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Lyft Follows Huge Funding Round by Cutting Rates in All U.S. Cities

Apr 08, 2014 9:53 am

Skift Take

Lyft is out to grab a bigger share of the market and it will forgo making any money in order to get it.

— Jason Clampet

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Lucy Nicholson  / Reuters

A driver with the ride-sharing service Lyft waits for a customer on a street in Santa Monica, California. Lucy Nicholson / Reuters


Once again, alternative-cab service Lyft is trying to woo people by charging less money to pick them up and drop them off in pink-mustachioed vehicles.

The mobile-enabled service is trying out lower prices in all U.S. cities where it operates, with discounts of as much as 20 percent, according to a company blog post.

Apparently, a huge funding round will do that to you. Lyft announced $250 million in new funding just a few days ago, and now it can experiment with ways to entice new people to use the service and keep previous customers coming back.

That’s important as competitor Uber continues to play hard with distinctive services and price cuts of its own, which 9-digit funding rounds and a large customer base can enable.

Lyft must also contend with companies like Sidecar, as well as Flywheel, which works with taxi groups.

Under the new pricing arrangement, Lyft will pay drivers the same amount but will take no commission for itself, the blog post said.

Just last month, Lyft came up with the idea of lowering its prices during slow periods.

This article originally appeared on VentureBeat

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