Lyft Vegas Fare Reduction
On the same day that Uber came to an agreement to operate at McCarran International Airport, they announced a 30% reduction in the rates. I assumed it was only a matter of time before Lyft followed suit and alas I just received the following email:
Hey Las Vegas, get ready to pay less for rides.
We’ve dropped our prices. The best part? No code required, these price changes are automatic.
To give you an idea of just how low we’re going, check out these new prices.
The subject of the email announces the exact change at 30%. Not a surprise. The way I see it, there are two big losers here. The first loser is the taxi companies, since they are now priced significantly higher than ridesharing outside of surge pricing. I’m not saying we should feel sorry for them though. I am interested to see if and how they respond given their regulatory environment.
The second losers are of course the drivers. I have heard rumblings that Uber drivers are not happy with the recent rate reduction and many of them jumped ship to Lyft or began driving primarily for Lyft. With this price match things are more even, but the driver’s are also losing out on 30% of revenue. That is a tough cut in pay and I wouldn’t be surprised if there were less drivers out on the streets tomorrow!