Lyft Goes Aggressive To Win Higher Market Share, Slashes Fee By Almost 50%
Lyft, Inc (NASDAQ: LYFT) relaunched Lyft Pink, its monthly subscription plan, at half its previous price.
At $9.99 per month or $99 per year, the new bouquet offers perks like free priority pickups and a discount of "at least" 5% on Preferred, Lux, and XL rides.
The new terms include three free cancellations per month, a free monthly bike or scooter unlock, free Sixt car rental upgrades, roadside assistance for one's car up to four times per year, and Grubhub+ discounts.
Previously, Lyft Pink provided members with discounts on all rides, helping save $19 per month on rides on average, TechCrunch reports.
The Uber Technologies, Inc (NYSE: UBER) competitor also pushed a higher tier or membership for riders who like to get on bikes and scooters.
The Lyft Pink All Access plan, at $199 per year, apart from Lyft Pink perks, offers unlimited 45-minute pedal bike rides, free unlimited e-bike and scooter unlock, discounted e-bike or scooter minutes in participating cities, and three annual bikes or scooter guest passes.
Top drivers enrolled in Lyft Rewards, the ride-hail company's rewards program for drivers, will now also have access to a free monthly Lyft Pink membership.
Last week Lyft raised the service fee it collects from riders to combat the rise in insurance fees.
The increase averages less than $0.50 per trip nationally.
Lyft had trialed an earnings algorithm allowing drivers in 18 U.S. cities to see destination and pay details before accepting a request.
With upfront pay, drivers can now see ride information and earnings before accepting a ride.
Price Action: LYFT shares traded lower by 1.49% at $14.59 premarket on the last check Wednesday.
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