How Much Can You Make Driving for Lyft in Denver
Ridesharing has created a lot of buzz these last few years. Ever since Uber came on the scene and disrupted the transportation market — past basically crushing taxi companies in every urban center they entered — other rideshare companies have popped upwardly hoping to accept advantage of that.
Lyft is 1 of those companies.
But I'chiliad not here to talk to y'all about why or how ridesharing is taking over. I'm here to find out if in that location is whatever money in it for people y'all and I.
Can yous actually make money driving for Lyft? Allow'southward observe out.
Table of Contents
- Making Coin Driving For Lyft
- What'southward it Accept to Be a Lyft Driver?
- Expenses and Other Factors
- What Do Averages Really Mean?
- The Problem with Downtime
- Paying For Insurance
- The Cost of Fuel
- Vesture and Tear on Your Vehicle
- Writing Off Repairs And Miles At Tax Fourth dimension
- Last Verdict On Making Money Driving For Lyft?
- ==> Sign Upwards To Lyft And Start Driving!
- Make Money Driving for Lyft
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- Newbie Friendly
- Cheap To Beginning
- Piece of cake To Scale
- Income Potential
- Terminal Review
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Making Coin Driving For Lyft
Lyft has been around since 2012, and co-ordinate to Bloomberg news, they have more than 100,000 drivers across the country.
Going on their fourth year, with that many drivers, I recall it's safe to say you lot tin can make money at that place. I doubt all those drivers would go along to work for costless just let's look a little deeper.
According to Ryder Pearce, founder of SherpaShare (a financial dashboard for rideshare drivers), and a Lyft commuter himself, Lyft drivers earn an average of about $25 to $35 per hour.
Not bad.
Lyft claims that drivers can brand $35/60 minutes driving for them. If yous go to their website and click the "Drive with us" button you are taken to a page where this claim is made boldly.
They even have a handy-dandy computer you lot tin use to try and figure out your own earnings based on your metropolis and how many hours yous want to bulldoze.
I tried out the estimator and got back an amount that was equal to most $20 per hour. Still not bad.
Here's a screenshot from i Lyft driver who made more than than $1,500 with Lyft in one calendar week.
If you look at the hours, you will see this driver worked about seventy hours to make that money.
That works out to be nearly $21 per hour. It'due south below the boilerplate, just not a bad hourly charge per unit.
So, at that place y'all accept it. It is definitely possible to make coin driving for Lyft.
We have industry reports, claims from Lyft themselves, and a little proof from ane of their drivers.
What'due south information technology Take to Be a Lyft Driver?
Lyft is surprisingly lenient on driver and vehicle requirements, peculiarly when compared to its competitor, Uber.
Uber has an extensive list of vehicle requirements and multiple categories. Lyft'south are much simpler.
Here's what Lyft says is required of all drivers and vehicles.
Every bit you can see, this is all pretty standard stuff. Laissez passer a background and DMV check, own a four-door, and accept insurance. Seems elementary enough.
You also accept to make sure your vehicle is in good condition. Things like your horn and all your lights demand to be working, besides equally maintaining skillful tread on the tires.
In most cities, your vehicle needs to be a 2005 or newer. However, this requirement varies from state to state, so you will have to bank check your state to be certain.
Expenses and Other Factors
Now that you accept seen the requirements and proof that income is possible, you might be prepare to jump in and drive for Lyft. Earlier yous do, let'southward take a deeper expect at what it'south really like to be a Lyft commuter.
What Practise Averages Actually Mean?
We already know that the national average income for a Lyft driver is somewhere betwixt $20 per hour and $35 per hr. That's non bad, only those are the averages for the entire country.
If you are trying to calculate your own potential earnings there are another important factors to consider besides the nationwide averages.
Lyft hires drivers in more than two hundred cities. So, while drivers in cities like New York and LA might earn closer to the maximum hourly rate ($35) drivers in cities like Sanford Florida and Plano Texas earn much less no doubtfulness.
What is of import to notation here is that these averages are based on drive time — that means, fourth dimension spent backside the bicycle with a fare. If this included the total time it would be much less.
The Problem with Downtime
One of the things rideshare drivers (no matter what company) complain about near is downtime.
Yous might be on duty for eight hours, only you won't be driving customers around the whole time.
