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Competition intensified between Uber and Lyft, two like-minded companies: take advantage of the booming market economy to transform the transport sector. Uber, who was three years ahead of Lyft, was bigger, had more money and operated in more cities than Lyft.
It was at that time that Travis Kalanick, the CEO of Uber at the time, attempted to eliminate his closest competition – proposing to buy Lyft. But Lyft co-founders Logan Green and John Zimmer refused the offer.
It was a huge risk, which risked condemning Lyft a few months later.
In early 2015, Lyft had more than about four months of cash. In contrast, Uber had just raised more than $ 2.5 billion. One of Lyft's largest investors, a serial entrepreneur and an investor with decades of experience, advised the two co-founders to close the company.
Fast forward to today. Friday, Lyft officially defeated Uber in the race for advertising, raising $ 2.34 billion. The company, which now operates in 300 markets, reports that its number of cyclists active quarterly has tripled in the past two years.
And while Uber continues to hold a larger market share in the United States, Lyft has acquired an important position: Lyft claims to hold 39% of the carpool market in the US, up from 22% two years ago.
So, how did Lyft do it?
Looking at the company's stock in recent years, we could sum up Lyft's big comeback in one word:
"What this investor told us is the most important and important advice that Logan and I have ever received, because it has forced us to double our belief, to double our values and to believe in our team, "said Zimmer. .
The Lyft co-founders leaned against the wall and focused on what differentiated their company from their competitor. For example, Lyft has built a gentlemanly reputation, softer both brands, thanks in part to efforts to prioritize drivers and their needs.
Lyft has also focused on its business strategy, which also differs a lot from that of Uber.
For example, consider that Uber has spent millions of dollars to build a global brand (Uber is presently present in more than 60 countries), as well as to diversify its markets, such as food delivery and transportation. goods, and to develop its own autonomous driving technology.
Lyft, on the other hand, is adamant that she focuses on pbadenger transport. They invested in autonomous driving, but with more caution. And although Green and Zimmer see potential for expansion in other countries, they remain focused on North America for the moment. (Lyft recently expanded to Toronto, its first city outside the United States)
"We are really pleased with the concentration we have had," Green said in a recent interview. "We are going at the right pace, we are going deep in transport, in the markets where we are, it allows us to win the part we have won".
So, what about the future of Lyft?
The company is currently working on integrating transit information directly into the app. The goal? In a world where the transportation model is changing dramatically, the founders want Lyft to become the first place consumers go to get from point to point.
"We do not care if it's a ride on our platform, a bus or a train," says Zimmer. "In fact, we would very much like to connect to the best option."
In terms of owning a car, Mr. Zimmer said he wanted Lyft to give consumers a better experience at a better price. Imagine using Lyft to maintain, clean, refuel and even insure your car.
"It's the magic of service," says Zimmer.
It's this kind of attention, this customer-centric mindset that has helped Lyft not only survive, but thrive.
Green and Zimmer refused to say how much Kalanick had offered to buy Lyft for all these years. But when asked if they were happy, they did not accept the market, Zimmer answered for both of them.
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