The rideshare war between Uber and chief rival Lyft continues to play out in tit-for-tat fashion. The latest chess move making headlines is one that should benefit an abundance of Lyft riders, although its drivers may not be as thrilled.
Lyft is lowering the price of its Line service in 33 markets nationwide. In a statement to Tech Crunch, the company claims that the move to drop prices is inspired both by the company’s commitment “to remain the most affordable option for passengers” and its awareness that many of us have made New Year’s resolutions to save more money. While the former may be true in part (miss me with that bit about resolutions), the biggest motive here is Uber‘s newly reduced prices, which went into effect in 100 cities in the U.S. and Canada last week. But whether or not you buy Lyft’s reasons, a price drop is a win for the consumer.
The other result of Lyft lowering prices is the effect it will have on drivers’ commissions. The ride-hailing service maintains that it pays drivers more than Uber, and says that lower fares will “ensure our drivers are in high demand.” Although, in the not-so-distant future, this whole debate may be made moot by Lyft’s fleet of self-driving cars.
Los Angeles, San Diego, San Francisco, San Jose/Silicon Valley, Detroit, Denver, Baltimore, and Washington, DC, will be the cities most affected by Lyft’s new lower prices. Major markets that won’t see ride fares drop include New York and Chicago.
Photo Credit: Venturebeat.com