Business Model Canvas & Value Proposition Canvas

Business Model Canvas

Designed for:

Email ID:

LYFT INDIA

mithvinkous@gmail.com

Key Partners

Key Activities

Value Propositions

- Drivers - Maps APIs Providers - Investors - Insurance Companies - Corporate Partners - Venture Capitalist - Investors

- Promoting and client obtaining - Recruiting drivers - Product improvement and management - Dependability programs Client assistance - Connecting more drivers and clients - Oversee payouts for drivers

For Riders: - Offline ride booking - Advance ride booking - Discounts - Affordable pricing - Upfront charges - Safety - Subscription - Client assistance - Ratings

For Riders: - Referral reward and special privileges - Reviews, Rating and Feedback framework - Ability to oversee dangers

Key Resources

For Drivers: - Pay - Adaptable work hours - Restrict with outsider vehicle rental organizations - Successive installments and track income - Simplicity of joining - Restrict with cafes at suppers at financed costs - Driver Rewards program

Channels

- Capturing client information, calculations and the capacity to break down and acquire bits of knowledge are fundamental.

- Digital resources like applications/sites and the tech stack.

- IT staff for an innovatively solid platform alongside talented drivers.

- Network (impacts of a client on the worth of the organization to different clients) between the drivers and riders.

Customer Relationships

For Drivers: - Adaptable work hours - Pay

- Campaigns - Media inclusion - Social Media - Digital advertisements - Application Stores (Android, iOS) - Website, lyft.com - Networking

Date:

15/09/2021

Submission to:

UpGrad

Customer Segments

For Riders: - People who need to lease vehicles for trips.

- People who have a vehicle yet don't have any desire to drive themselves.

- People who don't have their own vehicle to drive.

- People who need a minimal expense ride.

For Drivers: - People who own a vehicle and need to earn money - People who like to drive

- Active clients and drivers.

Cost Structure

Revenue Streams

- Cost of Income: This incorporates protection costs, installment handling charges, server farm costs.

- Innovative work: Remuneration costs for designing, item improvement and plan representatives, support of stage and so on - Commission to drivers: This incorporates payouts to drivers for each excursion.

- Sales and Marketing: This incorporates promoting costs, costs for client securing and maintenance.

- Vehicle rides dependent on km driven - Lyft / Lyft Plus / Lyft Line - Giving drinks and tidbits.

Lyft - Drive into the Indian Market.

Take a ride through the exhaustive business plan using the Business Model Canvas (BMC) and detail out the value proposition of the product using the Value Proposition Canvas (VPC) as explained below.

Lyft is an American on-demand ride sharing service that allows people to ride on the go and also allows them to drive for others. The mission of the Lyft is, “Improve People’s Lives with the world’s best Transportation. Lyft Inc. develops, markets, and operates mobile apps, offering vehicles for hire, motorized scooters, a bicycle-sharing system, food delivery and vaccine access. When the pandemic hit everyone, Lyft focused on offering safety with a mask on, to crack the window down to enjoy the cool breeze alongside for the safety assurance to the rider.

With a 30% market share, Lyft is the second largest ride sharing company in the United States after Uber. The Lyft Inc. operates in over 600 states in the United States and is now entering the Indian market after the success of Uber and Ola. Considering the opportunity in the Indian market based on the demand and potential users, Lyft now aims to operate with the same quality and safety in the Indian Market so as to expand their business.

The below is the business plan / model for Lyft in India.

Key Partners: -

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Drivers: Drivers are the key players who actually are used in the physical transport so it is very important to have a sufficient number of drivers including the buffer number to meet the sudden demand and to avoid waiting time for the users.

Technology Partners : The application majorly uses the technology on a real time basis to analyse the traffic and the route to the driver which acts as cost cutting, avoid traffic and also to provide the safety to the rider through GPS. Along with this, we use cloud service to keep the access ready for the rider and for payments.

Investors/Venture Capitalists: The Venture capitalists are the monetary source, the backbone of the business plan. They will bring funding to make all the key activities working.

Corporate Partners: Growing IT and other industries in India are one of the key customer sources. We can partner for a transport facility for their employees.

Insurance Companies : The assets used in the business are at a cost and any damages to this, the insurance companies helps to reduce the losses.

Key Resources: -

Capturing client information, calculations and the capacity to break down and acquire bits of knowledge are fundamental.

Digital resources like applications/sites and the tech stack.

IT staff for an innovatively solid platform alongside talented drivers.

Network (impacts of a client on the worth of the organization to different clients) between the drivers and riders.

