Lyft decided its surge pricing was the problem. Then it suppressed it.
In 2023 Lyft chose to grow driver supply so Prime Time surge triggered less. Rides subject to it fell 35% quarter over quarter. In 2025 Lyft carried a record 945.5 million rides.
Transcript
A cheaper, more predictable ride is the one that gets booked again. Lyft bet its pricing on that idea.
In 2023, Lyft could keep charging a surge premium, called Prime Time. Or it could grow driver supply so surge triggered less often. It chose supply.
Lyft's chief executive, David Risher, called Prime Time deeply unpopular.
Lyft's rides subject to Prime Time fell 35% quarter over quarter.
In 2025, Lyft carried 945.5 million rides, an all-time record, with Adjusted EBITDA of $528.8 million. And 70% of its Price Lock riders renew each month.
Lyft's record does not prove surge is wrong for every market. It shows that yield per ride and repeat riders can pull in opposite directions. Choose which one you are optimizing.
The records behind this video
Every figure in the video comes from this Decision Record, each with its sources.
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