Most passengers think that tips are optional, but for drivers they can make or break the profitability of their gig. Lyft passengers respect the company for its reputation as a gentler, more caring corporation than its competition. But is this friendlier corporate culture enough to make Lyft passengers tip generously?
Let’s examine real data from Gridwise drivers that tells us just how much Lyft drivers make as base pay and how important tips are for drivers.
Here's what we cover:
What does Lyft pay look like? How much does base pay vary?
First of all, it’s important to note that the numbers most sources provide vary widely. Unlike the data Gridwise uses, earnings can be self-reported, yet not documented. Also, pay can differ depending on where drivers are, what hours they work, and how frequently they drive. Glassdoor, for example, says Lyft driver base pay ranges from $17–$29 per hour. Meanwhile, Solo Traveller estimates earnings before tips to be $15–25 per hour.
Lyft says that it has taken measures to increase driver pay before tips by compensating drivers for wait time and increasing their earnings on long trips. Has this had an impact on before-tip pay? This actual data from Gridwise shows trends in Lyft driver pay before tips:
What’s an average tip, and how can drivers do better?
As you might expect, tip amounts are dependent on the price of rides.That means drivers need to work harder to get riders to feel extra generous. To make this easier for riders, Lyft offers options to add a percentage of the cost of their rides either at the end of or after their trips.
Passengers can even set a default tip percentage that is added for all of their rides. This can definitely help to improve what Lyft drivers make per hour, or the daily rate Lyft drivers can expect.
Some sources say the average tip of $5 per ride is reasonable. This represents 25%–33% of a $15–$20 ride. In addition to tips, bonus pay that includes surge pricing and other incentives plays into the total add-ons to Lyft driver income. Data from Gridwise shows us what drivers can expect to earn before tips.
You can improve your chances for getting bigger tips by going out of your way to accommodate your customers. There are lots of ways to get more tips, and one of the best is to use Gridwise. You’ll get insight about your driving habits that puts you in the perfect position to increase your earnings and hang on to them.
Hot spots for the biggest tips
Tip and bonus amounts go up and down depending on a lot of different factors. One of the most important is location. The Lyft blog provides a thorough breakdown of regional tipping patterns and identifies some of the cities where you can expect to get bigger tips.
This Gridwise data shows median tip earnings in major cities. Once you see what “average” or “median” tip amounts are like in your area, you’ll know how much harder you’ll have to hustle to make the kind of income you want to get from your Lyft driving gig.
Maximize your tip earnings with shrewd strategies
Because tip earnings vary so widely for so many different reasons, it’s important to be aware of your particular situation and how it affects your prospects for getting extra compensation from your passengers. Here are some strategies you can deploy:
- Use When to Drive from Gridwise. Every driver needs to know at what times all the big tipping takes place. That’s why Gridwise developed this amazing resource. You’ll see what drivers are making in your area at different times of day, so you’ll be clued in on when you can get out there and make the most money—both in terms of basic pay and tips.
- Use multi-apping. Not sure if Lyft is the right app for you? Shop around! As an independent contractor, you’re entitled to work for any app you choose. Once you master the art of multi-apping, you’ll know which app is best for you, based on your needs and your schedule.
- Hang on to your earnings. Don’t let your cash flow get eaten up by excessive taxes. Use Gridwise to account for every deductible mile, and record every gig-related expense, to trim your tax bill. The Gridwise app keeps tabs on it all, and makes preparation for tax time a breeze.
Ready to take your gig work to the next level?
Download Gridwise, the app that helps you track your expenses and maximize your earnings
