Lyft prioritizes comfort to rival Uber, moving away from sharing model

Lyft is rolling out a new service tier, coined “Extra Comfort,” aimed at enhancing the ride-hailing experience with features like newer cars, more legroom, and the option for a quiet ride. CEO David Risher discussed this strategic move on the company’s Q3 earnings call.

This introduction is part of Lyft’s broader strategy to claw back market share from Uber by offering more competitively priced services. The company reported a rise to 22.4 million active riders in the third quarter, alongside increased gross bookings.

With a boost in rider numbers, Lyft’s focus now shifts to retention. Risher believes Extra Comfort, modestly priced just $1 to $2 above standard rides, might just be the key. Already visible in many regions through the Lyft app, it’s poised for wider availability shortly.

Drawing parallels to the airline industry’s Economy Plus category, Risher sees Extra Comfort as a lucrative opportunity for Lyft, potentially driving higher profits thanks to its premium appeal.

Lyft’s renewed emphasis on quality also means saying goodbye to shared rides, which Risher admits don't quite meet the mark for drivers or passengers. Instead, the company is betting on alternatives like its Wait and Save option, which offers reduced fares for flexible pickup times, and the premium-priced scheduled rides, especially for those planning airport transfers. Lyft is promising an uptick in reliability for these reserved rides, recognizing the critical need for dependability in travel planning.

While Lyft’s new initiatives aim to distinguish its offerings, it’s hard to ignore that Uber has been ahead in this space, with services like Uber Comfort and Comfort Electric already in the mix. Lyft’s Extra Comfort seems to be an attempt to level the playing field, as it expands features such as Lyft Green—originally for business users—to a broader audience in its bid to match up to Uber’s expansive ride options.