Regular rideshare passengers can testify that pricing for the rideshare service can be something of a craps shoot. A commute that costs $8 one day can cost $24 the next. Now, however, Lyft is introducing a feature that will ensure you rarely pay over a set amount.
Lyft on Wednesday unveiled details of its Price Lock program, a subscription service that lets riders limit what they pay to better help their commuting budgets.
Joining Price Lock will cost you $3 per month. For that, you can cap the price of rides you take frequently. Should you hail a Lyft during surge pricing, you’ll pay the set fee. If the price is lower than your locked-in rate, you’ll pay that smaller amount.
Note that phrasing about “rides you take frequently” also. Price lock won’t help you if you’re a business traveler who uses the service in different cities around the country.
“We know reliable pricing is particularly important for commuters,” said Audrey Liu, EVP of rider experience at Lyft, in a blog post. “They know what their ride should cost and hate it when prices change.”
Lyft says the locked-in price is based on the current rate at the time the pass is set. It will be protected during a one-hour time frame of the rider’s choosing. Each pass covers a single route, but passengers can purchase up to 10 price lock passes, allowing them to lock in multiple routes if needed, though that would escalate their spend by up to $360 per year.
Lyft posted a surprise profit in the second quarter with better-than-expected revenue growth of 41%. The company’s stock still trails competitor Uber by a long distance, though, in part because it has offered disappointing guidance. Executives are hoping programs like price lock will convert some passengers into regular customers, further boosting revenues.
