Ride hailing company Lyft is betting customers will pay nearly $300 a month to not own a car and let others drive them around all the time in its ongoing battle to win riders from competitor Uber.
Lyft rolled out its All-Access plan on Tuesday, Oct. 16, and it's slated to be available for everyone in the U.S. by Friday, greatly expanding the company's efforts to gain subscribers.
Under the $299 monthly plan, riders can get up to 30 rides worth up to $15 each and get 5% off any additional trips. Lyft claims its subscription fee is less than half the monthly cost of owning a new car.
News of the plan comes after The Wall Street Journal reported that Uber Technologies Inc. may be one of the world's most valuable companies and worth as much as $120 billion.
Both Lyft and Uber are privately owned, venture-backed companies, with Lyft raising nearly $5 billion since its founding in 2012 by Logan Green and John Zimmer, according to Crunchbase.com.
As for how Lyft claims the $299 subscription fee is less than half the cost of owning a car - that number is based on AAA's "Your Driving Costs" that found the average cost to own and operate a new vehicle in 2018 is $8,849 per year.