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.

» RELATED: Taking Uber, Lyft? Read these 7 safety tips before getting in the car

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.

About the Author

Keep Reading

Whitney Wharton, a cognitive neuroscientist at Emory who focuses on Alzheimer’s disease prevention, said she would not be surprised if her National Institutes of Health research grant funding that was canceled and then reinstated this year is terminated a second time. “We are on this roller coaster, and it is literally impossible to plan,” Wharton said. “It feels like one step forward and then two steps back. And I still don’t know what to do at this point.” (Natrice Miller/AJC)

Credit: Natrice Miller/AJC

Featured

In 2022, Georgia Power projected its winter peak electricity demand would grow by about 400 megawatts by 2031. Since then, Georgia has experienced a boom of data centers, which require a large load of electricty to run, and Georgia Power's recent forecast shows peak demand growing by 20 times the 400-megawatt estimate from just three years ago. (Illustration by Philip Robibero/AJC)

Credit: Illustration: Philip Robibero / AJC