SCENARIO - RIDE SHARING SERVICES

SITUATION

Your client is the national marketing manager for Lyft, a U.S. based ride sharing service which is expanding into selected cities in Canada. The ride sharing industry is very competitive; operating costs are rising and profit margins are narrow.

Lyft is trying to build its reputation in Canada as a company that offers a more positive experience, by providing "happier" drivers and more customer-oriented service. Executives spend several hours each year talking directly to customers, e.g. working as a driver.

The Canadian Lyft marketing manager is concerned about profitability, and is looking for ways to increase revenues through fees for better service or extra features, while keeping the image of offering competitive pricing.

Before the pandemic, some ride sharing companies had received negative publicity due to issues such as delayed pick-ups; inexperienced or unsafe drivers; lack of designated ride sharing pick up "zones" at some locations (such as airports), and personal customer data being compromised.

The manager wants to know what impact these situations have had on the company's reputation and if there are other alternatives customers in Canada might prefer. Would riders be willing to pay a small "priority" fee to guarantee their pick-up will arrive within the time specified (and perhaps bump other riders) or, if late, the ride will be at a reduced rate?

Lyft is also considering a charge to allow customers to direct their ride requests to drivers who have achieved a "professional driver rating", e.g. due to completing safety training or accumulating a certain number of hours of experience. This option could be part of a Lyft app. that would offer other features such as: a "one click" distress alert sent to police or family; "rounding up" to donate to a charity of the customer's choice; traffic updates; flat rates to/from certain locations, or more.

RESEARCH TASK

Company executives are meeting on Dec. 16th to make some decisions, and the manager wants to understand the situation. How do consumers in Canada feel about recent industry events? How would they feel about Lyft's reputation and how would it be impacted by the proposed fees? What features would they like in an updated Lyft mobile app? The manager also wants to obtain input on possible wording to introduce new fees or new features.

Lyft Canada will need to know if there are any differences based on location, and on travel and purchase habits.

____________________________________________________________________ Focus Group Schedule and Budget

Your client has given you a maximum budget of $20,000. You have calculated that each focus group will cost $2,500 (including professional fees for moderating and recruiting, facilities rental and transcripts.) Your only other expenses will be incentives for the participants and travel for the researchers (not for the client).

• Make a Gantt chart with the focus group schedule. For each group, show the:
  • time
  • location
  • composition (i.e. who qualifies for each group)
• Prepare a budget, and show how you allocated the $20,000.
• Explain why you made these choices.