Lyft has introduced a new feature that allows riders to lock in their ride prices, aiming to help users avoid surge pricing. The “price lock” feature is available to Lyft users for a subscription fee of $2.99 per month and can save frequent riders up to $40 each month, according to the company. Designed with commuters in mind, the feature targets those who regularly travel at the same time and on the same routes, offering them the peace of mind of knowing their fare will not increase unexpectedly.
Once subscribed, riders can access the price lock option via the Lyft app, enabling them to secure the price of their rides ahead of time. If the actual fare at the time of the ride is lower than the locked-in price, users will automatically be charged the lower rate. Importantly, Lyft has confirmed that this feature will not affect drivers’ earnings. Drivers will continue to receive their full, guaranteed pay, with Lyft covering any potential differences in fares.
Surge pricing, which adjusts ride costs based on demand, has long been a frustration for rideshare users, often spiking during peak times like rush hour or during bad weather. Lyft’s CEO, David Risher, emphasized that this new feature is part of his broader plan to provide a more predictable and consistent experience for riders. He also noted that surge pricing is one of the most unpopular aspects of ridesharing and has been under scrutiny by Congress. Recently, lawmakers have been calling for increased transparency from rideshare companies regarding how surge pricing is calculated.
Both Lyft and its main competitor, Uber, have been working on solutions to reduce the impact of surge pricing. Lyft already offers a “Wait & Save” option, which lets users opt for a lower fare in exchange for waiting longer. Meanwhile, Uber recently launched a scheduling feature that allows users to book UberX Share rides up to 30 days in advance, locking in a price at the time of booking. These moves reflect a broader effort by both companies to improve the user experience and maintain competitiveness in the rideshare market.
In the latest earnings call, Risher noted that an increase in driver supply has helped reduce the average surge pricing, which decreased by 25% from the previous quarter. As Lyft continues to roll out new features, it remains committed to providing affordable options for riders while ensuring fair compensation for drivers.
