Lyft Testing Monthly Subscription Plans With Prices Reportedly Starting at $200/Month

[MacRumors]

iOS and Android ride-hailing app Lyft has begun testing monthly subscription plans for "high-frequency users," in a style comparable to services like Netflix, Apple Music, and MoviePass.

According to The Verge, the terms of each "All-Access Plan" vary and an overall detailed report from Lyft has yet to come out, but prices appear to start at $200/month for 30 standard Lyft rides. Standard rides are defined as those costing up to $15 for each ride. Higher tiers are priced at $250, $300, and one for $400/month provides 60 rides.

All-Access Plan image via Hunter Owens​

Images of the ads for All-Access Plans promote "predictable pricing," the ability to cancel anytime, and auto-renew payments.

Lyft CEO Logan Green discussed the new subscription plans this week, saying, "We are going to move the entire industry from one based on ownership to one based on subscription." As is typical for these tests, it's still unclear if and when Lyft will launch subscription plans for all of its users.

"We're always testing new ways to provide passengers the most affordable and flexible transportation options," the spokesperson said. "For the past few months, we've been testing a variety of All-Access Plans for Lyft passengers."

Lyft recently expanded to Toronto at the end of 2017, which marked the company's first market outside of the United States. Earlier in 2017, the ride-hailing company partnered with self-driving startup Waymo in an effort "to bring autonomous vehicle technology into the mainstream."

The company has had an ongoing rival in similar ride-hailing app Uber, which itself trialed monthly subscription payments for its users back in 2016 but never launched the service on wide scale.

Article Link: Lyft Testing Monthly Subscription Plans With Prices Reportedly Starting at $200/Month

 

[thadoggfather]

$200/mo? Geez that’s ridiculous. Did they consult with Apple to arrive at that or
Something?

And I’m over here debating if the $5/mo Uber plan is worth it when it comes up to reduce rates for a fixed # of rides, etc

I wouldn’t commit hundreds of dollars to scummy Uber or Lyft.

 

[paul4339]

$400/mo for 60 rides? That’s less than $7 per ride, seems reasonable... the savings from paying a $350/mo parking spot alone is worth it.

 

[bbednarz]

I guess it depends on where you live and how much you need to drive. For $400/month for 60 rides (to and from a location roughly once a day) you might as well buy your own car...

 

[csurfr]

Parking here is pretty pricey as well. My building charges 150 / mo for parking, but obviously that doesn’t factor in parking for where you are going (other than a mall of some sort you’re usually paying). So for me, the 200 / month isn’t a bad deal at all.

Full disclosure, I live in the city and stopped driving when I moved here. No need.

 

[ArtOfWarfare]

Right now I'm spending around $191 on commuting to work which I could replace with 40 Lyft rides... and each of those rides would cost ~$50 normally, so I wouldn't qualify since this is only for rides under $15.

Nope. It's an interesting idea, but not at all for me.

 

[reden]

$200/mo? Geez that’s ridiculous. Did they consult with Apple to arrive at that or
Something?

And I’m over here debating if the $5/mo Uber plan is worth it when it comes up to reduce rates for a fixed # of rides, etc

I wouldn’t commit hundreds of dollars to scummy Uber or Lyft.

Seriously, $5 dollars to reduce your monthly rates? This is transportation you're talking about, not a subscription to a magazine.

 

[Kaibelf]

$200/mo? Geez that’s ridiculous. Did they consult with Apple to arrive at that or
Something?

And I’m over here debating if the $5/mo Uber plan is worth it when it comes up to reduce rates for a fixed # of rides, etc

I wouldn’t commit hundreds of dollars to scummy Uber or Lyft.

So you’d pay far more in car payments, insurance and parking? Or do you think everyone only works days with accessible public transit on this planet?

 

[Abazigal]

That works out to 1 ride a day on average and each ride needs to typically cost you at least $6.70 for you to break even. Those are some very stringent conditions. In reality, most riders are going to save a lot less unless you are a frequent long-distance traveler.

 

[thadoggfather]

So you’d pay far more in car payments, insurance and parking? Or do you think everyone only works days with accessible public transit on this planet?

It’s a fair point but yeah I do.

A lot of the times running errands I don’t wanna be beholden to someone’s erratic driving, anti social behavior, and sometimes downright filthy interior upkeep or lack thereof

 

[justperry]

You have to consider including petrol/insurance/tax/ownership/maintenance/toll/parking into driving your own car, seems like this isn't a bad deal.

