Why is Lyft So Expensive?

When you need a ride these days, having a smartphone makes finding one so much easier. Lyft is a rideshare app that allows passengers to connect with drivers. The price of rides has increased over the years, and people are often asking, “Why is Lyft so expensive?”

Lyft has a smaller market share than Uber and they also pay their drivers better margins, meaning that more of that comes out of the rider’s pocket. However, choosing to support Lyft means that you support better working conditions for your drivers.

Although ride prices have increased, using a rideshare app can save you a lot of headaches. In general, ride prices have risen dramatically in the past few years. From January 2018 to July 202, the cost has increased by 92%. As of now, Lyft is only available in Canada and the USA.

Why is Lyft So Expensive

Lyft has been experiencing an increase in wait times and higher ride costs due to a driver shortage. 

Rideshare companies started off spending a lot of cash to get set up to grow fast. They also started to pay drivers as little as possible, which decreased even more during the pandemic. Therefore, many drivers were forced to find better options. 

In July 2021, there were about 40% fewer rideshare drivers than needed. Companies like Lyft invest money to add bonuses and increase base rates to entice drivers to return to the market. It is incentive time! 

If you are interested in learning “more about Lyft drivers,” particularly about how many there are, click here.

Lyft stated that it has added thousands of new drivers to its system, so riders should see some positive shifts soon.

The Financial World of Lyft

Many are wondering if ride-sharing apps are sustainable businesses. Lyft lost over $2 billion in 2019 and $1.27 billion in 2020. August 2021 was the first quarter that the company turned profitable on an EBITDA level.

Lyft Coronavirus Health Protocols

Many drivers reported that they don’t feel like these types of companies care about them. During Coronvirus, drivers felt like their work put them in too much contact with the unknown. 

Per health regulations, now all passengers must declare they are symptom-free before riding and wear a mask covering their nose and mouth.

If the driver is not wearing a mask, passengers can cancel the ride, and the company will waive the cancelation fee due to non-compliance from the driver. In addition, a driver can refuse service if a passenger is not wearing a mask.

Using the App

Now that you know the scoop, are you ready to use Lyft? The first step is downloading the app from your app store (Google Play or iOS App Store). Search for Lyft and install it. 

Next, create an account. You must have a phone number, email address, and a photo of yourself to sign up. To learn about “how far Lyft will take you,” click here.

Use Lyft with Android and iPhone smartphones. The app uses a wifi connection. If you have a Windows phone or Amazon device, use the mobile site. 

It is necessary to verify your identity when signing up for an account. To do this, click on the verification code sent to your phone number. Sharing a selfie of yourself lets drivers know who they are picking up.

Sharing Ride Info

If you are meeting up with someone, click on ‘Send ETA’ after you request a ride, so the person you are meeting gets a text with an in-app link to your location and travel route. The app sends the following information to keep them up to date on your arrival.

  • Your route progress
  • Driver’s photo
  • Color, make, and model of the pickup vehicle
  • License plate number

More About Using Lyft

Learn more about Lyft services right here.

  • Requesting rides in peak hours increases the price of the ride. Peak hours include rush hour in the weekday mornings and evenings. When people are heading out, and establishments are closing, Friday and Saturday nights are also peak travel times. 
  • To learn all about “where to buy Lyft gift cards,” click here.
  • If you need “to delete a Lyft payment method,” find out more here.
  • Passengers must be 18 or older. Anyone younger than 18 can have a ride requested for them.
  • If you have a pressing event and you want to be sure a ride is available, click here to read all about “scheduling Lyft in advance.”
  • Using Lyft when traveling is a great option. Drivers are often local to an area so that they can answer some of your questions.
  • Lyft never allows crossing international borders.