New Utah law allows Lyft to launch exclusive benefit for Utah drivers
Utah-based drivers for rideshare platform Lyft will have a new benefit beginning Jan. 1. Under a first-of-its-kind program administered by benefits technology company Stride, Lyft will contribute a market-leading 7 percent of eligible drivers’ quarterly earnings (including bonus but excluding tips) into the drivers’ 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 for Utah drivers 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,” said Jeremy Bird, Lyft’s executive vice president of driver experience. “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.”
To qualify for the 7 percent contribution, drivers must achieve “Elite” Lyft Rewards status by the end of the first month of the quarter. They then must maintain the 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 allocate contributions to specific benefits, including transferring money into other existing benefits accounts.
“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 This marks another step forward in improving our country’s outdated benefits system that excludes millions of Americans who desperately need benefits like health insurance and retirement savings.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.
The program was made possible by the passage of SB233 in the Utah Legislature, which allows app-based companies like Lyft to provide more benefits to drivers while protecting their flexibility as independent contractors.
“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 SB233 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, (R-North Ogden).