Monday, November 16, 2015

Lyft Driver Referral Bonus

On the website Lyft Vs. Uber, data reveals Lyft and Uber ride promo codes and driver referral bonuses in various regions in the United States. Given this information, Lyft expects new drivers to give 50 trips in 30 days in some Southern and East Coast cities. In San Francisco, Boston and New York City, Lyft requires these new drivers to complete 100 trips in 30 days. Is Lyft's driver referral bonus ineffective?

A Lyft 98.1 radio spot shares that new drivers get $250 to signup. This Lyft commercial emphasizes that Lyft is the only ridesharing company to use a tipping feature. They highlight that 60% of riders tip their drivers. Furthermore, Lyft reminds us that this tipping feature is a way to show the value of Lyft drivers. This $250 signup bonus is given to new Lyft drivers. 

What Lyft forgets to share is that new drivers are required to complete 100 trips before they receive this $250 bonus. What happens if another Lyft driver refers this new driver to Lyft? Then, after 30 days this new driver fails to complete 100 trips? As you know, 100 trips is no easy task for new Lyft drivers. It can be done. All in all, some new drivers lack motivation to complete these 50 and/or 100 rides. 

New drivers delay completing required tasks to get activated. Without another driver pushing them to drive, these new drivers remain inactive. What if they get activated? They wait to give rides. Simply put, new drivers don't complete 100 trips in 30 days to receive this ride bonus. A referring driver won't receive a driver referral bonus unless new drivers complete their trips in the given time frame. 

Uber implements more favorable referral terms and conditions. New Uber drivers are expected to complete 25 trips within 30 days. In the past, some referral bonuses were given to referring drivers once the new driver completes the necessary trips to meet this promotional requirement. 

At Lyft, the referral bonus expires after 30 days. Does Lyft get access to free referrals based on implementing strict requirements that has a lower probability to complete on time? It sure seems that way.