Lyft has introduced a new optional subscription model which gives users two options, $299 a month granting 30 rides up to $15 and every ride after that 5% off and the other option is for shorter trips costing $189 a month granting 30 rides up to $8 and every ride after that 5% off. “The All-Access plan is a great option for passengers who are frequently using Lyft – whether that’s getting to and from work, the gym or running errands,” said Katie Dill, VP of Design at Lyft, in an email. “This is the first step toward delivering on our goal of making car ownership optional and we’re constantly looking for more ways to provide passengers with the easiest, most convenient options possible,”. Subscription models have worked well for a number of apps and creates great convivence for end users. Some are skeptical about the pricing of the subscriptions offered and Lyft may still need to work on the model to create the best deal for users while also making money from the service. Those that are skeptical have a point, in order for this deal to be a worthwhile purchase for the consumer they would have to use all 30 rides in the given month, with each ride being at the maximum amount it is allowed to reach without going over (not including tip). Even with the subscription model having to be adjusted, it still stands as an ambitious step forward for Lyft and something that may end up saving their company from continued loss of revenue. Last year, Lyft said it lost $911 million making them have to shift gears and come up with drastic changes. Time will tell, if this subscription model leads Lyft to see profit and if they use data to their advantage Lyft will be able to further adjust the subscription service to meet customer needs as best as possible.
Another way Lyft is approaching its customers is by branding themselves as a for the people brand. In the promotional emails sent introducing their new subscription service, along with announcing that they are going public in the stock market, they are presenting Lyft as a way to reduce emissions and help save the environment. This is the beginning to a storytelling marketing campaign that can assist Lyft in driving their message forward. “Today, the ride-sharing market makes up less than 0.5 percent of all vehicle miles traveled. But Lyft insists that in 20 years, that stat will be over 80 percent. The company likens it to the shift to subscription services in the music and TV industries spearheaded by Spotify and Netflix.” If Lyft plans to achieve these goals they will need to continue to push forward a storytelling style of marketing to make consumers view them as more than just a ride-hailing company.