Lyft is giving a tough time to Uber in the U.S. It claims to have bagged 35% market share of the national ride-sharing market in the U.S. It also claims to have 40% market share in 16 U.S. markets and 50% share also in few markets. It has provided a worthy alternative to the users in addition to Uber. Lyft continues to do well and remain successful in the U.S. market. Some of the key reasons for its success in the U.S. are discussed below
Clear focus on the target customers
Lyft has done a commendable job of focusing on their target audience with clarity. The approach of Uber and Lyft is very different which is evident from their branding. Uber uses an all capitals logo on a black background which reflects more professional and business-like branding. Uber started as a black car service and is focused more towards the business class. Lyft uses small letters in its branding against a more causal pink backdrop. Lyft is more casual in its approach and targets the average customer. Their cars and drivers adopt a more casual and friendly feel towards their customers. It is appealing more to the younger generation and is becoming very popular with younger customers.
Greater rapport with customers
Lyft drivers are more friendly and bond better with the riders. They are trained to have a good conversation with their riders depending upon the situation. It also encourages its riders to share the front seat with the driver for having better conversations as they ride along to their destinations. This helps to ensure better rapport of Lyft drivers with their customers. The customers also appreciate a more pleasing driver with whom they can share a good conversation while riding.
Attracting drivers from Uber
Surveys indicate the drivers were favorable towards Lyft than Uber. 76% of the drivers were satisfied with Lyft while only 58% were satisfied with Uber. Winning over drivers is an important factor in taking lead in the market. Lyft has liberal sign-up bonuses in new cities that they start in which are generally better and more lucrative than Uber’s bonuses. Lyft is well perceived by the drivers in the U.S. which explains its rising popularity and growing market share.
Positive brand building
Lyft has involved in positive brand building and not jumped on the bandwagon for bashing Uber for all the controversies surrounding it. They did not focus on highlighting the mistakes of Uber, rather they focused on building their brand image positively. Lyft themselves claim that during the Uber scandals and controversies, they have not done anything new to gain market share. They have only continued to behave as a responsible service provider should with their customers. Customers were provided an alternative to Uber which they were looking for some time and they took notice of Lyft and its behavior which greatly helped it to grow and increase its market share.
Lower expanses, higher profit
Lyft has also been able to reduce its sales and marketing expenses by 20% in first quarter of 2018, which has added to its profitability.