Is Becoming A Lyft Driver Worth It?

Updated: March 18, 2019

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Trying to decide if becoming a Lyft driver is worth? This guide will help you determine if being a Lyft driver is worth your time.

Lyft is a ride-sharing app and transport company founded in 2012. Currently, it is only available in the U.S and Canada.

The Lyft payment structure is split between the driver payout and the profit sharing with the company. If you like driving and have some spare time, being a Lyft driver could be something you can look into.

Click here to fill out the Lyft application.

The most important question you might have in your mind is “Is Lyft worth it?”

Here’s what you need to know in order to decide if becoming a Lyft driver is for you:

Becoming A Lyft Driver Requirements

In order to become a Lyft driver, you need to be at least 21 years old.

You also need to have an active driver’s license for at least a year.

You are be required to have a smartphone since that’s where you need to download the Lyft app.

When it comes to your vehicle, it needs to be at least from a 2005 year model or newer. It should be able to fit at least 5 passengers. The vehicle must also have insurance coverage.

Before being accepted, you need to pass a personal background check. This process takes 3 to 10 days.

You can check out more specifics on their website.

What’s great about the Lyft driver application process is that everything can be done through the app or the website. You can apply right from home in your pajamas.

You can also try to be a passenger first with Lyft so that you can experience first hand how it is, and how you can improve when you are the one driving for Lyft yourself.

Can you make money with Lyft?

For starters, you can earn a sign-up bonus and earn up to $1,000. The more you drive, the more you can earn money.

Average Lyft Driver Pay

You can earn around $18.33 per hour on the average, but at times, you can earn much more.

Average hourly earnings for someone in a big city could be around $21.08 in an hour.

However, when you factor in tips and working at peak hours some report making up to $35 an hour.

It varies base on prime times, power zones, areas, what day it is, etc.

During the weekends and other busy times, you generally earn more as well – around the range of $150-$200.

There is also an online calculator that you can use to estimate how much you can earn in a year or in a day.

You just need to enter your location, number of hours you’ll work, number of trips, average trip distance, and average trip duration.

There is also an expense portion where you can enter in your car payment, insurance, other car expenses, meals while working, gasoline, phone plan, and other extra costs.

Getting an estimate of what your earnings might be can give you a better idea and a sort of assurance if it can work for you or if you feel it is worth it.

In order to get more money and make the most out of driving for Lyft, you can also try to minimize your expenses and optimizing your taxes. Aside from this, you can also try to take advantage of surge pricing during peak hours so that you can earn as much as three times your average fare.

Setting your schedule

By structuring your schedule where you drive during busy times can help you maximize your earnings. This depends if you have a flexible schedule, or if there are only specific times that you can be a driver for Lyft. If you to choose to do night driving and have a nighttime schedule, you may earn more.

Of course, there are downsides of working at night like safety issues, drunk people, and others. If you don’t feel comfortable with this at all, then you can stick with the day time schedule.

A busy period to drive is during the weekends in the mornings. If you have free time and want to earn the most, you can drive around 8 am to 12 pm during the weekends.

Lyft can also help you with setting up your schedule by providing you power zone schedules that you can use to make the most earnings.

Customer ratings

Your earnings depend a lot on how your customers or passengers will rate you. Your reviews will be displayed in your driver’s portfolio so it is essential that you have a good record so that you can earn more. If you have lower ratings, you generally have lesser requests as well.

Here are some tips so that you can get a 5-star review as a Lyft driver:

Do your research

Make sure you know the roads that you are driving in so that you can get your passengers at their destination, in the most efficient way you can. Doing this will help you earn good ratings as well which is always a good point towards your goal of increasing your earnings.

Confirm the end destination

Just to be sure, confirm where your passenger wants to go so that you don’t waste time and money.

Be friendly

In this line of work, you need to do a bit of socializing so you can come off as friendly, nice, and accommodating. Be polite and greet your passengers. Thank them at the end of the trip as well.

If you think they are up for small talk go ahead and strike up a conversation.

If you see that the passenger would rather be left alone, then make sure you don’t overstep your boundaries and give them some space.

This part of the job is all about creating the best atmosphere and experience for your customer. If you can do a good job, you can get awesome ratings and earn a lot in the long run.

