• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Trump, who has repeatedly called climate change fake, is now threatening Brazil with tariffs over the deforestation of the Amazon

2

'We didn’t see this coming': Wall Street eats its forecasts as stocks sell off globally on fear of AI bubble ahead of SpaceX IPO

3

Current price of oil as of June 8, 2026

1

Trump, who has repeatedly called climate change fake, is now threatening Brazil with tariffs over the deforestation of the Amazon

2

'We didn’t see this coming': Wall Street eats its forecasts as stocks sell off globally on fear of AI bubble ahead of SpaceX IPO

3

Current price of oil as of June 8, 2026

Lyft’s ‘Nice Guy’ approach to surge pricing: Happy Hour

By
Jessi Hempel
Jessi Hempel
Down Arrow Button Icon
By
Jessi Hempel
Jessi Hempel
Down Arrow Button Icon
March 18, 2014, 5:00 PM ET

FORTUNE–Uber’s riders love to complain about surge pricing. That’s the dynamic pricing model that causes fees to spike when demand is high. Now Uber-competitor Lyft has a positive spin on the practice. On March 18, the car-sharing software company announced Happy Hour: When demand is low, prices will fall—offering customers discounts of up to 50%.

The name of the practice says everything about Lyft’s corporate culture. Call it the kinder, gentler car-sharing software company. Uber’s founders started the software business so they and their friends could have ready limousine service at the push of a button. By contrast, Lyft cofounders Logan Green and John Zimmer were obsessed with carpooling. Lyft emerged from their first startup, Zimride, a rideshare-organizing business that they sold to Enterprise last year.

MORE: Sequoia pours $24 million into Percolate

Green and Zimmer have designed the service intentionally to focus on the relationship established between drivers and passengers. Riders are invited to sit in the front seat rather than the back seat, and they exchange a fist bump to greet each other. Lyft drivers in the 24 United States cities in which the company currently operates are easily recognizable by the large pink mustaches attached to the grills of their Subarus, Toyotas, and the like. If these look goofy, well, that’s the intention: “The thing people would be most worried about is, ‘I’m getting in someone else’s car,’ but if you do something like a pink mustache, that diffuses the situation and humanizes the car,” Zimmer told me during a recent visit to their downtown San Francisco offices.

Much like Airbnb and other companies that consider themselves to be part of the collaborative consumption movement, Lyft embraces stories in which the ride is a conduit to friendship. Green told me about an incident on Valentine’s Day of 2013 in which a Lyft driver handed a Valentine to a passenger who was depressed and considering suicide. The passenger broke down in tears and so the driver (“A woman! We have a lot of female drivers”) switched off the clock and talked with the passenger for an hour. “That’s an extreme example of what happens every day,” Green said.

MORE: Dispatch from TED: Ingesting information and sampling celebrity

Can that kind of compassion scale? With $83 million in funding from Andreessen Horowitz, Founders Fund, and others, the car-sharing service is rolling out fast. And public documents suggest Lyft is in the process of raising another round of funding that may total as much as $150 million, and that would reportedly value the company at $700 million. If that seems a far cry less than Uber’s reported $3.5 billion valuation, keep in mind that Uber has been operating since March 2009 whereas Lyft launched in the summer of 2012.

Happy Hour, according to a blog post published by the company, will insure that Lyft is the cheapest ride on offer in the cities where it operates. But that won’t make the service immune to the dynamic surge pricing that Uber’s riders decry. Lyft calls it Prime Time, a rosier moniker that alerts users to higher prices because of increased demand. Unlike with Uber, fees are capped at twice the ride’s base price, and any extra fees go straight to the driver so Lyft does not derive financial gain from its busy times.

It’s the “nice guy” move. Can the nice guy win?

About the Author
By Jessi Hempel
See full bioRight Arrow Button Icon

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

Top CD rates from major banks on June 9, 2026: Chase CDs, Bank of America CDs, Citibank CDs, and more
Personal FinanceCertificates of Deposit (CDs)
Top CD rates from major banks on June 9, 2026: Chase CDs, Bank of America CDs, Citibank CDs, and more
By Joseph HostetlerJune 9, 2026
37 minutes ago
Current price of gold as of June 9, 2026
Personal Financegold prices
Current price of gold as of June 9, 2026
By Danny BakstJune 9, 2026
39 minutes ago
Current price of oil as of June 9, 2026
Personal FinanceOil
Current price of oil as of June 9, 2026
By Joseph HostetlerJune 9, 2026
46 minutes ago
Current price of silver as of Tuesday, June 9, 2026
Personal Financesilver
Current price of silver as of Tuesday, June 9, 2026
By Joseph HostetlerJune 9, 2026
57 minutes ago
tim
CommentaryAirline industry
Merlin CTO: autonomy can rebuild the foundation of aviation — and national security
By Tim BurnsJune 9, 2026
2 hours ago
Exclusive: The startup that’s dressing up crypto for Wall Street raises $175 million in a round led by a16z crypto, Paradigm, and Ribbit Capital
NewslettersTerm Sheet
Exclusive: The startup that’s dressing up crypto for Wall Street raises $175 million in a round led by a16z crypto, Paradigm, and Ribbit Capital
By Ben WeissJune 9, 2026
2 hours ago

Most Popular

Trump, who has repeatedly called climate change fake, is now threatening Brazil with tariffs over the deforestation of the Amazon
Environment
Trump, who has repeatedly called climate change fake, is now threatening Brazil with tariffs over the deforestation of the Amazon
By Sasha RogelbergJune 8, 2026
17 hours ago
'We didn’t see this coming': Wall Street eats its forecasts as stocks sell off globally on fear of AI bubble ahead of SpaceX IPO
Economy
'We didn’t see this coming': Wall Street eats its forecasts as stocks sell off globally on fear of AI bubble ahead of SpaceX IPO
By Jim EdwardsJune 8, 2026
1 day ago
Current price of oil as of June 8, 2026
Personal Finance
Current price of oil as of June 8, 2026
By Joseph HostetlerJune 8, 2026
1 day ago
Gen Zers are arriving at college unable to even read a sentence—professors warn it could lead to a generation of anxious and lonely graduates
Success
Gen Zers are arriving at college unable to even read a sentence—professors warn it could lead to a generation of anxious and lonely graduates
By Preston ForeJune 7, 2026
2 days ago
'The golden years are not golden': Boomers are hoarding most of America's wealth and power because they're terrified of outliving their money
Economy
'The golden years are not golden': Boomers are hoarding most of America's wealth and power because they're terrified of outliving their money
By Nick LichtenbergJune 7, 2026
2 days ago
Current price of silver as of Monday, June 8, 2026
Personal Finance
Current price of silver as of Monday, June 8, 2026
By Joseph HostetlerJune 8, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.