Ride-hailing company Lyft is testing monthly subscriptions similar to Netflix, The Verge first reported Thursday.
» RELATED: Lyft, auto parts maker Magna partner on autonomous vehicles
Lyft CEO Logan Green discussed the idea of subscription plans during a press event Wednesday when announcing a partnership with auto parts maker Magna to build self-driving cars. According to a company spokesperson, Lyft has actually been testing all-access passes for several months now to find new ways to provide riders with affordable and flexible transportation options.
The companies announced the partnership Wednesday and also said that Magna would invest $200 million in Lyft.
“We are going to move the entire industry from one based on ownership to one based on subscription,” Green said at the press event.
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The Lyft subscription plans work best for high-frequency users and offer a set number of rides each month for an upfront fee. There’s a version that comes to approximately $200 for 30 rides worth up to $15 each.
Another subscription plan costs about $400 a month for 60 rides.
Lyft-competitor Uber has tested out similar plans for its users as well. According to The Verge, the Uber Plus Pass was rolled out in some cities in 2016, “but it’s unclear whether that experiment went anywhere.”
With its own all-access passes, Lyft is hoping to challenge Uber by adding more cities and drivers to its roster.
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