SWOT Analysis of Lyft

This is the detailed SWOT analysis of Lyft which cover the strengths, weaknesses, opportunities and threats. Lyft has been operating in transportation industry since 2012 and it’s based in San Francisco, California.

Following is a detailed analysis of the brand Lyft:


• The facility is available during the late hours i.e. up to 3 AM.

• Each car is properly inspected and driver’s background thoroughly checked before being allowed to become a Lyft driver ensuring safety.

• Each car has chargers and allows the customer to play their own music.

• As soon as a ride is requested, an image of the driver, his location, and estimated arrival time is shown.

• Each driver is also the owner of the vehicle. This sidesteps any business growth inhibitors (Godinez, 2016).

• Continuous innovation and craftsmanship is a unique marketing approach used by Lyft.

• Conveniently economical rates.

• Due to the availability of drivers, there is a minimal wait time for the customers.

• The brand symbol i.e. the huge pink mustache is pasted on the hood of each car making it instantly recognizable.


• Ride fare depends on the time of the day, availability of drivers and other factors leading to surge pricing (Zoplay, 2017).

• Drivers are not scheduled and work times as they like making very few drivers available at certain times increasing the time for a ride to arrive for a customer.

• A smartphone is needed to book a ride. Not everyone owns a smartphone.

• Lyft only gets 20% of the ride fare which is a significantly limited profit.

• Competing brands have much more drivers than Lyft.

• Reliability issues with respect to drivers have been reported in spite of the stringent safety checks.


• Can offer transportation facilities to airports or train stations for students going home at an even cheaper rate.

• Target students who prefer to stay out late even after the subway closes.

• After the subway closes, the only option left for the people is cabs which are expensive and uncomfortable. Lyft can increase drivers during those hours to increase revenue.

• The increase in the use of smartphones means a possibility for an increase in usage of Lyft. This will help Lyft grow and increase revenue.

• Lyft can expand into other cities of the US besides Boston and San Francisco. Even an international expansion is an opportunity for Lyft.

• Offer additional incentives such as bonuses to attract more drivers to increase the number of available rides.


• Cities are making regulations to bring such ride services under the greater control of the law and to protect taxies and public transportation systems.

• Increasing competition in the form of new companies surfacing up and existing companies such as Uber.

• The concept can easily be copied.

• Drivers switching to Uber and other companies decreasing the number of rides available for the customers.

• There have been certain legality issues with ride sharing. Rideorama, a similar service, was shut down on legal grounds as it was charging for shared rides.


Godinez, J., 2016. Lyft and Uber. [Online] Available at: https://prezi.com/sy688msywcut/lyft-and-uber/ [Accessed 4 Aug 2017].
Zoplay, 2017. HOW LYFT WORKS, LYFT BUSINESS MODEL & INSIGHTS. [Online] Available at: https://www.zoplay.com/how-lyft-works-lyft-business-model-and-insights/ [Accessed 4 Aug 2017].

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