Lyft is testing a new subscription offering

us ride hailing age groups
us ride hailing age groups

BI Intelligence

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Lyft recently started testing a new subscription plan that allows customers to pay a flat monthly fee for unlimited rides, according to Engadget.

However, the service only applies to rides under $15. The company emailed some of its most loyal users last week to offer them the plan, which Lyft is calling its "All Access" program. Currently, the cost of the plan has varied from person to person — a Variety reporter was offered a $199 monthly fee for unlimited Lyft rides, and another journalist reportedly was offered the same package for a $300 fee. 

The service is cheaper than the cost of car ownership, but that may not be enough to help it catch on with US consumers. AAA estimated last year that, on average, it costs consumers $706 per month to own a car, substantially more than what Lyft appears to be offering for its All Access program. However, when using such a service for their daily mobility purposes, consumers must relinquish the ability to personalize the inside of their cars, as well as any emotional attachment.

Additionally, the service plan ostensibly limits users to short, quick trips, which is likely not ideal for consumers with long commutes or those who want to use it for traversing a major metropolitan area. Lyft is probably aware that it will face hurdles to mass adoption for such a service, and is likely using this program to determine its customers' appetite for subscription mobility services more broadly.

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