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Lyft raises service fee for rides amid surging insurance costs

Lyft Inc said on Monday that it would raise the service fee, which its US riders pay directly to the company, so that it could cover rising insurance costs.

“Lyft is facing insurance inflation pressures and we’ve nominally increased service fees to help offset these costs,” a spokesperson for the company said.

The latest data by YipitData revealed that Lyft’s published service fee for rides had been increased in virtually all US markets during the first week of this month. The service fee rose by about $0.60 on average, the data showed.

The service fee, which goes directly to the company, is an additional fee for each ride that covers particular operating costs and safety measures.

Earlier this year, the company added a $0.55 surcharge, which went directly to drivers to help them tackle higher gas prices.

Yet, that program was discontinued in September.

Currently, Lyft offers up to 7% cash back when drivers pay for gas by using Lyft Direct debit card. is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

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