The peer-to-peer car service says it'll do one better than its competitor UberX. Lyft lowers the cost of a ride when business is slow. March 18, 2014 10:10 AM PDT (Credit: Lyft) Lyft has launched "Happy Hour" rates, fares that are 10 percent to 50 percent cheaper than normal, to encourage more rides during the slow business hours, the company announced Tuesday. These hours are typically midday and after rush hour during the work week. The idea is that drivers will get more rides because riders will be more willing to take the ride for lower fare. "With Happy Hour, Lyft's prices are fully dynamic, which is the way it should be," the post reads. This sounds like a bit of a dig at its competitor Uber, which often comes under fire for its dynamic pricing model. In general, the model has resulted in some unhappy customers in the past. First introduced by Uber, and more commonly known as surge pricing, the pricing model increased fares exponentially, based on how many cars were on the road and how busy they are. Although, Lyft markets itself as a more affordable ride, it launched its own version of surge pricing for peak hours called Prime Time Tips at the end of last year. The company said adding Happy Hour make its rides "the most affordable option" because its rate during peak hours will never go above 200 percent of the normal fare. Sidecar, another rideshare competitor, recently launched a marketplace model, which allows drivers to set their own prices, including surge prices when they think demand is high.
The peer-to-peer car service says it'll do one better than its competitor UberX. Lyft lowers the cost of a ride when business is slow.
Lyft has launched "Happy Hour" rates, fares that are 10 percent to 50 percent cheaper than normal, to encourage more rides during the slow business hours, the company announced Tuesday.
These hours are typically midday and after rush hour during the work week. The idea is that drivers will get more rides because riders will be more willing to take the ride for lower fare.
"With Happy Hour, Lyft's prices are fully dynamic, which is the way it should be," the post reads.
This sounds like a bit of a dig at its competitor Uber, which often comes under fire for its dynamic pricing model. In general, the model has resulted in some unhappy customers in the past. First introduced by Uber, and more commonly known as surge pricing, the pricing model increased fares exponentially, based on how many cars were on the road and how busy they are.
Although, Lyft markets itself as a more affordable ride, it launched its own version of surge pricing for peak hours called Prime Time Tips at the end of last year. The company said adding Happy Hour make its rides "the most affordable option" because its rate during peak hours will never go above 200 percent of the normal fare.
Sidecar, another rideshare competitor, recently launched a marketplace model, which allows drivers to set their own prices, including surge prices when they think demand is high.
