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A Lyft exec says robotaxis could create a big new opportunity for gig workers

A man with his hair in a small bun looks to the right while driving a car for Lyft.
Lyft's Jeremy Bird said self-driving cars will create some jobs for ride-hailing drivers. Lyft
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Today's ride-hailing drivers might be tomorrow's robotaxi owners, a Lyft executive says.

While driverless cars are hitting the streets of more US cities, it's not yet clear who will own and manage all those vehicles. Today, drivers for apps like Lyft typically handle that themselves.

As self-driving cars become cheaper and more common, though, there could be a new opportunity for drivers in the world of robotaxis, said Jeremy Bird, Lyft's executive vice president of driver experience.

"The hybrid world of that future might be that the driver is the owner of the vehicle that they are able to put on the platform," Bird told Business Insider.

Lyft has struck deals with some companies to bring self-driving vehicles to its app.

In its latest partnership, announced earlier this month, Lyft is working with startup Tensor to make self-driving vehicles owned by average consumers available for rides on the Lyft app. Tensor said that the approach would allow its vehicles to "generate income around the clock" for owners.

Some drivers worry that self-driving cars will hurt their ride-hailing earnings — and, eventually, replace them.

Dara Khosrowshahi, CEO of rival ride-hailing app Uber, has said that drivers running out of work "is going to be a real issue" in 10 to 15 years. Uber is also piloting robotaxis, including through a partnership with Waymo.

Bird declined to put a timeline on when robotaxis could start displacing human drivers. He said there will likely always be demand for human drivers who can perform special tasks, such as helping a passenger load several heavy suitcases into and out of the car on a trip to the airport.

But Bird said that Lyft is surveying and holding listening sessions with drivers as it expands robotaxis and changes its app.

On Monday, Lyft unveiled updates to its driver app that include paying drivers for the time they spend waiting for a passenger at pick-up and letting them opt into or out of receiving certain types of rides, such as Lyft Black.

"Every year we're looking at what we can do to improve the platform for drivers and for riders," he said.

Robotaxis could create other jobs as well, such as at the depots that maintain the vehicles, Bird said. The cars would need to be charged and serviced around the clock.

"There'll be more opportunities, because those sites will have more cars with more hours and more work," Bird said.

Lyft already employs former ride-hailing drivers in a similar capacity at locations for its Flexdrive program, which allows drivers to rent cars from Lyft. Managing that fleet of human-driven cars requires several kinds of workers, from customer-service representatives to mechanics, he said.

Walter Strobel, who drives for Lyft in the Bay Area and previously ran his own delivery business, said that he would consider taking out a loan to buy vehicles that he could make available to Lyft for rides.

Strobel said that the thousands of robotaxis that Lyft would need in the long run could create opportunities for larger financial players. Even so, he said, he would like to see opportunities for smaller owners.

"If you have the credit, you can go out and buy five vehicles," he said.

Do you have a story to share about Lyft or other gig work? Contact this reporter at abitter@jkmperu.com or 808-854-4501.

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Alex Bitter
Alex Bitter is a senior retail reporter covering the gig economy, food, and retail. His work focuses major gig delivery and ride-hailing apps, including Uber, Lyft, DoorDash, Instacart, and Walmart's Spark. He is interested in everything from what it's like to work on the apps to the companies' business strategies.Some of his recent stories feature gig workers who have been deactivated on the apps, DoorDash hiring traditional employees to make deliveries, gig workers' use of bots, and gig work expanding into new professions, such as nursing.Alex has also written about Aldi's US expansionStarbucks' turnaround efforts, and the fallout from Kraft-Heinz's budget cutting. Convenience store chain Sheetz ended its "smile policy" after his reporting.Before joining Insider in September 2020, he wrote about consumer and retail companies for S&P Global Market Intelligence. He's a graduate of the University of Hawai'i at Mānoa and grew up on the Big Island.Alex lives in the Washington, DC, area, where you can find him studying ancient coins or searching for Civil War artifacts with his metal detector in his free time.Got a tip? Reach out at abitter@jkmperu.com or via encrypted messaging app Signal at +1 (808) 854-4501.