Lyft used to do something similar couple of years ago (at least in Bay Area) in Lyft Line. I believe they had 10 min wait option wherein when you request and wait for 10 mins you'll get cheaper fare. I remember getting 10-20% cheaper fares consistently using that option. I'd regularly take 10 min wait option especially going to east bay or peninsula from SF.
Uber also has "express pool" option (again in bay area), wherein you have to wait for 2 mins to get matched.
As a rider, these options are great. However, not sure if it's profitable for these companies. I guess with higher rider/driver density, they can make it work?
The longer the rider is willing to wait, the more the service can optimize the allocation of drivers. (Less distance driven without a passenger, more distance driven with multiple passengers in a car pool, more direct carpools.) This is a real elimination of waste whose value can be split between the service and the passenger, although it's not clear whether the size of that value is really at the 10-20% level.
If they can pair you up with a drop-off already on the way to your exact location by having you wait a couple minutes, I would estimate this is easily worth 20% to the driver, assuming average trip time is on the order of 10-20 minutes.
Express Pool and Pool include an up to 2 minute wait to give other riders a chance to make a request in the same area or along the route. Express Pool often feels much faster than Pool because they ask the rider to walk towards main streets and I notice it helps the driver avoid having to drive around city blocks unnecessarily. I think Lyft Line is the same offering as Uber Pool and doesn’t require a 10 min wait (but the wait could be that long if there aren’t drivers nearby or it’s totally possible that they used to add a 10min wait). Perhaps the thing you’re thinking of is called Lyft Shuttle now?
F.D. I work for Uber, but not in the rides business.
Uber also has "express pool" option (again in bay area), wherein you have to wait for 2 mins to get matched.
As a rider, these options are great. However, not sure if it's profitable for these companies. I guess with higher rider/driver density, they can make it work?