The NFX Podcast

We believe creating something of true significance starts with seeing things others do not. NFX is a venture firm exclusively focused on pre-seed & seed stage startups.

Inside the Marketplace of Lyft with James Currier & Pete Flint (NFX Partners)

E2 • Mar 25, 2019 • 34 mins

In this episode, Pete Flint and James Currier discuss the Lyft IPO, comparing the ridesharing market to the airline industry and exploring Lyft's expansion into scooters. They delve into the future of autonomous vehicles, supply side innovation, and the influence of Wall Street on company strategies. They also touch on the importance of founders' control and Lyft's potential dominance in smaller markets.

Key Points

Lyft's IPO marks a significant moment for network effect companies, showcasing the importance of understanding network effects in predicting the future of tech businesses and the competitive landscape they operate in.
The competition between Lyft and Uber demonstrates the vulnerability of network effects in the ride-sharing industry, where multi-tenanting and brand differentiation play crucial roles in shaping market dynamics and consumer loyalty.
As Lyft goes public, strategic moves towards owning the transportation modality entry point on consumers' devices and exploring stronger, defensible network effects could be pivotal for the company's long-term success and market share growth.

Pete Flint & James Currier of NFX discuss Lyft's upcoming IPO, the defensibility of the ridesharing business model, and what Lyft should do next.

Check out our past Inside the Marketplace episode on Lyft here - https://soundcloud.com/nfxpodcast/inside-the-marketplace-uber-nfx-podcast

Speakers

Pete Flint

Host • 54%

James Currier

Host • 46%

Chapters

0:00	Introduction and discussion on Lyft IPO and Network effect IPOs in 2019
6:09	Comparing the ridesharing market to the airline industry and the importance of branding
9:34	Lyft's expansion into the scooter business and the race to own the consumer transportation app
12:01	The future of autonomous vehicles in ridesharing and Lyft's strategy for sustainability
15:30	The importance of supply side innovation for long term profitability and diverse supply options
19:22	The experience of Trulia and Zillow going public and Wall Street's influence on company strategies
24:33	The benefits of founders maintaining control and focusing on long term goals
26:38	James Currier's take on Lyft's approach and autonomous units
29:20	The advantages of Lyft becoming a dominant platform in smaller markets
30:17	The impending public debut of Lyft and its impact on the market and the contrasting cultures of Lyft and Uber

Transcript

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