Lyft launches monthly subscription service to lure car owners
Lyft Vice President of Public Policy Joseph Okpaku on New York City's decision to put a cap on the number of Lyft and Uber vehicles.
Lyft unveiled a monthly subscription service on Tuesday that will allow customers to pay a flat fee for service, in apparent bid to lure commuters to ditch their cars for the ride-sharing app.
Dubbed the “All-Access Plan,” the monthly subscription costs $299 per month for 30 rides. Subscribers will only face additional fees if a ride’s cost exceeds $15, in which case the customer would pay the difference. Lyft applies a 5 percent surcharge to any rides beyond the monthly allotment of 30.
“This is the first step toward delivering on our goal of making car ownership optional, and we’re constantly looking for more ways to provide passengers with the easiest, most convenient options possible,” the company said in a blog post explaining the service.
Lyft said the service will be live throughout the U.S. by the end of the week, after earlier test runs in specific markets. The company estimates that monthly subscribers will pay roughly 59 percent less than if they owned a car.
The subscription plan was announced days after Lyft launched a “Ditch Your Car” challenge in 35 cities, essentially asking selected volunteers to commit to one month using $550 in Lyft credit for transportation instead of their cars.
Lyft and ride-sharing rival Uber are both said to be preparing to go public in the coming months. An IPO for Uber, which commands a larger share of the market, could command a $120 billion valuation, the Wall Street Journal reported.