Due to its growth, the sector is becoming a hotspot for people looking to diversify their income. Even young adults can work part-time with ridesharing companies to earn money. Each company has its regulations and requirements.
Lyft is a major stakeholder in the American ridesharing community. It is also an excellent place to start earning some extra coins to offset your bills. To learn more about making money with Lyft, here is a review for you.
Lyft is a ridesharing platform. It connects commuters to drivers willing to transport them from one place to another. It grew from a small company in San Francisco to the second-largest ridesharing service in the US.
So far, Lyft has held its share of the market share and avoided controversial mishaps over time. You can rarely find Lyft on the news with disputes between drivers and customers.
Numbers at Lyft also speak volumes. In 2019 alone, Lyft drivers transported more than 22.9 million customers. With a community of more than 2 million drivers across 300 cities in the US and Canada, Lyft is not slowing down.
Statista says that by the first quota in 2021, Lift had over 13.5 million active riders. The revenues hit $45.4 for every active rider, earning $568.8 million.
You can be part of this community by signing up to be a driver.
All drivers at Lyft must meet specific criteria to drive on the platform. These requirements vary with state or city.
These requirements include:
- Age -Drivers at Lyft have to be in the range of 2125 years
- Vehicle standards- to become a driver with Lyft, you must have a vehicle with 4 doors and at least 5 seatbelts. You can request a rental car from Lyft if you do not own one. Taxis and stretch limos are not acceptable.
- Driving history-one-year driving experience to drive in states like California, Hawaii, and Minnesota. The same goes for Massachusetts, Pennsylvania, Washington, Vermont, and Illinois.
- Background check- Lyft conducts a thorough background check on its drivers. You must be clear from ant criminal record and not listed on the national sex offender registry.
- DMV Check- You get a disqualification if you have 4 or more moving violations. The same goes for a single major moving violation, a DUI, or a driving-related conviction.
- License and insurance- Drivers must have a current and valid driver’s license. A registered plate and insurance are compulsory.
- Community safety education- Lyft drivers complete the community safety education program. This helps them deal with the challenge of creating safe and comfortable rides.
How to make money with Lyft
You can start earning money with Lyft in a few simple steps.
- Sign up to be a driver with Lyft by visiting their website
- Fill out the required fields
- Schedule a vehicle inspection
- Await your background check results
- Create a driver profile
When you get the green light:
- Sign into your driver profile
- Review incoming requests
- Accept the ride and turn on the Lyft emblem
- Pick up the passenger
- Finish your ride and issue the amount
You then proceed to schedule a payment plan with Lyft. It could be weekly or express pay. The amount of time taken to process your payment will depend on the bank you use. In short:
- Customers make ride requests
- You pick them up
- Drop them off at their address
- Earn money
Cost of Driving with Lyft
You will incur some extra expenses when you drive with Lyft. If not careful, you may end up paying for them with your profits. The expected costs you incur when working with Lyft include:
- Lyft fees- Lyft does not charge a flat-rate commission on the driver’s pay. Instead, it charges part of the ride payment for its expenses. These Lyft platform fees are variable, depending on the region.
- Income taxes- You pay income taxes since you are a self-employed citizen. You should set aside part of your earnings to cover your taxes. Set aside 25% of your income for this expense.
- Gas- Lyft does not offer extra compensation for gas money. You have to fuel your vehicle with your income.
- Parking and toll road fees- If you incur any toll expenses or parking fees, you have to pay from your pocket. But, you can file for these with Lyft and get reimbursements
- Maintenance- You are responsible for regular vehicle maintenance. This includes the cost of keeping your vehicle clean and odourless.
- Miscellaneous- Sometimes, you provide phone chargers, water, snacks, and tissues to passengers. Lyft is not responsible for these accessories, and you pay for them from your income
Lyft Driver Pay
The gig economy is taking over. Lyft presents an excellent opportunity for drivers to earn money. You can drive your car or get one from Lyft, and you can start increasing your income base today.
Lyft driver pay consists of four things:
- Time- Drivers earn for every minute they spend on the road. The income may differ depending on the city’s hourly rates.
- Distance- you also earn per mile, based on the city’s per-mile rate
- Tips- If you receive tips for excellent customer service, you keep 100% of the money
- Bonuses- Drivers also earn rewards by working during busy times and locations
You can visit Driver Pay to find out more about the income breakdown at Lyft.
How much do Lyft drivers make?
Driving is a lucrative side-hustle that many people use to boost their income. Working with Lyft is an advantage because they have high hourly rates.
The amount differs depending on the city you are in. Different regions also have different income levels. The amount you earn depends on the 4 factors mentioned above.
For instance, a driver in Denver will make $20 per hour, while one in New York will get $28 per hour. When you consider working for 6 hours a day, you can earn $160-$168 per day.
The more the rides, the more you earn. You can also take advantage of different techniques to increase your income.
