In a notable step towards environmental sustainability, Lyft recently announced that it has achieved a target set for 2025: delivering 100 million electric vehicle (EV) rides on its platform. This milestone, reached in September 2025, is part of Lyft’s broader strategy to facilitate America’s transition to electric transportation. For small business owners, particularly those considering incorporating rideshare services into their operations or evaluating sustainable transport options, this development holds significant implications.

As Jeremy Bird, Lyft’s Executive Vice President of Driver Experience, noted, this achievement demonstrates that the company’s efforts to encourage EV use among drivers are yielding results. “This milestone proves that our EV incentives, developed in close collaboration with key partners, are working — and they’re serving drivers,” he stated.

The rise in EV adoption among drivers stems from several key advantages, which could impact small business owners in various sectors. For rideshare drivers, one of the primary benefits is financial. Lyft’s partnerships with EV charging providers like EVgo and Electrify America have enabled drivers to access charging discounts, significantly reducing operating costs. In 2024, for example, drivers saved approximately $2 million through these discounts, underscoring the potential for increased profitability.

Eduardo, a driver in San Francisco, emphasizes these savings: “I was wasting so much money on a regular gas car. I said to myself, ‘I’m going to give EVs a try,’ and I ended up loving it. They’re really nice cars, and I feel like I’m saving a lot of money compared to hybrids and gas cars.”

Lyft also offers additional incentives for drivers. In certain states, drivers can earn bonuses for completing a specified number of EV rides weekly. Notably, in California, a region where EV adoption is surging, drivers earned over $24.3 million in bonuses in 2024 alone. “The bonus, combined with how cheap it was to charge, basically paid my car loan by itself,” shared Paolo Freitas Silva, one of the early adopters of this incentive.

Moreover, Lyft’s collaboration with Wallbox allows drivers to access discounts on home-charging hardware. This support helps mitigate the upfront costs associated with transitioning to electric vehicles, making them a more feasible option for prospective drivers.

Another significant consideration for small business owners is the advantages that EVs provide beyond just cost savings. Drivers have reported higher tips—by approximately 20% to 25%—when using electric vehicles, which can enhance overall earnings. Gary Whitaker, an EV driver, noted that his electric vehicle often piques the interest of passengers, creating engaging conversations that enrich the ride experience.

However, challenges remain for small business owners considering rideshare partnerships or introducing EVs into their operations. One common concern among potential EV drivers is “range anxiety,” the fear that a vehicle won’t have enough charge to complete a journey. To combat this, Lyft has implemented the “Rides in Range” feature in collaboration with Smartcar. This ensures drivers receive ride requests that fall within their vehicle’s available battery range. Additionally, Lyft has updated its app to display real-time data from EV charging stations, aiding drivers in planning their routes effectively.

As more small business owners evaluate how rideshare operations could complement their existing services, understanding these dynamics is crucial. The ongoing commitment from Lyft to increase the percentage of EV miles (eVMT) on its platform—which has already grown over 200% since 2023—indicates a trend toward sustainability that many businesses may want to align with.

As the rideshare landscape continues to evolve, small business owners must weigh the benefits of adopting electric vehicle strategies against the challenges they may encounter. With the backing of corporate partners like Lyft, the shift towards EVs could present not just environmental benefits but also substantial economic advantages for those ready to adapt.

For more on Lyft’s sustainability initiatives and the specifics of their recent achievement, including their EV ride incentives, you can read the full release here.

Image via Envato

This article, “Lyft Hits 100 Million EV Rides Milestone, Boosting Driver Benefits” was first published on Small Business Trends