Lyft Ride Service Caps Surge Pricing at 200%

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Dec. 31 (Bloomberg) -- Lyft Co-Founder John Zimmer discusses ride sharing services on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

Uber faced criticism for implementing search pricing during a snowstorm back east.

The company is calling its pricing plan primetime tips.

The usual money goes straight to the drivers and the cofounder john zimmer joins me to talk about his big night of driving, what kind would you be driving tonight?

It is a jetta hybrid.

How often do you suit up?

Why tonight?

A lot of members of the companies actually get out there and drive, my cofounder does it a lot.

This is a 97 accord.

This is a car new enough.

This would be the busiest night that i have ever happen i want to get passengers around safety.

This is to get of the friends and family out.

What are we talking about?

We expect this five or 10 times.

That gets to this issue of search pricing, there is a lot of criticism.

They have thought a lot about this and how you will deal with it.

Tell us about this and how you came to the conclusion?

We want to be very transparent we have cap that amount at 200%. typically, we don't go anywhere near that.

Hundred percent of the extra tips goes to the drivers.

Lyft has zero percent of to add an additional amount for prime time.

It's perfectly aligns us with the rest of the community because we are not benefiting at all.

Do you think the consumer exelon about that, that the money is going to the driver or the company or are they saying, oh, look at my bill?

I think it is a combination.

They don't want the costs to go higher.

By not having incentive to make the costs go higher, we will always have the lowest costs.

If the primetime incentive is to get more drivers on the road and we are not taking any from it, then the amount will be more on the road for less money.

I think it is important.

It does matter to the consumer that they are not trying to benefit from this, they are trying to make the marketplace work.

Just a personal story, somebody who recently used uber solve the mustache in the trunk.

Are there a lot of uber drivers that are moonlighting for lyft?

We have seen several coming over to drive on our platform for a variety of reasons.

A lot of times the passengers pop up front and treat the drivers as equals and it is a competitive environment.

There are people that are choosing to drive on all different platforms.

Before we go, how late will you be out to make?

I plan to be out till 3 a.m., hoping to get people around safely, even if it is late.

This text has been automatically generated. It may not be 100% accurate.

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