Lyft CEO on surge pricing

Lyft is introducing a new feature called Price Lock to address customer frustrations with surge pricing, which it refers to as 'primetime.' This monthly subscription service, priced at under $5, will cap ride prices for specific routes at specific times, targeting regular commuters. CEO David Risher acknowledged that surge pricing is widely disliked and aims to reduce its occurrence while maintaining its necessity for balancing supply and demand. Despite a recent earnings report showing Lyft's first profitable quarter with a revenue of $1.44 billion, the company's stock fell by 17% due to disappointing guidance for future gross bookings. Risher noted that while Price Lock won't eliminate surge pricing entirely, it is intended to make pricing more predictable and reliable for riders. Lyft's ongoing efforts to mitigate the impact of surge pricing may give it a competitive edge over Uber in the rideshare market.