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Lyft must develop a revolutionary technique to strengthen its consumer and business market control to achieve radical output and achieve its aims and objectives. Individuals aged 18 years or older with a valid drivers license who hold an Android or Apple iOS mobile device are Lyfts target market (Jiang et al., 2018). The organization has expanded its East Coast authority to include the cities of Baltimore and Washington, D.C. (Jiang et al., 2018). These are some of the current consumer and business markets for Lyft.
Market Trends, Growth and Research
Lyft has made growth in the last decade in the ride-sharing business. Lyfts expansion has resulted in a 30% market share, up almost 10% from 2017 (Stasha, 2022). Uber and Lyft currently account for up to 14% of total vehicle miles in certain areas. Lyft is optimistic about further development because of the high technology usage among millennials and the middle-aged (Stasha, 2022). In the United States, there is an association between average yearly income and Lyft customers.
PESTEL Analysis
Political
Since its inception in 2012, Lyft has been a target of several political groups. In 2015, Lyft faced a severe public relations issue when the San Francisco Chronicle reported an alleged attempted rape by its drivers (Brodeur and Nield, 2018). The Netherlands ruled against Lyft for its drivers lack of taxi licenses, Portland issued a stop and desisted order, and Asian nations considered more bans.
Economical
Lyft works in a shared economy environment. The firm does not own automobiles; it generates money by using vehicles owned by drivers (Xiao, 2020). Taxi drivers are urged to join Lyft to stay competitive in todays corporate environment (Xiao, 2020). Lyft drivers can thrive in the transportation sector because of the low prices and are constantly in business.
Social
The sharing economy is an exciting illustration of how technology can unite people, contrary to the belief that technology separates individuals from human experience. Companies like Lyft and other sharing apps have had the most significant social and cultural effects by persuading Americans to entrust strangers with some of their most prized personal assets. The new economy often generates chasms between old brick and mortar enterprises and platform-based operations (Cruz, 2017). Due to a lack of thorough screening, there may be some linguistic, cultural, and social difficulties between the driver and the passenger.
Technological
Lyfts popularity has grown because customers can compare the cheapest mode of travel over the internet. The modern generation prefers to do most of their activities online and would like to ride on their cell phone rather than hail a cab. Social media has aided in the companys popularity, as riders capture images and upload them on Facebook or Instagram (Pratt et al., 2019). Lyfts functions should be constantly upgraded to keep up with current technological developments.
Environmental
Compared to other forms of transportation, ride-hailing businesses have a more significant impact on the environment than the modes of transportation they replaced. For example, academics and legislators have said that Lyft is responsible for a slew of negative consequences linked to the popularity boom of on-demand services, including increasing traffic congestion, falling public transport use, and an increase in road deaths (Ward, 2020). Additionally, the Union of Concerned Scientists determined that the typical ride-hailing journey in the United States generates 69 percent more pollution than the other modes of transportation it replaces (Ward, 2020). This estimate was made using federal vehicle efficiency figures and information gathered by state and local transportation officials.
Legal
Taxicab groups believe that ride-sharing companies like Lyft and others offer an unfair advantage in the transportation sector. Conventional taxi drivers must pay licensing and operation costs, keep current insurance and possess the necessary certifications to operate lawfully (Harris, 2017). Lyft drivers are not obliged to adhere to these same service standards. Due to the disparity in pay between Lyft drivers and conventional taxicab drivers, several state and municipal governments have intervened to hinder the growth of ride-sharing businesses.
Competitor Analysis
Since 2010, many firms offering a mobile app-assisted transportation system have increased. As a result, Lyft does not own a monopoly on the industry. Numerous rivals exist and constitute a substantial threat to the companys survival (Shokoohyar, 2018). Each of the three contenders has created a customer relationship network and is expanding into other continents since the United States cannot produce enough clients to sustain its operations.
