Lyft to ‘open up a can of whoop ass’ on surge pricing

Ride-hailing company Lyft is set to pilot a new feature called Price Lock, allowing riders to purchase a monthly subscription that caps the price for specific routes at designated times. CEO David Risher announced this initiative during Lyft's second-quarter earnings call, emphasizing the company's aim to tackle surge pricing, referred to as "primetime." Risher highlighted that reliable pricing is crucial for riders who prefer to know their ride costs upfront, especially during peak demand periods. The Price Lock subscription is expected to cost under $5 per month, with current app listings showing a price of $2.99. Lyft is currently testing this feature across the U.S. and plans to finalize pricing next month. Risher clarified that this new subscription is distinct from the existing Lyft Pink membership. Despite the introduction of Price Lock, Risher acknowledged that surge pricing would not be entirely eliminated, as it plays a vital role in balancing supply and demand during high-traffic times. In its earnings report, Lyft forecasted gross bookings between $4 and $4.1 billion, slightly below analyst expectations of $4.13 billion. The company also projected adjusted core earnings of $90 million to $95 million, falling short of Wall Street's target of $104.3 million. Risher noted a 25% decline in surge pricing on a quarterly basis, which he believes contributes to improved conversion rates, while also indicating that gross bookings are expected to grow slightly faster than rides due to reduced surge pricing impacts.