehicle, which could be owned, rented, or leased. Drivers must meet requirements for age, health, car age and type, have a driver's license and a smartphone or tablet, and may be required to pass a background check. In many cities, vehicles must pass annual safety inspections and/or must have an emblem posted in the passenger window. Some cities also require drivers to have a business license. There may be accommodations for hearing-impaired drivers. Drivers may be notified before accepting a trip if it will be longer than 45 minutes. After each transaction, drivers and customers may rate each other and users with low ratings may be deactivated.

Lyft provides basic vehicle insurance.

Riders must download the Lyft mobile app to their smartphone, sign up, enter a valid phone number, and enter a valid form of payment (either a credit card, Lyft Gift card, or link to an Apple Pay, Google Wallet, or PayPal account). Once the trip is completed, funds are debited from the funding source.

### Car rides[edit]

Once their account is set up, passengers can request a ride from a nearby driver. Once confirmed, the app shows the driver's name, ratings by past passengers, and photos of the driver and car. Drivers and passengers can add personal information to their profiles about their hometown, music preferences, and other details to encourage drivers and passengers to converse during the ride. After the ride is over, the rider is given the opportunity to provide a tip to the driver, which is also billed to the rider's payment method.

Depending on the location, Lyft offers various service levels including shared rides with other passengers traveling in the same general direction (suspended during the COVID-19 pandemic), private rides, or larger or luxury vehicles.

### Scooters[edit]

Lyft scooter
Lyft scooters cost US$1 to unlock and 15 cents per minute to ride. Lyft is pulling out scooter services from Nashville, San Antonio and Columbus.

### Driver requirements[edit]

* Drivers must undergo background checks including Department of Motor Vehicles, sex offender registries in the United States, and personnel-type criminal background checks. The criminal background check goes back seven years and includes national and county-level databases, as well as national sex offender registries.
* Drivers must be 21 years or older and have had a driver's license for more than one year.
* Lyft has a zero-tolerance drug and alcohol policy.

### Ratings[edit]

After a ride is completed, drivers and passengers are given the opportunity to rate each other on a scale of one to five stars. Any driver averaging a low rating by a passenger will not be matched with that passenger again. Lyft does not allow passengers to know their rating. The ratings establish the reputations of both drivers and passengers within the network.

### Rental cars[edit]

In August 2020, Lyft began its partnership with rental car company Sixt in order to let users access rental cars through the "Rentals" tab in their app. Most of the rental cars are owned and operated by Sixt, a predominantly European company (German-owned) with 85 locations in the US. For each car rental made through the app, Lyft will receive a commission. The program began as Lyft Rentals in 2019 with Lyft owning and operating its own rental fleet in Los Angeles and San Francisco.

## History[edit]

A Lyft vehicle in Santa Monica, California, with the original grill-stache branding, since retired
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 they founded in 2007.

Green had the inspiration for Zimride after sharing rides from the University of California, Santa Barbara campus to visit his girlfriend in Los Angeles. He had used Craigslist’s ride boards but wanted to eliminate the anxiety of not knowing the passenger or driver. When Facebook opened its API to third-party developers, Green said he thought "Here’s the missing ingredient." Zimride linked drivers and passengers through the Facebook Connect application. By using Facebook profile information, student drivers and passengers could learn about each other. Zimride eventually became the largest carpool company in the United States. Green was introduced to John Zimmer through a mutual friend and the pair initially met on Facebook. The company name came from the country Zimbabwe, where, during a trip in 2005, Green observed locals sharing minivan taxis. Zimride launched at Cornell University, where, after six months, the service had signed up 20% of the campus.

In May 2013, the company officially changed its name from Zimride to Lyft. The change from Zimride to Lyft was the result of a hackathon that sought a means of daily engagement with its users, instead of once or twice a year.

In July 2013, Lyft sold Zimride to Enterprise Holdings, the parent company of Enterprise Rent-A-Car, to enable the company to focus exclusively on the growth of Lyft.

Whereas Zimride was focused on college campuses, Lyft launched as a ridesharing company for shorter trips within cities.

Lyft became known for the large pink furry mustaches drivers attached to the front of their cars. Riders were also encouraged to sit in the front seat and fist bump with drivers upon meeting. In November 2014, the company distanced itself from the fist bump.

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.

In December 2016, Lyft introduced a color-changing dashboard indicator called "Amp."

In 2013, San Francisco Mayor Ed Lee proclaimed July 13 as Lyft Day.

