By Emma Nitzsche
On Thursday, Lyft announced that it would reintroduce its ‘rideshare option’ starting next week. Users who select the option will share a vehicle with one other stranger on their journey. Lyft suspended rideshare over a year ago in response to the pandemic, but as more Americans are getting vaccinated, the ride-hailing company wants to give consumers more ride options.
On July 19, riders in Chicago, Denver, and Philadelphia will have the option to utilize rideshare. Lyft hopes to slowly incorporate the option to 20 other locations where it offered shared rides before the pandemic.
“As the country reopens, we want our most affordable ride option to be available to our riders,” Lyft president and co-founder John Zimmer told CNN Business.
Riders can choose between three shared-ride options, depending on wait time and upfront pricing. The wait times vary from 10 minutes to a half-hour, with the more discounted ride going to the rider who can wait longer. Routes, pickups, and pricing will be fixed ahead of time, and Lyft said it would try to match passengers going in the same direction for the most efficient route. If Lyft can’t find another person to join a rideshare passenger, the rider will still get the discounted rate, and the driver will get a set payment.
Although the option is slowly coming back, riders must still adhere to Lyft’s health precautions. The requirements include riding without guests, refraining from eating food, leaving the front and middle seats unoccupied, and wearing a mask while traveling. In addition, both the driver and passenger(s) have the option of canceling ride requests if anyone in the car decides to ignore the rules.
After facing incredible setbacks due to covid, Lyft is hoping to make a full recovery this year. The rideshare initiative targets more price-conscious customers, as ride service costs have increased due to an imbalance in driver supply and rider demand. With more businesses opening, rideshare companies are starting to report an increase in customers.
In a 2020 earnings call, Lyft’s chief financial officer said rideshare journeys made up 17-18% of overall rides in the third and fourth quarter of 2019. Before the pandemic, the company wanted rideshares to make up half of its overall revenue. However, Post-pandemic, it is unclear how many passengers will be comfortable sharing rides with strangers, despite the reduced cost.
