How Much Can I Make as a Lyft Driver

As of 2019, Lyft has more than 1.4 million drivers. If yous're thinking nearly calculation to that number, you're probably wondering, how much do Lyft drivers make?

On average, Lyft estimates that its own drivers make $eighteen.83 per hour. Still, since Lyft drivers aren't salaried employees, you aren't guaranteed to earn that much. In most markets, you're not fifty-fifty guaranteed to brand at least minimum wage since Lyft classifies its drivers equally independent contractors, and minimum wage laws don't employ.

Boilerplate Lyft Commuter Earnings

Total-Fourth dimension Lyft Driver Earnings

Employment sites often collect salary information directly from employees to provide estimates to the public. Co-ordinate to Glassdoor.com, Lyft Drivers earn an boilerplate of $34,442 per year based on 106 salaries reported. Indeed.com reports slightly lower average yearly earnings of $28,997 based on 62 salaries reported. Another employment site, Salary.com, reports college average annual earnings of $36,203 with a typical range of $30,103 to $44,203 per year.

The sites practice not specify if this is before or later bookkeeping for expenses.

Lyft Commuter Hourly Earnings

In 2018, Lyft published its own median earnings judge for Lyft drivers. Lyft's estimate varies based on what you count every bit "working time."

When a commuter is online waiting for requests, driving toward a rider, and driving a passenger:

• Median earnings of $18.83/hour nationally
• Median earnings of $21.08/hour in the elevation 25 markets

When a driver is driving toward a passenger and driving a rider:

• Median earnings of $29.47/60 minutes nationally
• Median earnings of $31.13/hour in the height 25 markets

Hourly earnings aren't the same as net earnings. Lyft suggests estimating $iii to $five per hr for expenses.

A popular rideshare website, therideshareguy.com, surveyed 60,000+ rideshare drivers in 2019, receiving ane,000 total responses. Surveyed Lyft drivers reported earning $17.fifty per hour before expenses. This hourly wage includes fourth dimension spent waiting for requests, picking upwards passengers, and driving passengers.

Lyft Driver Tips & Bonuses

Based on 106 salaries reported, Glassdoor plant that Lyft drivers earn the following:

• Average of $820 per yr in bonuses with a reported range of $53 to $3,000
• Boilerplate of $695 per twelvemonth in tips with a reported range of $254 to $3,000

Of course, tips vary significantly. Drivers who offer civilities, care for passengers well, and drive well accept an easier fourth dimension earning tips. In 2019, a study from the National Bureau of Economic Research surveyed riders nigh their tipping habits. The study only surveyed Uber riders, just it'south likely a like blueprint extends to Lyft drivers as well since both companies allow riders to tip in cash or within the app. Information showed that effectually threescore percent of Uber riders never tip. Of those who do tip, the average tip is $3.

Means Lyft Drivers Make Money

At present, let's have a expect at how Lyft drivers make coin.

Fares

Lyft ride fare includes:

• Base of operations fare: the toll of getting into the car
• Cost per mile: rate based on the city where the ride starts
• Cost per minute: rate based on the region where the ride starts

The clock starts running one minute afterwards you've confirmed your inflow to pick up the passenger or immediately afterwards you tapped to pick in the app.

A rate carte, which you can view in your driver business relationship, shows the pay per minute and per mile based on the region or subregion you're in. Large, decorated cities tend to pay more per minute and per mile.

Tips

Riders can tip Lyft drivers in the app as a thank-y'all for excellent service or a clean car. Riders tin besides choose to give their driver a cash tip. Drivers always go along 100% of tips.

Bonuses & Promotions

Lyft offers different bonuses during decorated times and in busy locations. Bonuses incentivize drivers to drive more in general or to drive more during a decorated fourth dimension.

At the beginning of the week, Lyft drivers tin can see scheduled bonuses in the app and programme their driving time accordingly. Bonuses are added to the app on Monday at 5 AM if any are available that week. Lyft too offers existent-time bonuses that popular upwardly in the app if there'south high need.

Specific types of bonuses Lyft offers at dissimilar times include:

• Personal Ability Zones: a unmarried-ride bonus that might appear when you're in an area with more passengers than bachelor drivers
• Ride Streak: multiple-ride bonuses for accepting back-to-back rides during decorated times like commute hours or holidays
• Earnings Guarantee: a guarantee that you will earn a ready amount for completing a certain number of rides in a given corporeality of time; details added to the app on Mondays
• Ride Challenges: multiple-ride bonus when you complete a set up number of rides within a given timeframe; appear in the app every Monday

Rider Cancellation Fees

Lyft drivers earn a cancellation fee when the rider cancels outside of the cancellation window. To earn the fee, the commuter must be on their manner to the pickup location and on runway to arrive on time. How much you earn depends on the area. According to Ridester, the counterfoil fee is unremarkably $10, but drivers don't receive the full $10.

