History of Lyft in Timeline
Lyft, Inc. is a US-based transportation company providing a range of mobility solutions including ride-hailing, scooter and bike sharing, car rentals, and food delivery. Operating in the United States and parts of Canada, Lyft utilizes dynamic pricing based on real-time supply and demand to determine fares, which are presented to customers upfront. The company generates revenue by collecting a commission on each booking and holds the position of the second-largest ridesharing service in the United States, trailing only Uber.
2007: Zimride Founded
Zimride, a long-distance intercity carpooling company focused on college transport, was founded in 2007 by Logan Green and John Zimmer.
2010: Studies Examine Long-Term Trends in Ridesharing Usage and Impact on Transportation Modes
From 2010 to 2019, multiple studies consistently observed that ridesharing trips often substituted for walking, biking, and public transportation, rather than replacing personal car usage. This substitution effect, combined with the low average occupancy of ridesharing vehicles, contributed to increased traffic congestion.
2012: Lyft Founded as Zimride Service
Lyft was launched in the summer of 2012 as a service of Zimride, a long-distance carpooling company founded in 2007.
May 2013: Company Name Changed to Lyft
In May 2013, the company changed its name from Zimride to Lyft.
July 2013: Zimride Service Sold to Enterprise Holdings
In July 2013, Lyft sold the original Zimride service to Enterprise Holdings, the parent company of Enterprise Rent-A-Car.
August 2014: Shared Transport Introduced
Lyft introduced shared transport in August 2014.
November 2014: Lyft Ditches Fist Bump Greeting
In November 2014, Lyft moved away from its tradition of encouraging fist bumps between drivers and passengers.
2014: Class Action Lawsuit Filed Against Lyft for Sending Unwanted Text Messages
A class action lawsuit was filed against Lyft in 2014, alleging that the company had sent numerous unwanted commercial text messages to individuals. This legal action highlighted concerns about privacy and consumer protection in the context of ridesharing services.
January 2015: "Glowstache" Introduced, Replacing Fuzzy Mustaches
In January 2015, Lyft introduced the "glowstache," a small, glowing plastic dashboard mustache, replacing the large fuzzy mustaches on the front of cars, to make the service more appealing for business professionals.
March 2016: Study Analyzes Passenger Occupancy and Congestion Impact of Ridesharing in Los Angeles and Seattle
A study published in March 2016 focusing on Los Angeles and Seattle found that ridesharing services had higher passenger occupancy rates than traditional taxis, suggesting a potential for reducing congestion by replacing taxi trips.
2016: Flywheel Sues Uber
Flywheel, San Francisco's largest taxi operator, sued Uber in 2016, alleging antitrust violations and predatory pricing.
July 2017: Study Highlights Potential Negative Externalities of Ridesharing on Urban Environments
A July 2017 study indicated that the increased traffic caused by ridesharing services like Uber could lead to significant negative externalities, including lost time due to congestion, increased pollution, and higher accident risks. These costs, according to the study, could outweigh the economic benefits generated by the service, raising concerns about the overall societal impact of ridesharing.
December 2017: Lyft Expands to Canada
Lyft expanded into Canada in December 2017, starting operations in the Toronto, Hamilton, and Ottawa metropolitan areas.
March 2018: Partnership with Allscripts for Healthcare Transportation
In March 2018, Lyft partnered with Allscripts to create a platform for healthcare providers to arrange rides for patients lacking transportation to appointments.
July 2018: Study Finds Ridesharing Contributes to Increased Traffic and Congestion
A study published in July 2018 revealed that ridesharing services, including companies like Uber and Lyft, were contributing to increased traffic congestion in urban areas.
November 2018: Lyft Settles Class Action Lawsuit Over Unwanted Text Messages
In November 2018, Lyft reached a settlement in a class action lawsuit filed in 2014. The lawsuit alleged that the company had sent a large volume of unsolicited commercial text messages to consumers. As part of the settlement, Lyft agreed to pay $4 million to affected consumers and faced a claim for $1 million in legal fees.
November 2018: Acquisition of Motivate and Expansion Plans
Lyft acquired Motivate, a bicycle-sharing system and operator of Capital Bikeshare and Citi Bike, in November 2018, announcing plans to add 28,000 Citi Bikes and expand the service.
