Lyft has added three new incentive programs to attract drivers and better compete with archrival Uber.
Lyft is adding incentives to make driving for the ride-sharing company cheaper and more convenient.
The company has rolled out three new programs to attract and retain drivers – and better compete with archrival Uber.
In November, Lyft will start Express Pay, which lets drivers get paid on the same day as they drive. The program works through a phone app feature from payments processor Stripe; drivers can deposit their earnings directly into their bank account, provided they have made at least $50.
To make driving less expensive, Lyft has created a partnership with Hertz that gives drivers discounts on daily, weekly and monthly car rentals. This will allow people who don’t own cars or don’t have new enough cars to drive for Lyft. About 20% of driver applicants are turned down because their vehicle doesn’t meet standards.
Lyft has also teamed up with Shell gas stations to provide discounts through a rewards program. By enrolling in Shell’s Fuel Rewards program, drivers will earn cents-per-gallon discounts that increase as the driver gives more rides each week.
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The 3-year-old Lyft is trying the new initiatives to strengthen its position against Uber, the global market leader now valued at $51 billion. Lyft recently partnered with Allstate insurance company to offer drivers roadside assistance and with Starbucks on coffee discounts and other perks. To spread its global reach, Lyft has teamed up with China’s largest ride-hailing service, Didi Kuaidi.
Headquartered in San Francisco, Lyft operates in 150 U.S. cities nationwide and provides more than 1 million rides per week, making it significantly smaller than Uber but still a major industry player.
Lyft plans to launch the new programs in phases and expand them nationwide by nearly next year. The fuel rewards program is starting out in San Francisco, Chicago and Boston but eventually will make it way to 12,500 Shell stations nationwide. Hertz already offers the rental discounts in Las Vegas.
If successful, Lyft hopes the incentives will get more Lyft drivers on the road, ultimately leading to shorter wait times for customers. It also could lure drivers from Uber, which has similar perks. Lyft officials say their goal is to treat drivers better than any other company.
