If you like to drive your own car and looking to earn some passive income in your spare time then you might consider contributing to a rideshare company like Lyft. Furthermore, ridesharing companies nowadays have created a considerable buzz in the market. There are several ridesharing companies that have taken over various taxi companies in every city they entered and Lyft is one of them. Here, in this article, we will be discussing whether you can really make money driving for Lyft and is it worth it?
What is Lyft?
Lyft is a popular ridesharing company launched in 2012 with the idea of providing a more technically advanced and cheaper alternative to local taxi services. Moreover, they always focus on making your ride more personal by enabling you to know that you are riding with a trusted driver.
Furthermore, Lyft is an emerging rideshare company that provides detailed profile information of the driver and motivates you to make a social connection with the driver before, during, and even after your trip.
How much can you Make Driving for Lyft?
Lyft is one of the most popular ridesharing companies in the Country and today they have over 100,000 drivers across the United States.
With that many drivers and such enormous popularity in the market, one question often arises how much does a Lyft Driver make? And we can say that you can make a notable amount of money driving for Lyft. According to a survey, an average Lyft driver makes around $25-$35 per hour. And, definitely, it’s a pretty decent amount to afford a living in the United States.
They even offer advanced analytics and earnings calculator to their drivers that you can use to figure out your total earnings based on your city and the hours you are willing to drive.
How can you become a Lyft Driver?
Lyft is an amazing ridesharing company to drive for. They are often straightforward towards the vehicle requirements as compared to its biggest competitor, Uber which has a comprehensive list of vehicle requirements and various categories.
Here are the requirements that you must meet in order to drive for Lyft:
How to Run a Smart Lyft Business?
Successful Businesses aren’t just successful because they offer an extraordinary product or a service. The biggest reason behind their success is being a smart owner. Here are some useful tips that you must utilize in order to run a smart Lyft Business:
#1. Drive during the Peak Hours:
One of the biggest advantages of a rideshare driver is that you can work according to your own schedule. And the drivers making the most money driving with Lyft are aware of the fact that driving during peak hours means you’ll have the potential to make the most money.
Usually, nights and weekends are the most potential peak hours. Driving at night and on weekends mean enormous money for Lyft Drivers because that’s the time when people are going out and having fun.
Most of the rideshare passengers are willing to hit the parties along with various entertainment venues such as theatres and concerts or meet friends for drinks without any worries about driving back home.
Using ridesharing services like Lyft enables passengers to reach those social commitments without any responsibility for driving. And there are huge possibilities of earning more money if you’re willing to work those peak social hours.
#2. Drive a Fuel-Efficient Vehicle:
For sure, if you spend less money on fuel, the more money will be staying in your pocket. Moreover, driving a Fuel-Efficient vehicle allows you to transport your passengers for less and therefore increase your profits.
Here are a few simple rules that will help you maximize the fuel efficiency of your vehicle:
- Make sure your tires are properly inflated
- Drive moderately-don’t excel quickly or brake quickly
- Make sure to keep your vehicle well-maintained by performing regular tune-ups along with oil changes.
- Know the quickest routes to the destinations.
Maximizing fuel efficiency will result in fewer expenditures on fuel and will help your vehicle last longer as well.
#3. Know Where the Riders are in Your Area:
The concentration of riders depends on the area where you live. Considering, you live in a college town, then you will probably find several riders near the college campus since college students tend to use such rideshare services more often. Similarly, if you live in an area where the parties are never-ending, say in Miami, then you should be able to find a higher concentration of riders near the various clubs and restaurants.
Moreover, Lyft assigns clients to the drivers who are nearest to the rider’s location and can reach their destination soonest. Hence, being present in an area with a higher concentration of riders becomes crucial for the drivers to maximize their earnings.
#4. Refer Potential Passengers as well as Drivers to Lyft:
You’ll be assigned a personalized code to your name as soon as you join Lyft as a driver. Lyft will later be paying a referral fee to you whenever you refer that code to potential passengers as well as drivers.
Lyft usually pays $10 for passengers that you refer (whenever they take their first ride) and you can earn up to $750 for each potential driver you refer.
#5. Maintain Good Records:
As a Lyft Driver, you will be considered an independent contractor. This means that you will be viewed as a business owner. Hence, you will be responsible for reporting all your income along with expenses on your tax return.
The more detailed and straightforward you are about maintaining the records of your income and expenses, the easier it will become for you to efficiently fill out the tax return that can produce maximum profit for yourself.
You can consider using a simple ledger or spreadsheet, or you can simply use a more extensive app such as Quickbooks Self-Employed app. The easier you make it to record the details of your income and expenses, the more complete your records will be.
Also, make sure to include expenses like:
- Bottled water or candies that you offer to riders
- Cost of vacuuming or washing your car
- Cost of Maintenance including, oil changes, tune-ups or tires
How to cancel Lyft Ride?
In order to cancel a Lyft ride, you need to click the “edit ride” option at the bottom left corner. Then just click the “cancel ride” in the red box and your ride will be canceled.
Note: In order to avoid any kind of charges cancels the ride within 2 minutes.
How to schedule a ride with Lyft in advance?
In order to schedule your ride with Lyft, you need to enter the scheduled destination under “where are you going?”. Now click the icon resembling a calendar and stating “schedule”. Enter the proper pickup location and confirm the location and then enter the pickup time. This is how your ride will be scheduled.
Who pays more Uber or Lyft?
The average earning is almost the same in Lyft as well as Uber. But the surveys reveal that the total tips and earnings in Lyft are quite high than that of Uber.
Who is better Uber or Lyft?
Uber and Lyft both are convenient and reliable sources although Lyft is the priority in the case of value and experience. Although the major scenario depends upon the place of ride and length.
Which is cheaper Uber or Lyft?
As per the surveys, Lyft is supposed to be the cheaper source compared to Uber. Apart from this, the cost also depends on the length of the ride. The per-minute cost of Uber is $0.05 more than Lyft.
How to book Lyft in advance?
In order to book Lyft in advance, all you have to do is to enter the destination in the search bar and set the pickup location and time of pickup. Then simply click the pink “schedule” option.
How much money can I make with Lyft?
After paying all the expenses and the charges cut by the app, the total money that one driver can earn through Lyft will average around $8.5 – $11.7 per hour.
How old can your car be for Lyft?
The car age required in Lyft varies from place to place. This also depends upon the government regulations made for the use of the vehicle. The most stricter policies of Lyft do not allow vehicles over 10 years.
How to delete a Lyft account?
In the account section, click on the “go-to account deletion”. Now you will be moved to the data privacy page of Lyft. Once you are logged in, you have to click”start” under the “delete account” section. Enter your reason for deletion and confirm by entering”DELETE” in the text box.
How to reactivate your Lyft account?
At the current time, there is not any way to reactivate your deleted account. In the case you would like to rejoin Lyft, you need to create a new account.
What is the difference between Uber and Lyft a driver?
Although Uber is more popular than Lyft thus attracts a large number of passengers. But still, Lyft pays the drivers $2 more as compared to Uber.
In the end, we can conclude that Lyft is a great platform to earn some passive income or make money between jobs. Furthermore, it is clear that you can really make a considerable amount of money driving for Lyft. However, it’s not recommended as long-term solution for a steady flow of income. Just follow the tips mentioned in the above lines and you will be able to earn some extra income in your spare time.