In a notable step toward environmental sustainability, Lyft recently announced that it has achieved its 2025 goal of providing 100 million electric vehicle (EV) rides on its platform. This milestone, reached in September 2025, is part of Lyft’s broader strategy to accelerate America’s transition to electric transportation. These developments have important implications for small business owners, especially those incorporating ridesharing services into their operations or evaluating sustainable transportation options.
As Jeremy Bird, Lyft’s vice president of driver experience, noted, this achievement shows that the company’s efforts to encourage driver use of EVs are paying off. “This milestone proves that our EV incentives, developed in close collaboration with key partners, are working and serving drivers,” he said.
The growing adoption of EVs among drivers stems from several key benefits that can impact small business owners across a variety of sectors. One of the main benefits of being a rideshare driver is financial. Lyft’s partnerships with EV charging providers like EVgo and Electrify America allow drivers to receive charging discounts and significantly reduce operating costs. For example, in 2024, drivers will save approximately $2 million through these discounts, highlighting the potential for increased profitability.
Eduardo, a driver from San Francisco, highlights these savings: «I was wasting too much money on regular gas cars. I thought, ‘I should give an EV a try’ and I ended up loving it. It’s a great car and I feel like I’m saving a lot of money compared to a hybrid or gas car.»
Lyft also offers additional incentives to drivers. In certain states, drivers can receive bonuses if they complete a specified number of EV rides each week. In particular, in California, a region experiencing a surge in EV adoption, drivers received more than $24.3 million in bonuses in 2024 alone. “The bonus, combined with the low cost, basically paid for the car loan itself,” said Paolo Freitas Silva, one of the early adopters of this incentive.
Additionally, Lyft’s collaboration with Wallbox will allow drivers to receive discounts on home charging hardware. This support will help alleviate the upfront costs associated with switching to electric vehicles, making electric vehicles a more viable option for future drivers.
Another important thing for small business owners to consider is that EVs offer benefits beyond cost savings. Drivers reported higher tips (about 20-25%) when using electric vehicles, which can improve overall earnings. EV driver Gary Whitaker noted that his electric vehicle often generates engaging conversation that sparks passenger interest and enriches the ride experience.
But challenges remain for small business owners considering ridesharing partnerships or introducing EVs into their operations. One common concern among potential EV drivers is “range anxiety,” the fear that the vehicle’s charge will not be enough to complete the trip. To solve this problem, Lyft partnered with Smartcar to implement the “Rides in Range” feature. This allows drivers to receive ride requests that fall within the vehicle’s available battery range. Lyft also updated its app to display real-time data from EV charging stations to help drivers effectively plan their routes.
As more and more small business owners evaluate how ridesharing operations can complement their existing services, understanding these dynamics is important. Lyft’s ongoing efforts to increase the percentage of EV mileage (eVMT) on its platform (already growing more than 200% since 2023) signals a trend toward sustainability that many companies may want to join.
As the ridesharing landscape continues to evolve, small business owners must weigh the benefits of adopting an electric vehicle strategy against the challenges they may face. With the support of corporate partners like Lyft, the transition to EVs can deliver not only environmental benefits, but significant economic benefits for those prepared to adapt.
Read the full release to learn more about the specifics of Lyft’s sustainability initiatives and recent accomplishments, including EV ride-hailing incentives. here.
Image via Envato
