Lyft hikes service fee for rides as insurance costs rise
Lyft Inc (US.LYFT) is increasing the service fee its U.S. riders pay directly to the company to cover higher insurance costs, the ride-hailing firm said. The increase averages less than 50 cents per trip nationally, a Lyft spokesperson said. The company pays for drivers' insurance when they are working on its platform. "Lyft is facing insurance inflation pressures and we've nominally increased service fees to help offset these costs," the spokesperson said in an emailed statement.
New data from YipitData showed Lyft increased its published service fee for rides in virtually all U.S. markets in the first week of October, including around 150 markets expect for New York. The service fee went up by an average of about 60 cents, implying a 3% increase in the cost of an average ride, and an 18% increase in the service fee, according to YipitData.