The company is investing a massive $100 Million into new “hubs,” which are meant to make Lyft driving more pleasurable and safer for the drivers. Their new “driver support hubs” will feature perks exclusively available to their drivers. These hubs will offer better maintenance for their vehicles and also try to reduce the charge for regular oil changes. This can make a significant difference in the current situation where fuel prices are skyrocketing. They are also offering car washes and clean bathrooms for a comfortable working environment throughout the day. The “hubs” will also act as a crucial communication gateway between Lyft and its employees, where Lyft can share valuable updates and information to drivers, such as vehicle rentals, information on taxes, and general support for its drivers.
To further sweeten the deal, Lyft is also offering drivers coffee and snacks to help them recharge between rides with annoying customers. Lyft COO Jon McNeill echoed the company’s message and said that the hubs reflect that “Lyft has been committed to drivers since our beginning,” unlike some of its competitors. This move has been received positively by people on social media, with some pointing out that since the drivers act as independent contractors who shoulder all the expenses associated with their work for the company, such perks are necessary and justified.
Lyft’s Effort to Lower Costs for its Drivers:
Lyft already has 15 support centers across the country, but the company aims to expand its hours of operation, with plans to double the number of employees at those locations. They’ve only been open for around 40 hours a week so far, but Lyft hopes to increase that to roughly 70 hours. According to a Lyft representative, the company’s first plans call for the construction of roughly 30 new state-of-the-art centers “very soon.” To make the experience more comfortable for drivers, Lyft plans to make a communal area, in most major cities, that offers coffee and refreshments and access to clean bathrooms and relaxing spots for a bit of shut-eye. Drivers who visit these Lyft hubs can get information regarding vehicle rentals, tax filings, and general job support, in addition to “heavily reduced” oil changes and car washes. “We’re not undertaking 180 days of change,” Lyft COO Jon McNeill said in response to Uber’s six-month campaign to improve driver relations last year. “From the outset, Lyft has prioritized drivers.”
Lyft and Uber Fight for Driver Loyalty:
It is important to note that many Lyft drivers are also Uber drivers. In most cities, drivers prefer to work for both companies. However, almost every driver will favor one over the other. Hence, recently both companies have been trying to increase driver loyalty through user (driver) friendly tech updates on their apps and public statements of support. For example, Uber redesigned their app to make it more comfortable for drivers. In contrast, Lyft, as discussed, has made earnings and perks the main focal point of its version of a ‘driver-friendly alternative.’
Does Uber not have “hubs” for its drivers?
Uber has approximately 600 support centers for its drivers, although the size and scope of each differ greatly. Some are rather large and opulent, with a full range of services, while others are considered satellite centers with limited staff and amenities. Greenlight Locations are comparable locations where people can acquire vehicle inspections and in-person help for becoming Uber drivers. Uber has 200 Greenlight Locations across the United States and Canada.
In the next five years, Lyft intends to treble its driver base. According to Lyft’s most recent economic impact study, the company now has 1.4 million drivers. In light of this goal, the company’s idea of investing in driver support “hubs” makes complete sense. This also puts the importance of driver loyalty in this market into perspective. The plan is to help drivers earn more money and maximize their earnings by reducing the costs of driving. Given that Lyft drivers are not considered employees, this investment by Lyft is noteworthy. Also noteworthy, Lyft hired Geoffrey Bain, previously of Unilever and Nike, to lead the retail effort.
Conclusion
Are Lyft’s new hubs just a means of catching up? We will have to wait and see which company becomes the more friendly choice for drivers while still being affordable and trustworthy to the customers. Lyft Is Spending $100 Million On New Driver Support Hubs
