Monday, April 13, 2015

Vertical Integration?


There was talk for a while that maybe Lyft should evolved into a type of vertical integration with its own fleet of vehicles that it could rent out to drivers. That way, drivers would feel more loyalty and not be tempted to drive for other businesses.

By not doing this, they have opened them up for another company to come in and take advantage of the missed opportunity. From a website call, the BillFold.com:

"Uber and Lyft drivers, as a rule, tend to show up in relatively new, very clean cars. That’s one of these car services’ selling points, after all: with Uber and Lyft, you won’t have to ride in a junky taxi where the air conditioning is broken and the upholstery is torn. But how do Uber and Lyft drivers afford these cars? Some, no doubt, already own or have access to these kinds of cars—but if you don’t, there’s a startup ready to help you, and it’s called Breeze.

Breeze rents cars to ride-share drivers. Or, as they put it: Breeze empowers job seekers by handing them keys to cars optimized for use in today’s on-demand ecosystem. The startup provides cars to drivers in San Francisco, Los Angeles, and Seattle, all for a $250 membership fee plus a $195 weekly fee. Drivers get 2,500 miles per month included; anything above that costs 15 cents a mile."

The math would be hard to work, but something like this would allow for another revenue stream

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