The ridesharing platform is diversifying into the public transport realm with Shuttle, a service that offers rides along a fixed route for a flat rate

Ride-hail service company, Lyft is extendi7ng its carpool option—Lyft Line—and diversifying into the public transport realm with its newest service called Shuttle. The service, currently being tested in San Francisco and Chicago has a fixed route and flat rate, so passengers must get on and off at specific points along the route. What's more, it's only available during the usual commuting times from 8-10am and 4-8pm.

Lyft is still doling out details, pricing information and how exactly drivers will make use of the new system are questions that are yet to be answered by the company. But, if all bodes well, Lyft Shuttle could be a turning point in public transport and lead the way for other ride-hail companies to follow suit.

A big question is how profitable it will all be. While operating Shuttle, drivers will be paid the usual Lyft Line fee, but the ride-hail giant will have to pay of its own pockets the difference during surge pricing to their drivers.

Similar services have been tested before with decent results. Uber's UberHop in Seattle enables riders heading in the same direction to share a ride during rush hour for a flat fare from $3 to $5.

Lyft Line and Uber Pool, the respective ride sharing services have been very successful. If the companies continue to find ways to leverage routes and make the ride more economic for its users—while maintaining a certain degree of convenience, they could very well become a permanent fixture in the public transportation landscape.

Lyft

Ride-hail service company, Lyft is extendi7ng its carpool option—Lyft Line—and diversifying into the public transport realm with its newest service called Shuttle. The service, currently being tested in San Francisco and Chicago has a fixed route and flat rate, so passengers must get on and off at specific points along the route. What's more, it's only available during the usual commuting times from 8-10am and 4-8pm.

Lyft is still doling out details, pricing information and how exactly drivers will make use of the new system are questions that are yet to be answered by the company. But, if all bodes well, Lyft Shuttle could be a turning point in public transport and lead the way for other ride-hail companies to follow suit.