Lyft launches $299 a month subscription plan, transportation as a service arrives

Getty Images- Car and Driver

Lyft's argument for the subscription is that its plan is cheaper than owning a vehicle (paying for gas, maintenance and insurance a month). Like in other industries, subscriptions are a way of generating a steady stream of revenue from customers that might not spend so much if they had to pay per use.

That's a very big amount to pay per month, but Lyft is wagering that it's ultimately less expensive than owning and maintaining a auto. If a ride exceeds the $15 limit, then the passenger pays only the difference.

So how far will a $15 Lyft ride get you?

The subscription plan was announced days after Lyft launched a "Ditch Your Car" challenge in 35 cities, essentially asking selected volunteers to commit to one month using $550 in Lyft credit for transportation instead of their cars. Take note that All-Access benefits do not roll over to the following period, so if don't think you'll take at least 30 rides that month, it's probably not worth it. It is available across all ride types and will be in all of the company's USA markets by the end of the week.

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Lyft has become the latest company to be bitten by the subscription bug.

In addition to single trips from A to B, users of the popular Android and iOS app can now get a monthly subscription covering up to 30 rides.

So do average Seattleites use Lyft enough to justify the price tag? If you find yourself in the back seat of a Lyft for a large majority of your month, you stand to save a good chunk of change.

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