 

[DogHouseDub]

You have to consider including petrol/insurance/tax/ownership/maintenance/toll/parking into driving your own car, seems like this isn't a bad deal.

Unless you're a Lyft driver...

 

[RowellE]

Really wish this was available last year. Used Lyft/Uber to and from work and spent over $14k last year. Now that I drive, I don’t use those services anymore.

These new plans, however, have me concerned for the drivers. I hope they would still get paid their usual percentage of the full value of the ride and not the discounted value.

 

[nburwell]

This seems reasonable to those who use the service rather frequently. It doesn't seem to benefit those people like me who use the service infrequently.

 

[lsutigerfan1976]

For $400 that is like a cheap car note and insurance with full coverage. I would rather do that, and not have to rely on waiting for someone to bring place to place.

 

[itsmilo]

That’s almost my monthly rent lol you Americans have crazy expenses

 

[max2]

No just no. Will never work.

 

[ke-iron]

I guess it depends on where you live and how much you need to drive. For $400/month for 60 rides (to and from a location roughly once a day) you might as well buy your own car...

This will always be cheaper than owning your own car. Owning your own car comes with monthly payments for the lease or finance. You also have to pay for insurance and gas. Also any potential maintenance.

However owning your car means you can go wherever you want when you want on your time.

 

[jlc1978]

This seems reasonable to those who use the service rather frequently. It doesn't seem to benefit those people like me who use the service infrequently.

Thta's ten crux of the problem - adverse selection - although Lyft has information on the likely ride habits of current riders it would seem those who go for the deal spend more already so the net from them will be less. I would guess their target are riders near the threshold who would buy the subscription but not suddenly use rides that would normally result in much more revenue.

In the end, I suspect the drivers will wind up with less money; and Lyft can avoid telling them a rider is a lower return fare until after they accept a ride, another example of adverse selection.

 

[ke-iron]

No just no. Will never work.

Wrong, this will absolutely work.

I have a coworker who takes a cab to and from work from the city to Brooklyn every time she works. She works 3 days a week for 3 weeks out of the month and 1 week she works 4 days.

This is obviously cheaper for her.

 

[Xavier]

I don't take enough Ubers/Lyfts in a month to justify this cost. I do use the service but this just doesn't make sense for me. If I lived in a different area and/or didn't have a vehicle, this might be appealing.

 

[kjvmartin]

I'm not sure how many people commuting to a job can get there in under a $15 Lyft ride. I'm a fairly reasonable/short commute downtown in my area and Lyft is anywhere from $25-$35. If I was close enough for a $15 Lyft ride, I'd be on the bus route and could effectively use that.

 

[bbednarz]

This will always be cheaper than owning your own car. Owning your own car comes with monthly payments for the lease or finance. You also have to pay for insurance and gas. Also any potential maintenance.

However owning your car means you can go wherever you want when you want on your time.

At the time I had a car payment I was not paying more than $400/month between the car payment, insurance, and gas. Sure there were tires I needed about a year ago and the occasional oil change, but now I own the car and am paying well below $400/month between gas, insurance, and maintenance. Living in the city this may be a worthwhile idea, but for people living in the suburbs I can't see it making much sense.

 

[jlc1978]

Wrong, this will absolutely work.

I have a coworker who takes a cab to and from work from the city to Brooklyn every time she works. She works 3 days a week for 3 weeks out of the month and 1 week she works 4 days.

This is obviously cheaper for her.

It's no so much will it work for some individuals but will it work for the drivers? I doubt Lyft will simply reimburse drivers at the regular rate but will take a cut of the subscription fee and leave the rest for the driver. For example, if the riders do all their rides at an average of $10 per ride Lyft will get 2/3 of the revenue they normally do, and thus drivers will probably see a 30% reduction in revenue as well; unless Lyft can make it up buy getting drivers more rides per hour to make up the difference. As the average ride value goes up the amount of rides needed to break even compared to regular rides goes up as well.

 

[paul4339]

I'm not sure how many people commuting to a job can get there in under a $15 Lyft ride. I'm a fairly reasonable/short commute downtown in my area and Lyft is anywhere from $25-$35. If I was close enough for a $15 Lyft ride, I'd be on the bus route and could effectively use that.

Good point. $15 doesn’t get much these days (probably about 5 miles or 15 minutes?)