Lyft was founded in 2012 by Logan Green and John Zimmerman. These business partners already owned Zimride but wanted to make a division that dealt with shorter ride sharing. Lyft is peer to peer ride-sharing company that connects those who have transportation with those who need a ride.
Lyft work by having clients set up profiles, which are linked to a funding source, such as bank account or PayPal. Once the ride is marked as completed, payment is sent. Both drivers and those looking for a ride can rate each other using a 5-star system as feedback. All drivers receive background checks and in-person interviews with other Lyft drivers. Although each driver carries their own insurance, Lyft also carries a $1 million policy on each driver.
Lyft requires customers use their smartphone app for rides. There are 5 different types of rides customers can choose from:
- Lyft Line- is the cheapest option and will match passengers with other riders if they are going in the same direction. This service is not yet available in all cities.
- Lyft – the basic and most popular option
- Lyft Plus – matches passengers with a six-seater car
- Lyft Premier – matches passengers with a premium ride with seating for four
- Lyft Lux – matches passengers in a luxury vehicle, such as a Range Rover SUV and Lyft’s highest-rated drivers
The company had $800 million in revenue in 2015. In early 2016, General Motors and Lyft announced that they planned on launching a fleet of self-driving taxis within 1 year.
In June 2019, Lyft donated $150,000 in rides to immigration groups through the remainder of 2019. This includes the group Raices, a non-profit group that provides legal services to immigrants. The company will also match rider donations to Raices.
In March of 2018, the company announced that it was teaming up with electronic health records company Allscripts to create a platform allowing healthcare providers to arrange rides for patients who lack transportation to appointments. This new arrangement would be available to 2,500 hospitals, 180,000 physicians, and approximately 7 million patients.