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Lyft Testing Pay Algorithm to Lure Drivers

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Lyft drivers will have access to details such as drop-off locations, estimated distance and time, and fare details before accepting a ride.

Credit: Lyft

Ride-hailing firm Lyft announced it was testing an earnings algorithm so drivers in 18 U.S. cities can view destination and pay details before accepting requests.

Drivers will be able to access drop-off locations, estimated distance and time, and fare details, while the company intends to extend this service to more cities through this year.

"We'll also design Upfront Pay over time to include bonuses and incentives," said Lyft president John Zimmer.

Lyft said a survey of more than 1,000 drivers showed over 70% favored the upfront pay model to previous pay models.

Lyft's test follows a similar initiative by Uber Technologies, and underscores how such businesses are making an extra effort to address driver shortages in order to leverage spiking demand.

From Reuters
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