Lyft Adds Fare-Splitting Option To Its Service

Lyft and Uber are known for competing for consumers’ networked taxi and ride sharing dollars, and Lyft has just announced the addition of a fare-splitting option to enhance the convenience of its service.

Up until now, there wasn’t an easy to way to split up the cost of a ride when using the Lyft app, although Uber already provided this ability to its users. Now, Lyft is offering a solution. During a ride, a customer can open the “Ride Options” menu and tap “Split Payment.” They can then pick up to five friends, and once the friends accept, the fare will be split automatically. There is a small 25 cent fee per friend that is added to the fare-splitting, but Uber charges this same amount for the same service.

Automotive retailers are increasingly aware of the threat that companies such as Lyft and Uber may have on future automobile sales. Potential car buyers may be swayed by these companies to use their services as opposed to purchasing a vehicle of their own. Additionally, companies such as Zipcar are fighting for their share of the lucrative car market as well.

To deal with this market change, some automakers are becoming involved in these growing services. Mercedes-Benz parent company, Daimler, is behind the innovative Car2Go service, which rents out Smart cars in a flexible model. Similarly, BMW has backed DriveNow. However, the increasing popularity of services such as Lyft and Uber are continuing to have an effect on consumer car purchases, and both automakers and auto retailers will be watching closely to see how consumers view these services and whether or not their usage grows consistently or levels out in the coming period.