Edward Quince’s Wisdom Bites - The Falcon and the Donut: Why CEOs Should Drive for Lyft

What does a Friday morning commute, a box of donuts, and a falcon have in common? For Lyft CEO David Risher, they were the ingredients that unlocked a breakthrough insight, saved riders millions, and proved that the best business strategies are found outside the office walls.

In his annual letter, Risher shared how he regularly drives for Lyft to understand the real-world experience of drivers and riders. On one trip, he picked up a commuter named Anne, who was stressed about "Prime Time" surge pricing. A $20 ride was an easy "yes," a $40 ride a clear "no," but a $30 ride created a tough decision. That day, she paid the higher price only because she’d bought donuts for a coworker’s birthday.

For Risher, this story was a crystalizing moment. He’d known surge pricing was unpopular, but Anne's donut dilemma drove home the real-world anxiety it caused. Economists might love the theory, but in reality, "it sucks". This insight, born from a single ride, led Lyft to break its "PT habit". The company accelerated work on Price Lock, a feature allowing riders to lock in fares for frequent trips, and doubled down on improving driver pay to ensure healthier supply, reducing the need for surges in the first place. The result? Riders were saved over $400 million in surge pricing in 2024, and driver cancellations plummeted.

Risher calls this approach "Falcon Mode": maintaining a high-altitude strategic view while having the keen eyesight to swoop down into the details when an opportunity—or a problem—appears. Data on a dashboard can tell you what is happening, but it rarely tells you why.

The Takeaway: True customer obsession isn't found in spreadsheets; it's found on the front lines. Risher’s story is a masterclass in why leaders must resist the gravitational pull of "enshittification"—the degradation of a product in a blind pursuit of profit. Don't just analyze your business; experience it. The most valuable insights often come from the details you can only see when you step out of the boardroom and into your customer's shoes.