Can Lyft Drivers Register Multiple Vehicles

How Much Practice Lyft Drivers Make?

What Is Lyft?
Average Annual Earnings
Hourly Earnings
Income Taxes
Factors Affecting Earnings
Is Driving for Lyft Worth Information technology?

Tero Vesalainen / Shutterstock.com

The gig economy and advances in engineering science take fabricated for interesting job opportunities. Ride-hailing services like Lyft are now a formidable office of the transportation industry. The rideshare company, which is part of the Lyft Inc. portfolio, is 1 of the two most popular taxi-alternative services in the U.S.

Only how much do Lyft drivers brand? Keep reading to find out.

What Is Lyft?

Lyft is a rideshare platform currently operating in the U.S. and parts of Canada. The platform was established in 2012 and went public through a Nasdaq listing in March 2019.

Lyft operates in over 600 cities in the U.S. and 10 in Canada. More than ii million drivers operate on the platform, serving over 12 one thousand thousand customers. Customers book rides with their smartphones through the Lyft app, which is available via Google Play or the App Store.

What Is the Average Income for Lyft Drivers?

Estimates vary for how much Lyft drivers earn. Indeed puts the average annual earnings for drivers on the rideshare platform at $24,895 based on 207 cocky-reported earnings — 49% below the national boilerplate for drivers.

Glassdoor estimates the average earnings for a Lyft commuter to be $17 per 60 minutes based on 214 self-reported earnings. Multiply that by 40 and and so past 52, and that works out to an almanac income of $35,360.

Lyft drivers are not salaried employees of Lyft — when you sign upwards as a driver, you practise and then as an contained contractor. Like other gig workers, Lyft drivers receive a 1099 statement instead of a West-2 and are not field of study to minimum wage requirements. You drive on your own time, in your own car. You solitary handle your vehicle maintenance, gas and nigh insurance costs.

Drivers' earnings are based on the time they spend driving with passengers in their motorcar and the distance they bulldoze with passengers. Lyft calculates drivers' pay from the moment a driver picks up a client, beginning 1 minute after the driver taps "Arrive."

The app calculates charges past tallying several costs:

Base fare
Fourth dimension rate
Distance rate

Skilful To Know

The toll per trip varies according to what city you're driving in. Bonuses and adjustments due to things like college-than-usual demand too make up one's mind how much you brand at the finish of the day.

Hourly Earnings

Though commuter rates are calculated based on how long they drive with passengers in the car and the distance they drive with passengers, Lyft takes a 20% cutting of the gross fare and pays the rest out to the driver. So, what's the average daily take-home pay subsequently Lyft'south share?

On a typical day, a driver makes between $12 and $17 per hour, according to Indeed and Glassdoor estimates — that's $96 to $136 in viii hours. Driving xl hours per week, yous could expect to earn $480 to $680 per week, or $1920 to $$ii,720 per month before taxes and not including expenses.

Income Taxes for Lyft Drivers

Go on in mind that no income taxes will be withheld from your pay when you drive for Lyft as a 1099 worker. But you owe taxes on the coin that Lyft pays you lot. That means you lot've got to summate your own income taxes. You are also on the hook for self-employment tax to the IRS as soon equally you brand over $400 equally a 1099 contractor in a calendar yr.

That federal cocky-employment tax rate is 15.3%. This amount covers the usual employee withholding (7.65%) and the amount that a normal employer would contribute (vii.65%) to Medicare and Social Security taxation for a West-2 employee. Then Lyft drivers, like other contained contractors, pay 7.65% more in Social Security and Medicare withholding than W-ii employees, plus whatsoever federal, state and local tax they owe.

However, Lyft drivers can deduct expenses from their gross income, which reduces their tax liability. Write-offs include a standard mileage deduction or actual expenses involving business use of your car, tolls and parking, amenities you lot provide to riders and jail cell telephone expenses directly related to your business.

What Impacts Lyft Earnings?

Several factors bear upon how much you'll make as a Lyft driver. Your income can shift depending on how many hours y'all put in, where you lot're based, your expenses and whether you become tips from customers.

Here's a closer look at factors that bear on your income.

