It would seem that Lyft’s old bonus scheme, which offered more money based on the number of hours a driver clocks, was a bit too easy to manipulate, and as such the ride-sharing company has been forced to rethink its bonus strategy. Lyft is now awarding bonuses based on the number of rides a driver makes instead, which is obviously much harder to falsify. According to Re-Code, under the new scheme, drivers will get 100% of their earnings if they complete 100 rides per week, with 30 of those rides accomplished during peak hours. The change in incentive structure comes after Uber announced last week it had reached an agreement with California regulators over allegations that the company’s surge pricing system violated state law. The new system will obviously be better for Lyft’s bottom line, but also for clients as it translates to more “real” rides actually available on the roads.
It would seem that Lyft’s old bonus scheme, which offered more money based on the number of hours a driver clocks, was a bit too easy to manipulate, and as such the ride-sharing company has been forced to rethink its bonus strategy. Lyft is now awarding bonuses based on the number of rides a driver makes instead, which is obviously much harder to falsify. According to Re-Code, under the new scheme, drivers will get 100% of their earnings if they complete 100 rides per week, with 30 of those rides accomplished during peak hours. Previously, Lyft would forego taking its commission from drivers who clocked up 50 hours per week, however this allowed drivers to log into the app to accumulate hours even if they had no intention of picking anybody up. The new system will obviously be better for Lyft’s bottom line, but also for clients as it translates to more “real” rides actually available on the roads.