From TechCrunch: Lyft has been cutting fares in order to secure more riders, and it’s working. But that success has come with a (literal) cost.
The ride-hail company reported Tuesday during its second quarter 2023 earnings an increase in riders and decrease in revenue per active rider. That discrepancy was fueled by a decision by the company to “price in line with the market,” according to CEO David Risher.
Lyft’s revenue per rider decreased almost 5% quarter-over-quarter, while the number of active riders increased in the second quarter to 21,487 riders, up from 19,552 in the first quarter.
Lyft appears to be not only trying to keep prices competitive with Uber, it’s also working to kill off surge pricing, or “primetime” as the company calls it.
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