David Risher, the present chief executive officer of Lyft, spoke at a recent earnings call for the last quarter of 2024, saying that the company has rethought its steps, shifting focus from customers to drivers. Here’s the story.
From its obsession with customers to helping drivers
Lyft’s strategy helped boost its earnings: “customer obsession.” By focusing on the welfare of its customers, the company reached all-time highs in riders, rides, and drive hours, Risher said in the earnings call.
During the fourth quarter of last year, ridesharing media reported that passengers were picked up almost a minute faster than in 2023, earning Lyft the title of becoming the fastest in the industry.
However, to alleviate issues that are springing up within the company, the company is also placing more effort into investing in its drivers, so these drivers can deliver improved services, even with the presence of higher-end options for customers.
“Our goal is quite simply to set a new standard of service for the industry,” the ridesharing company’s CEO stated.
So, what are those action plans for drivers? Read on.
AI support tool
First is the support tool run by artificial intelligence or AI. Through this AI, drivers can respond to questions so they can spend more time along the road, Risher added. A test for this support done last January rolled out 28,000 hours in total, and is said to expand further.
“Remember, when a driver has a problem, that’s time they have to spend resolving that problem,” the Lyft CEO said. “That time is money. That’s time they’re not spending in the middle of driving.”
Premium experiences
Now, it doesn’t mean that if riders sit on cushioned seats and enjoy the ride without worrying about sweat and pollution drivers are not entitled to premium experiences. For Risher, it must be a balance of both.
When riders avail of Lyft’s premium experiences, growth happens. For instance, the company offers the Price Lock subscription, launched in September, allowing customers to avoid paying high surge pricing for a $2.99 monthly fee.
This program has its own shortcomings, such as not being able to attract a wide market. However, the majority of Price Lock users, 70 percent of them those meager amount of demand, decide to renew their subscriptions month by month.
These offers are paying off. Demand for rides rose to up to 15 percent at 219 million with 24.7 million active riders in total today. Because of this, revenue reached a whopping $1.6 billion, definitely higher from the previous record, with net income at $61.7 million. Therefore, Lyft drivers are also benefitted.
More perks for drivers will come forward this year, ridesharing media revealed. They also said these programs are reminiscent of those in airlines, such as Delta and Frontier Airlines.
“For riders, we want them to expect more from every journey, whether it’s by feeling special in their extra comfort or black SUV ride, or by being rewarded in small but meaningful ways for their loyalty,” Risher went on saying.