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.