FRIDAY, March 29, 2024
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Lyft and Uber out to be everyday rides with passes

Lyft and Uber out to be everyday rides with passes

US ride-share rivals Lyft and Uber are out to lure everyday riders with monthly passes for discounted or free rides, dabbling with a subscription model aimed at commuters.

Uber on Tuesday introduced "Ride Pass" in five cities to let users lock in lower rates by paying monthly subscription fees.

Uber "Ride Pass" costs $14.99 a month in Austin, Denver, Miami and Orlando, and $24.99 per month in Los Angeles.

Prices at ride-share services rise or fall depending on demand.

For example, a ride into work early, ahead of the pack, is typically cheaper than a ride home at day's end during peak commute time when "surge pricing" kicks in.

"One thing we hear a lot from riders is that changes in price, however small, can make it tough to plan their day with Uber," product manager Dan Bilen said in a blog post.

"The daily commute is a classic example, and it goes something like this: you pay one low price for the ride to work, only to find the ride back home is a different story."

Lyft earlier this month unveiled a subscription plan that lets passengers pay $299 monthly for 30 rides priced at $15 or less. Passengers pay the difference for rides costing more than $15.

"This is the first step toward delivering on our goal of making car ownership optional," Lyft said in a blog post.

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