UNIVERSITY OF THE PEOPLE

BUS 5114 MIS AND TECHNOLOGY

UNIT 1: CASE DISCUSSION

How Lyft was able to create a sustainable competitive advantage

Lyft's competitive advantage is that it is focused on its long-term goal of providing easy service

while improving passenger convenience during the commute. This is accomplished by allowing

passengers to rate drivers and solicit anonymous feedback on how the service could be improved

(Lyft Web, 2020). Lyft provides its passengers with low-cost transportation and flexible earning

options, enabling them to fulfill their aspirations for economic mobility. Lyft also offers luxury

rides in high-end vehicles such as the BMW 5 Series or Cadillac Escalade (LyftWebsite, 2020).

Individuals can connect with each other socially through a ride-sharing service such as Lyft and

Lyft XL, bringing people and community together (Lyft Web, 2020). It is helping to reduce

carbon emissions from the transport environment by hiring 400 engineers to work on two unique

self-driving vehicles.
The role that technology and information systems play in creating and sustaining a

company's competitive advantage.

New technology is shaping the future of transportation in major cities around the world.

Ridesharing, which allows people to access short-term modes of transportation based on their

needs, is responsible for much of the transportation innovation. Ride-sharing services Lyft is one

of the most popular ride-sharing services in North America, with the goal of making

transportation more convenient and cheaper for its customers. Since its inception, Lyft has grown

its client base and revenue by delivering on its promise to meet the immediate needs of both

consumers and businesses. Lyft is also trying to become a more socially and environmentally

responsible corporation; by 2030, the firm intends to convert all its vehicles to electric vehicles,

thereby reducing pollution.

Where the company succeeded, where its competition failed and what role information

systems play in this success

Lyft provides a variety of transportation solutions to meet the needs of people from all walks of

life. Lyft's membership subscription is a much better value than Uber's incentives because it

offers 15% savings on all car trips, priority airport pickup, no cancellation fee for the first 3 trips,

including waived property loss fees (Kunesh, 2020). Compared to Uber, Lyft pays roughly $2 an

hour more, gives up to $5,000 in monthly bonuses, and charges no commissions or fees to its

drivers.
How a company creates and maintains a relationship with its customers and what role

technology plays in facilitating a customer relationship. How other businesses in other

product groups or industries can use the same techniques to develop deeper relationships

with their customers

Lyft is committed to providing its users with a variety of high-quality, inexpensive and time-

saving transportation options to maintain its position as the leading ridesharing company. Since

its inception in 2012, Lyft has steadily grown its customer base and revenue with the goal of

making people's lives easier by providing the best transportation options available. Lyft has also

gained and maintained its competitive advantage by earning the trust of its customers and

employees. To strengthen its client recognition, Lyft is adopting a brand identity that doesn't

attack Uber. Lyft is also looking into the possibilities of self-driving cars, with the goal of

strengthening its reputation in the automotive industry by partnering with a number of other

businesses.

References:

Lyft Website (2020). Lyft privacy policy. https://www.lyft.com/privacy#privacy-the-

information-we-collect.

Kunesh, A. (2020). Uber, Lyft, Via-Picking a rideshare subscription service for your commute.

https://upgradedpoints.com/uber-lyft-via-rideshare-subscription-services