It’s well known that when in high demand, prices for services such as Uber and Lyft increase significantly. Until now, prices for on-demand ride-sharing services only appeared to go up, Lyft is looking to change that with the launch of ‘Happy Hour’.
Happy Hour is a pricing model that lowers prices according to how low demand is.
When times on the road are slower, users of the service will receive anywhere between a 10% and 50% discount off their ride. In this case, a trip that would normally cost $14 could be as low as $7 when Happy Hour is in effect.
Lyft says users will be able to see if it’s Happy Hour as soon as they open up the app.
The startup created this feature as a way to keep Lyft busier for drivers and offer a more affordable price range for passengers. For example, a driver who may only have one ride per hour at $12 could now see two or more rides per hour at about $9.
For passengers, Lyft says it will always be the most affordable option. Prices are fully dynamic and go down during slower hours.