Passenger No-Show Fees

Lyft drivers besides earn a passenger no-show fee when they go far at the pickup location and the passenger isn't there. To qualify for a no-show fee, drivers must:

• Tap to arrive at the pickup location in the app
• Look for the timer to countdown to 0:00 without leaving the pickup spot
• Reach out to the passenger or respond if the passenger contacts you
• Tap "Passenger is a no-bear witness" and so "Confirm no-show" in the app

No-prove fees vary by region.

How Much Does Lyft Take From Your Pay?

Lyft used to have a fixed percent cutting from each fare. At present, the company pays drivers a fixed per-mile and per-minute rate based on the area. How much Lyft takes per fare varies significantly. An analysis of 2022 rideshare data reported in Forbes showed an average have-rate of 27%.  However, some drivers online merits that Lyft can earn as much as xl% of a rider'southward fees per ride.

As the driver, you'll know ahead of time how much y'all can await to make when you have a ride. Plus, drivers continue 100% of tips and bonuses.

What Affects How Much Y'all Tin can Earn past Driving for Lyft?

Lyft drivers don't automatically make the estimated $eighteen.83 per hour. How much you lot earn depends on the following:

How Many Miles You lot Drive

Lyft drivers earn a per-mile rate. The more miles you drive, the more you'll earn.

How Many Minutes You Drive

Lyft drivers too earn a per-minute rate. The longer you drive, the more than you lot'll earn.

Where You're Driving

Lyft publishes rate cards for every serviced region. Rate cards determine how much you go paid per mile and per minute. In general, drivers working in larger cities can expect to earn more than per ride.

This is especially true for drivers in New York Urban center and Seattle. In 2018, New York City passed ride-hail regulations that created a pay flooring for drivers working for ridesharing companies, similar Lyft and Uber. It requires rideshare companies to pay drivers at least minimum wage, which is set at $17.22 internet per 60 minutes or $27.86 per hour before expenses.

In 2020, Seattle established a similar police that will take effect in 2021. Lyft must pay drivers at least $16.39 per hour.

When You're Driving

Drivers who drive when promotions are active can earn bonuses that heave their pay. Lyft schedules some bonus periods at the first of the week, and others pop upwardly in the app depending on rider demand and driver availability. Some riders plan their driving schedule effectually bonuses to increase their earnings. Drivers proceed 100% of bonuses.

What Service Tier You Drive

Lyft offers luxury service tiers in select cities. Drivers with newer high-stop cars who maintain a driver rating of at least 4.85 can work in the college-paying tiers.

• Lyft Lux: High-end vehicles with three seats
• Lux Blackness: Premium black automobile service but for drivers with luxurious makes and models
• Lux Black 40: Premium black SUV service for parties of upwards to 5 passengers

Drivers who participate in the Lyft Lux service tiers earn more than than drivers who only give Lyft rides.

Tips

Drivers keep 100% of all tips, so tips play a large role in boosting your earnings. Drivers can increase tips by beingness more personable with passengers, offer in-car amenities, and being an excellent driver.

What are Some Common Expenses for Lyft Drivers?

Lyft drivers incur many expenses while driving, which aren't reimbursed by Lyft. It's estimated that driver expenses are $3 to $five per hour. Lyft drivers must business relationship for the following expenses when determining how much they'll earn.

Vehicle Maintenance

Driving for Lyft puts more miles on your vehicle. You'll need to modify the oil, other fluids, and tires more often than if you simply use your vehicle for personal use.

Auto Payment

Lyft drivers who don't ain their machine volition need to business relationship for their car lease or motorcar loan payments. According to Experian, the average monthly payment for a new car loan is $568. The boilerplate monthly payment for a used car loan is $397.

Some total-time rideshare drivers rent cars weekly instead of using their personal vehicle considering it'south more cost-constructive for them.

Car Insurance

Lyft drivers must have a personal auto insurance policy that meets minimum land coverage requirements. Lyft also provides drivers with some coverage while they're on the clock.

