Auto Service World
News   March 28, 2019   by Adam Malik

Lyft enters repair shop business

The aftermarket is now facing competition from Lyft.

The ride-sharing company recently opened its first auto repair shop in San Francisco with plans to expand to major cities across the United States later this year hinted at plans to do the same in Canada in the future.

It’s part of its new Lyft Driver Services program to attract and retain more drivers to its platform where they can take advantage of discounts of up to half off on brake jobs, oil changes and flat tire fixes. The program also offers banking services.

In an interview with CNN, Lyft chief operating officer Jon McNeil acknowledged the high costs of vehicle servicing, especially for those who drive for a living.

“We want to address that head on. By helping them save up to 50 per cent on the repair and get their car back in half the time, we’re going to have a significant impact on driver take-home pay,” he said.

McNeil is no stranger to the aftermarket. He co-founded Sterling Collision Center, which has two locations in Southern California.

While the service will only be available for Lyft drivers, McNeil noted that its repair shops may one day be available to anyone in need of vehicle repair.

Lyft’s centres won’t be like your typical shop. The company believes it can be more efficient by using more modern techniques. McNeil compared it to a NASCAR pit stop where an assembly line will be set up, staffed by Lyft employees, as many repairs don’t require a lift and no dedicated bay is needed.

The company also noted plans for an on-demand repair service that would see a Lyft technician drive to the vehicle in need of service.

The plans are all ahead of its expected initial public offering where the company is hoping to convince investors it’s profitable despite losses of more than $900 million last year.

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3 Comments » for Lyft enters repair shop business
  1. Shawn Greenberg says:

    Sure gives me the warm and fuzzies to use a ride share car where that 50% off brake job translates into low quality parts being used.

  2. JeffJ says:

    I can just envision the quality of tech you’re going to have fixing your vehicle for 50% less pay. Such a juxtaposition …. the drive will take home more money but the tech will take home less.

  3. Bob Ward says:

    If you think of this program as a retention tool for Lyft drivers it makes perfect sense. I believe no other company does this. Private cab companies have their own repair shops for their fleets. It would certainly attract drivers to be with Lyft. I understand there would be concerns about the quality of parts and labour. They should be held to certain standards for repairs. It is all about reducing operating costs for their vehicles. With reduced costs, drivers would be less likely to put off inspections and repairs. I do not think this will effect public sector repair shops.

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