BMC and Value Proposition

Name: Avi Tankaria Email id: avitankaria@gmail.com Product Management C-18 batch

Assignment: Exhaustive Business Plan for Lyft Introduction Lyft founded in 2012, is an on-demand ride-sharing company operating in Canada and the United States of America. It offers services such as peer-to-peer ridesharing, vehicles for hire, motorized scooters, bicycles.

Uber and ola are the two major companies that offer similar services in the Indian market and because of them, the ride-sharing demand has increased in India. Below is the detailed analysis for Lyft to expand into the ride-sharing space in India.

BUSINESS MODEL CANVAS Business plan parameters 1. Customer Segments (Target Customer group) There are 3 customer segments ❖ Drivers o These are the customers who provide services to riders in return for payouts. ❖ Riders o Group of people looking to avail low cost, on the go travel by clicking on the app. o Differently-abled people. o People traveling on the same route for work daily. o People who don't prefer traveling themselves and avoid the hassle of finding parking. o Those who don’t own a vehicle or never intend to own one. ❖ Corporate organizations o Corporate companies tying up to ferry their employees.

2. Value Proposition (Products or services offered by the business) ❖ Connect riders with Lyft drivers who are looking for a ride. ❖ Provide vehicles on rent. ❖ Provide referral bonus – a bonus is provided when an existing user helps onboard a new user. ❖ Help connect vehicle owners with people who want to travel to a similar destination. Thus, reducing the carbon footprint and cost of travel for all. ❖ Provide bike-sharing and electric scooter rentals.

Name: Avi Tankaria Email id: avitankaria@gmail.com Product Management C-18 batch ❖ Schedule rides (in advance or on the go) and provides upfront pricing. ❖ Subscription facility for frequent travelers. ❖ Incentives for riders and drivers. ❖ Flexible working hours/flexible income for drivers – drivers can be their boss. ❖ Ease of onboarding – No paperwork is required for onboarding and the time required is quite less. ❖ Real-time tracking of vehicle locations to ensure the safety of drivers and riders.

3. Revenue Streams ❖ Commission from drivers – a percentage cut of ride amount earned by the driver after every ride. ❖ Income generated by renting vehicles.

4. Channels (Methods of communicating with Target Customer Segments) ❖ Online and offline marketing campaigns. ❖ Website/blogs/forums. ❖ Mobile applications (Android/iOS).

5. Customer Relationships (Type of relationship to be established with a specific customer segment) ❖ Drivers ➢ Drivers can be their boss by working flexible hours and earning flexible income (Part-time or Full-time). ❖ Riders ➢ Feedback on the experience after every ride (Driver rating and overall experience). ➢ Customer grievance helpline. ➢ Providing incentives to riders.

6. Key Activities (Core activities to run the business) ➢ Market penetration. ➢ Ensure smooth onboarding of customers (drivers/riders/people seeking vehicles on rent). ➢ Maximum uptime for the app. ➢ Payment collection and pay-outs. ➢ Grievance redressal. ➢ Engage with customers across all verticals.

7. Key Resources (Important resources required to run business) ➢ Skilled management and IT professionals. ➢ IT hardware and software. ➢ Skilled and verified drivers.

Name: Avi Tankaria Email id: avitankaria@gmail.com Product Management C-18 batch ➢ Technicians who look after the maintenance of vehicles owned by Lyft for rental services. ➢ Investor funding.

8. Key Partners ➢ Drivers. ➢ Skilled IT professionals. ➢ Sales, management, and operations staff. ➢ Investors. ➢ Partner organizations that avail continuous services. ➢ Insurance companies.

9. Cost Structure ➢ Marketing cost. ➢ Incentives for customers. ➢ Maintenance of IT infrastructure. ➢ Product development and upgrade. ➢ Marketing, sales, and operations costs.

BUSINESS MODEL CANVAS Key Partners ➢

Drivers.

➢

Skilled IT professionals.

➢

Sales, management, and operations staff.

➢

Investors.

➢

Partner organizations that avail continuous services.

➢

Key Activities Market penetration.

➢

➢

Connect riders with Lyft drivers who are looking for a ride.

Ensure smooth onboarding of customers (drivers/riders/people seeking vehicles on rent).

➢

Provide vehicles on rent.

➢

Provide referral bonus.

