This doesn't apply to all markets, but for those with "Upfront Pricing" it should help you save money. This is also the reason I use Lyft now instead of Uber since it turns out to be a lot cheaper in the long run (even when you tip).
Lyft has decided to join Uber in using "Upfront Pricing" when you request a ride. However, what they don't tell you is that the amount they show you is calculated using a longer and slower route than the one your driver will end up taking. Thankfully though, if you book a Lyft without putting in your destination first, then you will be charged only based on the actual time and mileage of the trip (the same amount your driver makes).
For 95% of rides, the amount you pay using "Upfront Pricing" is a lot more than the actual amount that you should have been charged. Uber/Lyft pocket this difference and only pay out the smaller fare based on the actual ride to the drivers (class action lawsuits pending).
A few recent test trips:
Upfront Fare: $45 Driver received: $30 (-25% fees = $22.50)
Upfront Fare: $62 Driver received: $39 (-25% fees = $29.25)
Upfront Fare: $42 Driver received: $36 (-25% fees = $27.00)
Upfront Fare: $45 Driver received: $34 (-25% fees = $25.50)
As you can see - in many cases you are overpaying by as much as 40% by using the Upfront Pricing feature.
Unfortunately, Uber makes upfront pricing involuntary, whereas Lyft makes this feature optional by allowing you to request a ride without inputting your destination.
Because of this, I just treat Lyft's Upfront Pricing feature as a "fare estimate" when I need to go somewhere.
In summary - to save ~20% on your next Lyft:
- Enter your destination to see Upfront Fare (and if it's currently Prime Time pricing) as an estimate
- Remove your destination
- Request your ride
- Pay a lower fare (on average 20% lower) based on the actual ride itself
Hope this helps some of you!
May 22, 2017 at 12:17PM
