Lyft officially begins testing monthly ridesharing subscriptions

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in iPhone
Lyft has reportedly begun testing "All-Access Plans," letting select people receive a certain number of rides for "free" each month with a regular fee.




The initiative is so far invitation-only, with variable pricing, CNET said. One invitation is offering 60 free rides for $400, with a $15 value cap on each ride -- exceeding that cap requires paying the difference. Another invitation is limited to 30 rides for $250.

Variety's Janko Roettgers said he received an invitation to a cheaper 30-ride plan, costing only $199. Engadget meanwhile got an invite to a weekly subscription, promising 7 rides for $49.




A Lyft spokesman said the company has actually been testing plans for a few months, even though invitations only recently began reaching the public. There's no word yet on when plans might become broadly available.

In a Thursday conference call, Lyft CEO Logan Green said the company's "ideal scenario" is "moving to a subscription model."

On paper the $400 plan works out to Lyft -- and drivers -- making less than $7 per ride, but it would constitute guaranteed income, likely supplemented by tips and longer rides. Some riders might be able to completely replace their cars.

Profits should improve for Lyft corporate once its self-driving cars emerge from testing. That will put drivers out of work, and require that Lyft shoulder the burden of maintenance, but the tradeoff is a fleet of vehicles available 24/7, stopping only to recharge or get fixed.

Comments

  • Reply 1 of 6
    Wow! That would be a 'disruption!' 

    Also, do drivers know they're working for ~$3/hour in real terms? They're basically wearing out their cars. Oh well.
  • Reply 2 of 6
    anton zuykovanton zuykov Posts: 1,031member
    Wow! That would be a 'disruption!' 

    Also, do drivers know they're working for ~$3/hour in real terms? They're basically wearing out their cars. Oh well.
    It is probably not financially viable long term. They are simply betting on autonomous driving in the future for their model to work. That would be my bet.
    edited March 2018
  • Reply 3 of 6
    SpamSandwichSpamSandwich Posts: 30,837member
    Wow! That would be a 'disruption!' 

    Also, do drivers know they're working for ~$3/hour in real terms? They're basically wearing out their cars. Oh well.
    It is probably not financially viable long term. They are simply betting on autonomous driving in the future for their model to work. That would be my bet.
    Yep. Amateur drivers are just a stopgap measure.
  • Reply 4 of 6
    DAalsethDAalseth Posts: 507member
    I have a friend. Mechanical Engineer so he thinks he knows everything about cars. He doesn't. He's had at least one car a year since I've known him. Several have just had the plates removed because they were in such a shape they were declared unsafe to drive. Several were junked out as they would cost too much to repair. His last one, a pickup truck, caught fire in the parking lot when he tried to start it. Something like this might be a good deal for him.
  • Reply 5 of 6
    anton zuykovanton zuykov Posts: 1,031member
    DAalseth said:
    I have a friend. Mechanical Engineer so he thinks he knows everything about cars. He doesn't. He's had at least one car a year since I've known him. Several have just had the plates removed because they were in such a shape they were declared unsafe to drive. Several were junked out as they would cost too much to repair. His last one, a pickup truck, caught fire in the parking lot when he tried to start it. Something like this might be a good deal for him.
    That is not a mechanical engineer, by the looks of it....that is just someone who is trying to be someone he isn't.
  • Reply 6 of 6
    chasmchasm Posts: 1,266member
    This would work well in my town, which is senior-heavy and many of them can't or won't drive very far/at night/bad weather/etc. The town is compact, so you needn't go very far -- but you need to go to the shops/errand points fairly frequently if it's just you or you and the spouse, and $200/month beats the heck out of the cost of a car/gas/insurance, or taking a regular taxi anywhere an average of once a day.

    As for the drivers, if the pay is too low most will stop driving -- so clearly there is something keeping them going financially. Nobody's getting rich off driving for Lyft/Uber, true, but then nobody's getting rich driving a taxi -- except the owner of the taxi company, so ... not sure Lyft/Uber is any worse from a driver perspective, and it is *clearly* better from a customer point of view. Lyft would be a godsend in this city.
    edited March 2018
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