Uber
Ubers possible rival in the transportation sector is unknown. It operates in a well-organized manner and is present in several nations worldwide. As a result, Uber has attracted many vehicle drivers, and as a result, its consumers benefit from diversity (Brodeur and Nield, 2018). Due to its size, it benefits from economies of scale, which results in low operating expenses. Drivers have flexible work schedules and are always motivated to work since they do it of their own will (Jiang et al.,2018). Customers are uncertain about their privacy since Uber can track their origin and destination.
SWOT Analysis
Strength
Lyft is the second biggest ride-sharing company in the United States, with a market capitalization of more than one billion dollars. By employing unemployed/underemployed individuals, Lyft continues to have a significant social effect by bridging the gap between the drivers and consumers requirements (Worstall, 2022). Lyft has entered into a deal with Didi Chuxing, a foreign firm, to prevent Uber from retaining any market share in China (Johnson, 2017). Due to this collaboration, only Didi Chuxing and Lyft keep a market presence in the Peoples Republic of China. Finally, Lyft has outlined a comprehensive strategy for its future in the ride-sharing sector. Lyfts executives have several objectives: to develop a driverless vehicle model that would bring in what they refer to as the third transportation revolution.
Weaknesses
Lyft suffers from a severe internal flaw. The organizations issue is that Lyft controls just 25% of the US market. The disparity between Lyft and Uber puts the organizations viability in jeopardy. Apart from market issues, several analysts feel Lyft lacks a rigorous application and screening procedure for new drivers. In essence, anybody who is not a criminal is eligible to work with Lyft (Johnson, 2017). Customer discontent results from the recruiting process since drivers and passengers may have cultural, social, and linguistic hurdles.
Opportunities
Numerous external options may help achieve Lyfts objectives. For instance, Uber is the organizations only significant North American opponent. Consequently, Lyfts leadership should capitalize on Ubers hostile public relations to continue growing its market share in the United States (Worstall, 2022). Additionally, Lyft could consider partnering with other businesses, such as Curb. By collaborating with licensed, insured taxi drivers as an alternative to the ride-sharing model, the firm may be able to alleviate industry tensions while expanding its product and service offerings (Worstall, 2022). Finally, the organizations is recruiting, and screening processes should be enhanced while fostering nondiscriminatory hiring standards.
Threats
There has been a rise in competition, and there is no question that the sector is competitive. The rivalry comes from other well-established and well-known firms in the field. As a result, the firm has marketability difficulties. COVID-19 is another potential danger. Since the epidemic began, there has been concern that the firm may be responsible for spreading it (Zhao, Tan and Liu, 2020). The spread might occur if the vehicles are not adequately sanitized to protect the passengers from the dangerous infection.
Key Issues
Lyft is a ride-sharing app that began in June 2012. In contrast to a traditional taxi, it allows users to access services at any time. Lyft now has a 30% market share, up over 10% from 2017. Uber, Lyfts main competitor, owns 75% of the US market. Lyfts leadership should take advantage of Ubers bad press to increase market share in the US. Lyfts features should be updated often to stay up with new technology. Recruiting and screening procedures should be improved to ensure nondiscrimination. Lyft might explore working with Curb to ease industry concerns.
Target Market, Customer Analysis, and Positioning
Target Market and Segmentation
Market segmentation is a word that refers to the process of segmenting a more significant market into distinct subgroups based on customer demands, spending patterns, and personal motivation. Lyfts management should take regional preferences into account and focus on the geographic peculiarities of new markets (Cooper et al., 2018). Frequently, businesses use geographic segmentation tactics carefully to reach out to new areas customers (Cooper et al., 2018). In the case of Lyft, most prospective clients in these regions would be current Lyft users in the United States who were traveling internationally. Lyfts regional segmentation strategy could feature reduced trip packages purchased via select travel companies for folks who download the Lyft app for the first time. Consumers would get a discount coupon for Lyft rides when traveling when booking via these travel providers (Wirtz and Tang, 2016). Another possible geographic segmentation approach is targeting local early adopters, weighing the merits of Lyfts services against those of the incumbent area ride-sharing provider.
