Ridesharing has become an everyday life and a new norm for modern-day commuters. You can easily find a ride and book it on the go to your destination. Lyft is a ride-sharing service that's available in 656 cities across America and Canada. The app was launched in 2012 and reached 1 million rides the next year. The app is used by 12.5 million people each quarter. There are around 1.4 million Lyft drivers in the US and 2-4 million drivers around the world. Being your own boss is a great perk when it comes to drive for Lyft flexible hours. But there are some pros and cons of being a Lyft driver you must do before applying for the gig.
A side-hustle is always helping your earn more and having extra cash never really hurts. On the plus side, it’s a great time to switch to the gig economy when it’s on the rise. So, Being a Lyft driver pros and cons must be clearly understood before you get into the profession as a freelancer or full-time driver.
Lyft can be found in many places, not just in big cities. This option is safe and affordable and allows you to reach your destination safely. Although you might be tempted to pretend to be someone else on these apps, being a driver allows you unique access to your local community. So, here are some notable pros of being a Lyft driver to consider.
You are in control of your own schedule when you become a Lyft driver. You decide where and when you will drive and how much money you can make daily. You still have the option to drive for a few hours or manage your family's finances while you earn extra cash.
Lyft's surge pricing mechanism kicks in when they receive multiple ride requests simultaneously in the same location. This is what is called dynamic pricing. It makes you more money by providing rides when people need them most. You can use the app to access a heat map with colour codes that shows you where the highest fares are in your area. To start making extra cash, you must be available to take routes during that time.
Lyft allows you to get paid for any driving instantly you do for them. Lyft drivers can access their earnings anytime if they are driver-partner in the United States. You can cash out up to five times daily if you have access to a debit card. To make this happen, you must sign up through the app. There is a $0.50 transaction fee if you use your debit or credit card.
Lyft offers an Express Pay option which is among the major pros of being a Lyft driver, which allows you to skip the weekly paycheck. This benefit is available to you if you earn $50 or more in mentor payments, referrals, or earnings. You will also be charged $0.50 for this option. However, you don't have to wait until payday comes around.
You can drive for Lyft if a change in scenery is a good idea for you and your family. Lyft offers more options than any other ridesharing service, with riders able to request your services in hundreds of cities worldwide. More than 75% of Americans live in areas where they can drive and make some extra money.
There are many places you can help people get safely to their destination. Your opportunity to make extra cash while driving may not be affected by the fact that it is time for you to move to a different home. The freedom of going anywhere and earning money are some of the best advantages of being a Lyft driver.
You might be eligible for a $1,000 bonus if you drive for Uber or Lyft. This is based on how many trips you make in your local area. Lyft offers this guarantee if your first 30 days are filled with 125 rides. Any amount that falls below that figure will be added to your earnings account. This way, you can see that a month of hard work can pay off if it isn't too busy.
Performance-based bonuses can also be earned depending on various factors. Although this income can be optional, it can be a great incentive to work if you offer rides to your community. Sign-up bonuses are added benefits of being a Lyft driver.
Besides the pros, there are some cons of being a Lyft driver in this emerging gig economy. These include:
Major repairs to your vehicle can wipe out a large portion of your rideshare income. Regular maintenance is more likely. Your responsibility is to take care of your tires, brake pads, and oil changes. Fuel is an operating expense that you will immediately feel. Soon you will be able to find the best gas prices and fill up your tank at every gas station.
Commercial insurance is essential. Rideshare platforms may offer it in certain states. However, your coverage requirements will vary depending on where you live. Your insurance rates will be higher and may impact your profits. It won't cost as much as an accident with no insurance.
Lyft drivers will follow the pricing plans used in their respective cities. This is how they make the most money. Lyft requires you to drive during certain times of the day because the fares are too high outside the high-cost window. This means your schedule will be more consistent with 7–11 am and 3–8 pm daily.
Even if you are active during the busiest times of the day, it is not guaranteed that you will find a fare. Without a passenger, driving is a "dead mile" that results in no compensation. These expenses can reduce your earnings and make it difficult to predict the outcome.
Lyft requires you to have commercial rideshare insurance if you plan on driving for Lyft. This rule is in effect everywhere. You could be held responsible for any injuries sustained by your passenger in an accident. Your assets could be at risk because most Uber and Lyft drivers work as independent contractors, not employees. On the other hand, even if you want to drive for Lyft, there are many terms and conditions to meet including vehicle inspection. There could be many cons of being a Lyft driver even if you fail to meet a single condition.
You must know all the terms and conditions that govern your Uber or Lyft driver contract. Many rules govern each ride's fees, bonuses, and fares. These rules are subject to change at any time. You could accidentally violate the rules by not reviewing all updates and losing your ability to drive through the app.
The seasons can affect the ridership and forget about income if there's a pandemic like Covid-19 wreaking havoc. It is possible to travel long distances to reach the nearest airport or sports venue. If you depend on this income stream as your main source of income, it can be stressful not to have a steady income stream.
Pros and Cons of being a Lyft Driver: Conclusion
Many of the cons of being a Lyft driver will be eliminated if they are classified as employees rather than independent contractors. This status would allow you to take sick days, holidays, workers' compensation, and other benefits. However, this is unlikely to happen anytime soon.
You may decide to drive for these companies as a way to earn an income. Make sure you have a qualified vehicle. Your financial situation will quickly affect renting or taking out high-interest loans. The cost of commercial insurance can quickly impact your income.
You can make a better financial decision by being a driver for Lyft if you keep track daily of your income and expenses. You have flexibility in your hours, and you can enjoy other benefits. However, each case must be evaluated individually to determine if this is an opportunity worth exploring.
Based on 35 self-reported earnings, the average annual earnings of drivers using the rideshare platform is $31,144. This is 39% less than the national average for drivers. Based on 240 self-reported earnings, Glassdoor projects that Lyft drivers earn $18 an hour.
Lyft pays 3.155% more than. Uber Eats pays 19.22% more than. DoorDash.
The full amount upfront will be charged, and you'll receive the cashback within 3-10 business days. Open your Lyft Driver app and tap the driving options button right next to the Go Online button. To receive cash back for gas, Tap 'Nearby gas discounts.
A survey of nearly 1200 drivers revealed that Lyft drivers earn an average of $17.50 an hour, which is close to $2 more than Uber drivers. Lyft drivers make approximately the same monthly average as Uber drivers, but Lyft drivers earn more per trip and get tips.