Lyft Tests Upfront Pay After Uber; Sees No Immediate Impact From Latest Labor Law

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.