(This is an Oct. 11 report that has been updated to remove paragraphs 7 and 8 which refer to an anti-driver campaign led by drivers Uber since the information was incorrectly dated)
(Reuters) The ride-hailing company Lyft Inc (NASDAQ: LYFT) announced on Tuesday that it was experimenting with an algorithm for earning which will permit motorists in eighteen U.S. cities to check their pay and destination details prior to accepting an offer.
The test is a follow-up to the same strategy taken by larger competitor Uber Technologies (NYSE: UBER) Inc and highlights how both companies go the extra mile to address driver shortages and take advantage of the increased demand caused by the returning to work and traveling after the pandemic.
Drivers of Lyft will be able to access information including drop-off places, estimated distances, and duration, as well in details on the cost of a ride prior to accepting the ride. The company plans to extend the service to other cities by 2022.
It also plans to test filters that enable drivers to select an ideal driving radius and also give them the ability to pick their preferred route.
Drivers of ride-hailing companies are struggling with the rising costs for maintenance and fuel and have long sought information they need to make their decisions.
“We’ll also create Upfront Pay-over-time to include incentives and bonuses,” Lyft President John Zimmer said.
In the process of launching an upfront payment model “without limits”, Lyft said a survey of more than 1,000 drivers found that more than 70% of them preferred the model of upfront pay over the old pay models.
