In a recent shareholder letter shared on April 24, 2025, Lyft CEO David Risher addressed the company’s strides in combating “enshittification”—a term popularized by writer Cory Doctorow to describe the degradation of online platforms as they prioritize shareholder value over user experience. Risher highlighted Lyft’s achievements, including a 61% reduction in driver cancellations and the company’s first-ever profitable, free cash flow positive year in 2024. However, while the letter painted an optimistic picture of Lyft’s trajectory, reactions from drivers on X reveal a starkly different perspective. Many drivers feel that Lyft’s efforts to improve the platform come at their expense, with compensation issues fueling frustration and distrust.
Lyft’s Fight Against Enshittification: A Mixed Reception
Enshittification, named the 2023 word of the year, describes a cycle where platforms initially prioritize user experience to gain traction, then shift focus to profit by exploiting both customers and workers. In the ride-hailing industry, this often manifests as higher fares for riders and lower earnings for drivers, a pattern Lyft competitor Uber has been criticized for, as noted in a Prospect Magazine article. Lyft’s shareholder letter emphasized its commitment to breaking this cycle by improving reliability—such as the significant drop in driver cancellations—and ensuring a better experience for riders and drivers alike.
However, drivers on X expressed skepticism about these efforts. @mrlyftdriver, a vocal critic, accused Lyft of achieving these metrics by “paying drivers trash pay,” arguing that the reduction in cancellations forces drivers to accept unprofitable rides. “Loyal riders get punished, and SF drivers grind harder for scraps while you toast record profits,” they wrote, calling the approach exploitative rather than sustainable growth. Similarly, @CITIZENSARRESTO pointed to Lyft’s low driver pay as the backbone of its financial success, sharing an image of a billboard for YRide, a competing app promising better rates for drivers. The sentiment suggests that while Lyft may be addressing some aspects of enshittification for riders, drivers feel they’re bearing the brunt of the company’s profit-driven strategies.
On the other hand, some drivers acknowledged the potential benefits of Lyft’s efforts but felt the execution was lacking. @tonypierce proposed that Lyft could further improve the rider-driver experience by increasing passenger cancellation penalties to $6 and giving the full amount to drivers, a suggestion that could incentivize rider accountability without further burdening drivers. This indicates that while drivers may support the idea of combating enshittification, they want solutions that prioritize their financial stability.
Driver Compensation: A Growing Point of Contention
Compensation remains a central grievance for Lyft drivers, with many on X accusing the company of prioritizing profits over fair pay. @mrlyftdriver shared screenshots allegedly showing “trash rates” for city and airport rides in San Francisco, demanding that Lyft pay drivers 70% of each fare immediately after rides rather than holding funds for a week. “Or we walk. YRide is waiting,” they warned, signaling a potential exodus to competitors offering better terms. This frustration echoes broader industry trends, as a Prospect Magazine article noted that ride-hailing drivers in cities like New York now earn less than traditional taxi drivers, a stark contrast to the early days when platforms like Lyft promised flexible, lucrative opportunities.
Other drivers shared personal experiences that highlight systemic issues with Lyft’s compensation model. @LİBERALUSA, a former Lyft driver, recounted being deactivated after “bad drivers reported me,” pleading for better protection and trust from the company. “We try to take time from our families and children as much as we can,” they wrote, underscoring the personal sacrifices drivers make for what they perceive as inadequate support. Similarly, a 2023 One Mile at a Time article detailed a driver’s experience with Lyft denying compensation for a vehicle damaged by a passenger, with the company stating that cleaning-related damages didn’t qualify for reimbursement. These accounts suggest a pattern of drivers feeling undervalued and unsupported, even as Lyft touts financial milestones.
A Disconnect Between Leadership and Drivers
The gap between Lyft’s leadership and its drivers is evident in the tone of Risher’s letter versus the responses on X. While Risher celebrated “crushing KPIs” and building a foundation for long-term growth—earning praise from users like @pestopiaggio, who called him an “A+ CEO”—drivers like @mkatecurranSTW expressed disillusionment. A long-time Lyft user turned driver, @mkatecurranSTW noted that while Lyft initially treated drivers better and offered competitive pricing, recent changes have led to “deceptive” practices, prompting them to switch to Uber. This sentiment aligns with broader concerns about transparency and fairness, as drivers feel Lyft’s profitability has come at the cost of their livelihoods.
Even shareholders, typically aligned with corporate goals, voiced concerns about communication. @JerryFreundNY, a shareholder, appreciated the upbeat letter but noted that their previous suggestions to boost value went unanswered, urging Risher to keep lines of communication open. This suggests that while Lyft may be succeeding financially, its relationships with key stakeholders—drivers and investors alike—are strained.
The Road Ahead for Lyft and Its Drivers
Lyft’s efforts to combat enshittification and achieve profitability are commendable from a business perspective, but they’ve exposed deep tensions with its driver workforce. The 61% reduction in cancellations and the company’s first profitable year are significant milestones, yet drivers argue these achievements rely on unsustainable practices like low pay and increased workloads. As competition in the ride-hailing market intensifies—with apps like YRide actively courting disgruntled drivers—Lyft faces a critical juncture. Balancing profitability with fair compensation and driver satisfaction will be essential to maintaining its workforce and reputation.
For now, Lyft drivers remain vocal about their frustrations, using platforms like X to demand better pay, transparency, and support. If Lyft is serious about breaking the cycle of enshittification, it must address these concerns head-on, ensuring that its growth doesn’t come at the expense of the very workers who keep the platform running. As @mrlyftdriver put it, “You claim to care about drivers, but your actions tell a different story.” The question remains whether Lyft will listen—and act—before more drivers take their talents elsewhere.