Active clients and drivers.

Key Activities: -

Promoting and client obtaining: This will be an essential action included when Lyft is arranging to grow to another topography.

Recruiting drivers: Drivers structure a vital piece of Lyft's client fragment and perform foundation checks prior to onboarding any driver to guarantee wellbeing for riders.

Product improvement and management: Lyft will fundamentally be gotten to through application/site, subsequently guarantee a consistent client experience for all the client portions.

Dependability programs: Create, add and refine steadfastness/reward programs.

Client assistance: Client inputs should be considered and their inquiries ought to be settled in an ideal way to hold the client base.

Connecting more drivers and clients: By this we can reduce time for drivers and waiting time for riders.

Oversee payouts for drivers: Guarantee that drivers get their pay in an ideal way.

Cost Structure: -

Cost of Revenue: This comprises insurance expenses, payment processing fees, data center expenses.

Sales and Marketing: This includes advertising expenses, expenses for customer acquisition and retention.

Research and Development: Payments to engineering, product development and design employees, maintenance of platform/ application etc.

Commission to drivers: This consists of payments to drivers.

Customer Segments The customer segment further classifies as below + Passengers/Riders - People who do not own vehicles commute.

- People who cannot drive and do not want to drive on the road due to traffic.

- People who want a low-cost ride.

- People who need to rent cars for weekend travelling.

- People who struggle to find places for parking.

- Aged and visually weak. + Drivers - Full-time drivers (People who own a car and want to earn money).

- Part-time drivers (People who love to drive and want to earn some extra cash). + Corporate Communities - Tie-ups with different corporate where the driver picks and drops the employees.

Customer Relationship: For Riders:

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To provide safety: To address the customers concerns timely and help them to have hassle free experience .

Reviews, Rating and Feedback system: The feedback, review and suggestions to be considered with utmost priority.

Referral bonus and promotional codes: This helps to strengthen the brand image and also to increase the customer base.

Social Media: The social media platform helps to showcase the services.

For Drivers:

The relationship for the drivers will fundamentally be characterized by how the stage helps them. Low maintenance/easygoing driver will think often about the time-based compensation and adaptable work hours. A full-time driver, who will utilize his vehicle transcendently, will search for more extensive bundle of pay and qualifications.

Revenue Streams: Lyft's Income Model Lyft is fundamentally a taxi aggregator that matches individuals who need a ride with drivers who have a vehicle. Every exchange occurring on Lyft's innovation based model is split between the driver and the organization. Lyft takes a 20% cut from the aggregate sum paid by a traveler and the rest 80% slice goes to the driver.

The principle income models of Lyft include: Lyft Vehicle Ride: Lyft charges a 20% cut from each exchange that occurs on the stage. Typical 5-seater vehicles go under the ordinary "Lyft" vehicle class. Drivers get the leftover 80% of the value that is being paid by the traveler.

Heat maps / Surge Pricing: Lyft has heat maps that characterize a region where the interest is more. If there should arise an occurrence of popularity in a space, more cost is charged by the taxi organization. This amounts to the income model of Lyft. The heat maps are area explicit just as time explicit.

Lyft Plus: It gives its clients another alternative separated from the ordinary 5-seater taxis, Lyft has "Lyft Plus" which are essentially 7-seater vehicles. The charges for Lyft Plus are higher when contrasted with ordinary Lyft. Here once more, Lyft acquires a net 20% of each ride.

Lyft Line: Lyft was conceived out of ZIMRIDE which was at first a ride sharing stage. Advancing vehicle divide between individuals and to give a choice to the people who don't wish to enlist an autonomous taxi, Lyft started "Lyft Line. As the name proposes, it empowers a client to ride alongside others on a predetermined course.

It very well may be considered as an option in contrast to public vehicles however with the assistance of Lyft.

Lyft - Your Companion with a Vehicle.

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Travelers quite often sit in the front seat.

All Lyft vehicles have a pink mustache on their front barbecue, with the goal that a client can undoubtedly recognize the vehicle.

Lyft tells clients that vehicle drivers are your companions.

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You can tip your Lyft driver after the ride.

Channels: -

Campaigns: Giving free vouchers to draw in clients. Model: Giving vouchers through outsider applications or at public vehicle stations.

Media inclusion: Free media inclusion dependent on the curiosity factor.

Social Media: Virality utilizing Instagram, YouTube, Facebook, Twitter, LinkedIn, Pinterest.

Digital advertisements: This should be possible through Google ads and other digital marketing.

