DoorDash hourly earnings are the great equalizer, an even playing field for comparing full-time and part-time drivers. For this reason, we are taking a close look at, how much do DoorDash drivers make per hour? 

As we look at these numbers, you should know that they come from the over 500,000 gig drivers, both full-time and part-time, who have downloaded the Gridwise app. Gridwise aggregates and anonymizes the numbers to give you the best picture of DoorDash driver earnings.

[elementor-template id="20891"]

This blog post has lots of good information, but if you want to know more, you can check out the Gridwise post 2023 Doordash Earnings Report. You can also compare your earnings to what other drivers earned in 2022 in this Gridwise blog post, DoorDash Driver Pay: What Do Dashers Earn in 2023? While this blog post focuses on how much DoorDash drivers make per hour, high-performing drivers find it important to understand all aspects of Dasher earnings. Gridwise examines these aspects in other blog posts. 

• How much do DoorDash drivers earn per day?
• How much do DoorDash drivers earn per delivery?
• How much do DoorDash drivers earn before tips?

DoorDash driver earning numbers per hour

Source: Gridwise Analytics. Graph also appears in 2023 Doordash Earnings Report.

How much do DoorDash drivers make? DoorDash hourly earnings for the last seven quarters, ending in Q3 of this year, averaged $15.20 to $16.00 per hour. Notice that rates increased during the first and fourth quarters, which run concurrently with the football season and the holidays. We don’t see the same increases during March Madness or baseball season for DoorDash drivers (or Dashers, as DoorDash refers to them).

Food delivery is one of many gig driver jobs that sees a positive impact from football season. A recent Gridwise post, The Impact of Pro Football Home Kickoff Games on Gig Mobility Demand, shows a marked increase in rideshare business. 

Keep in mind that these numbers represent the average. High-performing DoorDash Dashers, those in the 90th percentile, earn as much as $20 or more per hour. Dashers in the largest metropolitan areas earn even more. Becoming a high-performing driver may answer your question, Is DoorDash worth it?

As we said in the first paragraph, hourly earnings are the great equalizer between all DoorDash drivers, full- and part-time. For a different perspective on how to look at DoorDash earnings, see the Gridwise post, 2023 Doordash Earnings Report.

DoorDash driver earnings averages across cities per hour

{insert chart}

The per-hour numbers you saw in the first chart represent a national average. Earnings at all levels for gig drivers vary geographically, and Gridwise can break it down per city. The major metropolitan cities have the highest earning rates because of their sheer density. The volume and variety of restaurants also drive this higher rate. 

Large suburbs, carpeted with homes, surround many of these cities. These smaller, densely packed communities attract many restaurants, too. 

For those drivers not based in a major metropolitan area, DoorDash launched an Earn by Time feature for drivers this past June 27. Read about it in the Gridwise blog post Gig Worker News: DoorDash Offers Hourly Pay to Dashers. 

Busiest times of the day for DoorDash drivers

DoorDash peak timesTotal hoursEarningsCommentsLunch (11:30 am–1:30 pm)2 hrs. × 5 days a week = 10 hrs. $200Weekends tend to eliminate the business lunch crowd. Dinner (5:00 pm–9:00 pm)4 hrs. × 7 days a week = 28 hrs. $560Hours may vary in your region. Late night1.5 hrs. × 7 days a week = 10.5 hrs.$210If your territory includes colleges and universities, you’ll get good results in this time block. Totals48.5 hours$970

Chart initially published in How to Make $1000 a Week with DoorDash

Food delivery is not a 24/7 job. Yes, there are those odd orders at 4:00 in the morning or 3:00 in the afternoon, but you can generally rely on lunch and dinner as your peak times. 

The exception to this is when there are major sporting events. These are more likely to carry the food delivery demand through a Saturday or Sunday afternoon. Also, remember that football is a weekend-long pursuit. College games are on Saturdays, professional games on Sundays, and football games on Monday and Thursday nights. 

What do food delivery drivers do in the afternoon hours or after 9:00 pm? This is where multi-apping comes in. You can get in several hours of rideshare in the afternoon rush hour or late at night. Check out the Gridwise blog post on multi-apping, The Art of Multi-apping: How-Tos and Strategies for Gig Drivers. 

If you familiarize yourself with Amazon Flex, for example, you can also squeeze in a delivery block from that company. Check out these recent Gridwise blog posts on the parcel carrier: 

• How to Make $1,000 a Week with Amazon Flex 
• Demystified: Your Guide to Amazon Flex Standings

You can also see how hourly earnings fit into the wider perspective of DoorDash earnings in this blog post, 2023 Doordash Earnings Report.

Tips for maximizing hourly DoorDash driver earnings

As a DoorDash Dasher, there are some things you can do to increase your profits. 

