TALKING TECH

Lyft's driver pitch: join us, make tips — $200M so far

Marco della Cava
USA TODAY

SAN FRANCISCO — Lyft has a message for drivers. Want your good work to pull in extra dough? Then come work for us.

As ride-hailing giant Uber continues to grapple with mounting problems, second-place Lyft announced Wednesday that it had officially doled out more than $200 million in tips through its optional in-app feature.

Uber has famously resisted calls for a tipping option, which some driver advocacy groups maintain is the top complaint of their constituents.

Lyft's new Amp device sits on the dashboard of a vehicle, replacing the company's signature pink Glowstache.

"It’s clear our passengers value our drivers, and so do we," Lyft officials said in a blog post. "That’s why we're committed to continuing to treat them better with programs that allow for same-day payments, affordable rates on rental cars, and lower fuel costs with Shell."

The post cites a brand-perception survey Lyft asked research firm Ipsos to conduct last fall, which revealed that Lyft was by at least a two-to-one margin more "friendly," "cool" and "trustworthy" than "other ride sharing apps."

Uber, valued at nearly $70 billion, operates in nearly 600 cities in 81 countries. Lyft is valued around $7 billion and now is in 300 U.S. cities.

Lyft's $200 million-in-tips milestone comes at a time when Uber faces big questions about both its internal culture as well as its often contentious relationship with drivers.

John Zimmer co-founded Lyft in 2012, an outgrowth of a smaller service called Zimrides. The tech startup is now second to Uber in the category, though Zimmer is convinced Lyft ultimately will be tops in the U.S.

Last summer, Uber hired former Target chief marketing officer Jeff Jones to serve as president, with a specific focus of improving the company's dialog with drivers. Jones abruptly quit Uber on Sunday, citing issues with the company's leadership style, which under Kalanick has been described by former employees as a toxic blend of machismo and ruthlessness.

Kalanick is on the hunt for a chief operating officer. Three senior Uber officials told reporters Tuesday that Kalanick is a changed man and vowed that he and others would retool the frat-house style culture that had taken root at the company.

Those promises included a reference to revisiting the conditions under which Uber drivers are suspended from driving, but there was no mention of changing the tipping policy.

Lyft President John Zimmer told USA TODAY in an interview last year that his mission was to "ultimately win" the U.S. market, while leaving Uber to its global ambitions. Since then, Uber has been hit with problems that even spawned a #DeleteUber social media campaign.

Ride hailing industry watchers continue to debate the financial proposition of the disruptive industry's business model, as Uber and Lyft both race toward becoming profitable before their significant financial coffers run dry.

Follow USA TODAY tech reporter Marco della Cava on Twitter.