Lyft has today announced its new monthly subscription plan to offer users easy access to the ride service as well as a nice price cut. It won’t likely improve its value compared to its bigger rival Uber who saw a possible IPO value stretch into the 12 digit realm…
Lyft’s Post car model
This launch comes after Lyft challenged users in various cities to go without their cars for a month by footing the bill itself.
Lyft’s new subscription option is called the All-Access Plan and costs a flat $299, a 33% discount. For that price, users get 30 rides of up to $15 each for a 30-day period. Users can cancel the plan at any time.
Keep in mind that rides don’t roll over from month to month. However, Lyft does offer 5% off any additional rides in a 30-day period beyond the 30 rides.
Lyft estimates that the All-Access Plan can cut transportation costs for users up to 59% versus owning a car. With the new plan rolling out now, Lyft says all US users should see the option this week.
That’s why we’re announcing the launch of the All-Access Plan: a subscription where passengers pay upfront every 30 days to lock in a set price for their rides. Starting today, passengers can subscribe to the plan. It will be available to everyone in the US by the end of the week.
Uber vs. Lyft
Notably, Lyft has beat Uber to the punch here, as it doesn’t offer a monthly subscription like this yet.
The press release also teases more innovation to come:
This is the first step toward delivering on our goal of making car ownership optional, and we’re constantly looking for more ways to provide passengers with the easiest, most convenient options possible.
Meanwhile, the WSJ reports that Uber may be worth a $120B IPO.
Uber Technologies Inc. recently received proposals from Wall Street banks valuing the ride-hailing company at as much as $120 billion in an initial public offering that could take place early next year, according to people familiar with the matter.That eye-popping figure is nearly double Uber’s valuation in a fundraising round just two months ago and more than General Motors Co. , Ford Motor Co. and Fiat Chrysler Automobiles NV are worth combined.
Interesting then that Uber sees more than half of its rides being on scooters and bikes in the near future.
The WSJ has also reported today that Lyft is looking to get ready for its own IPO with an estimated valuation of around $15 billion. JPMorgan Chase & Co. and Credit Suisse are said to be leading the offering that is expected to happen in the first half of 2019.
- Lyft offering free and discounted rides to the polls on November 6
- Lyft offers $550 credit to prove city-dwellers can live without a car
- Lyft challenges people in 35 more cities to live without their car for a month
FTC: We use income earning auto affiliate links. More.