While it’s not as widespread and massive as its largest competitor, Lyft is definitely a well-established and well-liked company, by drivers and passengers alike. It does one simple thing: it provides an app-based platform, where passengers find drivers who get paid for taking them to and from their various destinations.
People see Lyft as a more “friendly” company because of its brightly colored branding materials, and also because the experience of using their app is more personal than other services. For instance, drivers see pictures of their customers before they pick them up, and there does seem to be a more friendly tone to their communications.
Driving for Lyft is a popular gig. As of late 2019, there were 2 million Lyft drivers. Headquartered in San Francisco, Lyft was founded by Logan Green and John Zimmer in 2007, but didn’t really get off the ground in its present form until 2012. Now, it services more than 350 cities worldwide, and commands anywhere between 29%-39% of the rideshare market.
What makes Lyft so popular, and why would you want to drive for this company? In this blog post, we’ll approach that question and more by examining:
- What a Lyft driver does
- What you need to do to qualify as a driver
- How to apply to join the happy Lyft fleet of drivers
- What it means to be an independent contractor
What a Lyft driver does
If you’ve ever taken a ride with Lyft or another service, you have some idea about how things work. The driver receives a notice saying you need a ride, then decides to accept it or not. Assuming the driver takes the call, you get picked up and taken to your destination.
From the driver’s side, things are just as you might imagine. The driver has a special version of the app, and has to remain alert to receiving calls. After accepting a request, the driver must commit to following through with it. If not, the ride will have to be cancelled, and the driver’s rating could be adversely affected.
As a Lyft driver, you choose the times you wish to work. You can go out for one ride or twenty. There are limits set by the company, however, to make sure drivers aren’t working such long hours that it’s no longer safe for them to be on the road. Read more about those limits here.
The rates for each ride are determined by Lyft. Of course, the amount you receive is not the total amount the passenger is paying. There is a take rate, which is the amount Lyft will retain from the customer’s payment. This will vary from time to time, and from one city to the next.
Rates also will vary based on passenger volume and driver availability. In bad weather conditions, or during large events, Lyft offers bonuses. A surcharge will be added to the passengers’ fees, and the drivers will earn more during those time periods. There are other incentives as well, such as bonuses for completing a certain number of rides in a given number of days, or for referring new drivers to Lyft.
There are many regulations drivers need to be aware of, and they are different in each location. Check here to find out more about items such as airport requirements, safety, community guidelines, and other company policies, and how they apply in your city.
How much will you make as a Lyft driver? That’s another thing that varies according to where you’re driving, but Glassdoor’s data show Lyft drivers’ earnings average around $16 per hour. This number, remember, is your gross earnings, minus bonuses and tips. It also doesn’t include the costs of you doing business, such as fuel, vehicle maintenance, and depreciation.
Another thing that’s particularly important for Lyft drivers is their star rating, from 1 to 5 stars. This rating is based on how customers rate the driver. If you’re polite, efficient, your car is clean, and you accommodate your passenger, you’ll get a great rating! In many cases you’ll also get a tip. Always remember, riders will see your star rating before they choose you as your driver! You’ll want to keep it as high as possible.
If you fail to meet Lyft’s requirements for maintaining a star rating, you may receive a warning from the company. If you don’t improve, you could be deactivated. So, as silly as something like a star rating might seem, it can potentially make or break your career as a Lyft driver!
There are other issues the company will consider when evaluating your performance. Foremost among these are low acceptance and cancellation of trips. You have to be very alert as a Lyft driver. For instance, calls for additional rides might come in after picking up a passenger.
While safety always must come first, there are consequences for missing (or ignoring) these requests. Drivers have to keep up a certain level of acceptance and cancellation rates to maintain high ratings.
If a passenger cancels a ride, it’s no big deal for the driver. And, if it’s cancelled after the driver has spent a great deal of time traveling toward the pickup point, the driver will receive a few dollars’ minimum payment for the trouble.
There will be times when you can’t take or complete a ride, of course, such as when you need to purchase fuel, you have a flat tire or a breakdown, or you’re just too tired to continue driving.
Before we get into any more intricacies such as these, let’s get back to some basics.
What you need to qualify as a driver
Lyft’s driver requirements vary from one state or city to the next. There are special cases, such as New York City, where you must get a license from the Taxi and Limousine Commission (TLC) before you can drive. In most cases, thankfully, this isn’t the case. This list covers some of the basic things you’ll need to drive, in most places, but do check Lyft’s website to find out what you need to drive in your town.
