Lyft drivers are earning more pay — here's how
Lyft drivers averaged over $35 in utilized hourly earnings nationally during the first three months of the year
New Lyft CEO David Risher reveals his plan to win back ridership from Uber
Lyft incoming CEO David Risher discusses the changes he will make to turn the company's stock around on 'The Claman Countdown.'
Since David Risher took over the reins at Lyft, he's pledged to boost driver earnings.
It's a promise the company says it's already delivering on as it tries to rebound from mounting losses and gain an edge over rival Uber, which has over 70% of U.S. market share.
A Lyft spokesperson told FOX Business Wednesday that it made underlying improvements to upfront pay, a feature introduced in October 2022 that lets drivers see what they'll earn before accepting a ride, which facilitated "higher driver earnings that are competitive with the market."
Average earnings per ride are now up 10% from earlier this year. At the same time, per-ride earnings on long rides are up 14%, according to Lyft. The update is in response to feedback from drivers who said that pay for long trips was among their top pain points.
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"Lyft wants to make driving for Lyft a great job…and there are a couple of components to that. Of course, there's an earnings component, and we want to pay you as much as we can," Risher told FOX Business, further noting that it's a difficult thing to balance given that there's a limit to how much riders want to pay.
Still, Lyft drivers averaged over $35 in utilized hourly earnings nationally during the thirst three months of the year, Risher added.
This upfront pay is calculated on a variety of factors including estimated time and distance to complete the ride, the travel to the pickup point and demand for rides in the area.
A Lyft decal is seen on a car in the pick-up area at JFK Airport on April 28, 2023 in New York City. (Michael M. Santiago/Getty Images / Getty Images)
The company is also making it easier for drivers to see where the high-demand areas are. It's part of the company's plan to ensure drivers have the information they need "to make better decisions" and capitalize on greater earnings opportunities, Risher said.
Now, drivers will be able to see where the busiest areas in real time by looking at current wait times on the driver map.
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Drivers will also be able to track their earnings throughout the duration of the rides by swiping up in the app when stopped. Previously, drivers couldn't rack their earnings and bonus progress if they were giving back-to-back rides.
Uber and Lyft sign in windshield of car, Queens, New York. (Lindsey Nicholson/Education Images/Universal Images Group via Getty Images / Getty Images)
After assuming the role as CEO in April, Risher set his sights on restructuring the company in order to focus on better meeting the needs of riders and drivers.
"The best way to get passengers is to have a lot of drivers and the best way to get a lot of drivers is to have a lot of passengers," he said.
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As part of his turnaround plan, he immediately initiated a mass layoff to cut costs. The plan is to use the savings to drive down fares and boost driver pay.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| LYFT | LYFT INC. | 17.17 | -0.19 | -1.09% |
| UBER | UBER TECHNOLOGIES INC. | 73.07 | +1.11 | +1.54% |
Risher told FOX Business that it's vital to enhance the experience for both drivers and riders. Not one over the other.
To underscore his commitment to this, he welcomes anyone to email him at David@lyft.com to offer feedback for the company on what they can do better.