 Take advantage of DoorDash double orders

There are scattered reports that the DoorDash app is good at doubling up on orders, meaning that you can, on your way to pick up an order, get a second order going in the same general direction. According to this Quora page on DoorDash double orders, drivers have mixed reviews of this. You can also read more about DoorDash double orders on the DoorDash website. 

Communicate with the customer

It’s better to let the customer know in advance that there’s a hold-up at the restaurant or you’re stuck in traffic. Alternatively, they get upset, look for someone to blame, and the delivery driver becomes the likely target. 

Double-check those orders

Make sure the restaurant gets the complete order. You don’t have to open dishes or unwrap sandwiches to verify what they are, but at least count the components and ensure nothing is missing. Someone might be counting on those onion rings. 

Remember all the condiments

Some restaurants could be better regarding including extra ketchup or mustard. Make sure you include some. Drop in an extra handful of napkins and some plastic forks, knives, and spoons. If you’re picking up beef dip sandwiches, ensure someone at the restaurant remembers the au jus.

Familiarize yourself with DoorDash incentives

DoorDash offers you ways to make more money. Learn about Peak Pay promotions, DoorDash driver Challenges, and the Dash Now program—all described in a recent Gridwise blog post, DoorDash Incentives 2023: How Do They Work?

Work those tips

Tips are a significant source of income for DoorDash Dashers. If you do a lot of dashing, consider getting cards printed that thank people for allowing you to bring them their delivery. Include your information for PayPal, Zelle, or any of the other electronic cash-handling services. Some people would rather tip you directly. Drop one in every bag.

Check out Gridwise for more information on DoorDash

Visit the Gridwise blog and type “DoorDash” into the search bar. You’ll get a host of excellent blog posts about DoorDash. Recent ones include A Guide to Dashing: DoorDash for New Drivers vs. Experienced Drivers. 

Download the Gridwise app

Gridwise is the place to go regarding the latest information on DoorDash or other food delivery, rideshare, and parcel delivery gig jobs. Download the Gridwise app and check out When to Drive and Where to Drive on the Gridwise app. You can also save money at tax time using the Gridwise mileage tracker, the best mileage tracker app for gig drivers, and the Gridwise expense tracker. 

[elementor-template id="20936"]

Gridwise also maintains one of the most authoritative blogs in the gig industry. Check out our recent blog post, 2023 Doordash Earnings Report, for a more encompassing look at DoorDash earnings, and once again, also read DoorDash Driver Pay: What Do Dashers Earn in 2023?. 

Get more DoorDash Dasher earnings insights from Gridwise

Check out these Gridwise articles to learn more about Uber Eats earnings:

• Download the Gridwise app for free
• 2023 DoorDash Earnings Report 
• DoorDash Driver Pay: What Do Dashers Earn in 2023?
• How much do DoorDash drivers earn per day? 
• How much do DoorDash drivers earn per delivery? 

How much do DoorDash drivers earn before tips?

Are you making as much money as other Lyft drivers? Is it worth it for you to work for Lyft? Working alone as a Lyft driver sure does beat having a micromanaging supervisor breathing down your back, but there are some things you have to sacrifice. 

One is the camaraderie that comes with working around your peers. From time to time, you may bump into other Lyft drivers and ask them things like how much they’re making per day. Sadly, you’ll rarely get any realistic intel, outside of their opinions about what Lyft driver earnings are like. But are they telling the truth?

Gridwise has data that reflects actual figures from other drivers, without the need to fact-check your airport cell phone lot buddies’ boasts, or to guess whether they drive the same way you do. On top of data, this article gives you tips for out-earning all your peers. Here are some questions we’ll shed light on:

[elementor-template id="20891"]

What is Lyft driver base pay like?

Lyft calculates base pay by adding together the base fare plus the time and distance you will clock during the ride. Besides these variables, you’ll have to take into consideration bonus and tip pay, and your expenses, including gas, car maintenance, and job-related equipment. The wide range of base pay numbers account for differences in location, as well. A ride that takes place in New York or San Francisco, for instance, will be more profitable than a short ride in the suburbs of Butte, Montana.

Gridwise data illustrates base pay ranges across the country:

How much do Lyft drivers make per ride?

When you ask this question, you’re likely to get a whole lot of different answers. Business Insider asked a number of drivers, who reported figures ranging from $22 to $40 per hour. It’s hard to know how many rides a driver makes in an hour, and it can definitely vary. Other sources estimate that median per trip earnings hover around $10.

It’s important to look more closely at how much you’re making with every ride, and then you can begin to estimate how much you can make in a day. This data from Gridwise gives you actual numbers that reflect the nationwide experience of per trip earnings of Lyft drivers.

What cities offer the biggest per ride earnings?

Cities such as New York and Seattle have laws that set minimum wages for drivers, so on the whole, their per trip earnings will be high. Other cities, where demand is less and cost of living lower, will show per trip earnings for Lyft drivers that match that situation. 

This data shows how much Gridwise drivers make per ride in key cities.

