Lyft is experimenting with a new business model akin to Netflix's monthly subscription plans. The term of this model vary, but they appear to be aimed toward high-frequency Lyft riders, or those who spend up to or over $450 a month on ride-hailing.
One option grants a user an all-access pass that comes with up to 30 Lyft rides for a monthly fee of $199. One tier is priced at $300, and another at $399 for 60 rides. It should be noted that only individual rides that cost up to $15 are covered under the all-access pass. It's not clear what would happen suppose a single ride surpasses that threshold.
CEO Logan Green claimed during a March 14 press event that subscription-based Lyft plans are the future of the company.
"We are going to move the entire industry from one based on ownership to one based on subscription," Green said.
Lyft Goes Netflix
For now, it appears the subscription plans are being offered via invite-only notifications for a select crop of Lyft riders. No word yet on when Lyft plans to roll it out widely, or if it's going to take a step-by-step approach and implement it in certain cities at first before accommodating a wider scope. By Green's words of the new schtick being the future of Lyft, however, it seems all but confirmed that this is going to push through.
Will Uber Follow Lyft's Footsteps?
Uber also experimented with a subscription-based ride-hailing plan in 2016, but it remains unclear whether it proved fruitful. Uber doesn't currently offer monthly plans, and there's no indication that it will.
A Lyft spokesperson confirmed to The Verge that the experiment has been going on for several months now, saying that the company is always testing new ways to provide riders "most affordable and flexible transportation options."
It's easy to spot the appeal of such plans, especially for those who already spend somewhere north of $450 per month on ride-hailing commutes. For them, a fixed price would likely be a bang for the buck.
Green, along with Lyft president John Zimmer, has other ambitious plans for the company. For starters, they've released policy papers predicting the total end of personal car ownership by 2025. They've also encouraged for more people to carpool more often instead of driving their own vehicles so as to avoid traffic congestion. They've also called for Americans to sell their second cars to reduce carbon emissions. Of course, as The Verge notes, Lyft ultimately stands to benefit from all these policies and ideas.
