Money is the main reason why Lyft drivers go out on the road, so it’s crucial they know how much the average driver makes and how it’s possible to earn more. So, how much do Lyft drivers make?This article will describe exactly what 2023 Lyft driver earnings show. In addition to this insider’s view of actual driver earnings, we’ll offer tips and tricks that supercharge your earning abilities, and make being a Lyft driver well worth the effort.
Let’s start by showing you the money. Keep in mind, as you look at these numbers, that they represent the average amount of money Lyft drivers earned nationwide. Depending on location, time spent driving, and local minimum earnings regulations, drivers might have made more or less.
The figures for gross earnings include base pay along with bonus, incentive, and tip earnings. We’ll break down the amounts for these various categories when we address them later in this post.
What did Lyft drivers earn in 2023?
The first six months of 2023 were rather good to Lyft drivers. After a slight decline in earnings in 2022 over 2021, gross earnings rebounded to totals of $2,270 in Q1 and $2,865 in Q2. Trends show that earnings tend to pick up in the third and fourth quarters of each year, so it’s apparent that Lyft drivers have a good running start on a successful finish to 2023.
How much can you make with Lyft? Use Gridwise to get insights on where and when drivers are earning more with the Where to Drive and When to Drive features. Historical data can show you peak times and busy places with a few taps on the Gridwise app.
How much do Lyft drivers earn per hour?
For Q1 2023, Lyft drivers averaged $20.92 in gross pay for each hour worked. Q2 reflected an upward swing, to $21.44. These numbers indicate that Lyft driver earnings are coming back to the levels found at the end of 2021. Q4 of that year showed that drivers’ gross hourly pay amounted to $21.40. After that, there was a decline that dipped as low as $17.21 in Q3 2022.
It’s encouraging to see Lyft earnings coming back to pre-2022 levels. If you want to ensure that you do your part to keep them soaring, rely on Gridwise to give you real-time airport arrival and departure information. Once you see how many passengers need rides, you can decide whether it’s worth it to hang in the cell phone lot or designated rideshare queue, or head off to greener pastures.
How much do Lyft drivers earn per week?
Gridwise reports that the average Lyft driver made about $356 per week in gross earnings. If drivers make about $21 per hour, this figure shows that drivers put in a little under 17 hours a week on Lyft. With multi-apping being so popular, it’s clear that drivers like to mix up their gigs. This could explain the limited number of hours Lyft drivers are tracking with Gridwise. Read this blog post to learn more about multi-apping, and why it’s such a smart move.
How much do Lyft drivers earn monthly?
Average gross monthly ratings for Lyft drivers using Gridwise come in at $1,137. That number tells us that Lyft drivers average about 56 hours per month. Again, this doesn’t reflect what a full-time Lyft driver would make. Individual drivers pick their own mix of gigs. Many choose to do delivery in addition to rideshare. Check out this Gridwise guide to delivery driving to find out more about delivery earnings, requirements, and more.
What are average tips like for Lyft drivers?
Rideshare passengers are showing Lyft drivers the love. At least that’s what the Lyft data for tip earnings tell us! In Q1 2023, average Lyft driver earnings from tips came in at $215, and rose to $265 in Q2. The generosity of passengers varies with trends in the economy. Sympathetic customers might respond to rising prices with a little extra something for their drivers. Or they might be tightening their belts, depending on their own economic conditions and time of year.
What can you do to increase your Lyft driver pay from tips? Drivers get tips when they see their job as more than just driving. Consider your customers, and give them what you would want if you were in their position. You can also check out this Gridwise blog post for tricks and tips for getting more tips!
Does Lyft offer bonuses?
Much like tipping, bonuses from the people who bring you the Lyft driver app fluctuate, depending on market-driven circumstances. Lyft earnings from bonus pay averaged $218 for Q1 2023, and $213 for Q2.