When you're waiting for a ride, Lyft gives drivers third-party liability insurance for covered accidents. When yous're picking up or driving a passenger, Lyft provides 3rd-party auto liability insurance, uninsured/underinsured motorist actual injury insurance, and contingent comprehensive and collision insurance up to the actual greenbacks value of the auto with a $ii,500 deductible. See the details here.

Some drivers decide to buy rideshare insurance, which can fill the gaps between your personal policy and the coverage provided past Lyft, especially since Lyft has a high deductible. Speak with your current machine insurance provider to run across if you demand a rideshare insurance policy or rideshare endorsement.

The toll varies significantly. Yous tin can find quotes as low as an extra $fifteen to $20 per year on meridian of your personal automobile insurance policy or as loftier equally 20% more your personal policy. Rideshare insurance policies are often tax-deductible.

Gas

Lyft drivers are not reimbursed for gas expenses. Drivers tin either claim gas expenses by using the standard mileage deduction or past deducting the bodily cost of gas. This lowers your taxable income, simply it doesn't put the money spent on gas back in your pocket.

In-Machine Amenities

Some Lyft drivers offer in-car amenities like telephone chargers to use, water bottles, tissues, mitt sanitizer, mints, etc. You don't have to offer civilities, simply offering a proficient rider experience tin can help boost your ratings and tips.

Drivers can claim in-car amenities as a business organization expense exterior of the standard mileage deduction.

Wellness Insurance

Lyft doesn't offer health insurance to its part-time or total-time drivers. If you want wellness insurance, you'll need to purchase your own program. Lyft drivers can apply the website, Stride Health, to find an affordable plan, only Lyft doesn't contribute to the cost. Drivers can besides shop around for wellness insurance.

According to Pace Health, the average Footstep Health member, which includes Lyft drivers, pays $150 per calendar month for wellness insurance.

What Taxes Do Lyft Drivers Need to Pay?

Virtually Lyft drivers need to pay quarterly estimated taxes and self-employment taxes. For specific taxation advice about becoming a Lyft driver, consult a tax professional person in your area.

Quarterly Estimated Tax Payments

Lyft doesn't withhold taxes from your pay similar a regular employer considering as a Lyft driver, you're an contained contractor. Y'all're responsible for tracking your income, your expenses, and your federal, country, and local tax liability. This includes making quarterly tax payments or estimated tax payments. Whether you must pay quarterly estimated tax payments depend on how much yous expect to earn during the year.

Thankfully, you won't have to pay taxes on everything yous withdraw from your Lyft account. Lyft drivers can merits all of their concern expenses to reduce their overall taxable income. You can have the standard mileage deduction, which in 2020, is 57.5 cents, or claim the actual corporeality spent.

If you cull to claim the actual price of being a Lyft driver, you can deduct the price of gas, repairs, depreciation, charter expenses, and other car-related expenses. Drivers tin can also merits in-car amenities made bachelor to riders—similar water bottles or a tablet used exclusively for passenger entertainment—on top of the standard mileage deduction.

Self-Employment Taxes

Lyft drivers also need to pay self-employment taxes, which consist of your Social Security and Medicare taxes. For traditional employees, the employer pays half of the tax liability. Contained contractors must pay the full amount, which equals 15.three%. You can deduct the employer portion (7.65%) from your taxes.

Is Becoming a Lyft Driver Worth Information technology?

Driving for Lyft comes with many perks y'all won't get with a traditional 9 to 5 job. Lyft drivers can work whenever they want to, which can make taking time off and spending time with family easier. Many drivers enjoy the liberty of being their own dominate and meeting new people as well.

The principal downside of driving for Lyft is that drivers only earn money for hours spent working with no benefits like paid time off, health insurance, matching retirement contributions, or paid sick days. Plus, drivers incur many expenses similar gas, rideshare insurance, and car maintenance.

Since Lyft earnings vary significantly based on where y'all live and what expenses you'll incur, do the post-obit before signing up:

• Research boilerplate Lyft earnings and rates in your surface area; Sites like Reddit or rideshare forums can aid
• Estimate your per-mile or per-60 minutes expenses
• Talk to a tax professional nigh Lyft driver tax deductions and self-employment taxes
• Research the toll of wellness insurance and other benefits you want
• Compare your estimated earnings to what you could make from another chore or side hustle

For many Lyft drivers, the flexibility that comes along with driving for Lyft outweighs the potential downsides and makes the pay worth it.

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Source: https://www.studentdebtrelief.us/side-hustle/how-much-do-lyft-drivers-make/

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