In fact, drivers experience so much downtime that RideShareGuy.com suggests furthering your education or starting a business while you await for fares. That seems like an atrocious lot of reanimation.
All this time spent waiting effectually is what drives downwards the earnings for drivers, especially drivers in smaller cities. But it'south not only pocket-size cities. This is too a problem for drivers in cities where Lyft has just been introduced considering people don't know well-nigh information technology all the same.
Taxi drivers report fare time vs total fourth dimension to be around 50%. That means, if they work eight hours, only four of them are actually driving customers around. For Lyft drivers, fare times are about 32%.
And then while the hourly rate for Lyft drivers is much college when a fare is in the automobile, they are eighteen% less likely to have a fare.
Well-nigh Lyft drivers bulldoze for Uber too. Recollect Uber is better? Check out my analysis of whether or not you can make coin with Uber. They try to minimize their downtime by moonlighting with both companies.
More companies are popping upward every bit well, so you could sign upwardly for a few and go along yourself decorated. You could even start doing AirBnB and hire out a room in your firm or a couch in your living room to take full advantage of the sharing economic system!
Paying For Insurance
Insurance is one of the biggest and most important expenses you will have as a Lyft driver. This is a requirement and i you shouldn't skimp on.
The price of insurance will vary land to state, just thanks to NerdWallet.com we can come across a breakdown specifically for Lyft drivers.
NerdWallet says that Lyft drivers demand at least two rides per week in guild to cover insurance costs. At present that is based on an average, merely remember these averages can be tricky. For case, a commuter in Detroit will need at least six rides to cover insurance.
The Cost of Fuel
Although we've covered what insurance might cost you, we nevertheless don't know about some of the many other expenses. Fuel is i of them — and it's a major expense.
I don't have to tell you how that the cost of fuel is outrageous and it doesn't look like it will be going downwards any fourth dimension soon.
This expense — probably more than all the residual — is the one that tin destroy your profits and brand Lyft driving a futile effort in some means.
Y'all can cut downwardly of fuel in a number of ways, only sometimes you are stuck with what ya' got. If y'all bulldoze an SUV, it'southward non likely that you are going to downgrade to a smaller car but to drive for Lyft.
The boilerplate Lyft trip is near five miles. Most standard sized cars go most xx to thirty miles to the gallon. So later 4 trips, you have used a gallon of gas, assuming in that location wasn't a lot of traffic, wind, or luggage.
Basically, to pay for your fuel, one in four rides will be free. Well, non "free" merely it will go towards your fuel.
Wear and Tear on Your Vehicle
Vehicle clothing and tear is one of those things that we just can't estimate. Some vehicles handle in town driving better than others. Some vehicles are simply better congenital. Some vehicles should non be on the road at all.
I can tell you this though: as soon every bit a brand new car is bought and touches the pavement exterior of the car lot, information technology has already lost 11% of its value.
That should give yous some idea of what the car industry thinks about wear and tear. And that'due south a new car! Imagine a used automobile with a hundred yard miles on it, being driven daily, in town.
Wear and Tear are what atomic number 82 to breakdowns.
- Too many trips on that quondam set of tires?
- Running cheap fuel for too long?
- Ever replaced those quondam headlights?
All these things can pb to major damage, more than downtime, and unhappy riders. That is why regular maintenance is important to keep in listen, especially when driving for Lyft.
That's going to price y'all. Even if you earn $ane,000 driving, 1 large repair could wipe out those earnings.
Writing Off Repairs And Miles At Tax Time
The details are a fleck boring, merely y'all can write off a lot of your expenses when tax time rolls around. Depending on how much income yous brand, this could be very benign to you, or not much at all. Co-ordinate to Hurdlr, you tin can write off a ton of things related to your car, including insurance, gas, machine washes, maintenance, license/championship/registration, and whatsoever other related expenses there are.
That sounds peachy! Merely information technology's not like you're "making" more money. You're only reducing the amount that the IRS can take from you. They're still taking coin from your earnings.
PLUS, if you make over $400, you'll exist subject to a self-employment taxation. And now your taxes are more complicated, so if you aren't paying someone to do it, you've got to figure out these calculations yourself.
Or pay someone to do your taxes, which is going to cost you more at tax time. Yous tin can probably effigy it out yourself, but remember you lot can't write off yourwhole car payment. There's a calculation y'all take to brand to get the correct number.
