- 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.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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