On this day in 2012, the ride-sharing company Lyft was founded by Logan Green and John Zimmer under the umbrella company, Zimride. Since its inception, Lyft has grown tremendously; it is now available in over 300 cities across the United States and has changed the way people get around.
Let’s take a look at how the company got off the ground from its humble beginnings in 2007, to its co-dominance of the ride share market today.
Lyft’s Humble Beginnings
In 2007 Green had an idea for a ride sharing service after he was unable to find a ride from his home in Los Angeles to visit family in San Francisco. He realized that many people in similar situations needed a way to get around without having to use their own cars or relying on public transportation. He also believed that it served as a way to address the high cost of gas and the lack of public transportation options in many parts of the United States.
Zimmer, the other co-founder, had a similar experience to Green when he was trying to get from New York City to Washington D.C. He too saw the need for a ride-sharing service and teamed up with Green to help create Zimride.
Although on opposite sides of the country, the two founders met through a mutual friend and realized that their ideas were very similar. They decided to join forces and create a company that would eventually become Lyft.
Craigslist for Riding Sharing
In 2007, after the two met, they decided to run with the idea. After months of work and figuring out the legal challenges, the service finally launched in the summer of 2007.
At first, they used craigslist to connect drivers with people who needed a ride. The low-cost system was slow to take off, so they decided to pivot and focus on university students. This new target market proved to be much more receptive and they had to create a system of matching instead of using craigslist.
The two founders built a simple website that allowed drivers to post their trip details and passengers to request a ride. If both parties agreed on the price, the driver would pick up the passenger and drop them off at their destination. With their new system, they set out to raise money from investors.
Zimride’s First Funding
Since the company was headquartered in the Bay Area and both founders had connections to the tech industry, they got the opportunity to pitch different accelerators and investors. Soon after, Facebook selected Zimride as one of its first fbFund companies. This gave the company a big boost and helped it to grow rapidly. It also gave them a sense of belonging in Silicon Valley, fueling future funding rounds by large players.
After three years the company had two clients, UCSB and Cornell, and a network of 25,000 users.
In 2010, Zimride took its first step towards becoming the Lyft we know today when it launched a product called Zimride Social. This allowed users to connect with Facebook and Twitter friends to find people to ride with.
The Transition to iPhone
The following year, the company launched an iPhone app and a new product called Zimride Marketplace. This allowed users to find one-time rides, rather than just long-distance carpools.
It was around this time that the company began to rebrand itself and distance itself from long car rides. It changed its logo and started referring to itself as a “social ride-sharing” company.
The following year, they opened up the service to everyone, not just university students.
In June 2012, Zimride changed its name to Lyft and launched its now-famous pink mustache logo. The company also started offering rides to everyone-not just college students. This led to a rapid expansion in users and drivers and the company soon became one of the most popular ride-sharing services.
Lyft Today
Lyft has come a long way since its humble beginnings in 2012. The company has grown tremendously and is now available in over 300 cities across the United States. They have changed the way people get around and have made transportation more accessible and affordable for many.
The company continues to innovate and improve its service. In recent years, the company has launched new features such as Lyft Line, which matches passengers going in the same direction, and Lyft Plus, which offers rides in larger vehicles for up to six passengers.
They have also expanded their business beyond ride-sharing to include other services such as Lyme, a bike-sharing service, and Lux, a premium ride-sharing service.
What started out as an idea from two young entrepreneurs who didn’t even know each other, turned into a multi-faceted transportation company that is changing the way people get around the world.
