Lyft nixed its surge cap and didn't inform riders

Lyft nixed its surge cap and didn't tell riders

(AP Photograph/Jeff Chiu, File)

Surge pricing is an costly reality of life for Uber and Lyft riders, however Lyft’s coverage was to cap their “Prime Time” surge costs at 3x regular. In February Lyft knowledgeable drivers it was eradicating the surge cap — however no one advised the riders. A lot for disclosure.

Within the automotive service impasse between Lyft and Uber, would not elevating costs flip off passengers? Positive, however not as a lot as ready too lengthy for a automotive. Lyft’s argument is that greater costs will encourage drivers to select up extra rides. Many drivers work for each, so Uber and Lyft are sometimes competing for drivers in addition to fares. Quartz suggests that upping the surge restrict might improve the variety of Lyft drivers, which can hold rider wait time low.

Such is the tightrope that each should stroll. Lyft adjusted its pay construction again in December to maintain drivers from dishonest their system, but reduce fare costs a month later to remain aggressive with Uber. Nixing the Prime Time cap is simply one other market adjustment.

Supply: Quartz