Lyft has been into the business of ride-hailing since 2012 and it has been just 4 years that they have started. The company is based in San Francisco and has been providing rides to the people in the United States alone. It has not yet expanded its business to other parts of the world and makes the business reach to greater heights.
The company has decided to acquire one of the start-up companies in India, which is FinitePaths. FinitePaths has been designed with an aspect to answer all the questions which are being posted by the users. They have responses from people who are trustworthy and the answers which are provided by them are reliable as well.
It is not only the questions which arise in everyone’s minds but the important decisions we take in our lives. There are situations where we are in dilemma to decide upon which one will be the best choice to take. At FinitePaths, people will be able to find guidance for the right decisions which they need to take along the path of a better life.
The ride-hailing organization has planned to acquire this company and make it much better for the people. FinitePaths has answers for the questions related to social, local and contextual signals. Prior to starting with FinitePaths, the founders worked on a creating a large scale infrastructure and search engines for almost 10 years now.
It is being backed by General Motors and we can see that FinitePaths will be having Lyft as its parent organization. Trail Answers is the app which has been designed by the founders which are made available on iOS and Google’s Play Store to find answers for certainly derived questions. Their aim is to provide better options for the people to choose from, have the technology as an aide.
FinitePaths and Lyft are going to team up so that they can help the latter with the large scale infrastructure and services. We can see that the company is taking up initiatives to make it better for the people. They are taking baby steps, as they do not want to stumble and falter at this point when they are progressing in a very well way.
Vinay Kakade and Balaji Raghavan are the founders of FinitePaths and they started it together in 2015.
Each of them has served in different companies, Vinay worked at Amazon co-creating the CloudSearch platform and in Yahoo as well. Meanwhile, Balaji worked as engineering director for Google before he quit in 2015.
The Vice President of Engineering at Lyft Luc Vincent stated that the company is glad to have the duo on their team. It will be of great help for the company as they will be able to face the challenges which are available at Lyft. In one of the blog posts by Lyft, it was stated saying that they have cracked their mark by March 2017, which they had initially set for the end of the year.
The company planned on launching its service in around 100 new cities in the United States. As a first step, it launched the service in 40 cities at the beginning of the year in the month of January. On a later note, the company went on to launch the service in another 54 cities by the month of March. They have surpassed their own set goals and have excelled in their endeavor.
This expansion of business is definitely going to help the company to bolster its business to the other parts of the world in the near future. At present, the service is made available only in the United States, which is available in around 300 cities now, post its expansion. It is said that the company has reached to 131 new cities in a span of 3 months, which is 31 percent more than their initial set goal.
Apart from that, there was a particular incident which took place in January and it leads to users switching to Lyft from Uber.
A tweet went viral on the social media platform Twitter asking users to delete the Uber from their devices; it was named as “#DeleteUber”.
It was due to the tweet which was posted by Uber stating that their services are made available and there will be no surge pricing.
This situation occurred during a protest by the local taxi drivers at JFK Airport, New York City. They were staging the protest against the executive order which was passed by Donald Trump to not allow people from the neighboring 7 prominent Muslim National countries. But, Uber was posting a tweet saying that their service is available for the riders to take up from the airport and there will no surge pricing, but the users might need to wait as the demand would be high.
There was a 3 percent increase in the signing up for Lyft post that one incident. Lyft donated 1 million dollars to an organization which was fighting a case against the order in the court. It is not only the tweet which made the riders to switch, there were allegations made about the work culture which is being followed in Uber by a former employee Susan on a blog article which she posted.
It is evident that the progress which Lyft is making at present is going to go places. A few reports stated that the company is planning to expand its business to other parts of the world. The company is at present in the second position and we can see the efforts it is putting through to make to the first position. Uber is already facing a tough competition from it, but as days goes by, we can see that it is going to get tougher and harder.
Lyft is valued at 5.5 billion and is expecting investors to pitch in around 500 million at least, which will raise the equity to 6 to 7 billion dollars.
On the other hand, we can see that Uber is valued at 68 billion dollars. There is definitely a long way for the company to catch up and surpass its strong contender. Uber is available in around more than 550 locations around the world at present and it is planning to expand to other parts as well.
The company was able to complete a one-year target within a span of 3 months, then there are possibilities it will achieve its next target sooner than anticipated. It is said that, after the completion of the acquisition of FinitePaths, the team will be working at Lyft in the US. The amount at which FinitePaths has been acquired by Lyft is kept under a big hush-hush.
It is said that the company has around 14.6 million rides in a single month as of August 2016.
With the amount of growth which the company is scaling at present, we can say that the numbers would have increased. Apart from that, there are around 315,000 drivers who take rides from the people on a regular basis. Lyft has come a real long way even after facing a tough competition from Uber. The expansion of business, acquisition of an Indian start-up and lots more in the store to come, we can put it in simple words, it is just the beginning for a bigger and better tomorrow.