In all cities and in less populated areas as well, trips involving big events, rush hours, and bad weather will yield more profitable rides. Download Gridwise to get information about events, traffic, and weather when you need it most.

How can Lyft drivers make more with every ride?

When you work with Lyft, there’s a big difference between simply taking the rides as they come, and strategic driving. Here are some action items that are sure to help you make the most out of every ride you take.

• Download Gridwise and use When to Drive. Each ride you make will be more profitable once you know the best times to drive. When to Drive gives you intel that is sure to boost your earnings. It shows you the days and times when rides are really paying off.

• Use multi-apping to make the most of your time. When Lyft rides don’t come one after the other, you can jump on another app to keep your cash flow going.

• Work for more customer tips. By being efficient and pleasant, you’ll garner more tips from your passengers. Use these pointers and watch your earnings soar!

• Track your mileage and expenses. Your Lyft app only tracks the miles you travel while you’re on a ride. Download Gridwise to keep an account of the miles you drive in between. This lets you take full advantage of your deductible mileage allowance. Gridwise also tracks your other expenses, putting you in the perfect position for tax time.

[elementor-template id="20936"]

More earnings insights for Lyft drivers

• What are Lyft earnings like?
• How much do Lyft drivers make per hour?
• How much do Lyft drivers make per day?
• How much do Lyft drivers make before tips?

Uber Technologies, the parent company of Uber and Uber Eats, set the tone for gig platforms in early February when it posted a $1.87 billion profit for 2023. 

That number comes on the heels of two years of solid growth figures. According to mobility data from Gridwise, Uber's trips increased 66.3% from Q1 2022 to the end of 2023. While not as high, Lyft's numbers rose 52.1%. DoorDash, the giant of the food delivery companies, saw trips soar 34% in almost the same period. 

But investors and hedge fund managers know Uber’s profit comes at a cost. Uber’s annual numbers also revealed that the rideshare leader spent a whopping $529 million on driver incentives, which they label contra revenue. That’s more money that could have gone back to the bottom line.

How can investors tell if the gig platforms are wisely investing in boosting driver loyalty? How can Uber and the other gig platforms get ground truth data on what works? The answer lies in transportation analytics from the Gridwise Annual Gig Mobility Report. 

[elementor-template id="20891"]

Mobility data is a gateway to understanding gig driver loyalty

When evaluating a gig platform, investors should ask, “Do their programs attract and keep drivers?” Gig companies can quickly expand their apps to handle the added demand. It's more challenging, however, to scale the number of drivers needed to meet the demand. A shortage of available drivers leads to long waits for the customer. It can diminish the gig platform’s reputation and compel end users to seek other options, either driving themselves or using public transportation, and in the case of food delivery, picking it up themselves.

The various incentive programs gig platforms use to get and retain drivers include

• Driver referral bonuses—Many gig companies, especially rideshare, offer current drivers bonuses for referring new drivers. The amount of these bonuses and other requirements vary by region and the need for new drivers. In the past, they’ve been as high as $500, according to a post by SmartWallet.  
• Guaranteed incomes—A gig company will guarantee a certain level of earnings for new drivers in a specified period. The gig company will make up the difference if the driver fulfills the requirements but does not reach the amount. 
• Returning-driver incentives—Many drivers quit driving during the pandemic or for other reasons. The gig companies often email these drivers with a bonus offer for returning and meeting specific goals.
• Driver retention programs—The gig companies regularly offer bonuses to drivers for completing a specific amount of rides during a specified period or in a defined region. Examples of these include the Uber Quest bonus and Lyft Sprints. 

These are the most common programs, but there are others. They all cost the gig platforms money (more than half a billion in Uber’s case), with some being more effective than others. Ground truth information in the form of mobility insights and delivery data paves the way for smarter, more equitable decisions by all stakeholders.

Why should investors be concerned about driver loyalty?

Driver loyalty translates into benefits for a gig platform, all of which can affect the bottom line. These benefits include

• a fleet of loyal drivers, which means the gig company can meet growing demand.
• increased driver loyalty, which means less money spent on driver incentives. 
• drivers who are more likely to recommend the platform to others, resulting in lower acquisition costs. 
• happy drivers, who are more likely to deliver better service, which reflects positively on the company and its brand. 

Data analysis of driver earnings across all platforms

How much are drivers making across the various gig platforms? This chart, part of the Gridwise Annual Gig Mobility Report, provides accurate insight into that question. 

Gross monthly earnings for gig drivers (rideshare and food delivery, 2022–2023)

ServiceGross Earnings (Avg, 2022)Gross Earnings (Avg, 2023)YoY Change (%, Gross Earnings)Work Hours (Avg, 2022)Work Hours (Avg, 2023)YoY Change (%, Work Hours)Uber$1,699.58$1,409.71−17.1%5856−2.9%Lyft$1,032.23$1,058.320.0255144-12.90%DoorDash$704.04$703.17-0.10%49500.032Instacart$661.60$606.50-8.30%3836-4.50%Uber Eats$558.49$472.72-15.40%2827-3.80%Grubhub$445.07$471.770.0625280.136

Source: Gridwise Analytics

It’s not all about compensation

The report also reveals what attracts drivers to gig work. Compensation actually comes in second place. What attracts drivers the most is the ability to have flexible hours. 

