Ride-hailing firm Lyft Inc (NASDAQ:LYFT) has promised to bolster drivers’ weekly wages through a package of pay standards designed to tempt workers.
Drivers will be guaranteed at least 70% of what riders pay for lifts from Tuesday after some 15% reported making less than the figure each week last year.
The move marks a first for the ride-hailing industry, which is dominated by Lyft and Uber Technologies Inc (NYSE:UBER) in the US and sees firms competing for drivers as well as passengers.
"We think hopefully it will get more drivers driving for Lyft but also just make the whole sector stronger,” chief executive David Risher commented.
Other incentives were also introduced, such as offers for drivers to earn more for taking on scheduled trips, being paid for waiting times and benefits for using electric vehicles (EVs).
Lyft said measures will be brought in to improve transparency, including by allowing drivers to view the split between their own earnings, those of the company, and external costs on its app.
Such moves come as the market anticipates demand will remain strong for ride-hailing services but that drivers could be persuaded to go elsewhere on the back of the shifting economic landscape.
“We have more drivers now than we've had, I think, since the middle of 2019,” Risher added.
“It's strong and I tell you what, it's getting even stronger.”