SAN FRANCISCO: Lyft Inc has been challenging larger ride-hailing rival Uber Technologies Inc for years by cultivating an image of caring more for its drivers, riders and the environment. As the company debuts in the stock market on Friday, it hopes to convince investors the"nice guy" image will pay off.
That is still a fraction of the US$120 billion valuation that investment bankers have told Uber it could wind up with in its IPO in April, thanks to its international presence and expansion into sectors such as food delivery and freight hauling. A #DeleteUber campaign surged on social media. The negative publicity helped Lyft attract new drivers and riders without spending much on marketing.
Lyft's branding as a warmer, more caring alternative to Uber dates back to its launch in 2012. It borrowed marketing strategies from Southwest Airlines Co and Starbucks Corp, hoping to portray itself as friendly and customer-centric, and likened itself to the championship Golden State Warriors pro basketball team, according to Lyft executives.
Both Lyft and Uber have been criticized for causing congestion in cities and creating hazards to bicyclists and pedestrians. A study by the San Francisco County Transportation Authority found that about half of new congestion in San Francisco from 2010 to 2016 was from ride-hailing.