Lyft reportedly removes cap on surge pricing
According to Quartz, the app removed its cap on Prime Time rates, the name of Lyft’s surge pricing, which occurs when there is a high volume of ride requests from users of the app in a given area.
Prime Time is Lyft’s version of Uber’s surge pricing, which is measured by percentages instead of a multiplier. Removing the cap would help the company get more drivers on the road, since they make more money during these ‘Prime Times.’
‘Prime Time varies based on supply and demand and can change from second to second,’ according to the Lyft website.
A 200% Prime Time on Lyft is equal to 3x surge pricing on Uber.
Lyft ended the cap and co-founder John Zimmer mentioned it in a February blog post to drivers, but users say they were not notified.
The post said the percentage cap would only be used in emergencies.
Users have shared stories about dealing with exceedingly high Prime Time rates on a popular ride-sharing forum in January.
Some said they had a Prime Time rate of 250% to 300%.
The Lyft blog does not appear to have information targeted toward users announcing the removal of the surge cap.