How Lyft Drivers Across The World Were Able To Earn $500 Million In Tips
Ride-hailing service Lyft makes sure that their hard-working drivers are well taken care of! Unlike other car services, Lyft has always offered an in-app tipping option for riders, and those tips add up to millions.
A Major Milestone
The company revealed that since it launched in 2012, riders have tipped a whopping $500 million! The first $100 million in tips were earned over the first four years of Lyft’s existence. In 2017, the tipping surged to $260 million, with $100 million already coming in the first four months of 2018.
One of the major things Lyft did to help drivers earn more in tips for longer rides was to offer new pre-set tip options for users. If the fare is above $25, riders see $2, $5, and $10 tipping options instead of just $1, $2, and $5 choices. Of course, there are also custom options if they choose to tip more or less. That small change, however, has contributed to a 10% tip increase. That, and Lyft’s loyal and giving customers!
Lyft boasts some seriously charitable riders that give beyond the normal 15%. In New York City, the company’s highest tipper in 2017 gave $1,000! In fact, NYC is the top tipping city, probably due to the constant hustle and bustle.
Behind New York City, the highest tipping cities are Atlanta, Pittsburgh, Tampa, and San Jose. With $500 million in tips now, clearly, Lyft offers a special riding experience, while another big competitor is just getting with the times.
Playing Catch Up
Previously, Uber didn’t offer an in-app option for users to tip their drivers. Per company executives, Uber “felt it would be better for riders and drivers to know for sure what they would pay or earn on each trip — without the uncertainty of tipping.” In June, Uber finally changed its tune, allowing users to give their drivers a little extra change. It was a part of the company’s driver-improvement campaign, 180 Days of Change.
However, the service is playing quite a bit of catch up to Lyft. Lyft even gives special incentives to both their customers and drivers. In fact, Lyft brought in singer Demi Lovato to impart wisdom to four budding musician-drivers, as well VIP tickets to her Miami show, and studio recording time. That’s major!
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