Lyft, a transportation startup that directly rivals Uber, came up with a new way to motivate drivers to get more runs.
About twelve months ago, the company implemented an attractive bonus system, but it came with one drawback: it relied on honesty.
First of all, drivers signed up for 100 hours of sharing their cars, and the company offered them 80 cents per dollar.
Those of them who provided more than 30 hours of ride sharing were eligible to get 10 additional percent in commission. Drivers who sat more on the road—over 50 hours—could benefit from 20 percent extra cash.
According to Re/code, Lyft recently made some discrete tweaks to the bonus system. Dubbed Power Driver Bonus, the program no longer takes into account the number of hours driven, but the number of rides. This means that for a driver to get the full price of the ride from the company, he must take 100 rides a week, 30 of which should be during rush hours.
The company stated that the reason for the change is that it gives drivers more flexibility.
Another plausible motive could be that the update fixes some harsh realities, namely the behavior of dishonest drivers.
Some inventive users figured out loopholes in the Lyft bonus system, earning bonuses without actually providing the car-sharing service.
Re/code spoke to some anonymous drivers and they confirmed that it was possible to log into the app and not make any pick-ups, yet cash in for the driven mileage. Another strategy was to agree to a pick-up and stall until the rider cancelled the fare, allowing the driver to bank in the hours spent "waiting."
However, the general consensus among drivers is that the bonus system and increased flexibility make Lyft a viable and preferable alternative to Uber.
Voices familiar with the issue stated that Lyft's expenses grew significantly due to the bonus program, which is scheduled for expansion in three major cities in the U.S.
According to reports, the second-biggest U.S. ride-hailing service cashed in $46.7 million in revenue during the first half of 2015.
Although it does not come close to the numbers that Uber works with, it should be noted that the growing popularity of Lyft could soon turn it into a global player, as well.
