Ridesharing

Lyft To Spend $100M To Better Support Drivers

Lyft, the ride-hailing company taking on Uber, announced news on Wednesday (May 23) that it is investing $100 million to provide more support for its drivers.

In a blog post covered by TechCrunch, Lyft said the money will go toward offering drivers lower-cost oil changes, car maintenance, car washes and more. The company is also doubling the operating hours of its driver hubs in 15 cities around the country. Both moves are designed to aid drivers in making more money while offsetting some of the costs that come from driving a car for extended hours. The company will also offer drivers car and SUV rentals, education on taxes and additional support services.

“Just as advancements in aviation technologies haven’t reduced the need for pilots or flight staff, there’s still security in the future for the 1.4 million people who depend on driving for an income,” Lyft COO Jon McNeill wrote in the blog post. “We are in the business of supporting our drivers for the long haul. Period.”

In addition to investing $100 million in its drivers, Lyft said it’s planning on increasing the number of available drivers, which currently stands at 1.4 million, by more than double during the course of the coming five years.

The efforts come as Lyft is making inroads against Uber. Earlier this month, Lyft said its internal market share numbers reveal that it now has 35 percent of the national ridesharing market, up from 20 percent 18 months ago. The company also said its market share is over 40 percent in 16 U.S. markets and that it has a majority share in “multiple” markets.

“The last 18 months have been a period of incredible, sustained growth for Lyft,” CFO Brian Roberts said, according to CNBC. “There are no signs of that momentum slowing down.”

A source said Lyft used email receipt data to calculate its market share numbers, which is usually taken from third-party credit card data firms such as Second Measure and Certify.

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