Lyft Will Increase Driver Fuel Rewards To Cope With Higher Summer Gas Prices
Drivers who do a certain number of trips will earn rewards with Shell.
Summer usually brings an increase in gas prices, but Lyft is trying to offer some relief for its drivers. The ride-hailing company is expanding Shell Fuel Rewards offered to its drivers who achieve a certain frequency of trips.
Drivers can already link their Lyft accounts to Shell Fuel Rewards accounts as part of Lyft's Accelerate program, which provides incentives for drivers who work more frequently. The program includes three levels: Silver, Gold, and Platinum. Drivers who have given at least 10 rides in the last three months achieve the lowest Silver level. Those who give 175 to 250 rides in the same period reach Gold, and it takes 400 to 600 rides within three months to reach Platinum status.
Each level qualifies for a specific amount of reimbursement from Shell Fuel Rewards, and Lyft is increasing the amount for all three levels effective July 1. The amount for Silver drivers will increase from $0.05 a gallon to $0.10 a gallon. The amount for Gold drivers will increase from $0.05 a gallon to $0.25 a gallon, and the amount for Platinum drivers will rise from $0.07 a gallon to $0.50 a gallon.
Lyft drivers who haven't signed up for Shell Fuel Rewards will also receive a one-time credit of $0.25 per gallon (up to 20 gallons) for their first fill-up with the program.
The business model of Lyft and other ride-hailing companies is based on treating drivers as independent contractors, thus limiting the companies' financial obligations to them. But fuel and other vehicle running costs can take a big chunk out of driver income, and drivers won't want to stick around if they aren't earning any money. Lyft has tried to address this by investing $100 million in driver "hubs" that will provide amenities like clean bathrooms, as well as discounted oil changes and other basic maintenance.