- Lyft entered the ride-sharing market to challenge Uber’s dominant position.
- Since his arrival, his marketing strategy has been to look for Uber’s weaknesses and take advantage of them to attract passengers and profits.
- In September 2020, Lyft became the second largest ride-sharing service provider in the United States, behind Uber Technologies. It already has 31% of the market.
The return of passengers after the coronavirus pandemic once again boosted trips for transport applications such as Uber, Cabify and Lyft, among others.
However, the increase in prices and the change in some of the conditions (to the detriment of drivers) have made it difficult to find drivers in some markets.
With the idea of recovering them, the companies behind the applications have begun to offer some advantages, such as Lyft, which said on Tuesday, October 11, that it was testing a new algorithm with changes for drivers.
According to the application, the change will benefit drivers because it will allow them to know in advance more details of the destination and the form of payment of the passengers before accepting a request.
In a beginning, the idea is that the change will involve about 20 US cities, but it will spread if it is successful.
The change, similar to the one adopted by its competitor Uber a few months ago, seeks to solve the shortage of drivers in that market and take advantage of the increase in demand after the return of face-to-face work and post-pandemic travel.
Lyft Algorithm Changes
Among the changes, Lyft will inform drivers of details such as where riders will be going, how far they’ll need to go and estimated time, as well as the fee to be charged and your earnings before you have accepted the trips. Everything, before accepting.
According to Lytf, it will extend the changes to more cities before the end of 2022.
Likewise, the company will begin testing filters that will allow passengers to establish preferred driver search radios and have the option of choosing the driver.
Drivers for these P2P ride-hailing companies are struggling with rising fuel and car parts and demanding higher rates, though this impacts the number of trips.
According to Lyft, among the aggregates there is a system of advance payment and bonuses and incentives for drivers.
Even more so after a survey carried out by the firm with more than a thousand drivers showed that one in seven drivers prefers the advance payment model to previous formats.
Now read:
Uber can enter the world of franchises, but warns that it would not be good
Lyft makes a promise to its customers that could get Uber in trouble
Uber loses a battle that could change its business and collapses