Customer Analysis
Lyft envisions a future where its services link communities and replace automobile ownership. Lyft Company currently operates in 60 locations and employs thousands of employees. To achieve growth, Lyft should be required to expand its driver base and future client base. According to one survey, Lyft raised discourse by 74% after applying to market audiences (Henao and Marshall, 2019). As a result, it demonstrates that new avenues of communication are thriving rather than relying on established routes.
Positioning
The Lyft Company offers its services in California and San Francisco. Therefore, the companys services are located there. The positioning of Lyft customers is excellent and unique compared to other transportation services companies (Robson, 2022). Thus, customers feel comfortable, secure, and safe while booking rides to reach their desired place. Due to its reliable and credible transport services, the customers of Lyft Company utilize their offer and give good feedback.
Mission, Direction, and Objectives
Mission
The purpose of the Lyft company is to connect people via their affordable, secure, and reliable transportation service. The objective is to provide society with convenient transportation services for individuals.
Direction
Lyfts companys direction is to offer efficient customer and Driver Value. Customer direction value alleviates the customers waiting requirements by providing driver services through booking a local trip, with the driver arriving at the customers doorway. Similarly, the drivers direction value ensures that drivers have flexible working hours and get the most excellent possible salary.
Marketing and Financial Objectives
Marketing goals or objectives are the objectives that a firm seeks to accomplish by initiating a marketing campaign. Most are designed to increase awareness of an organizations product, which results in increased sales and profits for the business. The degree to which society is willing to identify with the product will critically indicate the marketing initiatives success or failure in creating brand recognition. The firms marketing strategy strives to improve its market penetration, thus significantly increasing the sale of its goods. This is to be accomplished within the current fiscal year, during the introduction of a new product. Expansion into new areas is projected to result in economies of scale, a vital factor in the firms profit-making attempt. The marketing strategy is designed to create leads for the organization, ultimately resulting in sales. The companys capacity to convert leads into lucrative businesses will be determined by the number of leads generated by the campaign and the speed with which these leads are converted into businesses. The ultimate goal is to increase worldwide awareness of the companys goods.
Societal Objectives
When riders of all incomes and identities, particularly those traditionally disadvantaged, need a ride, they depend on the Lyft network. Lyft aims to eliminate mobility disparities for those in greatest need. One of the goals is to use Lyft to assist low-income neighborhoods. Other social goals include assisting communities of color and those in need and distress.
Marketing Strategy
Product
A business must provide a diverse selection of items to attract a diverse consumer base, particularly in the present digital era. Despite severe competition from Uber and Door Dash, Lyft is one of the United States and Canada (Wirtz and Tang, 2016). Lyft passs essential services include providing patients with safe and convenient transportation to and from appointments. The consumer may get an estimated travel and delivery cost before departure using the Lyft pass app (Ferrell, Hartline and Hochstein, 2021). As a result, their services are more dependable than those of rivals.
Price
Pregnant moms and Medicare beneficiaries are the primary beneficiaries of the Lyft Pass services. The pricing method will be determined by several variables, including distance, wait time, and traffic (Wirtz and Tang, 2016). The Lyft app will choose the fare based on these variables. To entice new clients, new customers will get price concessions. Regular clients will also get complimentary trips on occasion.
Channel and Logistic Decisions
LogistiCare and Lyft joined forces to provide more transportation options for customers seeking private, commercial, or government-assisted healthcare visits and social services. Lyft and LogistiCare used a novel approach in their collaboration. To guarantee that consumers enjoy a pleasant journey, the two firms have created an integrated solution integrating LogistiCares proprietary technology with Lyfts API. Due to the collaboration, LogistiCares existing network capacity will be enhanced, ensuring that members of its commercial, Medicare, and Medicaid plans have access to industry-leading NEMT services. As a result of the agreement, qualifying passengers will be able to request Lyft services on-demand in real-time via LogistiCares commercial, state, and managed care organization customers. Services will be provided via Lyft-operated automobiles.