Where You Live

Your location determines how much you earn. For example, the college the cost of living is in your city, the more you'll brand while driving for Lyft. That means if you're plying the roads of Seattle, you'll make more than a driver in Wyoming. Also, city drivers make more than those in rural areas.

There'southward as well customer density. Busier places naturally have more customers. When y'all leave your house and turn on the app, do you immediately receive requests, or do you lot have to drive closer to town? If y'all receive customer requests as soon as yous plow on your app, you're poised to earn more than money faster.

Surge Pricing

Surge pricing is a model that capitalizes on loftier demand for ride-sharing. Such loftier demand could arise from rush hour and increase even more than combined with rainy weather. Working during peak hours can dramatically increase your earnings.

Bonuses and Promotions

Lyft has a bonus programme for drivers. The platform schedules promo and bonus periods randomly, allowing hardworking drivers to rake in more pay. Lyft allows drivers to keep 100% of the bonuses they earn during promotion periods.

Service Tiers

Lyft allows drivers in some cities to offer services in unlike tiers. This enables them to choose between providing regular service and providing luxury service. A driver with a high-finish vehicle, 2014 model or later (2016 in Houston, Texas), who maintains a rating of at to the lowest degree four.85, qualifies to provide luxury service. Lyft'due south luxury tier is categorized into Lyft Lux, Lux Black and Lux Black XL.

Hours Worked

It may seem self-evident, but the number of hours a driver works naturally translates into the corporeality they earn. Drivers who spend more hours behind the bicycle will typically earn more than those who work just a few hours per day.

Is Driving for Lyft Worth It?

Driving for Lyft is flexible compared to a total-time, or even function-fourth dimension, job. Drivers can piece of work at their convenience equally they take care of their business, creating time for hobbies and family members or friends.

The price of running the business concern can be expensive. It's non unheard of for expenses to run Lyft drivers out of business. Furthermore, earnings are express by demand — if at that place aren't enough customers to go on y'all busy for 40 hours a week, your earnings will be less than those of a commuter in a high-demand area.

A major pro is that drivers control their own schedule, and in large function, their earnings. For many, the flexibility of operating as a Lyft driver outweighs its downsides, which is probably why at least 2 million drivers are using the platform to generate income.

FAQ on Driving for Lyft

Here are the answers to some commonly asked questions most driving for Lyft.

How tin I earn more with Lyft?
- You can earn more than by taking advantage of promotions, putting in more than hours, and providing first-class services to customers who in turn might tip yous.
Does Lyft offer drivers the option to rent a motorcar?
- Lyft'south platform offers rental cars to drivers who can non afford to purchase a car. This is possible thanks to Lyft'south partnership deals with Flexdrive and Hertz through the Express Drive program.
Does Lyft cover gas and car maintenance expenses?
- Lyft does non encompass gas and auto maintenance expenses. Drivers are contained contractors, and they are expected to take intendance of these expenditures with the money they earn from trips.
Does Lyft pay for accidents?
- Yes, Lyft provides insurance for accidents. The platform has third-political party liability coverage that pays upwardly to $1 million for personal injuries and property damage if a commuter is involved in an accident. This insurance is contingent on the terms of service at the time an blow happens. Claims go to the driver's insurance visitor kickoff before the platform determines whether it will pay for damages.
How long does it accept to start earning on Lyft?
- Information technology takes around 30 minutes or less to enter your credentials — which are typically your telephone number, email accost, driver'south license and other identifying data. If you have a car, Lyft will determine its road readiness. You lot also accept to authorize the platform to run background checks on your driving tape. This process normally takes a few days.

Daria Uhlig contributed to the reporting for this article.

Data is accurate as of Mar. 21, 2022, and subject field to change.

Delivery Side Gigs

How Much They Pay

How Much Do Grubhub Drivers Make?

How Much Practice Instacart Drivers Brand?

How Much Do Shipt Drivers Make?

How Much Do Uber Eats Drivers Make?

Reviews

Amazon Flex Review

DoorDash Driver Review

Postmates Driver Review

Comparison

DoorDash vs. Uber Eats

Postmates vs. DoorDash

Hope Mutie is a freelance writer with several years of experience helping business-to-consumer and business-to-business companies with their content needs. She enjoys creating content across several niches, particularly finance and marketing. Her mantra is that each new piece of content should exist fresh, relevant and insightful.