Lyft unveils improved pay measures to attract more drivers

By Akash Sriram

(Reuters) -Lyft said on Tuesday it would boost earnings for drivers by paying more for going out of their way for a ride and for trips that are at least five minutes longer than estimated as the ride-hailing firm looks to grow its supply of drivers.

The company would also roll out new tools such as a new earnings dashboard, "preferred drivers" getting more requests and the ability for electric-vehicle drivers to get matched with rides that fall within their battery range.

"We have about 1.3 million or so drivers over the last year that have been on the platform. We've seen pretty tremendous growth year over year ... Our goal is to continue to grow that," Jeremy Bird, EVP of driver experience at Lyft (NASDAQ:LYFT ), told Reuters.

Lyft has been pursuing strategies to gain ground in a fiercely competitive U.S. ride-hailing market dominated by Uber (NYSE:UBER ) by attracting passengers with competitive pricing and implementing programs to recruit and retain drivers.

The company will now display the estimated hourly rate for each ride to help drivers decide if a ride is worth their time.

This, along with features such as the "preferred driver" program for high-performing drivers and specific pay for delays and out-of-the-way trips, is not matched by Uber.

In the three months ended June, Lyft saw the most new drivers in any quarter since 2019, including 34% more women and non-binary drivers compared to the same period a year earlier.



Lyft earlier this year had assured drivers would earn at least 70% of fares each week, a first for the U.S. ride-hailing industry.

The company also said on Tuesday it has partnered with Merit America to enable drivers to take on free courses and with Stride Health to help them find lower-cost health insurance.

Source: Investing.com