The leading motivators in choosing gig driving work

Source: Gridwise Driver Survey 2023

Gig driving is also increasingly seen as a permanent occupation. Almost half (45%) of drivers surveyed see it as a long-term plan. 

The draw of multi-apping

The gig driver alternative to driver loyalty is multi-apping, the driver practice of operating and responding to several apps at once. There are several methods of multi-apping, all which affect driver loyalty in different ways.

• Multi-apping within a category—Drivers have apps open in the same category, such as rideshare, and pick and choose rides based on perceived profitability and other factors. According to a Gridwise blog post, Want to Improve Gig Driver Loyalty? Use Data to Stay Competitive, 31% of drivers multi-app. 
• Multi-apping across categories—Drivers have apps open in rideshare and food delivery, again picking and choosing based on their preferences. According to the previously mentioned Gridwise blog post, 21% of drivers multi-app in this fashion. 
• Switching between apps—Peak demand for food delivery is between 12:00 pm and 2:00 pm, and 5:00 pm and 9:00 pm. Some drivers work food delivery during those hours, and then switch to rideshare, which is often more profitable in the later evening hours. 

Multi-apping is a tool that drivers use to increase profitability. Gig companies, however, would rather have drivers loyal to their platform. To encourage this, they often structure retention programs to encourage drivers to remain on the app to accept rides or orders. Uber Eats Pro and the DoorDash Top Dasher programs are examples of retention programs that encourage drivers to remain on one app. 

The gig platforms also take other measures. Uber and Lyft often void Quests and Sprint promotions if a driver ignores a ride or turns off the app during a prescribed period. 

Mobility data shows delivery wins the loyalty contest

Mobility data analysis in a Gridwise Analytics blog, Want to Improve Gig Driver Loyalty? Use Data to Stay Competitive, indicates delivery platforms get the highest driver loyalty ratings.

Here are some of the findings:

• From Q2 2022 and the beginning of Q3 2023, 60%–65% of DoorDash drivers drove strictly for that service platform.
• Between 45% and 50% of drivers were loyal to Instacart during that period. 
• By the beginning of Q2 2023, Amazon Flex drivers who drove solely for that platform reached about 45%. 

More broadly, data analysis shows that over 75% of drivers stick to one gig type during a working period. Only 24.3% of drivers switch between apps. Nevertheless, there remains a high level of interest in multi-apping, as data shows that 41.7% of drivers have experimented with different gigs.  

The impact of tips on driver loyalty

Tipping is a big part of the gig driver economy. A recent review of gig driver platforms reveals that all allow the customer to tip the driver through the app, and all companies pass on 100% of the tips to the drivers. 

Tipping serves two purposes:

• Tipping augments the driver’s income, and 78.4% of drivers agree that tips matter significantly to their overall income. 
• Tipping also reinforces that drivers are doing a good job, with 68.6% of drivers indicating that tips affect their enthusiasm and job satisfaction. 

What is interesting to note is the disparity between tips by rideshare drivers and those in food delivery. Rideshare drivers receive an average of about 10% of their income in tips, whereas food delivery drivers receive 51% of their income in tips. 

Also notable is the frequency of tipping in the different categories:

• 28% of rideshare passengers give their drivers a tip.
• 74.5% of grocery delivery customers give their drivers a tip. 
• 88.5% of food-service customers give their drivers a tip. 

Investors can learn from Gridwise mobility insights

Mobility insights and transportation analytics can inform the decisions of investment researchers and hedge fund managers who are eager to provide healthy returns for their clients and investor base. 

It's interesting to note that DoorDash and Instacart have a solid lock on market share in their categories, and their drivers have the highest monthly earnings. These same companies also have the highest driver loyalty rates in those categories, indicating that driver loyalty figures into the battle for market share in the gig industry. 

Investors can also use Gridwise Analytics to determine whether the various platforms' driver incentive programs contribute to driver loyalty. Gig platforms with lower driver loyalty rates need to be using the most successful incentive programs. 

Gridwise Analytics provides mobility data and transportation analytics, affording unique insights to companies involved in the broader transportation infrastructure, and demonstrating how people and goods move from one location to another. The data shows where trips originate, where they end, and the primary travel corridors. This data also reveals the success of the gig platforms in building market share and increasing driver loyalty. 

Gridwise Analytics’ partners marvel at the data's clean nature, allowing them to integrate the findings into their existing datasets with little or no manipulation. 

For a demonstration of how Gridwise Analytics' vehicle trip data can sharpen your transportation analytics, contact Gridwise Analytics. 

