Lyft will contribute 7% of an eligible driver’s quarterly earnings to help cover the cost of health insurance, retirement savings, paid time off, and more.
San Francisco, CA – 12/9/24 – Leading rideshare platform, Lyft, and portable benefits technology leader, Stride, are launching a new, first-of-its-kind program for Utah drivers. Through this initiative beginning Jan. 1, 2025, Lyft will contribute a market leading 7% of an eligible driver’s quarterly earnings (including bonus but excluding tips) into their Stride Save* account for them to pay for benefits like health, dental, and vision insurance, save for retirement, or cover paid time off. The one-year, opt-in program is a first for the rideshare industry.
"Drivers on Lyft are mothers, fathers, caregivers, entrepreneurs and immigrants. They turn to rideshare for economic mobility and to fulfill their dreams. We want them to succeed off the platform as well, which is why we are partnering with Stride on this important program. Together, we'll be able to help drivers access health insurance, paid time off, and more, without being tied down to a single company. Flexible, independent work with access to a strong safety net is the future of the Lyft platform, and we’re excited to see how drivers take advantage of this program,” said Jeremy Bird, Lyft Executive Vice President of Driver Experience.
To qualify for the 7% contribution, drivers must achieve “Elite” Lyft Rewards status by the end of the first month of the quarter. They then must maintain "Elite" status for the remainder of the quarter. Those who qualify are invited to open a Stride Save account. These accounts, which leverage the Mastercard network, integrate drivers into the Stride benefits ecosystem, allowing them to set personalized goals to meet their financial needs and then seamlessly allocate contributions to specific benefits, including transferring money into other existing benefits accounts. From there, Lyft will deposit 7% of a driver’s earnings from the previous quarter into their Stride Save account. Drivers should then start seeing the funds hit their accounts each quarter through the remainder of the program, beginning in April 2025.
“Lyft is leveling up independent workers’ access to affordable benefits with our technology and their market-leading contributions rate. This marks another step forward in improving our country’s outdated benefits system that excludes millions of Americans who desperately need benefits like health insurance and retirement savings. I’m excited for the independent rideshare drivers on their platform who will receive this unparalleled financial security in Utah,” said Noah Lang, CEO and Co-founder of Stride.
This program follows passage of SB-233 in the Utah state legislature, which allows app-based companies like Lyft to provide more benefits to drivers while protecting their flexibility as independent contractors. This is the latest step in a multi-year effort by Lyft to update labor laws to allow for new driver benefits and protections that also keep the independence and flexibility that bring them to Lyft in the first place.
"After years at traditional jobs, I recently switched to driving rideshare full time. Not only has Lyft provided me the joy of having a flexible schedule, but now I can find peace that my needs are being met beyond the driver seat. This program allows me to pursue my passion of writing music without worry. Whether on the road, or at the Drumset, I know I can achieve my goals with Lyft,” said Dallin Wilson, driver on Lyft.
“The partnership between Lyft and Stride represents a significant milestone for Utah’s independent workforce. By implementing innovative programs like this, we’re building on the foundation established by S.B. 233 to ensure independent contractors can access critical benefits without sacrificing the flexibility that draws them to these careers. This initiative demonstrates how public-private collaboration can empower workers and create solutions that meet the demands of a modern, dynamic economy.” said Utah State Sen. John D. Johnson.
Lyft’s purpose is to connect and serve — in recent months, the company has unveiled a series of new initiatives and offerings aimed at improving driver earnings and transparency. This includes a new earnings commitment that guarantees drivers earn at least 70% of rider fares each week after external fees and extra pay for traffic delays or having to go out of their way during rides.
*Stride Savings LLC is a financial technology company and is not a bank. Banking services are provided by i3 Bank, Member FDIC. The Stride Mastercard Debit Card is issued by i3 Bank pursuant to a license from Mastercard, Inc. and may be used anywhere Mastercard cards are accepted.
About Lyft
Whether it’s an everyday commute or a journey that changes everything, Lyft is driven by our purpose: to serve and connect. In 2012, Lyft was founded as one of the first ridesharing communities in the United States. Now, millions of drivers have chosen to earn on billions of rides. Lyft offers rideshare, bikes, and scooters all in one app — for a more connected world, with transportation for everyone.
Forward-Looking Statements
Certain statements contained in this press release are “forward-looking statements” about Lyft within the meaning of the securities laws, including statements about Lyft’s participation and contribution toward a certain program and partnership with Stride and related plans, expectations, and benefits for drivers. Such statements, which are not of historical fact, involve estimates, assumptions, judgments and uncertainties. There are a number of factors that could cause actual results or outcomes to differ materially from those addressed in the forward-looking statements. Such factors are detailed in Lyft’s filings with the Securities and Exchange Commission. Lyft does not undertake an obligation to update its forward-looking statements to reflect future events, except as required by applicable law.
About Stride
Stride simplifies the complexities of being an independent worker by creating a modern benefits system for individuals — regardless of their employment status — that they can take with them and to which companies can contribute but do not control. Stride is the first portable benefits platform specifically designed for the nearly 60 million American independent workers who do not receive employer-based benefits. The Stride platform offers access to insurance — health, dental, vision, life and other supplemental insurance — as well as financial tools to track income, mileage and other deductible expenses to manage their tax obligations, all via a single app. Since launching in 2014, Stride has helped more than 4 million workers save more than $7.2 billion on their taxes and monthly health insurance premiums. Stride is partnered with over 100 organizations, including with the world's leading work platforms, employers and service providers of non-benefited workers.