If you use Lyft to get around town, your rides are about to cost a little less.
Just one week after announcing its $250 million Series D round, Lyft said it will decrease rates for passengers by up to 20 percent in each of its 30 cities starting today. In addition, it will temporarily stop taking a 20 percent commission from drivers as the company tests out the lower rates for riders.
Today’s price cuts come nearly three months after Lyft’s main competitor, UberX, reduced its prices by up to 34 percent in 16 of its cities in January.
For comparison, UberX charges $1.63 per mile and $0.30 per minute, along with a $2.14 base fare and a $5 minimum fee. Sidecar lets drivers set their own prices based on demand. Seattle taxis, meanwhile, charge $2.75 per mile and $0.50 per minute during waiting times, along with a $2.50 pickup fee.
Lyft also announced a “Happy Hour” program last month that lowers rates when demand goes down.
Lyft’s $250 million round and subsequent price cuts come as the San Francisco-based company is trying to work with city leaders in several of the cities it currently operates in over the legality of its service, which lets everyday drivers shuttle people around town in their cars. The conversation has been heated in Seattle, where the City Council recently voted to place a limit on the number of active vehicles a company like Lyft can have on the road at one time.
Lyft expressed disappointment with that decision, vowing to fight City Council and help its customers “defend their right to Lyft.” The company, along with Uber and Sidecar, is also supporting a new coalition that’s trying to collect enough signatures in order to protest the City Council’s new ordinance.
Despite its disdain for the new legislation, Lyft also recently announced plans to expand its service across the greater Seattle area. It also ditched its donation-based payment system in the city and has moved to mandatory pricing requirements. And after several concerns about its insurance policies, the company last month announced plans to beef up its coverage.