The new offer will be available to drivers across the United States. The company says it will guarantee that a driver will earn at least 70% of the ride fare after external fees are applied, which include things like credit card processing and taxes. Lyft will pay the difference if the driver falls below that amount.
The guaranteed minimum will vary by region and time of day. The company plans to launch the initiative in Los Angeles and expand nationally over the next year. It will also introduce other changes to make it easier for drivers to understand and track their earnings, including displaying the total fare a driver will receive on their dashboards.
Drivers will also see the split between themselves, Lyft, and external fees on their app. The change is part of a more significant effort to improve transparency and “ensure drivers get their fair share,” Risher said. The company is also improving its app’s ability to track miles automatically and introducing new tools to help drivers keep track of their vehicle’s maintenance.
The guarantee may only cover part of the week, depending on the deadline, apart from today. Riders can still tip their drivers in cash or through the Lyft platform, which will pass any tips directly to the driver.
Lyft’s new earnings guarantees are the latest in a series of moves to boost its competitive edge against Uber Technologies (UBER.N), which has lost market share in recent years, primarily because of the controversies surrounding its former chief executive, Travis Kalanick. Lyft, founded in 2012 by co-founders John Zimmer and Logan Green, has gained ground on Uber since then, grabbing the lifelines Rakuten and General Motors (GM.N) extended in early 2016 when it struggled to survive.
The company has been boosting its payouts and promotions to attract drivers who may have been discouraged by the low average hourly wage in the sector. It is also launching an incentive program for new drivers to help them overcome the initial learning curve.
You can grant Lyft permission to access calendar information on your device and in your calendar provider accounts to enable certain features, such as receiving a reminder to pick up a passenger or to end a trip. You can remove this access anytime in-app or through your calendar provider settings.