Lyft: Raising the Share of Rides Where Riders Leave a Driver Tip

You are a product manager at Lyft. Only one rider in five leaves the driver a tip after a trip. How would you improve this? ```hint Find where the tip gets lost Walk through each moment when a rider could decide to tip, and ask whether the non-tippers are choosing not to tip or never get a good moment to decide. ``` ### Clarifying Questions - Does one in five mean 20% of completed rides get a tip, or that 20% of riders ever tip? - Is the aim to raise how often riders tip, the total tips drivers earn, or both? - Has the rate always been this low, or did it fall recently, and does it differ by market, ride type or payment method? - Are there limits, for example no change to fares and nothing that makes tips feel mandatory? ### What a Strong Answer Covers - Pinning down the metric and the goal behind it, such as driver earnings and retention - Segmenting riders by tipping behavior and choosing the group with the most headroom - Reasons tips are skipped across the ride, from the price shown at booking to the moment after drop-off - Prioritized solutions that weigh nudging riders against annoying them or using manipulative defaults - Success metrics with guardrails on rider demand, rider experience and total driver earnings ### Follow-up Questions - Preselected tip amounts raise tip rates but can feel pushy. How would you choose and test the defaults? - Tip rates rise but riders start taking fewer rides. What do you do? - When would raising drivers' base pay be a better answer than pushing tips?