Lyft introduces cash rewards program for frequent riders with up to 5% back

The new program may appeal to frequent Lyft users who are confident they will use the balance. However, the funds loaded into the Lyft wallet do not earn interest, unlike savings or brokerage accounts. This approach, used by companies like Lyft and Starbucks, benefits the company's finances if customers do not use the services regularly.

For those considering the program, using a credit card that offers bonus rewards for ride-hailing services can help maximize earnings. Options include the Bilt Mastercard and the Chase Sapphire Preferred Card. To earn bonus points with Bilt Rewards, users must set Bilt as their active Lyft loyalty partner and make at least five eligible transactions on the card.

Alternatives such as Uber One may offer better value for some riders. Eligible American Express cardholders, including most Delta SkyMiles cards and the American Express Platinum Card, as well as Apple Card users, receive complimentary Uber One membership for a limited time. Platinum Card members receive ongoing benefits through monthly statement credits, which may make Uber One a compelling option for those who use both ride-hailing platforms or prefer Uber exclusively.

"Lyft Cash Rewards can offer up to 5% back for frequent riders, which is a nice perk for those already committed to the platform. But for occasional riders or those who prefer to keep their funds flexible, the opportunity cost may outweigh the benefit."

Riders are advised to avoid preloading more than they expect to use and to ensure they are stacking rewards with their credit card and Lyft's loyalty partners.