Lyft, Inc. (NASDAQ: LYFT) moves down 4.12% to $11.41 in before opening session as the firm reported that it tested an earnings algorithm in 18 U.S. locations, letting drivers to examine destination and pay data before accepting a request. Drivers may now check ride information and how much they’ll earn before taking a ride with upfront pay. Trip specifics, including as pickup and drop-off locations, expected time and distance to finish the journey, and a map view of the whole route and the price, will be available ,
Before taking a trip, Lyft drivers will have access to information such as drop-off locations, anticipated distance and duration, and fare details. The business intends to expand this service to more locations by 2022. It is also investing in testing filters that will let drivers to define a desired driving radius and chose their trip. Drivers for ride-hailing companies have long complained about rising fuel and maintenance expenses and have wanted access to such information.
Lyft President John Zimmer stated that over time, they’ll develop Upfront Pay to incorporate bonuses and incentives.
Meanwhile, drivers have criticized Uber’s upfront payment scheme. According to Jude Wolfe, a California-based driver, Uber is collecting a larger share of drivers’ profits, causing many to resign and pushing others to travel vast distances for pick-ups at a time when gas prices are already high.
Lyft says a poll of over 1,000 drivers revealed that more than 70% preferred the upfront pay model to prior compensation methods as it prepares to launch “without limits.”