Target and Positioning Decision
Lyft plans to attract a wide range of price-conscious men and women who often utilize private car services. Lyfts primary market in Australia is the 1630 age group, accounting for seventy-seven percent of the countrys total population (Wirtz and Tang, 2016). On Lyft Pass, the primary method of transportation will be an ambulance or a private automobile. The consumer will be able to pick their preferred mode of treatment depending on the patients condition (Wirtz and Tang, 2016). Unlike real things, Lyft Pass services will be available on-demand to those in need.
Marketing Communication Decisions
The ride-sharing sector has faced stiff competition from many startup firms operating globally. As a result, Uber will use various technology and marketing strategies to connect with its perceived consumers and raise brand recognition. Lyft Pass seeks to use a variety of marketing channels, including social media, direct mail, referrals, affiliate marketing programs, and collaborations (Wirtz and Tang, 2016). Additionally, the organization utilizes search engine optimization to boost its internet presence.
Marketing Programs
Direct Marketing
Lyft is armed with millions of dollars to compete with Uber. Lyft is a nice, safe business that prioritizes its communities. Investors have recognized the importance of public transportation and are eager to compete. Offering a different experience and reshaping the publics perception of public transit is what motivates users to download the Lyft App (Haenlein and Libai, 2017). Lyft is rapidly expanding in a massive market, and transportation is on a mission to give back to charity. The firm views transportation as a necessary service and a novel experience for its users. Lyfts marketing pays back to people in need by sharing rides with others, demonstrating that the huge transportation industry is evolving in lockstep with the rest of the globe.
Event Marketing
Event marketing occurs after Lyft has completed its advertising. Due to Lyfts success, it has received collaboration and marketing demands. Lyfts positioning statement is to enhance the happiness of everyones ride. Lyft shares three core values: business empowerment, local commitment, and lifestyle impact (Haenlein and Libai, 2017). There is software for drivers that supports the tribe of trustworthy drivers. Communities built on positive ratings of Lyft drivers benefit everyone; they inspire others to ride.
Outdoor
Lyft differentiates itself from the competition by becoming a community. Businesses like this are unique; they give security, are hospitable, and act as a force for good. Charities are a positive influence. Thus, by offering low fares, inviting drivers, and generating a strong feeling of community, Lyft has flipped the public transportation industry 360 degrees (Haenlein and Libai, 2017). Lyfts initiative for good has three guiding principles: impact, local commitment, and empowerment.
Financial Details and Forecast
The total investment indicates the capital necessary to pay the franchises startup expenditures and ongoing operating expenses. The investment necessary to meet these expenditures in the first year is detailed in Appendix 1.
Initial Investment Cost
To expand its market segment, Lyft will require $100 479, which covers fees to register the firm, the creation of the smartphone application, and office furnishings for the two offices. For instance, to expand in Australia, the overall cost will be $13 351 490, including startup and ongoing expenditures (Koppel and Berecki-Gisolf, 2015). In addition to the rent advertising and promotion, liability insurance for drivers, wages, and utility expenses, such as gas, electricity, and water. For transportation services, Australias 24.702,900-person population constitutes the Total Available Market (Koppel and Berecki-Gisolf, 2015). Only 78percentt of Australians use a car to go to and from work or school compared to those who use public transportation or no transportation (Koppel and Berecki-Gisolf, 2015). Private motor vehicle services are required are 13 092 537 (Koppel and Berecki-Gisolf, 2015). This is a result of the Australians, whose needs are determined by various variables, including their income, geography, and personal preferences. All these expenses are illustrated in Appendix 1.
Implementation and Control
LYFT has developed marketing efforts comparable to Ubers but more casual, with approachable strategies aligned with technical developments. The corporation has invested in promotional techniques such as television and other digital advertisements to counteract the influence of other service providers in this industry. This promotional plan is critical in achieving the companys objectives and establishing a solid social media presence. This companys marketing strategy is founded on the need to build a strong brand in the market. Throughout this epidemic, the firm has concentrated on providing tailored services to pregnant women, giving it a competitive edge over other businesses. The organization is structured to give inexpensive services to clients through an economic mobility framework that delivers luxury services at discounted prices.
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Appendix 1: Financial Information
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