Lyft Tests Upfront Pay After Uber; Sees No Immediate Impact From Latest Labor Law - Lyft (NASDAQ:LYFT)


  • Lyft, Inc LYFT trialed an earnings algorithm allowing drivers in 18 U.S. cities to see destination and pay details before accepting a request.
  • With upfront pay, drivers can now see ride information and what they’ll earn before accepting a ride. 
  • Drivers will have access to trip details, including the pickup and drop-off locations, estimated time and distance to complete the ride, and a map view of the entire ride and the fare.
  • The test follows a similar move by bigger rival Uber Technologies Inc UBER and underlines how the companies are going the extra mile to fix driver shortages on pandemic recovery, Reuters reports.
  • It also tested filters that will allow drivers to set a preferred driving radius and give them the option to choose their rider.
  • “We’ll also design Upfront Pay over time to include bonuses and incentives,” Lyft President John Zimmer said.
  • Meanwhile, Uber’s upfront pay system has drawn criticism from drivers.
  • The U.S. Department of Labor has proposed to make companies reclassify independent contractors as employees.
  • Companies must provide specific benefits and protections to employees but not contractors.
  • Lyft acknowledged no immediate or direct impact on the Lyft business.
  • Price Action: LYFT shares traded lower by 10.80% at $11.43 on the last check Tuesday.


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