According to the Ridesharing Firm, Insurance Expenses are simply too expensive
Lyft is boosting its service price for riders in the United States to compensate for rising insurance expenses. According to Reuters, the rise will cost less than 50 cents a journey on average across the country.
"Lyft is experiencing insurance inflation pressures, and we've nominally increased service rates to help offset these expenses," stated a spokeswoman.
When drivers use the Lyft platform, the business supposedly pays for their insurance. Except, I suppose, Lyft does not pay for the insurance. You, the rider, are in charge. Capitalism, oh, capitalism!
In addition to insurance, the funds are apparently used for Lyft's additional safety measures including driver background checks.
According to Reuters, fresh YipitData data indicates that Lyft hiked its service costs for riders in nearly every U.S. area — around 150 in total — early this month. The rise did not affect New York City. According to the publication, the Lyft service price jumped by about 60 cents, or 3% of the cost of an ordinary ride, at the time.
Lyft instituted an additional 55-cent premium earlier this year to assist drivers (and go straight to them) who were badly impacted by increasing gas costs. As you may expect, that program is no longer available. It has been replaced with the Lyft Direct debit card, which offers drivers up to 7% cash back on petrol purchases.
According to a YipitData analyst, the additional insurance price will have little effect on what consumers pay for a Lyft trip, but it will affect who gets the money.
"Because the fuel surcharge went directly to drivers and the service fee goes directly to Lyft," the analyst told Reuters, "it indicates that Lyft would collect more of each fare, assuming no changes to the other fare components."
#Lyft #Reuters #YipitData #Insurance
SOURCE: jalopnik
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