Lyft Shared rides, which is the company's carpooling service, is returning to more cities in the United States this May.
The return of carpooling comes as the ride-hailing company struggles to rein in its spending in response to an ongoing driver shortage and high gas prices.
Lyft to Bring Back Carpooling
Lyft was forced to suspend carpooling in March 2020 due to the COVID-19 pandemic, and it was done as a way to help curb the spread of the virus, according to The Verge.
About 16 months later, shared rides slowly returned to a small number of markets. And now, it's returning to even more cities. Lyft's rival Uber started bringing its Uber Pool service back to cities in 2021.
This May, Lyft Shared rides will return to five US cities, namely San Francisco, San Jose, Denver, Las Vegas, and Atlanta. The company has been operating its carpooling service in Philadelphia and Miami since the summer of 2021.
Also Read : Uber is Canceling 'Split Fare' Feature in April According to Leaks, But It is Not the End for It
Lyft said it had made some changes to shared rides to make them better and more reliable for both passengers and drivers.
Before the COVID-19 pandemic, carpooling was often the cheapest option on Lyft's platform. But many drivers did not like it, as they complained about low customer ratings, an inefficient algorithm, and roundabout directions that tend to annoy riders despite the low fare.
Lyft says shared rides will be optional for drivers in 2022, and they won't be charged with penalty. This means that drivers can opt out of shared rides without sacrificing their rating or access to the platform.
Lyft is also restricting each shared ride to just two passengers, which the ride-hailing company argues will help make the rides more efficient and cut down on unnecessary detours.
Lyft's Head of Rideshares, Ashwin Raj, said that as one of their most in-demand and affordable ride options, they are gradually bringing back Lyft Shared.
Raj added that they recognize the world has changed and their offerings need to evolve too. That is why they are bringing Lyft Shared rides back in phases and they will listen to feedback from both riders and drivers along the way so they can continue to deliver the best possible service for their riders and drivers.
Along with its rival Uber, Lyft has been struggling to recover from the COVID-19 pandemic, as drivers quit the platform, the wait times increased, and the cost of rides increased, according to TechCrunch.
High gas prices continue to cause problems on the ride-hailing platform, with some drivers working less hours or not at all. Lyft said it will need to spend more on driver incentives, sending its stock price tumbling over 25 points this week.
Lyft's Shares in the Stock Market Tanked
As the company struggles to keep up with its rival Uber, Lyft is poised to lose more than a quarter of its market value after the company's second-quarter outlook disappointed Wall Street, according to Fortune.
The tanking of Lyft's shares show that investors are willing to dump growth stocks at the first sign of trouble.
Lyft's shares fall 29% to $21.90 in New York.
The decline is the stock's steepest-ever drop in a single session, and it marks a descent of 72% from the record-high of $78.29 touched in March 2019.
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Written by Sophie Websters