Check out these articles to learn more about Gridwise Analytics:

• Contact Gridwise Analytics 
• Read the Gridwise Annual Gig Mobility Report 
• Harnessing Gig Mobility Data and Analytics for Growth Opportunities 
• Data-Driven Strategy: How Gig Mobility Drove Fleet Efficiency in an Autonomous Vehicle Company’s Strategy
• Why We Launched Gridwise Analytics

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.

[elementor-template id="20891"]

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.

[elementor-template id="20936"]

Get more earnings insights for Lyft drivers

• How much do Lyft drivers make per hour?
• How much do Lyft drivers make per day?
• How much do Lyft drivers make per trip?
• What are Lyft earnings like?
• Download the Gridwise app

Finding out exactly what you can make driving for Lyft can prove to be a challenge. Everybody has an opinion, and it’s nearly impossible to figure out what the real numbers might be. The problem with a lot of the opinions offered is that they’re based on casual surveys and educated guesses coming from Lyft drivers. 

The numbers you’ll see here are different. They come directly from Gridwise drivers, and are not doctored in any way. No one’s bragging or low-balling. Data doesn’t lie, and the whole truth is here in this post.

[elementor-template id="20891"]

Lyft hourly earnings

The most common way to view earnings is by hourly rates, so let’s look at that first. These figures reflect average gross pay as recorded by drivers nationwide.

https://datawrapper.dwcdn.net/odnpc/5/

Get more detail about Lyft hourly earnings.

Lyft weekly earnings

To get a full idea of how easy it might be to earn a workable income by driving for Lyft, you need to see how much you are likely to make in a week. Remember that “a week” might mean a different number of days or hours for different drivers. This data comes from drivers nationwide, and reflects average weekly gross earnings.

https://datawrapper.dwcdn.net/2pk6G/2/

Get even further insight from looking at Lyft driver daily earnings.

Lyft monthly earnings

How do Lyft earnings stack up when we look at gross monthly earnings? Again, we need to consider how many hours, days, and weeks drivers are working, but these average figures give us the idea of how much you can earn in a month.

https://datawrapper.dwcdn.net/f01Xf/2/

Lyft average nationwide bonus pay + tips per month

The figure for gross pay includes bonus pay and tips, so it’s important to be aware of the trends of this key component of Lyft driver pay. Here’s what current trends show us about what you can expect from bonuses and tips in the course of a month.

https://datawrapper.dwcdn.net/84E1o/1/

Let’s look at how tips figure into total Lyft driver earnings. 

Lyft average nationwide bonus pay + tips per hour

Lastly, this look at bonus pay and tips per hour will show you what to expect from these necessary boosts to base earnings on an hourly basis.

https://datawrapper.dwcdn.net/hz94e/1/

More insight into earnings for Lyft drivers

• How much do Lyft drivers make per hour?
• How much do Lyft drivers make per day?
• How much do Lyft drivers make before tips?
• How much do Lyft drivers make per ride?

[elementor-template id="20936"]

Are you making the most money you can with your Lyft driving gig? The best way to find out is to discover what Lyft earnings are like, and what you can expect to make from a day’s work. Let’s explore some numbers to provide more insight into your Lyft gig, and consider some advice for maximizing your daily earnings.

[elementor-template id="20891"]

What are Lyft earnings like per day?

Some sources state that Lyft drivers will have to work 6–8 hours to earn from $96–$136 in any given 24-hour period. The accuracy of a figure such as this depends on a lot of factors, including who is reporting the numbers, the driver’s geographic location, and how well the data is curated to ensure that it reflects a true picture of a Lyft driver’s day.

Most of the figures we see come from a general consensus derived from surveys that have been conducted by employment companies, or even the rideshare and delivery apps themselves. These don’t always tell the whole story, or provide accurate data, about driver earnings. At best they are guesstimates.

Lyft driver pay is calculated by adding tips and bonuses to base pay, which is what Lyft charges for the ride minus the “take” Lyft keeps for their part in making the rides happen. This is the gross amount of driver pay, meaning that expenses for gas, car maintenance, and the like aren’t accounted for. 

The biggest variable involved in calculating daily pay is solid information about hourly earnings, and how long drivers’ shifts actually are. How many hours would be considered “a day” for the typical Lyft driver? Some drivers work full time, at least 8 hours a day, while others have more sporadic hours, possibly varying their hours from one day to the next, or perhaps by using more than one app at a time during the day. 

These variables may or may not be taken into account when calculating daily earnings. It’s most likely that the numbers are averaged out so that “a day” consists of an average number of daily hours.

What do the numbers say about Lyft daily earnings?

Some drivers claim they make much more, while others report much lower daily earnings. Data from Gridwise reflects actual earnings information from drivers just like you, so it creates a more realistic picture of Lyft daily earnings.

This picture of Lyft daily earnings reflects the experience of drivers nationwide, but there is more to the story.

