Lyft Co-founder on the Future of Rideshare | How I Built This with Guy Raz | NPR

Transcript

hello everyone and welcome to how i built this resilience edition from npr i am guy roz and i am excuse me a little choked up back in my studio um out of the broom closet in las vegas so it's great to be back um this of course is where we talk about how entrepreneurs are building resilience during this incredibly challenging time hopefully this is ... Read More

Summary

In this video, Guy Roz interviews John Zimmer, the co-founder and president of rideshare company Lyft. They discuss the challenges and solutions faced by Lyft during the COVID-19 pandemic, as well as the controversial issue of classifying drivers as independent contractors or employees. Zimmer also discusses Lyft's plans for diversification and the future of transportation.

Questions & Answers

Q: How has Lyft been coping with the COVID-19 pandemic?

John Zimmer explains that Lyft initially saw a significant decrease in rideshare rides, dropping by 75% at the peak of the pandemic. However, there has been a strong recovery since then, with rides now down by less than half. Zimmer also notes the importance of adapting to change and appreciating the little things, such as clean air.

Q: What conversations did Lyft have with its leadership team during the pandemic?

Zimmer discusses the challenges faced by Lyft in taking care of different audiences, such as drivers, riders, employees, and black team members. They had to make decisions with both short-term and long-term goals in mind, considering the preservation of their mission and the financial stability of the company.

Q: What short-term decisions did Lyft make to keep the business running?

Zimmer explains that Lyft looked at various scenarios to assess the impact on their cash flow. They decided to raise debt to add cushion, cut down on expenses that were considered luxuries, and make adjustments in certain teams and operations. They also tightened up operations in some markets, closing some of their centers.

Q: What factors have affected Lyft's recovery in rideshare rides?

Zimmer states that the decrease in rides is primarily due to a change in transportation behavior, as people are traveling less. Additionally, there are concerns about health and safety. However, Lyft has implemented measures to ensure the safety of both drivers and riders, such as mandatory mask-wearing and keeping vehicles clean.

Q: Is Lyft considering diversifying beyond rideshare transportation?

Zimmer mentions that Lyft has already diversified into bike share programs and is experiencing faster recovery in that area. They are also exploring the potential of delivery services to support small and local businesses. While they may consider supporting food delivery services, they do not intend to compete in that market as consumer platforms are not profitable.

Q: Why is Lyft opposing the classification of drivers as employees in California?

Zimmer explains that Lyft supports providing benefits to drivers but wants them to scale according to the amount of work they do. They believe the specific types of benefits designed for full-time workers may not be feasible for part-time drivers and could lead to a significant loss of jobs. Lyft proposes a middle ground that offers benefits based on driver hours, as outlined in Proposition 22.

Q: Have Lyft's efforts to convince California legislators been successful?

Zimmer acknowledges that it has been challenging to convince legislators due to political considerations. Lyft has tried to make the drivers' voices heard and demonstrate the consequences of not passing Proposition 22. However, he recognizes the lack of trust in businesses and leaders and emphasizes the need to create new regulations together.

Q: What is Lyft doing to encourage riders to upload their photos for drivers to see?

Zimmer acknowledges the positive impact of rider photos on both safety and overall experience. While Lyft does not want to make photo upload mandatory to avoid affecting ride frequency, they are working on features to increase the percentage of riders posting their photos, such as encouraging selfies during rides.

Q: Is Lyft focusing more on autonomous vehicles?

Zimmer confirms that Lyft has been working on autonomous vehicles through their Level 5 program. They also have a partnership model called Open Network, collaborating with companies like Waymo to offer autonomous vehicles to Lyft riders. While safety and cost limitations still exist, they continue to make progress in developing this technology.

Q: If Zimmer were to start over today, what would he do differently?

Zimmer suggests that he might start with Lyft Pink, a subscription service that offers transportation benefits to members. He believes this could be a more affordable and enjoyable alternative to car ownership while providing access to bikes, cars, and car rentals. Starting with this concept and working backward might have been a different approach for Lyft.

Takeaways

In summary, Lyft has faced significant challenges during the COVID-19 pandemic but has seen a strong recovery in rideshare rides. They have made short-term decisions to preserve the company's financial stability and have diversified into bike share programs and delivery services. Lyft opposes classifying drivers as employees in California and proposes a middle ground that offers benefits based on driver hours. They continue to invest in autonomous vehicles, and Zimmer believes that the future of transportation will involve fewer cars and more alternative modes, especially in dense urban cores.