From service subscriptions like Amazon, Netflix, and Spotify to monthly box deliveries like Dollar Shave Club and Birchbox, we live in a world where convenience and instant gratification are becoming more intertwined in our daily routine. Consumers increasingly don't need to shop at brick and mortar stores anymore since most chain stores now have online platforms to sell their products—not to mention expand their audience reach by offering FREE nationwide shipping (often within 2 days). Shoppers have the opportunity to subscribe to services that will provide pre-cooked meals, stylish clothing, and music playlists for their commute to work. It’s almost unimaginable to think what American society would be like sans a multitude of subscription options.

That being said, rideshare company Lyft has molded this subscription model to fit their needs and is in the midst of offering a subset of customers the chance to try it out. The subscription will give pre-selected customers the ability to “buy a $200 pass in order to get $15 off 30 rides." That’s a savings of $250 if you were to take 30 $15 rides a month without the plan. Lyft isn’t disclosing the exact size of the test, but it’s going out to passengers nationwide” (TechCrunch). Considering the hefty price, this particular subscription would only be worth your money if you frequently book rides on a monthly basis through Lyft. Though, if I’m being frank, the majority of subscriptions work in this fashion. 

Similarly, video game makers are now moving forward to include more subscription services which enable players to compete with others online or enable users to access older games.  This is becoming an increasingly important part of video game companies business model as analysts saw that live services (subscriptions are one component) revenue “grew 31% to nearly $2.2 billion for the fiscal year… That is nearly equal to what the company made selling new games through retail stores and digital downloads for the year” (Wall Street Journal). From meals to beauty products to video games, is there anything that won’t have a subscription service in the next five years?

If you’re subscribed to a service like YouTube Red, StitchFix, or MoviePass, think about how often you use your service and if it’s worth it to pay a fee each month. If you don’t use your subscription enough to make it worth your money, consider opting out and putting that money towards filling up your car’s tank or treating yourself to a nice dinner with friends!

Questions:

• Why do you think that Lyft is offering a subscription deal that looks "too good to be true?" Who do you think is their target customer for this service? 
• Are you subscribed to any products and services at the moment? What are they?
• Have you done a cost-benefit analysis to see if it’s cheaper to opt out of the monthly plan or only buy on a need or want basis?
• What advice would you give to someone who’s looking to purchase a subscription of a product or service they saw on social media but don’t really need or use?

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NGPF: If you liked reading this, check out another one of our blog posts about another popular subscription service: Is MoviePass Too Good To Be True? Additionally, we have an entire Budgeting unit for your browsing pleasure.

About the Author

Danielle Bautista

Danielle is a native of Southern California and a recent graduate from the University of Maine, where she braved the frigid winters—a feat in and of itself—and earned her Bachelor's degree in International Affairs. She has a passion for working with non-profit organizations and serving populations in underprivileged communities. When Danielle isn't writing NGPF blog posts, spearheading various outreach projects, or managing contests and flash surveys, you can find her doing some sort of outdoor activity, learning a new hobby, or cracking what she thinks are witty puns!

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