No matter where you live, it pays to know where events, traffic jams, and weather problems might be. Download Gridwise to get specific information about these items, plus airport information for your locality.

Pick your best days to drive for Lyft

Your Lyft driving day might be two hours or as many as ten, but if you want to optimize your driving time, it’s wise to choose the best days to drive. Lots of factors combine to create the best days. Most authorities will say that early mornings, along with Friday and Saturday nights, are the times when drivers can make the most money.

This might be a good general guideline, but it isn’t the whole story. What if you can’t arrange your schedule so you’re available to drive at these times? Or what if these patterns don’t hold true in your area? You need more detailed information that applies directly to you.

You get exactly that with When to Drive from Gridwise! This amazing in-app feature gives you actual data about real Lyft drivers in your area. You’ll be able to see the best times of day to drive, as well as the days when drivers are making the most money in the places where you drive. 

Maximize your daily Lyft earnings with these pointers

• Download Gridwise and use When to Drive. Driving for Lyft isn’t complicated, but it’s far more profitable when you use this powerful tool to maximize your daily earnings.
• Use multi-apping to increase your odds for success. If you notice Lyft business lulls on certain days, consider using different apps to fill in the gaps.
• Track your mileage and expenses. Hang on to more of your money and be in good shape for tax time. Download Gridwise to catch those deductible in-between miles your app doesn’t count, and enter your expenses to minimize your taxable income.

[elementor-template id="20936"]

Get more earnings insights for Lyft drivers

• What are Lyft earnings like?
• How much do Lyft drivers make per hour?
• How much do Lyft drivers make per ride?
• How much do Lyft drivers make before tips?

Are you a Lyft driver, or are you considering getting started with this popular driving gig? If so, it’s only reasonable to wonder How much do Lyft drivers make per day? Or how much do Lyft drivers make per hour? Gridwise has the numbers, and we reveal them here, along with other helpful information.

[elementor-template id="20891"]

Lyft driver earnings per hour

Estimates of what Lyft drivers make are all over the board. Salary.com lists Lyft hourly earnings between $15 and $23, while Glassdoor’s figures range from $19 to $33 per hour. Gridwise figures are based on actual driver earnings, and here’s what they tell us:

While hourly earnings have had their ups and downs over the course of the last several months, actual earnings demonstrate that Lyft can be a very solid source of hourly earnings.

Hourly Lyft earnings across key cities

Gridwise data tells us a lot about how much Lyft drivers earn. The Gridwise figures we’ve already shown you reflect average earnings nationwide. It makes sense that the actual hourly earnings where you are located may vary. Drivers make the most money, for instance, when they live in a big city such as San Francisco.

The busiest times of day to drive

Location is just one of the reasons it’s not easy to pinpoint exactly how much the average Lyft driver makes per hour. The times of day that you choose to drive will also have a big effect on what you earn. 

Daily averages can give you some idea about when the best times to work your Lyft gig might be, but there is a more effective way to know for sure when demand for Lyft rides is high where you live and work.

With When to Drive from Gridwise, you’ll be equipped with up-to-the-minute information, as well as historic data, that show you what real drivers are making at different times of day in your area. 

You might get messages from your app that try to get you to go to certain areas for surge pricing or boosted rates, but this Gridwise feature is different. Because it’s based on actual data from real drivers, When to Drive directs you to the spots where you know you can consistently make the most money. 

[elementor-template id="20936"]

Download Gridwise now to get personalized and more detailed information about the best places to drive. Upgrade to Gridwise Plus to get granular detail that will truly boost your Lyft earnings!

How to maximize your hourly earnings with Lyft

You need to strategize in order to make sure you’re making the most money per hour as possible, and you also need to know what you can do to keep as much of it as possible. Make your Lyft driving gig as profitable as you can with these savvy tips.

Use When to Drive from Gridwise. Get actual data from real drivers so you can plan your gig to make the most of each and every hour you work.

Master multi-apping. Maybe the times you can drive aren’t always the most profitable ones. Keep making money by switching between apps. One of the biggest perks of being an independent contractor is the freedom you have to work as many gigs as you can humanly handle. That means you can multiply your earnings with multi-apping. Business Insider is very much aware of this growing trend, and you should be too.

Track your mileage and deductible expenses. Adding up all your deductible expenses is crucial if you want to keep more money at tax time. An accurate count of every mile you drive on your gigs, for every trip and the time in between, is crucial if you want to deduct the IRS 2024 $0.67 per mile allowance from your income. That number really adds up, so track every mile and record your deductible expenses with the Gridwise app

[elementor-template id="20936"]

Get more earnings insights for Lyft drivers

• How much do Lyft drivers make per hour?
• How much do Lyft drivers make per day?
• How much do Lyft drivers make per trip?
• What are Lyft earnings like?
• Download the Gridwise app

*Gridwise does not provide tax, legal, or accounting advice. This material has been prepared for information purposes only, and is not intended to provide, and should not be relied on for tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before filing your return.

