Lyft reduces fares by 15% to keep pace with Uber

As we reported yesterday, Uber announced a 15% cut to fares in New York, with plans to roll out the reduced fares around the country. Now it seems Lyft has followed suit, also dropping fares by exactly 15% in New York. Lyft also used a slow Winter season to explain the fare cuts, with a spokesperson stating: “We want to remain the most affordable option for passengers…So starting today, we are lowering prices in New York City to make it easier for people to ride more often all winter long.” Presumably Lyft will now face the same complaints from their drivers as Uber have since announcing the fare cuts.

Lyft has joined the drop.

The ride-sharing app,which uses a similar business model as Uber, followed suit and dropped its prices to remain competitive in the market.

In New York City, the company’s base charge went down to $2.50 while the price per mile is now $1.79 and the cost per minute dropped to 35 cents. The company’s minimum ride charge is now $8, which is what Uber’s was before it dropped it to $7 on Friday. Like Uber’s price changes last week, this is a 15 percent cut from the old rates.

Lyft officials said they had to make the changes to stay competitive.

“We want to remain the most affordable option for passengers,” said spokeswoman Katie Dally. “So starting today, we are lowering prices in New York City to make it easier for people to ride more often all winter long.”

Uber announced last week that it was lowering its base fare in the Big Apple on its UberX service from $3 to $2.55 and the per mile rate went from $2.15 to $1.75 while the per minute rate dropped from 40 cents to 35 cents. The minimum fare dropped from from $8 to $7.

Some Uber drivers have been on strike and holding protests across the city, saying they are losing money because of the cuts.