Not only does Lyft raise prices of rides when demand is high, but now the transportation company is lowering rates when demand goes down.
Called “Happy Hour,” the new program discounts the cost of a ride by up to 50 percent when there are drivers available but not as many ride requests.
“We created Happy Hour as a straightforward way to keep Lyft busier for drivers and more affordable for passengers,” Lyft wrote, noting that a driver who normally gives a $12 ride in one hour could now offer two $9 rides during the same time with the new feature.
Lyft is the first company to introduce something like this. Uber, which lowered its UberX prices by up to 34 percent in January, also has a surge pricing implementation that raises the cost of a ride when demand exceeds supply.
Lyft, which is raising a $150 million Series D round, recently announced plans to expand its service across the greater Seattle area. The Seattle City Council on Monday voted to cap the number of vehicles that UberX, Sidecar and Lyft drivers can have on the streets at one time to 150.
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