Is it just me, or do you sometimes think Lyft & Uber are the same company? A few weeks ago, Uber made a major announcement for drivers on the platform, and now it is Lyft’s turn. There is a lot in this package. I will break it down item by item and react to these improvements.
Lyft called this event “Giving drivers confidence that each ride is worth their effort.”
According to Lyft, “In surveys, focus groups and roundtable discussions, drivers said their top two concerns were not earning enough for rides where they encounter traffic and not earning enough for long rides; we’re addressing those issues and more.”
I think not earning enough is the keyword here!
Are you earning the same or less after UFD (Upfront Fares Destination)?
I get 1000 emails a week, and I have not had a driver tell me that they are earning more with UFD than previously!
Lyft’s Major Driver Announcement Package
5-Minute-Delay Pay
We know that “unexpected mid-ride delays — like traffic or detours — are frustrating for drivers. Now, drivers can count on their earnings being increased anytime a ride takes 5 minutes longer than estimated. In our pilot program, this improvement resulted in higher ride earnings for nearly 70% of drivers.”
My Take: I like this, I really do, especially for drivers in major cities like Los Angeles, where traffic is jammed at all hours of the day. I suggested this to Lyft a year ago; finally, they are moving in the right direction. With UFD, there is no Rate Card, so if a trip goes longer, Lyft will make up the difference. I wish Uber did this as well! Why should we work for free? It is our gas, our expenses!
Out-of-Your-Way Pay
“We’ve heard drivers loud and clear that long rides don’t always feel worth it – especially if they have to drive back empty. Now, if a ride ends in an area where driver’s aren’t eligible to pick up riders or unlikely to result in a trip on the way back, we’ll factor it into the earnings they see for the ride upfront.”
My Take: As we all know, when UFD showed up, the city-specific Rate Card was eliminated. Lyft called this “Rebalancing,” where short trips would pay a little more and long trips would pay a little less. I can assure you that long trips are paying A LOT LESS!
I really want to believe Lyft, but it is too vague. When the algo sends someone on a nature hike, 90% of the time, they will have to deadhead back most of the way, adding to their cost. I will have to test this, but since our community has become my eyes and ears, feel free to send me screenshots of long trip examples and compare them to the old Fares. (sergio@therideshareguy.com)
More Transparent Pay
“Drivers often have to do a lot of mental math to decide whether a ride is worth their time. Now, when they receive a ride request, they’ll see the estimated $/hour rate for the ride to help them easily decide if they want to accept it.”
My Take: I like this change. We only have about 15 seconds to make up our minds to decline or accept the request. I used to do this math anyway, but now it is right out in front of the ping screen. It is, however, for Active Time (Period 2+Period 3).
Active Time is very different from Online Time. Keep that in mind, but this is another welcome change! Active Time assumes that you will get another identical trip to earn the amount shown!
FREE CHECKLIST
Get Your Car Ready to Maximize Profits
New Tools To Maximize Drivers’ Time
There is more to this Lyft package. Drivers decide when, where and how they drive. Lyft is working to provide more and better information and recommendations for the time they plan to spend behind the wheel.
New Earnings Dashboard
“Drivers can easily toggle between a daily, weekly and yearly view of their earnings. Soon, drivers will also see more personalized insights and stats about their earnings.”
My Take: This is another addition that I really like, and I call it long overdue. Uber always had this, now with a few clicks as opposed to many, we will be able to figure out our earnings in a clear and concise manner.
Preferred Driver
“To encourage safer and more reliable driving, Preferred Drivers will see a boost in ride requests, keeping them busier and leading to more earnings. To qualify, drivers will need to maintain a smooth cruiser score – which tracks things like braking, turning and speed – above the threshold. They also need to keep their safety flags down, and, in some regions, meet criteria on reliability like acceptance rate and cancellation rate.
To qualify for the extra 5% in earnings, drivers need to keep their scores up on safety and reliability. Drivers who qualify will get more rides and earn more. Scores will be based on the previous 100 rides!”
Qualifications are as follows:
- Acceptance rate: above 25%
- Cancellation rate: below 12%
- Smooth cruiser score: above 60
- Safety flags: less than 3
My Take: As I said at the start of this long article, this is almost a carbon copy of Uber’s Advantage vs. Standard driver mode. The question that comes to mind is, like I previously asked Uber, 5% over what?
Since there are no Rate Cards with UFD, could the algorithm lower the Base Fare by 5% and tell the drivers that they are getting the extra cheese? Honestly, 5% is not much in my book! Most drivers should easily meet these qualifications.
Real-Time Demand
“Drivers can see nearby drivers and recent rides on the map so they know where it’s busy.”
My Take: We had this in many cities already, but Lyft is now going nationwide with it. It is a good thing, but if you are a veteran driver, you already know when and where it is busy with requests, and you would position yourself correctly.
Stack Scheduled Rides
“Now, when drivers have a reserved ride, they’ll receive recommended scheduled rides that fit with their route.”
My Take: I like this as well. Now, the Lyft algorithm will be able to feed drivers who are already on a Scheduled Trip with another Scheduled Ride. You can always opt out of Auto Accept. I don’t see any harm in this.
EV Improvements
“EV drivers can opt-in to get matched only with rides that fall within their battery range. Plus, they can find and navigate to charging stations in-app and report broken stations.”
My Take: This is another good change. Many who drive EVs can probably do this through their car’s center console, but now, the Lyft app, like the Uber app, will not send long ride requests when they see that the battery is running low!
Benefits on and off the Road
“Drivers come to the Lyft platform for many reasons. As mothers, fathers, caregivers, entrepreneurs and immigrants, they are looking for economic mobility and to fulfill their dreams. The latest platform improvements not only reward drivers more for their time on the road but enable them to succeed off the road as well by helping them access benefits that help them lower their expenses, manage their finances, or even kickstart a new career path.”
See What Your Lyft Rewards Are Worth
“Now, drivers can see a breakdown of what they’re earning and saving with Lyft Rewards and how it compares to other drivers near them.”
Grow Your Savings With Lyft Direct
“With the Lyft Direct debit card and banking app, drivers can get cash back on gas or EV charging, set aside a portion of their earnings in a high-yield savings account, and more.”
Find Affordable Health Insurance
“We teamed up with Stride Health to help drivers find the best plan for their needs at the lowest price.”
Kickstart a Career in Tech
“We’ve partnered with Merit America to enable drivers to enter a free 14-week course that can help them start a career in UX design, project management, data science, cyber security, and IT support. Upon graduation, drivers receive personalized support, including executive coaching, mentorship, and job placement assistance.”
In Conclusion
I’m happy with most of the changes Lyft introduced today, but the question remains – are they enough? Drivers have been expressing concerns about several key issues for years, and earnings are always at the forefront. When was the last time we truly saw an increase in pay?
In reality, driver compensation has steadily declined over time. When you account for inflation, earnings have dropped by an estimated 30-50% in recent years. This decline in pay has only added to the frustration many drivers feel as costs continue to rise while their income shrinks.
Still, I want to stay positive. These new offerings and adjustments are a step in the right direction, and I do see potential benefits. If Lyft continues to prioritize drivers’ needs and addresses long-standing issues like fair pay, these changes could pave the way for a more sustainable and rewarding future for everyone involved.
Sergio@RSG
