Lyft drivers have earned $500 million and more in tips from their passengers, the ride-sharing service based in San Francisco announced Tuesday. The company which offers its services in the United States and Canada wrote a letter of gratitude to its customers on its official blog post.
Just 10 months ago, Lyft reached $250 million in tips which is newsworthy and an incredible rise, considering it took Lyft four years to reach a total of $100 million in tips initially. But the amazing part is, though it took four years to reach the $100 million mark in tips for the company, it took only four months to collect the $ 500 million in 2018.
The reason for such a large amount of tips collected could be because of several factors:
Unlike other ride-sharing companies, Lyft has always given prominence and value to its drivers by designing an in-app tipping option from the very beginning. The company believes its drivers are central to every service they provide. Whether it’s reaching the customers efficiently to their desired destination, or playing great music, Lyft drivers are always going above and beyond to help passengers feel comfortable and at ease.
The in-app tipping feature in Lyft spans more than five years. This feature limits gratuities to $50 or 200 percent of the cost of the ride, whichever is lower. This is unlike its most obvious and main rival, Uber, who sought after this tipping feature just in June 2017. This is something Lyft can boast of pioneering in the ride-sharing market.
Another interesting fact is that passengers have been quite generous with their tips to Lyft drivers. The average size of tips has increased by 8 percent in 2017 compared to previous years. The range of the tips paid by customers has been tremendous. In San Jose, a passenger tipped $270 to a Lyft driver while a solid $1000 note was paid as a tip to the designated Lyft driver in New York. The company blog post mentions that the generosity of the passengers has been pretty effective and high recently and clearly drivers are benefiting from this tipping system.
Lyft is lately rivaling Uber, though, in hindsight, their start might have been slow, they have grown steadily with their services over time. Uber, on the other hand, has been smeared by scandals and controversies as of late.
In conclusion, here’s wishing Lyft all the success with its awesome and friendly policies for its drivers and passengers. The high tips are a testament of gratitude and satisfaction from the passenger community towards Lyft’s services.