
To entice drivers, Lyft is experimenting with a new compensation algorithm.
The action comes after a comparable action by larger rival Uber Technologies Inc., demonstrating how the companies are going above and beyond to address the driver shortage.
Drivers in 18 U.S. cities will be able to view destination and pay data before accepting a request, according to a ride-hailing company's announcement on Tuesday.
The test comes after a comparable action by larger rival Uber Technologies Inc. and demonstrates how the companies are going above and beyond to address driver shortages in order to capitalise on a rise in demand caused by a return to work and travel after the pandemic.
Before taking a ride, Lyft drivers will have access to information including drop-off locations, expected travel time and distance, as well as fare data. Up until 2022, the corporation intends to extend this service to new cities.
Testing filters that give drivers the choice of their rider and the ability to establish a preferred driving radius is also an investment. Due to rising fuel and maintenance expenses, ride-hailing company drivers have long wanted access to such information.
According to Lyft President John Zimmer, 'We'll also build Upfront Pay over time to incorporate bonuses and incentives.' Meanwhile, drivers have criticised Uber's upfront payment system.
Jude Wolfe, a California-based driver, claims that because Uber is collecting a larger portion of drivers' revenue, more drivers are quitting and others are being forced to travel further for pick-ups at a time when gas prices are already high.
She added in a campaign demanding equitable share from Uber that 'much of this problem can be solved, if we would not have the burden on us to accept the last five out of ten rides in order to preserve our upfront details.'
With the intention of launching upfront pay 'without restrictions,' Lyft claimed that a survey of more than 1,000 drivers revealed that more than 70% of them preferred the upfront pay model to the prior pay model.