Lyft is developing a new membership plan for riders who want discounts on car rides, bike and scooter rides and other exclusive benefits. It is called "Lyft Pink" and the subscription costs $ 19.99 per month and offers a 15 percent discount on all car journeys.
It is a more simplified version of Lyft & # 39; s year-old "All-Access Plan", in which customers paid $ 299 per month for up to 30 journeys. The fine print, however, is where things get a little confusing: each ride is worth $ 15, and if customers take a longer route that is worth more, they pay the difference. If their ride is worth less than $ 15, it will still count as a minimum ride of $ 15. Lyft Pink will replace that plan and every customer who has subscribed to All-Access will receive an enrollment offer for the new membership service, a spokesperson said.
With Lyft Pink, all car journeys taken in the course of a month are discounted by 15 percent. In addition, members receive three free bicycle and scooter tours per month. (Lyft's All-Access Plan did not apply to non-auto modes.) Members also receive priority at the airport, surprising discounts and upgrades, and occasional waived compensation for cancellations or found items.
Lyft says the membership service is a "no brainer" for customers who make two to three trips a week. But not everyone can sign up: there will be a waiting list that opens on October 29. After that point, membership starts rolling out until it is fully available throughout the country later this year.
In March 2018, Lyft CEO Logan Green said that subscriptions were the future of his company. "We're going to move the entire industry from one based on ownership to one based on subscription," he said.
Registrations are seen by tech companies of all regions as the best way to retain consumers in good weather over time. The appeal of a subscription is especially strong for a company like Lyft, which is second behind its much larger rival Uber. It comes at a time when Uber and Lyft are both struggling to make a profit after disappointing public offers earlier this year.
Lyft started experimenting with subscription services at the beginning of 2018. At the time, the company launched a series of variably priced plans to find the sweet spot for high-frequency users who were interested in a prepayment for a certain number of journeys. Prices ranged as high as $ 450 and as low as $ 199. In the end, the company settled $ 299.
However, the problem is that Lyft's subscription was considerably more expensive than Uber's Ride Pass, which ranged from $ 14.99 to $ 24.99 per month. For that price, Uber customers were able to set fixed rates for all journeys in the course of a month. The rates, based on historical data, were heavily discounted, allowing riders to save as much as 15 percent on their total monthly journey, the company said.