Mobile

Lyft, flush with cash, cuts prices for its rides by 20 percent

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Once again, alternative-cab service Lyft is trying to woo people by charging less money to pick them up and drop them off in pink-mustachioed vehicles.

The mobile-enabled service is trying out lower prices in all U.S. cities where it operates, with discounts of as much as 20 percent, according to a company blog post.

Apparently, a huge funding round will do that to you. Lyft announced $250 million in new funding just a few days ago, and now it can experiment with ways to entice new people to use the service and keep previous customers coming back.

That’s important as competitor Uber continues to play hard with distinctive services and price cuts of its own, which 9-digit funding rounds and a large customer base can enable.

Lyft must also contend with companies like Sidecar, as well as Flywheel, which works with taxi groups.

Under the new pricing arrangement, Lyft will pay drivers the same amount but will take no commission for itself, the blog post said.

Just last month, Lyft came up with the idea of lowering its prices during slow periods.

More about the companies and people from this article:

Lyft is a friendly, safe, and affordable transportation option. Just tap a button and in minutes you’ll be riding in the front seat with a new friend. Our Lyft community drivers have been background checked and personality screened t... read more »

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