Lyft is testing a new subscription-based feature called Price Lock, which offers commuters a capped fare on specific routes at specific times.
Rideshare platforms automatically increase the cost of rides when demand is high, like during rush hour, or when supply is low. The Price Lock feature is meant to combat that surge pricing (or as Lyft calls it, “primetime”) for commuters who are using Lyft to go into an office or workplace during peak driving times everyday.
“We are going to open up a can of whoop ass on primetime,” CEO David Risher said on the company’s second-quarter earnings call Wednesday morning. Risher added that commuters especially know what their ride should cost “and hate it when prices change.”
The subscription offering will cost under $5 monthly, Risher said.
It’s part of Risher’s broader effort to take on the number of rides impacted by surge pricing. The company can’t completely eradicate the practice, he said, but they can make an effort to lower the number of rides with increased prices to attract customers who may go to competitor Uber. Compared to the first quarter, the number of rides impacted by surge pricing was down 25%, Risher said. That contributes to better conversion rates.
But that potential to draw in more customers didn’t appease investors from the broader economics. Lyft shares dropped more than 12% after the company provided a soft forecast for its third quarter.
Lyft expected gross bookings between $4 billion and $4.1 billion for the third quarter, which is usually when business is booming thanks to tourism. Analysts, meanwhile, were expecting $4.13 billion. Its adjusted earnings guidance was also below Wall Street’s expectations.
Accedi per aggiungere un commento
Altri post in questo gruppo
When Donald Trump returned to the White House in 2025, many in the tech world hoped his promises to champion artificial intelligence and cut regulation would outweigh the risks of his famously vol
The first 27 satellites for Amazon’s Kuiper broadband internet constellation were launched into space from Florid
There are so many ways to die. You could fall off a cliff. A monk could light you on fire. A bat the size of a yacht could kick your head in. You’ve only just begun the game, and yet here you are,
Former Tinder CEO Renate Nyborg launched Meeno less than two years ago with the intention of it being an AI chatbot that help
The most indelible image from Donald Trump’s inauguration in January is not the image of the president taking the oath of office without his hand on the Bible. It is not the image of the First Lad
Ernest Hemingway had an influential theory about fiction that might explain a lot about a p
The first 100 days of Trump’s second presidential term have included a surprising player that doesn’t seem likely to go away anytime soon: Signal.
The encrypted messaging pl
