Lyft is testing a new rewards program that gives riders cash back on future trips, marking the company’s latest move to attract and retain users amid fierce competition with Uber.
Riders will reap the benefits of the program by opting to auto-reload their account with cash, and making Lyft Cash their default payment option. In exchange, Lyft offers 2 percent to 5 percent cash back in Lyft Cash for every ride.
Riders who set their auto-refill amount to $100 will receive added perks, including two monthly credits to cover cancellation fees (worth up to $10 total) and two complimentary upgrades to Extra Comfort rides each month.
Lyft estimates that a typical rider who takes around 20 rides a month at an average cost of $20 could earn more than $450 in annual value at the $100 auto-refill level, once cash-back and perks are factored in.
Currently, the pilot is available to about half of riders in the test groups, including people who have used Lyft for 10 years and those located in the San Francisco Bay Area.
The company said the Bay Area is a key testing ground since many riders there have been using Lyft since its earliest days.
The program could expand nationally next year, depending on user feedback during the test period, the company said.
Some of these benefits have typically been part of Lyft Pink, the company’s paid membership program, which starts at $9.99 per month and can cost up to $199 annually.
The launch of the cash-back feature is part of Lyft’s broader effort to strengthen customer loyalty and compete with Uber, which controls more than 70 percent of the U.S. rideshare market, Bloomberg reports.
Uber’s own Uber Cash feature lets users pre-load funds or apply credit card promotions toward rides, but it does not include a cash-back or rewards component.
Lyft previously partnered with Hilton Honors, allowing members to earn points for every dollar spent on Lyft rides after linking their Hilton and Lyft accounts. Riders can earn points with only one Lyft travel partner at a time and must confirm if they want to switch to earning Hilton Honors points.
