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Innovations in loyalty from Lyft and Uber

Fast-growing startups can spin out all types of innovations. Some work, some don't. For most of us, it's a matter of following along and copying what works.  IStock_000017373886XSmall

Fortune: Starbucks and Lyft partner to give rewards to drivers and riders, 2015-Jul-22 by Kia Kokalitcheva

Retaining drivers is a critical front in the riding hailing wars. Both Lyft and Uber have used aggressive tactics to poach each other’s drivers through big cash rewards. Simple things like letting passengers tip their drivers through the app with Starbucks “stars,” or points, can help drivers feel more appreciated by Lyft.

With that said, Uber has forged several of its own partnerships including one that lets Capital One credit card holders get $25 in free ice cream delivered to their doorstep this week. Another with Spotify lets passengers in certain cars play disc jokey on the car stereo from their smartphones.

As part of the partnership with Lyft, Starbucks said it will also “explore” ways to provide transportation for Starbucks employees to and from work in one test market, although it didn’t provide additional details. Lyft has already entered the work transportation market, however, with the launch last year of a program for employers to provide credits to their employees for work-related rides.

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