Who would think, when it comes to your car you’d want to learn how to appreciate a thing like depreciation? That old adage about a car losing a certain percentage of its value the moment it leaves the lot is true, and on its face, that sounds bad. But unless you’re planning to resell your vehicle in the near future, you can use depreciation to your advantage.

How would you do that? The amount of depreciation your car racks up each year can be deducted from your taxable income and reduce the amount you owe on your tax return. In this post, we’ll explain this thoroughly, show you the best ways to calculate and claim depreciation on your vehicle, and help you reduce your taxes!

[elementor-template id="20891"]

Vehicle depreciation: What it is and why it matters to gig drivers

Your car is an asset. Surely you noticed how valuable it is when you went to pay for it! Fortunately, the IRS also recognizes it to be an asset. This can allow you to view that lost value as you drive off the lot in a totally different way.

How does car depreciation work for tax? You can subtract the value your vehicle loses over time from your taxable income! The more mileage and wear and tear a vehicle accrues, and the more it becomes outmoded by new technology, the greater the amount of depreciation you can deduct. This is a piece of information that, as a gig driver, you can learn to thrive on. Although your car is bound to depreciate faster than average, because you drive so much, you can at least get credit for it in the form of a hefty tax deduction.

The IRS allows drivers to spread the depreciation of their vehicles over a car’s “useful life,” or the amount of time it takes for a car to lose all of its original value. In general, the IRS allocates five years for most vehicles. You might be able to get more depreciation in less time, though, depending on the method you use.

Methods to minimize tax time madness

There are two ways to get your car depreciation tax calculator up and running, via different methods of accounting for the depreciation of your vehicle. The first method is the standard mileage deduction. 

What is the standard mileage deduction method?

Each year, and sometimes more often, the IRS sets a rate that corresponds to the amount you can deduct for every mile you drive while doing your driving gig. For 2023, the IRS standard mileage rate is 65.5¢ per mile. This rate bundles all the expenses you pay to operate your vehicle, from gas and registration to depreciation. If this is the first year you are using your car for business, the IRS wants you to use this method.

To use the standard mileage deduction, you will take the number of miles you drove for your gig, and any other mileage you accrued for your business, and multiply it by the standard mileage rate. Note that you must know the number of miles you drove for business and deduct only those miles. You can estimate the percentage of your total miles driven for business, but it’s far more accurate to use a mileage tracker, such as Gridwise.

Furthermore, it’s worth noting that, since you have a “home office,” you can also deduct the miles you drive to and from your driving gig. This is not the same as commuting costs, which are not tax deductible. Tracking mileage becomes especially important here, because while your driving apps record the miles you drive while you are on a trip or delivery run, they don’t count the miles you drive to and from your home base to where you begin driving for the apps.

This can become quite costly. Let’s take just one day’s worth of numbers to illustrate how this might work. Say you drove 100 miles on your shift, but went 15 miles in each direction to travel to and from your home base. Based on the 2023 standard deduction rate, you would have $65.50 to deduct according to your apps. But unless you used an app such as Gridwise to track all the miles you traveled going to and from your shift, you would have missed $19.65 in additional deductions, representing your journey to and from home base, just for that one day!

The IRS standard deduction method is good for gig drivers because of the way it pays for the many miles rideshare and delivery drivers put on their cars. But do the IRS estimates equate to what it truly costs to operate a car for rideshare or delivery—or is there a better way?

What is the actual expense method?

If your driving gig is in its second year of business or later, you can opt to delineate the allowed actual expenses related to operating your vehicle for business, tally them up, and deduct them from your taxable income. You are discouraged from using this method until your second year. Even then, it’s worth calculating your deduction by the standard mileage method and the actual expense method to see which one puts you at a greater advantage.

Why use this method? If your mileage isn’t particularly high, such as if your driving gig is in a big city where you don’t drive very far, this method might save you more money. Also, if you only do rideshare or delivery driving on a very part time basis, you may benefit from using this way of calculating your vehicle-related tax deductions. 

Using this method, you need to track your expenses for

• fuel
• oil
• repairs
• ties
• insurance
• registration fees
• licenses
• depreciation (or lease payments, if your lease permits you to use the car for business)

As you can see, that’s a lot to keep track of. Fortunately, there’s Gridwise Tax Help powered by Keeper. Keeper helps you to categorize these costs, and even searches your bank transactions to identify deductible items you may have neglected to record. Keeper also lets you scan receipts, so you don’t have to worry about scrambling to find annoying little scraps of paper in your car’s console or glove box.

To use the actual expense method, you also have to determine what percentage of the mileage you accumulated over the course of the year was due to your driving gig. Then, after you total all the expenses, you use the percentage you determined to deduct just the portion of your car’s use that was dedicated to business.

Before you get that far, though, you’re going to have to know how to calculate and report vehicle depreciation.

