Oct 29, 2019

Lyft bids for customer loyalty with new subscription deal

Lyft is dialing up its battle against rival Uber for customers’ loyalty with a new monthly subscription option called Lyft Pink that includes discounts on rides, free bike and scooter rides, and other perks.

Why it matters: Now that both ride-hailing companies are publicly traded, they need more than ever to boost their growth and margins and rein in losses, as investors demand a clearer path to profitability.

How it works: For about $20 a month, Lyft Pink subscribers will get:

  • 15% off all car rides
  • Three free 30-minute bike and scooter rides
  • Priority pickups at airports
  • Waived lost and found fees
  • Other promotions, upgrades, and special perks

Context: Rival Uber already has its own similar subscription, though it’s a bit more expensive at about $25 per month (and with slightly different discounts and perks). Lyft also has other subscription products focused on car rides, but they will be phased out and replaced with this one.

Yes, but: These subscriptions usually only make sense for super users of the service —customers for whom the discounts and freebies will add up to more than the monthly fee.

The bottom line: The companies are battling for customers’ loyalty as their services have become more and more commoditized in major U.S. cities, where riders often use both apps and order a ride from whichever is cheaper or can pick them up faster.

Go deeper

Protests for George Floyd continue for 10th day

Thousands of protesters march over the Brooklyn Bridge on June 4 in New York City. Photo: Angela Weiss/AFP via Getty Images

All four former Minneapolis police officers have been charged for George Floyd’s death and are in custody, including Thomas Lane, J. Alexander Kueng and Tou Thao, who were charged with aiding and abetting second-degree murder and aiding and abetting second-degree manslaughter.

The latest: Crowds gathered in Portsmouth, New Hampshire on Thursday evening and in Atlanta, Georgia, despite the rain. Atlanta Mayor Keisha Lance Bottoms joined demonstrators on Thursday. Demonstrators in Washington, D.C. dispersed following a thunderstorm and rain warning for the region.

Trump says he will campaign against Lisa Murkowski after her support for Mattis

Trump with Barr and Meadows outside St. John's Episcopal church in Washington, D.C. on June 1. Photo: Brendan Smialowski/AFP via Getty Images

President Trump tweeted on Thursday that he would endorse "any candidate" with a pulse who runs against Sen. Lisa Murkowski (R-Alaska).

Driving the news: Murkowski said on Thursday that she supported former defense secretary James Mattis' condemnation of Trump over his response to protests in the wake of George Floyd's killing. She described Mattis' statement as "true, honest, necessary and overdue," Politico's Andrew Desiderio reports.

2 hours ago - World

The president vs. the Pentagon

Trump visits Mattis and the Pentagon in 2018. Photo: Brendan Smialowski/AFP via Getty

Over the course of just a few hours, President Trump was rebuffed by the Secretary of Defense over his call for troops in the streets and accused by James Mattis, his former Pentagon chief, of trampling the Constitution for political gain.

Why it matters: Current and former leaders of the U.S. military are drawing a line over Trump's demand for a militarized response to the protests and unrest that have swept the country over the killing of George Floyd by police.