While this isn’t terrible, it’s considerably less than what Lyft was doling out for bonus pay when they were making every effort to get drivers back to work after the pandemic. For example, in Q2 2022, average bonus earnings for Lyft drivers was $335! Now that drivers have returned to the road, Lyft doesn’t need to award as much in bonus payouts.
Lyft does still offer bonuses, as well as incentives, to drivers. They include everything from earnings guarantee promotions, extra pay for ride streaks, challenges, and bonus zones to new driver referral programs and a tiered rewards program.
Learn everything you need to know about Lyft driving bonuses from their website.
While it never hurts to participate in the bonus and incentive programs run by companies like Lyft, you can get many of the same benefits, and more—without having to hustle to rack up points—when you download Gridwise and check out Gridwise Benefits. Click on “marketplace” in the app, then tap around for offers, benefits, and instant access to the always informative Gridwise blog.
How does Lyft calculate driver pay?
There are three main components to Lyft driver pay.
- Base pay. Lyft calls this “Upfront Pay” because you can see what you will earn for each ride before you decide to accept it. Keep in mind that Transportation Network Companies (TNCs) such as Lyft and other rideshare and delivery companies create their own algorithms and don’t divulge each and every detail involved in them.
The result of the calculations within the algorithm produce your base pay and reflect items such as the estimated time and distance of the ride, your travel to the pickup point, and demand for rides where you are located.
There are other factors, but the algorithm makers don’t completely reveal what those might be. Subtracted from the fee your passenger pays is the company’s “take,” or the amount they charge you for using the Lyft app. You can get some of the more detailed information from in-app trip manifests, but again, you won’t ever know everything about the algorithm that drives your earnings.
- Tips. Drivers get to keep 100% of customer tips. This is only fair, but believe it or not, things haven’t always worked that way! Fortunately, companies such as Lyft have responded to drivers’ remarks regarding to whom tips really belong, and companies generally have this 100% policy. To make it easier for customers to tip, Lyft has built opportunities into the customer experience to award the driver with something extra.
- Bonuses and incentives. For the most part, bonuses and incentives are offered when there are more customers in need of rides than there are drivers available. That supply and demand thing has everything to do with how much you’ll get in bonuses. Some bonuses will appear in the app while you’re driving, while others will be indicated on the “heat map” within the app, which shows where demand is high, and helps you to earn more pay.
To learn more about how Lyft calculates pay, visit this page on their website.
How can you boost your earnings?
Driving for Lyft is comparatively simple, and can be quite pleasant, but it isn’t always easy to reach your earning potential if all you do is go through the motions. There are several tactics you can deploy if you want to maximize your earnings and minimize the amount of time you need to spend driving. Here are some of them.
Be the best driver possible
Drivers with high ratings get more customers and better assignments. Read these Gridwise posts about how Lyft ratings work and how you can improve your Lyft driver ratings.
Go that extra mile
When you do that thing about giving your passengers what you would want if you were on a rideshare trip, you’ll instinctively score points and get more tips. You’ll also improve your ratings, which as we’ve seen, is a good way to boost your earnings.
Ride with insight and intel
Use Gridwise to boost your knowledge of your market and how you can make the most money in it. With the right information, you can create driving strategies that make your job easier and more profitable too.
Minimize your taxes
As independent contractors, drivers have to figure out how to pay their own taxes. That means it’s very important for you to know what items you can deduct from your taxes, and to keep track of these expenses! Gridwise can help here, as well. By accurately tracking your Lyft mileage and expenses, you can lower your tax deductible income. Here’s a look at what some of these dashboards look like:
Download Gridwise for free now!
Have fun with your driving business. When you like what you do, it will show in the way you succeed in your business! You’ll be good to your customers, be on top of the bonuses and incentives at your disposal, and be conscientious about taking advantage of the ways you can save money.
As we’ve said, money is the main reason you would drive for Lyft, or any company for that matter! We hope you’ll take advantage of all you learned about Lyft earnings in this post, and go out there and get all the earnings you deserve.
Want to know more about increasing your earnings? Check out these Gridwise articles.