“How do I claim car depreciation on tax returns?”

First things first: Determine the depreciable basis.

Before you begin to calculate the amount of depreciation you can deduct from your taxable income, you’ll need to determine the depreciable basis, or the total cost of your vehicle. This amounts to the cost of the vehicle plus taxes and fees paid at the time of purchase. For example, if you buy a vehicle for $17,000, and the taxes and fees were $2,500, the total depreciable basis would be $19,500.

Once again, you could only use the whole $19,500 if you used your vehicle for work all of the time. If you didn’t, you must calculate the percentage of use for business, and base your actual depreciable basis on that percentage of the total depreciable basis. This is where tracking your work mileage comes in. When you have an exact record of the precise number of miles you clocked for business use, you can easily calculate the right percentage.

Choose your depreciation calculation method.

There are two ways to calculate the depreciation of your vehicle. 

1. MACRS (Modified Accelerated Cost Recovery System)

This system was put into place to encourage business owners to purchase more equipment. It permits you to deduct a larger portion of your vehicle’s value in the early years of ownership. You must use your vehicle for business 50% of the time or more to use MACRS. Also, to use this method, you will need a MACRS table like this one, provided by Keeper. 

Keeper’s blog post on this subject will give you step by step instructions and detailed explanations about car depreciation and MACRS. Before you file, make sure that the table you use is in line with current IRS regulations. This IRS publication describes how to depreciate property in detail. In addition to your vehicle, you may want to depreciate other items you use for business, such as your phone or computer.

2. Straight depreciation

This method of depreciation is easier to calculate and must be used if you use your vehicle for business less than 50% of the time. You simply take the depreciable basis of your vehicle, and divide it out over five years, which is the expected useful life of the asset. This article from Motley Fool describes this method and also gives step by step instructions.

Get the right forms.

IRS Form 4562 must be used to report depreciation on your vehicle and other equipment. The form may be filled online, or you can print it and complete it manually.

Note that if you’re depreciating an SUV, truck, or other heavy vehicle, different rules apply. These regulations, and other ways of taking deductions, are special case strategies.

Special case car depreciation tax deduction strategies

Section 179 of the IRS code allows for accelerated depreciation. To maximize your write-offs in the first year of using your vehicle, you can use this method by simply deducting the entire cost of the vehicle. This could be quite advantageous if you intend to use your car for only one year. It can also offer a boost to your take-home pay in your first year of business, giving you time to get your driving gig up to full speed.

Just like with MACRS, you must use your vehicle 50% or more of the time for business to qualify for accelerated depreciation under Section 179. For 2023, the maximum deduction allowed for a car is $10,200.

If you own an SUV or another vehicle weighing 6,000 pounds or more, the maximum deduction allowed under Section 179 beginning in 2023 is $26,200, and the 50% usage rule applies. If you purchase an even larger vehicle, weighing 14,000 pounds or more, or have a vehicle that is modified to seat just a driver with a cargo section, you may be able to deduct 100% of your vehicle’s cost in its first year. This article from Block Advisors provides further details.

Bonus depreciation is another incentive for business people to buy more equipment, and it can add to your deduction. Until recently, businesses used bonus depreciation rather than Section 179. Beginning in 2023, bonus depreciation amounts will get progressively lower, as this form of depreciation is phased out.

For 2023, however, you can still get a rather substantial first-year deduction by combining Section 179 and bonus depreciation.

If you’re curious about all the ways the IRS allows you to deduct from your income based on the business use of your vehicle, take a look at this IRS document. You can also learn more in this Gridwise post on how to choose your mileage deduction method.

Keep more of your money with expert help

Knowing what you can deduct, and how to do it, can really help you hold on to your hard-earned cash. As you can see, one of the things you’ll need to do is keep solid records of your mileage and expenses, so you will be able to document your claims when it comes time to take all those deductions.

Gridwise is the best mileage tracker for gig drivers, because it logs every mile you drive on every shift. All you need to do is start tracking when you begin driving, and Gridwise will do the rest.

[elementor-template id="20936"]

Gridwise Tax Help powered by Keeper is a service you can’t afford to be without. Designed just for gig drivers by tax experts, this powerful app not only tracks your expenses, it helps you to find them! 

Simply link Keeper to your bank account, and the app will search your transactions for items you can deduct. Remember, depreciation is only one thing you can subtract from your taxable income. You can also include items you might not have thought of, as listed on the Keeper blog. 

These include

• delivery equipment
• subscriptions to music services
• refreshments for passengers
• car washes and detailing
• productivity apps—like Gridwise!

Remember, Gridwise users receive 30% off the Keeper app, and Gridwise Plus users get 50% off! The winning combination of Gridwise and Keeper is sure to make it easier for you to keep more of your money, and after all, that’s why you do gig driving in the first place!

Download Gridwise and get Gridwise Tax Help powered by Keeper today!

[elementor-template id="20949"]