How to make more than average using Lyft
One of the sweet deals you get when you join Lyft is a sign-on bonus. The downside is that it is a one-time payout. That does not mean you can only settle for the average pay.
When you are a driver with Lyft, you can find alternative ways to make money. The sign-in bonus is the start.
If you want to earn more than average, below are some tips for you:
1. Drive in the city
It goes without saying that city rides will cost more than suburban rides. Also, you get a whole pool of clients in the city, which means moving from one job to another fast.
More so, rides in the city are short distances. So, your vehicle remains in good condition, and you spend less on gas.
2. Choose peak working hours
Prime time pricing is one way to increase your income. By driving during peak hours, you charge a higher hourly rate. This means increased earnings.
Passengers pay a little more to commute, while drivers earn more. Morning and evening rush hours from 6.00 am to 9.00 am and from 5.00 pm to 7.00 pm, in most cities.
Prime time pricing kicks in when you drive on the weekends or late at night.
3. Claim more promotions
Lyft offers its drivers weekly and hourly guarantees. This means you have a specific amount you get to pocket when you complete a certain number of rides. Of course, there is a timeframe to it.
If you find these promotions, jump on them. You can get $200 for completing 20 rides between Friday morning and Monday morning. So, if your earnings are short of $200 after completing the 20 rides, Lyft tops up the rest.
You can also take part in the ride challenges. You receive an extra $25 for finishing 10 rides in a day within a certain period.
4. Always share your referral code
Lyft is not a multi-level marketing platform. But, you can improve your earnings through affiliate marketing. You earn a bonus whenever new driver signs in with your referral code.
If you have an extensive network of drivers looking to join Lyft, you can make some good money.
5. Keep your driver rating high
Customers pick the highest-rated driver. If you maintain high ratings, you become a first-choice driver and get customers.
Happy customers tend to tip more. Show up on time, know your routes and be polite. That is what you need to earn 5-star ratings.
6. Choose a good insurance policy
Insurance costs can take a massive chunk of your income. If you do not want this to be the case, you can shift your cover from a general one to a rideshare insurance plan.
If that is expensive, you can opt for a pay-per-mile insurance plan. So, rather than paying a constant monthly rate, you pay depending on how much you drive.
7. Increase your tips
Creating a good ride experience attracts tips from customers. A driver offering snacks with a good attitude will more likely earn a tip from the passenger.
You can provide some bottled water or snacks for your passengers. Lyft policy allows for in-app tipping. So, you can earn tips, even with online payment.
One of the methods proven to increase income is diversifying services. You can sign up for Uber and Lyft at the same time. When you have no rides on Lyft, you can service customers under Uber.
You can also sign up for delivery services to keep you busy with no ride requests.
Lyft Driver Review Pros and Cons
- All Lyft drivers get a third-party liability insurance cover of up to $1,000,000
- Drivers enjoy flexible working hours, so you can set your work at peak hours to maximize your income
- You can earn in three different ways-driving, tips, and bonuses
- Reliable earning that you can withdraw anytime
- Instant payment if you have the Lyft debit card
- The minimum age is high, at 25 in some states
- No reimbursement on vehicle expenses such as maintenance, repairs, and fuel
How to save when driving with Lyft
Lyft Direct is a reward program for drivers with Lyft. Upon signing up, drivers get a free MasterCard debit card. With the Lyft card, drivers get discounts and cashback offers from participating partners.
For instance, drivers get:
- 1% cash back for shopping with the Lyft debit card at select stores
- 1% cashback on fuel when you pay with the Lyft debit card. This applies to up to $100 from participating Fuelman network gas stations
- Discounts on vehicle services from partner service retailers. These partners include National Tire and Service Center, or Jiffy Lube
Any means you get to earn extra cash legally is good. You can pay your bills and have enough to spare. The gig economy is making this possible through platforms like Lyft. Lyft is a ridesharing platform that you can use to earn money.
Driving is now a top side-hustle consideration. It could be to make use of the extra 4 hours in your schedule or work full-time; Lyft is the place to be.
You get high pay rates between $20 and $28 per hour. You also choose your work schedule, making it a flexible employment opportunity.
One thing you will love about Lyft is the per-ride commission charges. Rather than taking a fixed percentage of the driver’s ride amount, drivers pay variable amounts. The amount depends on the region or city you are driving in.
Also, Lyft is a better choice because they offer you insurance and training to keep you safe on the road. Payment is also quick. If you have a Lyft debit card, you can enjoy some crazy discounts and cashback offers.
But, Lyft fails in its reimbursement. Drivers have to cater for most of their expenses. Drivers only get a refund on parking and toll fees.
Alternatives to Lyft
The ridesharing market in the US has 2 leading players. Lyft makes up 31% of the market. Uber makes up 68%. This means it is an excellent alternative to Lyft. Uber is an open peer-to-peer sharing platform like Lyft.
You can also ride with Postmates. This is a platform for delivering food and groceries. Instacart is like Postmates but an excellent alternative to Lyft. Check out other business opportunities that might be a good fit for you.