What legal can learn from Lyft and Uber
I had just spent an amazing 36 hours in Bergen, Norway, with my son George, and took a taxi to the airport instead of an Uber.
On my way, the fare meter climbed at what felt like breakneck speed 630, 640, 650 kroner… 690, 700, 710 (still no airport in site)... 770, 780, 790 ($75 USD)... oh dear Lord, when was this going to end? Make it stop!
Funny thing about that ride: The taxi driver and I hadn’t agreed on the price at the beginning. With presumably thousands of airport trips under its belt, the taxi company knew the cost and could have given me an upfront quote, saving me unnecessary levels of anxiety.
So, where am I going with this? Taxis and legal pricing are more similar than you think.
In-house legal teams have felt their own anxiety, watching their legal bills climb unpredictably, month after month. Just like my agita-inducing taxi ride, clients have endured uncertainty, wondering when and how the mounting billable hours on their matter would finally stop ticking upward.
When Uber, Lyft, and other ridesharing companies disrupted the taxi industry, it wasn't just about the convenience or the app-based technology — it was fundamentally about pricing certainty.
Ridesharing gave riders confidence, knowing precisely how much their ride would cost upfront. No surprises. No skyrocketing meters.
This clarity changed consumer expectations permanently, and as a result, traditional taxis quickly found themselves at a significant disadvantage.
The legal industry is undergoing a similar disruption.
For decades, hourly billing has been the norm, a model deeply embedded in law firm operations and client relationships. Like traditional taxis, the legal industry has been slow to adopt fixed and value-based pricing, despite doing similar work repeatedly and predictably.
Every litigation, every merger, every transaction – most legal workflows have been done thousands of times before (of course, there are some unique aspects). The data exists. Law firms have it. Clients have it.
Yet many firms have resisted offering price certainty, relying instead on the comfort of hourly billing and ever-increasing hourly rates.
But things are rapidly changing!
Forward-thinking legal departments and firms realize hourly billing is no longer sustainable, certainly not for most matters. Clients demand predictability, transparency, and demonstrable value.
Just as consumers abandoned taxis for ridesharing, corporate clients increasingly opt for law firms and legal service providers who offer clear, predictable pricing.
Fixed fees, capped fees, and value-based pricing models aren't just the future — they are becoming today's standard.
This shift is fundamentally about delivering more value and creating deeper trust between law firms and their clients.
Value-based pricing aligns incentives: Law firms are motivated to become more efficient and innovative, and clients benefit from increased predictability, better budgeting, and reduced risk.
At PERSUIT, we've seen this shift firsthand. When law firms commit to fixed and value-based fees, they start innovating. They adopt new technologies, streamline their processes, and deliver better outcomes faster.
Why? Because now their profitability depends not on how many hours they can bill, but on how effectively and efficiently they can deliver results.
It's fascinating — and somewhat ironic — that the legal industry, known for advising clients on mitigating uncertainty and risk, has thrived on pricing uncertainty.
But that era is ending. As more firms adopt fixed and value-based models, clients will increasingly reward them with loyalty and trust.
Even the taxi industry recognized its disruption and adapted, partnering with both Uber and Lyft.
After my Bergen taxi ride, I’m sticking with rideshare, knowing exactly what I'll pay and leaving that needless anxiety behind.
Corporate clients are making a similar promise: They're demanding and expecting price certainty from their law firms.
And just like taxis had to adapt or face irrelevance, law firms must adapt now or risk losing their most valuable passengers — their clients.
It's time to stop the meter. Legal services deserve better. Clients deserve better. The future is clear: it's fixed, transparent, and value-based.
Cheers,
Jim
This post first appeared in The Value Standard, a bi-weekly newsletter dedicated to helping enterprise legal leaders advance in the new marketplace for legal. Join 4,700+ senior legal leaders who get The Value Standard delivered directly to their inbox.
