Last week, Lyft announced a new subscription plan.
It costs $299 every 30 days and you get 30 rides included (up to $15 each). So it represents a possible 1/3 discount on rides. If you go over the 30 rides per month or over $15 on any one ride, you simply pay the difference. Though as a subscriber, you get 5% off additional rides.
Subscriptions are good for business. They can be like an annuity. And I suspect that with the above model, there will be unutilized rides every month that the company is just able to bank. You can’t carryover rides with this plan.
But moreover, Lyft’s “All-Access Plan” is designed to help you ditch your car. Trade your car payment for a ride subscription plan. So if the numbers didn’t quite work for you before, maybe they do now. Depending on the situation, I can certainly see this plan being cost effective.
But as ride hailing/sharing continues to nibble away at public transportation and personal vehicle ownership, what will this mean for cities?