RSG252: Interview with Lyft CEO David Risher on New Driver Benefits

Join Harry as he speaks with David Risher about the latest Lyft announcements, which promise to make things easier, safer, and higher-paying for drivers.

Learn all about the announcements and how they can benefit your rideshare driving business.

Make sure you tune into today’s SMTMC Episode at 3 PM PST / 6 PM EST to discuss if Lyft’s New Driver Benefits Will ACTUALLY Benefit Drivers!

Listen to RSG252 With David Risher

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Quick Takeaways

  • Lyft offers drivers a 70% guarantee weekly
    • Lyft’s take rate is a top concern for drivers. Many mistakenly assume Lyft keeps 51 – 75% of the passenger fares when Lyft only takes $9 for every $100 fare.
    • This prompted Lyft to become more transparent in their fees and costs so drivers are fully aware of their take
    • They are now offering a firm floor of 70% guarantee after fees, but based on a weekly average, not a trip-by-trip guarantee
  • For every $100 fare, $24 goes to fees off the top, which includes insurance. Lyft keeps only $9 out of every $100, leaving drivers with $67 per $100, much more than most drivers assume.
    • The fees continue to increase, but Lyft does what it can to keep them low. Insurance costs continually increase because insurance companies didn’t know the true cost of insurance rideshare when it began 10+ years ago.
    • Lyft negotiates insurance rates as much as possible, but the cost of parts, litigation, and supply chain challenges make it difficult
  • Lyft will display earnings weekly to determine the guarantee. Drivers will be guaranteed 70% of the fares by week to even out the outlier fares that earn drivers much more or much less than 70% weekly.
    • There are too many variables to guarantee fares on a trip-by-trip basis.
    • 15% of drivers will see an uptick in their earnings due to the guarantee
  • Drivers will earn more for waiting during scheduled rides
    • This doesn’t include extra driving time due to traffic, etc.
  • Drivers can find more ways to choose rides at the airport
  • Drivers can get new earnings opportunities for EVs
    • The hope is that the transparency will build more trust
    • 15 out of 100 drivers will see an uptick
  • Drivers can appeal deactivation in the Lyft app
    • Many drivers feel they were unfairly deactivated and caught in an unfair system
    • This is the #1 complaint, and lack of earnings is #2
    • The new system will show why you were deactivated and will minimize the window for temporary deactivation
    • 72% of drivers get reactivated in 24 hours
    • They are implementing a one-click deactivation appeal. It’s currently in 5 states and should be in all 50 by March. All drivers have to do is push the button and explain why it’s inappropriate, upload documentation, etc.
  • Lyft maps get better every day
    • They invest so much energy to add features to the maps to provide the safest driving route
    • Includes foresight on stop lights and stop signs
    • Drivers can give feedback on current situations (crashes, etc.)
  • Lyft is calling this the Early 2024 release
    • Probably another late in the year with more great stuff

Check out RSG Contributor Sergio Avedian’s take on all of the updates HERE!

RSG252: Watch The Podcast On YouTube

Watch our YouTube episode to learn more about the updates and how you will be impacted. While you’re there, hit subscribe!