Lyft Inc. is rising the service price its U.S. riders pay on to the corporate to cowl greater insurance coverage prices, the ride-hailing agency mentioned.

The rise averages lower than 50 cents per journey nationally, a Lyft spokesperson mentioned. The corporate pays for drivers’ insurance coverage when they’re engaged on its platform.

“Lyft is going through insurance coverage inflation pressures and we have nominally elevated service charges to assist offset these prices,” the spokesperson mentioned in an emailed assertion.

New information from YipitData confirmed Lyft elevated its revealed service price for rides in nearly all U.S. markets within the first week of October, together with round 150 markets anticipate for New York.

The service price went up by a median of about 60 cents, implying a 3 % improve in the price of a median trip, and an 18 % improve within the service price, based on YipitData.

The service price, which matches on to Lyft, is an extra price added on a per-ride foundation that covers sure working prices and security measures akin to insurance coverage and background checks.

Lyft added a 55-cent surcharge earlier this yr that went on to the driving force to assist drivers cope with the upper fuel costs which have been consuming into their earnings. This system was stopped in late September.

Lyft now gives as much as 7 % money again when drivers pay for fuel with Lyft Direct debit card.

“The worth the patron pays should not change very a lot on the idea of those two modifications, however it would possibly change the quantity Lyft takes as income versus the quantity the driving force takes,” YipitData analysts mentioned.

“For the reason that gasoline surcharge went on to drivers and the service price goes on to Lyft, it means that Lyft would take extra of every fare, assuming no modifications to the opposite fare elements.”