Lyft and Uber Take Steps to Fix Driver Shortages

The recent spike in fuel prices has affected driver supply for ride-sharing companies, Uber and Lyft. 

CNBC reported, “In early July 2021, Uber and Lyft drivers were about 40% below capacity.” The companies are now investing millions of dollars to help fix the driver shortage. 

Lyft announced on Tuesday that it would be testing an “earnings algorithm” that allows drivers to see the destination and pay details before accepting the ride. This experiment will be available to drivers in 18 cities. 

According to Reuters, “Lyft drivers will have access to details such as drop-off locations, estimated distance and time, as well as fare details before accepting a ride. The company plans to expand this service to more cities through 2022. It is also investing to test filters that will allow drivers to set a preferred driving radius and give them the option to choose their ride.”

Additionally, John Zimmer, Lift President, announced that Lyft would be designing Upfront Pay to include bonuses and incentives for drivers. 

The response to Lyft’s earning algorithm test is to be determined.