Then, at the end of the twenty-four hour period, you're still putting clothing and tear on your car, which is going to toll yous in the long run. Every bit a full-on concern, you lot're going to struggle to make a full-time income in the long run.
Last Verdict On Making Money Driving For Lyft?
As a curt term solution to make extra greenbacks, or make coin betwixt jobs, driving for Lyft is groovy. Every bit a long term solution for consistent income, I wouldn't recommend it. In fact, I'm not the only one.
Thanksgiving, Christmas, and all the holidays are coming up soon. This is a fourth dimension when people are doing a lot of out-of-boondocks traveling, so Lyft drivers are going to be busy! It'southward likewise the time when everyone could use a little extra spending money. At present's a nifty time to join Lyft and showtime making money in your spare time. It'south a perfect fourth dimension to have advantage of this brusque-term burst of holiday traveling to give your wallet a short term influx of greenbacks!
Personally, I think the large money is non driving for Lyft, but in recruiting drivers and passengers. There are many opportunities to help Lyft grow their business organisation, and they'll pay you to do it. Simply through the app with a referral code, you tin become paid to refer new drivers or passengers.
A couple of the websites mentioned in this post are doing just that. The Ride Share Guy and Ryder Pearce, from SherpaShare, are both, drivers and recruiters. Looking at their websites I'd say they spend more than time recruiting than driving, as they each have hundreds of weblog posts, podcasts, and even videos.
What they are doing is chosen chapter marketing, which the same thing I practise, simply my websites are on a different topic.
Information technology's a highly profitable concern model, where you offset a website on a topic, and so refer people to products and services related to the topic of your website.
For example, related to ridesharing, drivers need all kinds of things: insurance, fuel, and maintenance items, like tires and other parts. Other things like GPS devices, music subscriptions, and even health-related items would also count.
If y'all started a website about ridesharing, you could potentially sell an ebook almost how to stay in shape after sitting in your car all day, or what type of diet you can accept to maintain energy throughout the day and non gain weight.
Every bit an chapter, yous could earn a percentage each time visitors to your site buy something you promote or recommend. And the best office is, there is an chapter programme for most things you tin buy online!
Your website can be on any topic though – computers, wellness, travel, family – whatsoever topic works considering people purchase so much online.
Y'all can learn how to start your first affiliate website at the same training center I did. That links to a review, and aye, at that place's a referral lawmaking in the review so I get paid for each referral I get them.
Even if you all the same want to make money driving for Lyft, yous can consider working on your chapter site in your spare fourth dimension. Waiting at Starbucks for an hr scrolling through Twitter or watching a motion-picture show isn't very productive.
Imagine if you lot used that same time to build an online business. Even but a few hours per day can help you make major headway into earning reliable online income. It took me near 6 months to kickoff earning money with my website, and I was able to quit my job after xviii months.
Ii years may seem like a long time, only those two years of work accept resulted in me working from domicile for a total of iv+ years at present. Information technology was worth every minute!
The cool thing nigh online business is that in that location'southward no "pressure" to go fast. You tin piece of work on your site Monday-Fri, then take weekends off, and your website volition exist ready for you on Monday! It'due south not like a brick and mortar concern where you have to pay hire or hire employees. Information technology's cheap to run, simple to learn, and fun because you tin can write about topics that interest you!
Got any questions? Go out a message below?
Have you been driving for Lyft? What was your experience so far?
==> Sign Upward To Lyft And Start Driving!
Newbie Friendly
Cheap To Commencement
Like shooting fish in a barrel To Scale
Income Potential
Concluding Review
There are thousands of different side hustles you could do to earn some extra coin on the side, and which one "clicks" for you depends on your personality and goals. However, in that location's one side hustle that makes an insane amount of coin and works for anyone.
Starting an affiliate website is an incredible way to earn extra coin because you can do information technology from your domicile on a laptop, and work on your business in the evenings and on weekends. The income potential is huge, and it's easy to scale
Nathaniell
What's upwards ladies and dudes! Great to finally meet you, and I hope you enjoyed this post. My name is Nathaniell and I'yard the possessor of One More Cup of Coffee. I started my first online business organisation in 2010 promoting computer software and at present I assistance newbies showtime their own businesses. Sign upward for my #1 recommended preparation course and learn how to start your business organisation for FREE!
Source: https://onemorecupof-coffee.com/make-money-driving-for-lyft/
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