Lyft ties up with Payfare to hike fuel cashback in bid to retain drivers

(Reuters) – Lyft Inc’s Lyft Direct cardholders will receive an increase in cashback rewards of 4% to 5% on purchase of gasoline until June 30, the ride-hailing firm said on Monday, its latest move to retain drivers amid a rise in fuel prices.

Chief Executive Officer Marco Margiotta said the higher cashback in partnership with fintech company Payfare will help drivers stay on the road and “ease the pain of rising gas prices.”

Prices for gasoline have soared more than 20% from last month, according to the American Automobile Association, driven by higher crude oil rates due to the Russian invasion of Ukraine.

The company said Lyft Direct cardholders can save up to 21 cents per gallon on average with the increased cashback.

Uber and Lyft drivers have considered quitting the app-based ride-hailing platforms as fueling up becomes costlier.

Both the platforms over the past few months have been investing in keeping drivers and bringing in more to meet rising demand as COVID-19 cases ease and consumers venture out.

In response to record gas prices, the companies earlier this month announced a 55-cent per-ride surcharge that would be paid directly to drivers.

(Reporting by Akash Sriram in Bengaluru; Editing by Maju Samuel)