Lyft’s approach results in $200M in tips
Ride-hailing firm wants to woo drivers from rival Uber
Lyft has a message
SAN FRANCISCO for drivers. Want your good work to pull in extra dough? Then come work for us.
As ride-hailing giant Uber continues to grapple with mounting problems, second-place Lyft announced Wednesday that it had officially doled out more than $200 million in tips through its optional in-app feature.
Uber has resisted calls for a tipping option, which some driver-advocacy groups maintain is the top complaint of their constituents.
“It’s clear our passengers value our drivers, and so do we,” Lyft officials said in a blog post. “That’s why we’re committed to continuing to treat them better with programs that allow for same-day payments, affordable rates on rental cars, and lower fuel costs with Shell.”
The post cites a brandperception survey Lyft asked research firm Ipsos to conduct last fall, which revealed that Lyft was by at least a two-to-one margin more “friendly,” “cool” and “trustworthy” than “other ride sharing apps.”
Uber, valued at nearly $70 billion, operates in nearly 600 cities in 81 countries. Lyft is valued around $7 billion and now is in 300 U.S. cities.
Lyft’s $200 million-in-tips milestone comes at a time when Uber faces big questions about both its internal culture as well as its often contentious relationship with drivers.
Last summer, Uber hired former Target chief marketing officer Jeff Jones to serve as president, with a specific focus of improving the company’s dialog with drivers. Jones abruptly quit Uber on Sunday, citing issues with the company’s leadership style, which has been described by former employees as toxic.