Lyft Expanding Carpool Services for Short Distances into Six Areas
- Updated: April 5, 2016
Lyft, the ride-sharing company based in San Francisco that is known best for its pink mustache logo, announced on Tuesday that it would expand its carpooling service for short distances into six new markets beginning the week of April 11.
The service, during the week of the 11th, will be available in Silicon Valley, San Diego, Seattle, Denver, New Jersey and Philadelphia.
Lyft debuted this service first, which lets passengers ask to share their ride with others close by that are headed toward a similar direction for a fare that is less, in 2014 during the summer in San Francisco.
It has expanded it since to Austin, Atlanta, Chicago, Boston, Miami, New York, Los Angeles and Washington, D.C. Uber, the biggest rival of Lyft, introduced the same service on the same day and since has made it available in 29 cities.
At present, Lyft Line represents nearly 40% of all Lyft rides in the markets it is available, said company officials.
However, the majority of consumers think of services of ride-hailing like Uber and Lyft, as services using private cars similar to a taxi, Lyft’s founders began in the carpooling business when they first founded their original company called Zimride.
Zimride was a business that allowed drivers and passengers to hook up for longer trips, such as going to Los Angeles from San Francisco, to share costs and a common experience.
In a certain way, Lyft Carpool and Lyft Line have the company returning to its roots.
The passengers who have more time to spare see the carpooling services as welcome in saving a few dollars each way.
However, for the ride-hailing businesses, they are a way to increase earnings by putting in more passengers into a single ride.
For now, though, both Lyft and Uber are subsidizing their services of carpooling as they try to entice more passengers with lower prices to increase demand.
Uber recently said in an interview that the service was profitable in a number of the cities it is located.
Founded during 2012, Lyft has been able to raise more than $2 billion in funding and currently is valued at approximately $5.5 billion.
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