Lyft Guarantees Rideshare Drivers 70% or More of Fare

Lyft said it has made several improvements for drivers in its latest product update, the Early 2024 Release.

The rideshare platform’s latest release addresses key concerns such as earnings, deactivations and safety, Lyft said in a Tuesday (Feb. 6) blog post.

“We take driving as seriously as drivers do,” David Risher, CEO of Lyft, said in the post. “That’s why we spend so much time listening to drivers and getting behind the wheel ourselves. We’ve heard lots of feedback around consistent themes — earnings, deactivations and safety — and we’re taking action to address them.”

One of the standout features of the Early 2024 Release is the introduction of a new pay standard for drivers, according to the post. Lyft aims to ensure that drivers earn 70% or more of rider payments each week, after external fees. If a driver falls below the 70% threshold, Lyft will pay them the difference, guaranteeing a minimum earning.

To provide more transparency, Lyft has introduced features that allow drivers to see how each rider’s payments are split between drivers, Lyft and external fees, the post said. This breakdown will be visible in the Lyft app’s earnings summary, providing drivers with a clear understanding of where every cent of the rider fare goes.

Lyft has also implemented new features to make earning with the platform easier for drivers, per the post. These include earning more on scheduled rides to compensate for waiting time, the ability to manually accept queued rides, and improved guidance for finding rides at airports. In select areas, Lyft is also adding new earning opportunities and features for electric vehicle (EV) drivers.

That platform has also made improvements to the driver deactivation process, according to the blog post. Because temporary holds on driver accounts can be frustrating, it aims to provide a timely, transparent and fair appeals process. Lyft has introduced a streamlined, in-app button for drivers to appeal deactivation decisions, allowing them to provide new or updated information. This feature is already available in certain locations and will be rolled out nationwide in March.

Lyft’s Early 2024 Release builds upon previous enhancements, such as Upfront Pay, which lets drivers see what they will earn before accepting a ride, and Women+ Connect, which increases opportunities for women and nonbinary drivers to match with riders of the same gender identity.

It also comes about three months after Lyft and rival Uber agreed to pay a combined settlement of $328 million after the New York State Attorney General found that the companies withheld pay from drivers and prevented drivers from receiving benefits like sick leave that are available under the state’s labor laws.

During a November earnings call, Risher said Lyft was working to “refocus our business on drivers and riders.”