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Lyft is opening a series of car repair centers in the US for its drivers


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lyft car repair center

Working as a ride-hailing service driver definitely puts added wear and tear on your vehicle, and in an effort to help drivers lower their maintenance costs, Lyft announced on Tuesday that it opened the first of several planned service centers for its drivers in San Francisco.

This service center is the first of over thirty such facilities planned to open their doors in 2019. The center will offer vehicle maintenance and repair for less than what a driver could expect to pay at a regular shop, or at least that's the idea.

The San Francisco location has a planned hourly repair rate of $95 dollars, which, depending on the marque of the car being serviced, is slightly below average. The repair services offered will be mostly aimed at basic stuff like brakes and alternators.

Lyft also plans to offer package deals for certain services. For example, an oil change paired with a tire rotation and a car wash will set a driver $70. Part of Lyft's intent with these service centers is also to save drivers time, so they can spend more time driving and less time at a shop.

In his blog post outlining the decision to offer more driver services, Lyft COO Jon McNeil explained that these service centers would be staffed by Lyft employees and that at least some of these would be certified mechanics.

Lyft didn't immediately respond to requests for comment.

News source: https://www.cnet.com/roadshow/news/lyft-car-repair-service-center-san-francisco/

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Lyft and Uber are both facing core business challenges. Specifically, attracting drivers and cash burn (hence both going public this quarter).

They currently are subsidizing customer rates while drivers are still earning low wages when you factor wear and tear on the vehicles and maintenance costs. They are doing this to increase users and get more people familiar to the concept of asking a stranger to show up so you can hop in their car.

Lyft specifically has identified attracting drivers as a core challenge in their IPO documentation. https://www.sec.gov/Archives/edgar/data/1759509/000119312519059849/d633517ds1.htm#toc633517_4

While this is an interesting concept I don't see the immediate threat to our industry. Neither have the budget or desire to expand this concept nationally at this time and if you're "Uber" customer's are like mine, they aren't typically spending very much at your store anyway. This is really an attempt to attract drivers in certain key markets.

So far, companies like Amazon have had serious resistance breaking into "Service" businesses. I doubt Uber and Lyft will cause us too much headache until autonomous vehicles start to become an option, then we are all going to be in for an awakening!

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On 4/3/2019 at 9:01 AM, Robert Summers said:

 until autonomous vehicles start to become an option, then we are all going to be in for an awakening!

After they get the first repair bill they will learn how to program our shop address into the computer.

Edited by Hands On
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  • Have you checked out Joe's Latest Blog?

         0 comments
      It always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
      While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox.
      Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator.
      One last thing; the cost of technician turnover can be financially devastating. It also affects shop morale. Do all you can to create a workplace where technicians feel they are respected, recognized, and know that their work contributes to the overall success of the company. This will lead to improved morale and team spirit. Remember, when you see a technician’s toolbox rolling out of the bay on its way to another shop, the heart was most likely gone long before that.
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