Application Stores (Android, iOS): Through high appraisals, promotions are being highlighted.

Website, lyft.com: Official website which does pretty much the same as phone application Networking: Marketing through their networks.

Value Propositions:

For Riders: - Offline ride booking: Helps booking offline and stay relaxed in peak hours.

- Advance ride booking: One can schedule the ride at a predefined time.

- Discounts: Attractive discounts for regular or new customers, so that we can bringin new class of customers.

- Affordable pricing: To compete with the other players the pricing has to be set at an affordable price and should be charged relatively same or discounted.

- Upfront charges: This shows how transparent the cost structure is and does not lead to translucent conflicts.

- Safety: Provides a safe ride with the help of GPS and trusted drivers. Also the complete access to know the driver details and reviews about the driver’s previous rides helps the rider to feel secured.

- Subscription: Attracts the relugular audience to avail the services as it can benefit them on thor regular routine.

- Client assistance: Foremost important customer support should be provided. Helps customers to stay less anxious and from confusions.

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Ratings: Generates quick feedback after each ride helps to maintain the consistency in rating.

For Drivers: - Earnings : The opportunity to earn extra income - Adaptable work hours : The advantage to work 24/7 - Hassle free joining with complete background analysis in a short notice.

- Successive installments and track income : The payments to their bank account or through payment partners - Partnership with restaurants and cafes : The delivery orders for restaurant - Driver Rewards program: To motivate the drivers to deliver their best which also helps them to earn extra alongside the compensation..

Value Proposition Canvas

Product Benefits

- Abstain from drunk driving - Abstain from finding and pay for parking - Airport drop - Simple commute - Convenient compared to public transport

Features

The component of pre-booking a common ride likewise addresses the accompanying agonies and gains: - No worry about flood at driving hours (fixed cost at booking) - Assumptions for appearance time are better overseen.

Nobody will actually want to join the ride after the 24-hour booking window venture turns into much more unsurprising.

Vulnerability greatly diminishes.

- Ready to unwind in the vehicle.

More opportunity to be useful before work if necessary turns into much simpler to design around the ride

Customer Experience

Jobs

By including the component of pre-booking a shared ride, Lyft can lighten a ton of the tension that accompanies booking a common ride, when the client should be somewhere at a specific time.

- Travel with complete protection - No worrying about driving under sway - Diminishes disquiet and see where the driver is - Buddies pickup - Not to worry about parking - Affordability - Faster service

This could be applicable to individuals having the chance to work, getting a flight, or any circumstance where the client makes some proper memories ahead of time.

Gains

- Dependable - Great elective when climate is awful - Simple to get around new spots - More security than public vehicle

Fears

- Hard to switch pick around point once on the way - Driver incapable to discover pickup point - Surge valuing - GPS taking a slower course than expected - Arrival time might be changed to the time on the application - Cleanliness and vehicle tidiness not taken as a need

- Conceivably lessens the quantity of vehicles out and about (less traffic/contamination) - The component to empower travelers to rate co-riders assist with lightening pressure and dissatisfactions. The thought being, that if a traveler realizes another rider can rate them, and that there are repercussions for rehashed negative surveys, they guarantee they are being kind for the term of the ride. This would make for a more charming encounter for all clients.

Basically, a client of Lyft is attempting to get from direct A toward point B, yet that is not the only work they are attempting to finish when they use Lyft.

There are many things that can be finished, including social and passionate ones. On a practical level, an individual might be dropping something off or getting something, attempting to go with privacy, not stress about parking, staying away from drunk driving. On an enthusiastic level, they might feel certain they are not being cost gouged (the value you see is the value you pay prior to affirming your ride) and loosened up that they, when all is said and done, do not have to sit in a rush-hour gridlock or manage different drivers.

As going in a taxi will guarantee more security, it will be a favoured method of transport compared with public transport. Yet, a client will like to go by Lyft in case it is dependable and safe, as they may have to go to new regions any time of time in the day. Additionally, the clients would anticipate some type of remunerations or limits for being faithful to the company.

Pain Points: - Surge valuing - Worry about security - Eccentrics of getting a ride as some of the time the driver probably won't acknowledge certain ride demands

- Cleanliness and vehicle tidiness not taken as a need - Driver incapable of finding the rider's pickup point.

- GPS taking a slower course than expected.

It all benefits from driving when you are drunk. And need not to worry about the pay or the parking space.

When needed we can schedule an Airport drop as it is very convenient instead of taking their own vehicles. Overall it makes a flawless commute and is easy and safe from public transport.