Advice Line with John Zimmer of Lyft
Timestamps are as accurate as they can be but may be slightly off. We encourage you to listen to the full context.
Podcast Summary
In this episode of the How I Built This Advice Line, host Guy Raz is joined by John Zimmer, co-founder of Lyft, who recently stepped away from the company he founded in 2012. (02:36) John discusses his challenging transition from operating roles to complete departure from Lyft, describing the difficult adjustment from constant high-stakes work to having complete freedom. (04:40) The episode features three early-stage founders seeking guidance: Alan from England with his innovative shower product ShowerSpaah, Teri from California with her weighted rucking vests for women, and Kobi from New York balancing work-life challenges while growing his craft chocolate company.
- Main Theme: Practical advice for scaling businesses internationally, managing inventory challenges, and maintaining personal sustainability while building purposeful companies.
Speakers
Guy Raz
Guy Raz is the host and creator of How I Built This, one of the most popular business podcasts in the world. He's also the host of several other NPR podcasts and has built a media empire focused on entrepreneurship and storytelling. Guy has interviewed hundreds of successful entrepreneurs and founders, making him one of the most recognized voices in business podcasting.
John Zimmer
John Zimmer co-founded Lyft in 2012 alongside Logan Green, building it into one of the world's largest rideshare companies. He served as President until 2023, when both founders transitioned to non-executive board roles before leaving the company entirely in August 2024. John recently launched a new venture called Yes And, focused on creating consumer businesses with positive social outcomes.
Key Takeaways
Focus on One Use Case Before Expanding Globally
Alan's ShowerSpaah device had multiple potential markets - mobility assistance, luxury wellness, and even pet washing. John Zimmer advised testing different use cases in the home market first to understand customer acquisition costs before international expansion. (17:07) Rather than immediately setting up warehousing in the US, Alan should use third-party logistics solutions to test market viability. This approach reduces risk while gathering crucial data about which customer segments convert best, allowing for more informed decisions about resource allocation when scaling internationally.
Inventory Financing Solutions for High-Demand Products
Teri's RUKSTR was consistently selling out due to demand outpacing inventory capacity, constrained by limited bootstrap capital and tariff uncertainties. John suggested exploring specialized inventory financing beyond traditional Shopify credit, including connecting with credit funds that specifically serve e-commerce businesses. (30:49) The key insight is that consistent sellouts represent a "good problem" that demonstrates product-market fit, making the business attractive to inventory lenders who can see predictable demand patterns.
Preorders as Customer-Financed Inventory Strategy
When discussing Teri's moral concerns about taking preorders, John reframed it as community building rather than just financing. (34:37) By offering preorders with small discounts and transparent communication about delivery timelines, businesses can turn inventory constraints into customer engagement opportunities. This strategy passes bank financing costs to customers as savings while building anticipation and loyalty, particularly effective for businesses with strong community elements like RUKSTR's "rockstars."
Personal Sustainability Requires Systems-First Thinking
Kobi's struggle with work-life balance despite having systems in place highlighted that personal sustainability isn't about more strategies but about mindset shifts. John emphasized that caring for yourself first actually enables better care for others. (45:35) The practical solution involves creating physical barriers to work obsession, like removing phones from bedrooms and establishing non-negotiable personal routines. John's own experience showed that making self-care the first priority, not something to squeeze in, dramatically improves leadership effectiveness.
Employee Ownership Builds Purpose-Driven Scale
Kobi's vision of eventually selling his chocolate company to employees could start immediately through profit-sharing and gradual equity distribution. Guy suggested studying companies like New Belgium and Bob's Red Mill that built employee ownership from early stages. (54:45) This approach aligns with purpose-driven entrepreneurship while creating shared accountability that can actually reduce founder stress. Employee ownership transforms workers into stakeholders who share both risks and rewards, creating a sustainable growth model that serves the founder's values while building lasting business value.
Statistics & Facts
- ShowerSpaah has sold 2,000-2,500 units generating approximately $200,000 in revenue in their first year operating in the UK market. (13:12)
- RUKSTR achieved $400,000 in first-year revenue despite consistently selling out of inventory five times throughout the year. (29:11)
- At the time of John Zimmer's departure from Lyft, approximately 3% of the US workforce had earned money through the platform. (55:58)
