Lyft said Wednesday that it began raising prices in some places at the end of June.
The company reported second-quarter earnings that blew past Wall Street expectations, and the fare hikes will likely help that continue.
Executives didn’t say which cities or routes are seeing the raised rates, but the changes will affect places where demand won’t be hurt.
That likely means they’ll be times when you have no other transportation option, or on really popular routes.
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Lyft fares are getting more expensive, the company admitted Thursday, and the price increases are likely going to hurt your wallet when you most need a ride.
“Our guidance incorporates modest price adjustments that went live towards the end of June,” Brian Roberts, Lyft’s chief financial officer, told investors on a conference call following the company’s second quarter earnings that handily topped expectations.
Read more: A ‘warrior’s warrior’: Why insiders say the first-time CFO running Lyft’s $20 billion IPO is the perfect fit
“More specifically, we began to adjust prices on select routes and in select cities based on costs and demand elasticities.”
That last bit, demand elasticities, is key. Lyft is likely not going …read more
Source:: Businessinsider – Technology