Seem like a good fit? Click here to apply now and start making extra money.

Lyft pay structure

With Lyft, you get paid on a weekly basis. If you live in a bigger or more expensive city, you may also have a higher base pay. Lyft takes a cut from your sale. Typically it will range somewhere between 20-50% after fees.

However, you can keep all the tips given to you. Lyft will also give you cash bonuses every now and then, especially during peak hours.

Driving for Lyft reviews: Pros

Flexible time

You have the option to choose your own driving time or schedule. Depending on your lifestyle or what your availability is, you can drive whenever fits you best.

If you are a stay at home mom or someone that has the extra time, you may find driving for Lyft a fun side job. You are basically your own boss and you can choose to drive or not whenever you want to.

Liability coverage

There is a liability coverage of $1 million that can protect drivers in case of any accidents that happen during the time that you are driving for Lyft. This can be applicable to injured passengers, a third party who gets hit, or vehicle damage caused by a third party.

Incentive Programs and bonuses

Lyft gives you a lot of opportunities and ways to get more money through their incentive programs. They could pay you up to 10% to 20% more for accomplishing things like attaining a number of rides during peak hours, having a 90% acceptance rate, and many more.

You may also receive text messages about power zones and bonuses that you can avail when you drive during a specific time or area. If there are any tips, you can keep those all for yourself.

App features

The navigation is built into the Lyft app itself so it’s easy to use and better overall. There is also a feature called “Tap to arrive”, which lets your passengers know that you have already arrived.

The app also provides other features for you like links to the Lyft help center in case you have any questions or inquiries. You can also get your vehicle and insurance information, referral code, and other resources.

Easy sign-up

You can use the app to sign up and complete the application process. Everything is done through the app or website so you don’t need to physically go to an office which makes things easier and more convenient.

Customer support

The Lyft app is constantly being updated so that the drivers will always be equipped with the newest and helpful tools and resources.

If you have any issues about logging in or using the app, you can always contact the Lyft team through email and they will assist you right away. They also have a Lyft emergency number that you can contact in case an accident happens or if you need any form of assistance.

Getting to know places

When you are driving around, you can get to know more places in your neighborhood or area that maybe you didn’t know existed. This can come as a pleasant surprise and it can also keep your job interesting when you get to experience new things and places.

Lyft Driver Reviews: Cons

Commission/cut off your earnings

Lyft takes 20% off each fare that you have so your net income is reduced.

Hidden costs

There are some costs on your end that will affect your net income like car maintenance, phone plan, gasoline, car washes, insurance, tolls, licenses, permit fees, car payments, self-employment taxes, etc.

Because of the nature of the job, your car will experience wear and tear at a quicker pace.

Different rates based on location

Not all places have the same rates or base fees. This depends on where you are located or where you are driving. Big cities that are busy will have higher rates than the suburban ones.

No control over some situations

There are always those instances when you don’t have any control of while being on the road. A lot of things can happen, you can encounter drunk passengers, traffic, road accidents, and others.

Is becoming a Lyft driver worth it?

If you are looking for a side hustle that involves driving, Lyft is a good option to try out. If you enjoy driving and socializing with people, it can also be a job that you will have fun with.

The Lyft app also has great features like an awesome navigation system, sign up system, and customer support. This makes it easier for you to drive for Lyft.

How much you earn from Lyft really depends on your goals, how you minimize your expenses, and how much time and work you can put in. The more time you devote and the more you take advantage of surge times, bonuses, tips, and others, the more you will earn.

If you are ready to get started with Lyft click here an fill out your application today.

In the end, it is important to weigh in the pros and cons and see if this kind of job and company can work for you and your lifestyle. There may be a lot of factors to consider so make sure you are aware of everything that involves being a Lyft driver.

Have you ever driven for Lyft? Share your experience below!

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McKinzie is a mom of two, and a personal finance enthusiast. She loves teaching other moms how to save money, make money, and take control of their financial situation. She has started five profitable businesses and in college, she double-majored in Financial Planning and Psychology. You may have seen her in publications like Forbes, The US Chamber of Commerce, Yahoo Finance, Money.com, The Penny Hoarder, & more.