Suggestion for Lyft before they lose more drivers and customers.
Why not try a flat rate?
Charge $10 for rides up to 5 miles, then $1 per mile after this.
Then, take 20% off the top for external fees and keep the 70/30 split with the driver after that.
This solves several issues.
- It's upfront. No misunderstanding or miscalculations.
On a $10 ride:
$2 external fees leave $8.
70% to the driver is $5.60
30% to Lyft is $2.40
$10 is a fair price for a short ride.
$1 per mile over 5 miles makes it more affordable for customers traveling a longer distance.
Example: where I live in Provo Utah, it is 45 miles to the Salt Lake City International Airport.
So, $10 for the first 5 miles plus $40 for the additional 40 miles is $50.
This is much better than the fluctuating fee that starts at $80, then goes lower as the person keeps checking the app for a lower rate.
$50 is more affordable and is more likely to attract customers to the service.
- This is more reasonable for everyone.
Customers are happy. Drivers are happy. Lyft makes money. And all of the external fees are covered.
Lyft should seriously consider this format.
This is based on my experience as a driver for the past 2.5 years.
Thank you