Lyft drivers have received more than $500 million in tips from their customers, the ride-hailing service said Monday.
Lyft took four years to reach the $100 million mark for tips, but only four months to collect the last $100 million, the company said. The average size of tips also increased by 8 percent in 2017 compared with the previous year, Lyft said, probably thanks to an app overhaul last June that offered customers pre-set tip options.
Lyft has become a solid contender to rival Uber, providing passengers with 375.5 million trips in 2017, a 130 percent rise in the number of rides from the previous year, the San Francisco-based ride-hailing companyin January.
But compared with Uber, Lyft has long been a small fry of the ride-hailing world. For example, Lyft operates in nearly 300 cities, has received $4.1 billion in venture funding and is valued at $11.5 billion, whereas Uber is in more than 450 cities, has received $12.9 billion in funding and is valued at $68 billion.
Lyft has offered in-app tipping for more than five years, but limits gratuities to $50 or 200 percent of the cost of the ride, whichever is lower. Like Uber, which rolled out its long-sought-after tipping feature last June, Lyft says it aims to protect riders from fat-finger typos.