FOR YOU:
- Proof that you are of the minimum age required in your area
- A valid driver’s license
- The ability to pass a background check that examines criminal and DMV history
- A smartphone capable of running the Lyft driver app (iOS 11 or higher, Android 5 or higher) Check here for more specific smartphone information.
FOR YOUR VEHICLE:
- Usually, no more than 15 years old, with no more than 350,000 miles on the odometer
- Four or more doors
- 5-8 seats, including the driver’s seat
- Not on Lyft’s list of ineligible subcompact vehicles
- Not classified on the title as salvage, non-repairable, rebuilt, or any equivalent
There are further vehicle attributes that may qualify you to drive for Lyft’s high-end services, Lyft Lux, Lux Black, and Lux Black XL. Check here for more details.
If you don’t want to use your own vehicle when you drive for Lyft, there are options to rent and lease one. There are companies that specialize in renting vehicles for rideshare, such as Hyrecar, and you can also look into renting, short-term or long-term, through Lyft.
You’ll want to check out some other matters before you apply. The first one is the background check Lyft will run on you. This blog post tells you what it entails, how long it takes, and what to do if you experience delays or other problems.
You’ll also need to look into insurance. While Lyft covers you, your car, and your passengers while you’re driving for them, there are reasons why you might want to look beyond their basic coverage. It’s a smart idea, also, to talk with your insurance company and get extra coverage from them. If you fail to do so, and they find out you’re a rideshare driver, they may not cover you for any mishap, whether you’re on the app or not. This Gridwise blog post. will tell you more about what you need to know about rideshare insurance.
How to apply to join Lyft’s happy fleet of drivers
As long as you meet the requirements, applying to drive for Lyft is pretty easy. Start here to open your account. Now, with Lyft, it’s possible to use your rider account and go to the driver side…or you can open a separate account just for driving. That is totally up to you.
From there, you’ll upload some items to identify you and your vehicle. Here’s a list:
- A profile picture
- Proof of vehicle registration
- Proof of insurance
- Inspection and emission stickers
You will also be asked to submit information about your background check. You’ll need to wait for that to be approved, but in the meantime, you can prepare your vehicle by cleaning it thoroughly, and printing out a temporary window decal through the app.
Lyft will send you your permanent window decal, and maybe even a light-up “amp,” if you qualify, after you’re approved. You can use the temporary decal to drive only after you’re fully approved, and before your welcome kit arrives. Until you’re approved, the app won’t allow you to receive ride requests. Patience is the key! Before you know it, you’ll be “in the Pink,” which is the happy shade Lyft drivers proudly display to the passengers they serve.
There’s this one other thing…
Drivers for Lyft are classified as independent contractors. This Gridwise blog post about the controversy regarding whether this will continue to be the case gives a very thorough description of the differences between that status, and being an employee.
The basics are this: Unless you get your own coverage, you will not get any of the following as an independent contractor:
- Medical insurance
- Workers Compensation Insurance
- Disability Insurance
- Pension Plan
- Minimum wage protection (except in a few select cities)
- Sick pay
- Vacation pay
- Tax withholding
In many states, there are legal cases pending that might change the way companies classify drivers. Many drivers want the government to force the companies to make them employees. Others would rather hold on to their flexible hours and independence from more stringent company policies. There are driver groups fighting for drivers’ rights all over the country. This article will give you an idea of the landscape surrounding this hot-button issue.
When you drive, bring the ultimate assistant with you!
Gridwise will be there to help you, whether you drive for Lyft, another rideshare service, or a delivery company. Our amazing app lets you track your earnings on every platform you use, and keep a record of your total mileage. This makes tax time deductions and tabulations a breeze!
You get a beautifully formatted, easy-to-read graphic of your earnings and expenses, just like in this figure:
After you’re done checking out all these cool features, click on the Perks Tab. There’s where you’ll find deals and discounts for drivers, easy access to the blog and news from the Gridwise YouTube channel. You’ll be an even happier Lyft driver when you use this app, so download it now!
Also, be sure to become part of the driver community when you join us on Facebook. We’re holding great Gridwise gas card giveaways all the time. And, please send us all your questions and comments about this article or the gig economy in general, right here in the section below. We love to hear from our drivers, and hope you’ll enjoy the cool community Gridwise has brought together, too.