In April 2014, Lyft launched in 24 new U.S. cities in 24 hours, bringing its total to 60 U.S. cities.

In April 2014, Lyft hired two lobbying firms, TwinLogic Strategies, and Jochum Shore & Trossevin, to address the regulatory barriers and opposition it had received since its launch.

Due to regulatory hurdles in New York City, the company altered its business model when establishing Lyft on the East Coast of the United States. Lyft's launch in New York City occurred on the evening of July 25, 2014, and, in accordance with the Taxi and Limousine Commission (TLC) and the approval of the Manhattan Supreme Court, only drivers registered with the TLC were permitted to drive Lyft-branded vehicles in New York City.

In August 2014, the company introduced a shared ride concept, which provides cheaper fares.

In September 2015, Lyft announced a relocation of its customer service operations to Nashville and mentioned that a full relocation would be possible in the future from San Francisco.

In December 2015, Lyft became the first ridesharing company allowed to pick up passengers at Los Angeles International Airport.

In May 2016, Lyft began offering a service to let clients schedule rides up to 24-hours in advance.

In November 2016, Lyft began offering riders the ability to make multiple stops during a trip.

In January 2017, the company announced its 160 millionth ride.

In January 2017, Lyft announced it would add 100 U.S. cities, bringing its total to 300 U.S. cities served.

In December 2017, Lyft expanded into Canada, with operations in the Greater Toronto Area, Hamilton, Ontario and Ottawa.

In July 2017, the company announced that the Walt Disney World Resort "Minnie Van" service will be powered by Lyft. Users staying at select Walt Disney World Resort hotels are given the option to hail a "Minnie Van" via the Lyft app. A Minnie Van, a Chevrolet Traverse with Minnie Mouse inspired exterior theming, driven by a Walt Disney World Cast Member can take guests to and from any destination within the Walt Disney World Resort for a flat fee of $20 per ride. Lyft Founder John Zimmer said of the partnership "Playing a part in a family’s experience at the most magical place on earth is a dream come true."

In March 2018, Lyft partnered with Allscripts to create a platform allowing healthcare providers to arrange rides for patients who lack transportation to appointments. The service would be available to 2,500 hospitals, 180,000 physicians, and approximately 7 million patients.

In September 2018, Lyft launched a fleet of electric scooters in Denver.

In November 2018, Lyft acquired Motivate, a bicycle-sharing system and the operator of Capital Bikeshare and Citi Bike. The company also announced plans to add 28,000 Citi Bikes and expand its service.

In December 2018, Lyft launched additional scooter fleets in Arlington County, Virginia, Atlanta, Austin, Texas, Los Angeles, Nashville, Tennessee, San Diego, Santa Monica, California and Washington, D.C..

In March 2019, Lyft became the first ride-sharing company to IPO raising $2.34 billion at a valuation of $24.3 billion. The company set aside some shares to be given to long-time drivers.

In July 2019, the company's Lyft Entertainment division received an Emmy nomination for its co-production of *Billy on the Street*.

In July 2019, Lyft added real-time public transport and subway information for New York City, amidst battles with the city.

In December 2019, Lyft launched in Vancouver.

In April 2020, Lyft laid off 982 employees and furloughed an additional 288 in an effort to reduce operating expenses and adjust cash flows due to the COVID-19 pandemic in the United States. The company continued to offer scooters for rent in San Francisco, while Miami government asked Lyft to halt operations.

## Self-driving car research[edit]

In 2012, Green wanted to pitch investors on self-driving cars as part of Lyft's future offering. Green envisioned a few big networks of self-driving cars, similar to AT&T and Verizon.

In January 2016, Lyft announced an autonomous car partnership with General Motors. On May 5, 2016, Lyft and General Motors announced, as part of their partnership, that it planned to begin testing self-driving cars within the next year.

On June 6, 2017, Lyft announced a new partnership with Boston-based autonomous self-driving car start-up NuTonomy to eventually put autonomous, on-demand vehicles on the road.

In September 2017, Lyft partnered with Ford Motor Company to develop and test autonomous vehicles.

In March 2018, Lyft partnered with GoMentum Station to test its self-driving technology.

On March 14, 2018, Lyft partnered with Magna International to co-fund, develop, and manufacture autonomous vehicle systems to produce self driving technology that will be available to all car manufacturers.

In October 2018, Lyft acquired Blue Vision Labs, a London-based augmented reality startup, for $72 million. This expertise is expected to help autonomous cars to extract useful information from street-level images.