The big picture: Lyft's new subscription plan is a solid value for frequent users although notably, unused rides don't roll over to the next month. As such, you'll want to do the math to find the break even point if you don't think you'll consume 30 rides per month.
Lyft has become the latest company to be bitten by the subscription bug. The ride-hailing service on Tuesday announced the Lyft All-Access plan, a pre-paid subscription that offers 30 rides per month valued at up to $15 each.
Lyft’s All-Access plan is priced at $299 per month. Assuming you actually use all 30 rides in a given month, it’s a pretty solid deal as 30 rides at $15 each would otherwise work out to $450. If a ride goes over $15, users simply pay the difference.
Subscribers also get five percent off additional rides, an added perk.
Notably, rides do not roll over to the following period meaning any unused rides at the end of the month will disappear. Subscription services make their money from people that don’t fully utilize them and Lyft is no doubt hoping that’ll be the case here as well.
Lyft estimates that Americans who use the All-Access plan for all of their personal transportation needs can save up to 59 percent per month compared to owning a car. It’s easy to be skeptical of such a claim although once you factor in all of the costs of vehicle ownership including fuel, maintenance and insurance, it’s probably not too far off base.
Lyft began testing the subscription waters earlier this year, offering varying rates to users in an effort to find the sweet spot in terms of pricing.