Lyft Inc., one of the major players in the ride-sharing industry, has announced a new policy aimed at guaranteeing weekly earnings for their drivers. The announcement, made by the company’s CEO, specifies a commitment that drivers will, as a standard, take home 70% or more of the rider payments each week after external fees.Full Story
The new policy, as detailed by Lyft CEO David Risher in a blog post, offers drivers a ‘rock-solid’ income floor. In the scenario where driver earnings fall below the 70% threshold at the end of a week, the company will pay them the difference, thereby ensuring a minimum level of income.
This move by Lyft adds another layer to the ongoing debate surrounding gig economy companies and their classification of workers. Gig-based businesses are currently navigating a Department of Labor rule that seeks to define the term ‘contractor,’ in a move that could potentially affect the status of many workers in this sector.
Statistics showed, on average, approximately 15 out of 100 Lyft drivers earned less than 70% of what riders paid, after deducting external fees. The introduction of this policy ensures Lyft drivers have transparent income expectations, established through detailed pay stubs, promoting a more stable work environment.