Lyft is introducing a new fare locking feature that caps the price of trips to address the unpredictability issues for people who use the platform for their daily commute. The company says the tool works even during peak hours, when trips are typically most expensive, but it does come with some caveats.
First, there is a monthly subscription fee to use the service, but it’s only $3 per month. It’s also puzzling that there are no details available on how the cap works. Do they just average past trips and exclude peak fares? Are there any limits on the cap amount? I’ve reached out to Lyft and will update this post if I find out anything.
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One thing is certain: Lyft is hoping this feature will be a hit. The company predicts that widespread adoption of the price locking tool will lead to a 40% increase in commuter trips. However, it’s important to note that since Lyft is the one who sets the prices in the first place, the tool has created the very instability it’s meant to solve.
They also have a promotion touting their price lock-in structure: They’re offering 100 customers a free “first day” ride when they start a new job, which is handled through LinkedIn. Just 100 rides? Seems pretty stingy for a big company like Lyft, but what do I know?
This isn’t Lyft’s first foray into subscription-based services. The company’s Pink subscription service has been on and off for years, which is more or less a bundle of extra features at this point. Pink stopped offering discounts on rides but began offering perks like free priority pickups and three free cancellations per month. The program is still offered today, costing $10 per month or $100 per year.
