Lyft has the value of around $15B, and it made a revenue of $3.616B in 2019, and all of that by offering rides using cars that they don’t own or rent, and with drivers that are NOT employees of Lyft!
How does Lyft make money?
This is the first question that most people ask when they learn about the above mentioned numbers.
And that’s a very logical question, and an important one.
The reason I’m saying this is that if you learn how Lyft could make such an amount of money by selling rides to people with cars that they don’t own or rent, and through drivers that are not their employees, then this could open an opportunity for you to make money without having t invest lots of money.
Can you really make money like Lyft does?
If yes, then how and where to start from?
And if no, then what is the alternative to make money without investing in expensive assets?
These are the questions I will be answering in this short and informative article.
And in few minutes from now, you will learn about the same place that helped me in starting a business that makes me money with a similar model to how Lyft makes money and for a little investment and no prior experience.
So, without further ado, let’s begin!
How Does Lyft Make Money?
Lyft makes money by referring people looking for a ride with drivers who are willing to give paid rides with their own cars, in exchange for a commission (around 20%) that Lyft cuts from the drivers’ fees on every ride.
And this model that Lyft follows to make money is called affiliate marketing, or referral marketing, which is a very legitimate business model.
And this model of performance marketing is a very popular one that many other big, medium, and small companies make money with.
For example, this is how Uber makes money by connecting riders with drives who want to give paid rides with their own cars as well.
And it is how Airbnb app and website make money when they refer travelers and tourists to property owners in order to rent a place to stay at.
And now, the most important question that you have:
Can You Make Money with The Lyft Business Model?
You can make money with Lyft’s business model.
I personally make the most of my money with this model.
As I stated earlier, Lyft’s business model, referral marketing, allows businesses and individuals (like myself) to make money by connecting customers to product sellers or service providers without a big investment, and without selling a product or providing a service by themselves.
And the nice thing about this model that Lyft follows is that you can make with this model in almost any industry or market, and not only in the booking-related industries like booking rides, restaurants, or hotels.
One example, you can make money with the business model of Lyft app by helping people find lawyers, credit card providers, re-finance companies, mortgage and loan providers, …etc.
And you can make money with the same model by promoting products of others, which could be digital products such as online courses, ebooks, or software tools, or they could be physical products like shoes, tennis balls, foodware, electronics, …etc., all in exchange of a commission that you get on every sale that comes through your promotion.
For example, I make money with Lyft’s model in the dieting niche where I recommend a software that generates a diet plan that is customized for every person based on their gender, age, body, and food preferences.
And when someone uses that paid software to get a full diet meal plan for themselves, I get paid a commission of around $26.
And you too can use the same model in order to generate income in almost any industry without selling a product or providing a service by yourself.
Can You Make Money with Lyft itself with This Model?
You can make money with Lyft through affiliate marketing by referring new riders or new drivers in exchange for a commission on every rider or driver that you bring.
This is done through the affiliate program that Lyft.com offers.
And if you liked this business model that Lyft makes money with, and you are interested in learning how to do it by yourself in order to supplement your income without investing in expensive assets or providing a service, then the next section is for you!
3 Steps to Start Your Own Mini-Lyft Business
1 – Choose an Audience to Work with
With any kind of business model, choosing a target audience is a crucial step to succeed.
You need to know who your target customers are in order to focus your efforts and make them effective in converting into money.
Lyft, for example, focuses on people who don’t have cars, and they are looking for safe and cheap rides with an easy and fast pick up.
And Lyft provided to these people what they are looking for, which made Lyft users trust the company and use the app to book rides, which makes Lyft money.
And you have to do the same if you want to make money with this model.
You need to focus on a specific group of people (niche), and provide them with what they are looking for, so that you can finally make money the same way that Lyft earns money.
And again, you can do this in almost any industry that could, or could not be related to booking services, such as: sports, hobbies, legal services, financial services, cooking, home repairs, …etc.
2 – Build a Simple Website Instead of an App Like Lyft
It is much easier to create a website than a phone app.
This is that there are more tools and services, like the ones I will mention in the next section, that makes creating a website like a breeze, even without any prior experience or technical knowledge.
After choosing a niche for your affiliate business, you will choose a domain name that suits your niche and create a simple WordPress site, which doesn’t require any technical experience or coding.
But the website is necessary in order to place the promotions and offers you want to promote as an affiliate, and to bring people to see these promotions and take them.
3 – Help Your People Like Lyft Does to Make Money
If you want to make money in any way, you need to help people achieve the results they want or solve the problems they have.
This is what Lyft does by helping people who don’t have cars find safe, cheap and easy rides.
That’s why people trust Lyft and use it to book rides, which makes Lyft money as a result.
And you need to do the same with your audience in your website, and help your target audience in finding and offering what helps them.
For example, if you decided to make a website that helps tourists find services in a certain city, like New Mexico for example, then your target audience might ask on Google stuff like:
- Best car rental companies in New Mexico
- Best ski resorts in New Mexico
- Best restaurants in New Mexico
- Best Italian restaurants in New Mexico
- Cheap flights to New Mexico
And so on.
And for each on of these queries, you will find the best deals out there and list them in one article for each question.
And when you list any of these services you have found, you would link out from your website to these services through a unique link (affiliate link) that the company or service provider can track so that they will credit you for the customers you brought to them, and give you a commission.
And with these three steps, you can start making money like Lyft, but using your own online affiliate business.
And if you are interested in starting an online business that works with this model of Lyft and makes you money, but you don’t know how to start, then the next section is for you.
Someone Take You by Hand to Start a Business Like Lyft?
I will recommend to you the best place to start an affiliate business with all the training, tools, and support provided in one place for a minimum cost.
And this place is where I personally learned and started my own affiliate businesses that I make most of my income with.
And this place is a great online platform and community, which is called Wealthy Affiliate.
This place provides you with everything you need to start and grow a business that makes money with Lyft’s business model, such as:
- The step-by-step, detailed affiliate training course that suits the absolute beginners.
- The great web hosting service with expert support so that you build your website and maintain it without prior technical knowledge.
- The tools that would help you find opportunities for making money with affiliate marketing like Lyft does.
- And last but not least, the amazing community of more than 2 million online entrepreneurs and experts that will help you whenever you ask for help and keep you motivated.
And much more.
And this is all for an affordable monthly fee that doesn’t come with surprises like hidden fees and upsells.
Even better, you can start with this platform for FREE in order to try it, and that will give you access to the first level of the training (10 step-by-step lessons), tools, and community before you pay any money.
This is where you need to go if you want to start making money with the business model of Lyft, even if you don’t have any technical experience or knowledge.
Check out my detailed Wealthy Affiliate review in order to learn more about this platform and get started with their free plan at first.
I hope that this article was helpful for understanding how Lyft makes money without owning or renting any car or employing drivers, and how you personally can use the same business model in order to make money even without prior experience or big investment like I personally do.
If you are interested in starting this kind of a business, then I recommend that you join the platform I mentioned in the previous section.
And if you still have any question about Lyft’s business model, or about anything I mentioned here, then please, tell me in the comments’ section below and I will be happy to come back to you asap 🙂