2018: Study Finds Discrimination Against African American and LGBTQ+ Passengers by Ridesharing Drivers
A 2018 study in Washington, D.C. revealed that ridesharing drivers exhibited discriminatory behavior by canceling ride requests from African American and LGBTQ+ passengers at higher rates compared to other demographic groups. This highlighted concerns about bias within the ridesharing industry.
2018: Acquisition of Blue Vision Labs
In 2018, Lyft's self-driving car division acquired Blue Vision Labs, a London-based augmented reality startup, for $72 million.
2018: Decline in Taxi Medallion Values and Impact
The value of taxi medallions significantly declined in 2018, leading to failures of credit unions that used them as collateral and, tragically, suicides among taxi drivers.
March 2019: Lyft Goes Public
Lyft went public in March 2019 through an initial public offering (IPO), raising $2.34 billion at a valuation of $24.3 billion. They allocated shares for long-time drivers.
September 2019: Study Compares Congestion and Pollution from Taxis and Ridesharing
In September 2019, a study found that taxis contributed less to congestion and pollution in downtown areas compared to ridesharing services, attributing this to lower rider waiting times and less empty driving time.
2019: California Assembly Bill 5 Passed
California Assembly Bill 5 was passed in 2019 to classify drivers as employees, although ridesharing companies later received an exemption.
2019: Lawsuits and Concerns over Safety and Sexual Assault
In 2019, over 34 women sued Lyft, alleging sexual assault by drivers and inadequate safety measures. Ridesharing companies faced criticism and fines for lapses in background checks and safety protocols.
March 2020: Acquisition of Halo Cars
In March 2020, Lyft acquired Halo Cars, a company that pays drivers to display digital advertisements on their vehicles.
April 2020: Layoffs, Furloughs, and Continued Scooter Operations Amid COVID-19
During the COVID-19 pandemic in April 2020, Lyft laid off 982 employees and furloughed 288 others. The company continued scooter rentals in San Francisco, while Miami's government requested a halt to Lyft's operations.
August 2020: Partnership with Sixt for Rental Car Services
Lyft partnered with rental car company Sixt in August 2020 to provide users access to rental cars in exchange for a commission.
December 2020: Robotaxi Service Announcement
Lyft announced plans to launch a multi-city U.S. robotaxi service with Motional in December 2020.
2020: California Proposition 22 Exempts Ridesharing Companies
California Proposition 22, a ballot initiative passed in 2020, exempted ridesharing companies from classifying drivers as employees.
April 2021: Sale of Self-Driving Car Division to Toyota
Lyft sold its self-driving car division, which had partnerships with various companies, to Toyota for $550 million in April 2021. This division also owned Blue Vision Labs, an augmented reality startup acquired in 2018.
2021: Uber Settles Lawsuit with Flywheel
A federal judge dismissed most of Flywheel's lawsuit against Uber in 2021, and Uber settled the remaining claims by integrating Flywheel taxis into its app.
2021: Arbitrator Awards $1.1 Million to Visually Impaired Passenger
In 2021, an arbitrator awarded $1.1 million to a visually impaired passenger who uses a guide dog because she was denied rides 14 times, highlighting the issue of service animal discrimination by rideshare drivers.
2021: Uber Wins Lawsuit Against Taxi Companies
The only lawsuit by taxi companies against Uber that went to trial, alleging asset devaluation due to unfair competition, resulted in a full verdict in favor of Uber in 2021.
April 2022: Acquisition of PBSC Urban Solutions
Lyft acquired PBSC Urban Solutions, a Canadian bike-share equipment and technology supplier, in April 2022.
November 2022: Layoffs Announced
Lyft announced layoffs of approximately 700 employees, representing about 13% of its staff, in November 2022.
March 2023: David Risher Appointed CEO
David Risher was appointed as CEO of Lyft in March 2023.
April 2023: Significant Layoffs Announced
In April 2023, Lyft announced layoffs of 1,076 corporate workers, making up 26% of its staff, following previous job cuts in 2022.
September 2023: Discontinuation of Lyft Rentals
Lyft discontinued its car rental service, Lyft Rentals, in September 2023.
March 2024: Trial Scheduled for Australian Taxi Drivers' Lawsuit
A trial for the lawsuit filed by Australian taxi drivers against Uber is scheduled for March 2024.
