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Lyft and Uber out to be everyday rides with passes

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US ride-share rivals Lyft and Uber are out to lure everyday riders with monthly passes for discounted or free rides, dabbling with a subscription model aimed at commuters.

[SAN FRANCISCO] US ride-share rivals Lyft and Uber are out to lure everyday riders with monthly passes for discounted or free rides, dabbling with a subscription model aimed at commuters.

Uber on Tuesday introduced "Ride Pass" in five cities to let users lock in lower rates by paying monthly subscription fees.

Uber "Ride Pass" costs US$14.99 a month in Austin, Denver, Miami and Orlando, and US$24.99 per month in Los Angeles.

Prices at ride-share services rise or fall depending on demand.

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For example, a ride into work early, ahead of the pack, is typically cheaper than a ride home at day's end during peak commute time when "surge pricing" kicks in.

"One thing we hear a lot from riders is that changes in price, however small, can make it tough to plan their day with Uber," product manager Dan Bilen said in a blog post.

"The daily commute is a classic example, and it goes something like this: you pay one low price for the ride to work, only to find the ride back home is a different story."

Lyft earlier this month unveiled a subscription plan that lets passengers pay US$299 monthly for 30 rides priced at US$15 or less. Passengers pay the difference for rides costing more than US$15.

"This is the first step toward delivering on our goal of making car ownership optional," Lyft said in a blog post.

AFP