Ridesharing apps, together with on demand delivery apps like Postmates or Doordash, are the most popular online platforms among gig workers. The big advantages of working for a ride-hailing app is the opportunity to work as an independent contractor and plan your schedule, work when it is more convenient for you, with minimum driver and vehicle requirements.
Let’s look at the reality of compensation that many Lyft drivers face and compare that to other rideshare drivers.
Lyft drivers get paid per ride, so the more you drive, the more you earn. Obviously a part time driver will not earn the same thing as a full time driver.
Driving for Uber and Lyft, you will not get the minimum wage.Both platforms have periods of time where drivers will earn multiples of their usual fare, based on rider demand (called “surge pricing” or “prime time”).
Driver pay calculation begins when the passenger is in your car and you’ve tapped to pick up in the app. Driver pay includes time spent waiting, starting one minute after you’ve confirmed your arrival. Lyft ride fare includes:
Lyft determines all costs per mile or per minute depending on which city and region in which a ride was requested.
Summarizing, the amount Lyft drivers receive for a ride includes base pay and bonuses, and adjustments. Lyft encourages riders to tip, so you'll make more for providing exceptional service.
The platform can change or end these guarantees at any time. Uber and Lyft earnings are different depending on the markets. Drivers can request a payout at the end of the ride using the cash out option in the driver app.
How much does Lyft pay hourly? Lyft drivers have shared their salaries on Glassdoor. And if your question is does Uber or Lyft pay more, we compared the Lyft pay rate with the Uber pay rate.
You will not be surprised to see that the average lyft driver pay and the average Uber driver pay are exactly the same.
According to 1,754 Lyft drivers: Lyft driver salary is $16/hr which is 30% below the national average.
According to 5,570 Uber drivers: Uber driver salary is $16/hr
When thinking of your Lyft driver income and how much do Lyft drivers make per ride, you must add tips. Indeed Lyft has an in-app tipping system. Before requesting a ride passengers have to enter their payment information in the app.
Lyft accepts all major credit cards (like American Express, Visa, MasterCard, and Discover), debit cards tied to checking accounts, and prepaid cards. Passengers may also use PayPal (for iOS and Android users), Apple Pay, and Android Pay.
The Lyft app has upfront price, Lyft riders paid for time and distance based on their city rate. After a ride, passengers can choose to tip the driver with cash or through the Lyft app (it's easy).
They can also add a tip later in the emailed ride receipt after payment is submitted.
1100% of tips go to drivers that have earned over $200 million in tips. Lyft has also offered an occasional earnings guarantee incentive to new drivers as an incentive to sign up and drive with them.
Are curious about how payments work with the rideshare company? There are two types of pay and for both you don't have to worry about paperwork:
Lyft begins the weekly payment process on Tuesdays. This means that any trip taken on Tuesday will appear in the following week's earnings statement. It may take a few days before you see the deposit in your account.
If you need money sooner you can use Express Pay. There are only two prerequisites:
The coast for this service is $.50
You can update the Lyft payment info directly from the app. Follow our step by step tutorial:
To obtain an estimate of how much you make driving for Lyft and calculate the average Lyft driver salary, you should know that Lydt doesn't withhold taxes from your payments. As an independent contractor, you should pay taxes.
You may owe quarterly taxes for your Lyft earnings. Here are estimated quarterly deadlines:
When to pay estimated tax
Payment period January 1 – March 31
Due Date: April 15
Payment period April 1 – May 31
Due Date: June 15
Payment period June 1 – August 31
Due date: September 15
Payment period September 1 – December 31
Due date: January 15 of the following year
You can learn more on the IRS website .
In addition, in December Lyft will provide drivers with all the tax documents necessary including a 1099-K and/or 1099-MISC.
Drivers using the driver app are charged the Lyft driver Fee as a percentage of each trip fare. In general, the Lyft driver fee is lower than Uber driver fee.
Lyft operates 24 hours a day, however to keep the community safe, you must take a full, uninterrupted 6-hour break for every 12 hours you're in driver mode. These 12 hours in driver mode do not have to be consecutive.
You are a business, strategic rideshare driver. You need to take advantage of the program Lyft has built to help you earn more.
How much you can make per ride depends on your ability to get all the Lyft driver promotions. It is important that you know everything can improve your Lyft driver earnings. We suggest you take a look at our complete guide to make mode driving with Lyft.
Basically Lyft offers the following promotions available in the Lyft driver app:
During qualifying hours, drive within the purple border, accept rides in this zone. You'll get paid more for every ride in your power zone.
No, Power Zones are not available in all the cities. Lyft will email you if they will launch in your city.
View the current week’s schedule with all applicable hours and zones by tapping on the ‘Earnings’ tab in the In-app Driver Console. You can also view zones and times from Driver Dashboard in the ‘Bonus Zones’ section.
Power Bonus helps drivers make more each week. Power Driver Bonus resets weekly. There are different levels of the Power Driver Bonus: Depending on how many rides you give, you can earn 10% or 20% more each week. The requirements for the Power Bonus are:
You can usually count on high demand during:
For the Busy areas you can check the Power Zones or drive close to:
Auto insurance isn’t a fixed cost; there are things you can do both today and over time that will lower your auto insurance premiums. You may need car insurance, but you do not need to pay more than you have to!
There are a lot of reasons to work for a Delivery Company. It's a good way to increase your earnings. The sign-up bonus is the first good reason!
Our Delivery team provide for you all the resources, information, tutorials and referrals that you need to start your new job.
Lyft support team is available 24 hours a day, 7 days a week. Sometimes due to high volume our response times are longer. To help Lyft assist you faster please avoid submitting multiple requests.
There are many gig economy jobs you can start doing to make money right now. Working as Lyft Driver is a good making money opportunity. Earn extra income in your spare time and get paid daily. After you've signed up as a lyft driver, learn how to maximize your earnings and work as delivery driver when rideshare is slow.
Set up your Lyft Account and start to earn money