Over the last few years, there has been an ever-increasing interest in driving with Lyft. It’s a quick way to earn extra money and drive on your own schedule, that’s for sure, and this combination of easy money, minimal startup costs, and easy accessibility has driven many to drive for the Lyft platform. But how much can drivers really make?
Here’s what we’ll cover:
- How Lyft pays drivers
- How much do Lyft drivers make?
- Lyft income calculator
- Numbers according to Lyft
- Driver earnings breakdown
- Lyft pay reviews
- Common driver expenses
I’m pretty excited about what we’ve discovered, so let’s jump right in.
While it’s understandable to ask questions about Lyft salaries, it’s important to understand that Lyft does not pay its drivers a salary. In fact, Lyft doesn’t even pay drivers an hourly rate or even minimum wage per se.
This is because Lyft drivers are independent contractors. They get paid a percentage of the fare that passengers pay when they take a Lyft ride. In addition to this, Lyft drivers also get to keep all tips they receive from passengers, as well as the occasional earnings guarantee incentive that Lyft will offer as an incentive to get drivers to put in hours during times of high demand.
How Much Do Lyft Drivers Make?[su_spacer size=”10″] [su_youtube url=”https://youtu.be/W6iK7U6utJM” width=”560″ height=”320″] [su_spacer size=”10″]
In our 2018 Ridester Independent Drivers’ Earnings Survey, we polled over 2,600 drivers and found drivers averaging around $17.50 per hour – around $2 per hour more than Uber drivers.
These survey results contrast with earning data from Certify, which found that Uber drivers make an average of $25.73 per hour.
Earnest, a lending company, reports median earnings of Lyft drivers at $210 per month, compared to $155 per month for Uber drivers.
Lyft and Uber earnings for drivers fall at approximately the same national average per month, but Lyft drivers earn more in tips. Interestingly, the drivers who work on both platforms earn more on Uber.
Related: How Much Do Uber Drivers Make?
Here’s the full list of average and median incomes for various gig economy workers, as reported by the Earnest study:[su_table]
This study also looked at how many drivers fall into the different income categories:
The graph above indicates that the majority of Lyft drivers either earned $0–$99 per month or $100–$500 per month. The study also reported that Lyft drivers were higher paid, higher rated, and tended to be more satisfied than drivers of similar rideshare companies.
Lyft Income Calculator
What Can Drivers Expect to Make (Numbers according to Lyft)
Lyft breaks down driver work stages into these 3 periods:
- Period 1 — Driver signs into the app
- Period 2 — Accepts a ride request
- Period 3 — Drives passengers to their destination
During Period 2 and 3, Lyft reports median earnings to be $29.47 an hour nationally and $31.18 an hour in their top 25 city markets.
In Period 1, the driver might be online but not driving customers. This waiting will drive down average wages, as it is time spent working with no clientele. The amount that it affects wages is highly variable — some days can be slow, others extremely busy with almost no downtime.
Lyft reports that the hourly earning estimate that includes all 3 periods is $18.83 an hour nationally and $21.08 an hour in their top 25 markets.
But expenses should be taken into account, too. Rideshare drivers incur many while driving, but typically these come out tovbe $3–$5 an hour. However, this can vary based on your market.
In more expensive cities such as Washington, D.C., Boston, or Seattle, for instance, your expenses could be higher (especially if gas is expensive). However, more expensive cities tend to come with higher base pay, which generally offsets the higher operating costs.
How Much Do Lyft Drivers Make? [Driver Video Testimonial]
Let’s look at a real-world example of what an active Lyft driver is actually earning. The creator of this video runs a well-known YouTube channel called RideShare Tips.
A few things to note about the driver before watching the video:
- He is a part-time driver only
- He works in Los Angeles, which is one of the higher-paying cities for rideshare driving
Take a look:
[su_youtube url=”https://www.youtube.com/watch?v=LdgrhrOy_Xc” width=”560″ height=”320″]
From this video, we learn that Lyft earnings are affected by the following:
- Lyft ride rates tend to be higher than Uber’s
- Lyft takes a smaller commission than Uber
- Hidden costs like vehicle maintenance, insurance costs, vehicle depreciation, and fuel also eat up part of the earnings, and these costs are particularly higher for Uber drivers
Lyft Pay Reviews
A Google quick search on “How much do Lyft drivers make?” will display results of people dissatisfied with driving with Lyft. Some claim that it is an unreliable source of income and that driving with Lyft incurs high vehicle maintenance costs.
This is true.
On the other hand, working for Lyft offer drivers flexibility as to when to drive and offers weekly guarantees on earnings. Taking part in power driver bonuses and driving while surge pricing applies can boost driver earnings.
Here’s what one of the most experienced rideshare drivers in the industry has to say about making the most out of Lyft:
In summary: Driving for Uber and Lyft provides drivers with more money up front, but the high cost of car maintenance and other expenses will hit drivers later on.
There are also other things that tend to drive down driver earnings, like the time spent waiting around, which happens mostly in smaller cities.
The earnings also vary per state. Lyft drivers in cities like Los Angeles and New York may possibly earn closer to the maximum hourly rate of around $35 compared to drivers in places like Sanford, Florida and Plano, Texas.
It’s All About Putting In the Time
At the end of the day, Lyft driver earnings boil down to how drivers manage their time. Full-time earnings (driving from 45 to 50 hours a week) can reach around $800 per week with Lyft, after expenses. However, you have to be willing to put in the hours to reach those numbers.
If you’re just driving with Lyft part-time, then you shouldn’t expect your earnings to be quite so high, especially if you’re not driving during times of high demand when surge pricing can kick in and help you boost your income further.
Ready to start driving? Learn how to become a Lyft driver today!
How much do you make as a Lyft driver? Can you offer any advice to potential drivers, or other existing drivers on the road to increase Lyft driver income? Let us know by leaving a comment below!