➢

Help connect vehicle owners with people who want to travel to a similar destination. Thus, reducing the carbon footprint and cost of travel for all.

➢

Maximum uptime for the app.

➢

Payment collection and pay-outs.

➢

Grievance redressal.

➢

Engage with customers across all verticals.

Insurance companies.

Key Resources ➢

Skilled management and IT professionals.

➢

IT hardware and software.

➢

Skilled and verified drivers.

➢

Technicians who look after the maintenance of vehicles owned

by Lyft for rental services.

➢

Cost Structure ➢ ➢ ➢ ➢ ➢

Value Propositions

➢

Marketing cost Incentives for customers Maintenance of IT infrastructure Product development and upgrades Marketing, sales, and operations costs

Investor funding.

➢

Provides bike-sharing and electric scooter rentals.

➢

Schedule rides (in advance or on the go) and provides upfront pricing.

➢

Subscription facility for frequent travelers.

➢

Incentives for riders and drivers.

➢

Flexible working hours/ flexible income for drivers.

➢

Ease of onboarding.

➢

Real-time tracking of vehicle locations to ensure the safety of drivers and riders.

Customer Relationships

Customer Segments

❖ ➢

➢

People who don't have any vehicles.

➢

People who own a vehicle but don’t prefer driving

❖ ➢

➢ ➢

Drivers Drivers can be their boss by working flexible hours and earning flexible income (Parttime or Full-time).

Riders Feedback on the experience after every ride (Driver rating and overall experience).

Customer grievance helpline.

Providing incentives to riders.

Channels ➢

themselves. ➢

Differently-abled people.

➢

Those who want to travel long distances without burning their pockets.

➢

common destination for work daily.

Online and offline marketing campaigns.

➢

Website/blogs/forums.

➢

Mobile applications (Android/iOS).

Revenue Streams ➢

Commission from drivers

➢

Income generated by renting vehicles

People who travel to a

➢

People who want to rent a vehicle for the short term or long term.

➢

Drivers who provide services to riders.

➢

Corporate tie-ups regularly ferry their employees.

VALUE PROPOSITION CANVAS The Value Proposition Canvas is a tool that helps ensure that a product or a service is positioned around what the customer values and needs.

Value Proposition Canvas – Customer Profile A user of Lyft is a person who travels from one place to another having many reasons for doing so for example traveling to work, don't want to drive, intoxicated, seeking comfort, etc. Some other benefits of Lyft are low-cost hassle-free traveling, no need to find parking, service can be availed on the go or can be scheduled for a future date.

Some of the pain points of customers are as follows 1. Technical glitches leading to confusion between the rider and driver.

2. Surge in price due to high demand.

3. Not always safe to travel with strangers.

Value Proposition Canvas – Business profile Services and products provided by Lyft to its customers are the convenience of booking and paying for the ride, referral bonus, and incentives, transparent and fair pricing, feedback of the experience with the driver, etc.

Customer pain points that are addressed by Lyft are 1. Quick service.

2. Feedback and grievance redressal.

3. Emergency helpline for the safety of customers.

4. Verified drivers.

5. Defaulters are banned from platforms.

6. Vehicle health/hygiene checks.

VALUE PROPOSITION CANVAS Value Proposition

Customer Profile

Gain Creators 1.

2.

3.

4.

Low-cost travel Door to door service Payment convenience Referrals and incentives.

Products & Services 1.

2.

3.

The convenience of scheduling rides on the go and for future travel.

Transparent and upfront pricing.

Feedback after every ride.

Fee

Customer Gains 1.

Pay and smile, no need to find parking or own a vehicle to travel comfortably.

Can travel to remote locations.

Low-cost hassle-free travel.

Services can be availed on the go.

2.

3.

4.

Customer Jobs 1.

2.

3.

Pain Relievers 1.

2.

3.

4.

5.

6.

Quick service.

Feedback and grievance redressal.

Emergency helpline for the safety of customers.

Verified drivers.

Defaulters are banned from platforms.

Vehicle health/hygiene checks.

Customer Pains 1.

2.

3.

4.

Technical glitches leading to confusion between the rider and driver.

Surge in price due to high demand.

Not always safe to travel with strangers.

Lorem Ipsum

Open app to book the cab Wait for the cab to arrive Make a payment on reaching the destination

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