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More and more people are becoming Lyft drivers each year. You may have even considered driving for Lyft full-time or at least to supplement your income as a side business. According to CNN Money, more than 44 million Americans had a side hustle in 2017.
Therefore, it makes perfect sense that you may want to explore adding “Lyft driver” to your own list of business ideas and endeavors. Even if you do not want to exchange your current job for a Lyft window decal, you may at least consider signing up to make a little money on the side. However, there is likely a big question that is still spinning in your mind: “Is driving for Lyft worth it?”
Here are 11 key figures and statistics that you should consider carefully to be able to answer that question:
Multiple reports show that Lyft experienced a major spike in popularity, presence and passengers in 2017. According to Tech Crunch, Lyft claimed 375.5 million rides that year – serving more than 23 million passengers.
Good to Know: You should pay attention to the passenger statistic, because further studies show that it was a 92% increase over 2016. In addition to the exponential growth potential that Lyft may experience in the future, this passenger count speaks volumes to aspiring business owners, side hustles and moonlighting contractors.
For Instance: When you do the math, the average Lyft passenger took 16 rides each that year. When considering potential business opportunities, you focus on driving traffic and repeat business.
Important Facts: Entrepreneur Magazine advises business owners to provide their customers with services or products that are “repeat buys.” According to the report, it is imperative to either have a business with “inherent repeat sales opportunities” or create a model that will lead to recurring customers.
Pro Tip: Knowing that Lyft offers a service that clearly generates repeat business is a major point to add to the list of advantages when weighing the pros versus the cons. If you provide superior customer service to each passenger, your chances of receiving high ratings will increase – turning your Lyft driver profile into a magnet for repeat business.
A May 2018 economic impact report from 2018 concluded that Lyft had a 1.4 million drivers at the time. As referenced above, that is a little more than 6% of the number of passengers that requested a Lyft driver throughout the year. This is an important statistic to consider for those who want to drive for Lyft fulltime, because it proves that an urgent need exists in this market.
Good to Know: Think about the basic economic principle of supply and demand. The demand for Lyft service is substantially high while the supply of available Lyft drivers is relatively low. Those interested in driving for Lyft have a chance to accept an opportunity to make a lot of money by helping the company to meet the rising demand for its service. It is true that there are other ways to make money as a side hustle or mobile business. However, there are not very many options with this degree of demand.
Facts to Consider: According to Entrepreneur, there are 5 effective strategies that can help a business to generate consumer demand.
- In addition to providing a high-quality service, the other strategies included such tips as featuring customer reviews and offering deals to new customers.
- Most Lyft passengers will agree that the company offers impressive promotions to new and existing customers in addition to using customer ratings as a cornerstone of its business model.
- You can create your Lyft profile now, add yourself to the growing list of drivers and learn how to make $1,000 in your first month.
Lyft launched a promotional campaign in September 2018 that recognized the achievement of a major milestone for the company: 1 billion rides.
Pro Tip: When paying attention to any potential business idea or opportunity, you should always consider the past track record, accomplishments and accolades. For instance, when you want to invest in a company, you may examine these points to make sure it is worth your time, money and effort. Investors know that they will share whatever results the company is able to generate. This means they will have a share of the company’s successes, but conversely means they could share in the company’s failures as well.
Good to Know: You may not have any ownership stake in Lyft. However, by becoming a Lyft driver, you are still investing quite a lot in this company.
You are investing your time, your own money to cover most of the overhead expenses and you are investing your own vehicle. Knowing that Lyft has been able to generate more than 1 billion rides from millions of customers in just 6 years is a major point to consider for those who want to drive for Lyft fulltime or even as a side hustle.
Lyft announced back in July 2017 that the company reached the milestone of providing more than 1 million rides daily throughout the country.
It is not realistic to think that any individual driver could get anywhere close to that amount on their own. However, the math of the money is still in your favor when you break it down to a per-driver piece of the pie.
Good to Know: The number of rides given per day may barely come close to (or exceed) the number of available Lyft drivers. Nevertheless, you must remember that not everyone wants to drive Lyft fulltime.
Pro Tips: Some people may want to drive for Lyft once or twice a week just to supplement their existing income. Others may split their time up between various ride sharing services – especially if they are driving for Lyft and Uber. There are even some drivers with active accounts who may have only worked temporarily and have not picked up a fare in quite some time. Either way, there is still plenty of opportunity for a new Lyft driver to make a decent income and quickly build up their own rating with this company.
Keep in Mind: With the popularity and presence of Lyft on the rise, studies have projected this number to only increase in coming years. This means that there is an abundance of work available – which means there is an abundance of money that you can make if you stick with it.
Let’s say the number increases to 1.5 million or even 2 million rides per day. Can you imagine the pride you will feel knowing that a large chunk of those rides occurred in your vehicle?
A study on employee engagement concluded that highly engaged teams experience over 20% higher profitability than companies with low (or no) engagement. Employees are more likely to engage and remain engaged to their employers if they feel as if the company values them and essentially wants to improve their employee experience.
Good to Know: It is true that Lyft drivers are independent contractors instead of salaried employees. However, engagement is even more crucial within a company-contractor relationship for that reason.
Pro Tip: When determining if you want drive for Lyft fulltime, you may think about how much value the company is willing to invest in you.
Did You Know? Lyft COO John McNeil announced in May 2018 that the company planned to inject $100 million into the driver support centers to further accommodate their drivers. According to Fast Company, the objective of this substantial investment was to expand such services as car rentals, oil changes, electric car charging, and even tax assistance. McNeil stated that the company has been “committed” to drivers and have “led the industry with tipping in the app, same-day payments, destination mode” along with other “driver-centric” incentives and benefits.
When debating whether to drive for Lyft fulltime, take time to consider this type of sizeable commitment that the company has already made and the growing number of people who benefit from it.
Another figure to consider when deciding if driving for Lyft fulltime is a good idea for you is the company’s $11.5 billion value as of January 2018. CNET reported that this was a result of the 375.5 million trips made the previous year – which reflected a 130% increase from 2016. Skeptics may pay attention to Uber’s value of $68 billion.
Good to Know: It is more important to focus on the steady growth of Lyft in recent years compared to the hurdles and bumps in the road that Uber has experienced. Lyft services were launched in dozens of new areas throughout the country in 2017.
Lyft has also grown quickly in popularity to become a top competitor instead of an inferior alternative to Uber and similar ride-sharing service providers. When comparing the concept of driving for Lyft and Uber, a skeptic may also consider that Uber generated 4 billion trips throughout 2017.
Keep in Mind: Uber was also in 78 different countries while Lyft services were only available in the United States and Toronto. Therefore, when you consider how much Lyft has been able to accomplish with its relatively limited territory, it truly shines a positive light on the opportunity of driving for Lyft fulltime.
Reports confirm that Lyft served more than 95 percent of the U.S. population when it surpassed the 500 million ride milestone in October 2017. That figure reflected a 54% increase compared to the company’s coverage earlier the same year. As a prospective Lyft driver, this is an important figure to consider because it reflects a vast opportunity that extends far beyond your home state.
Good to Know: With that type of national coverage, you can rest assured that work will always be available regardless of where you travel throughout the country. For instance, some drivers may have to relocate to different states for various reasons – such as military assignments, job transfers and just typical circumstance changes.
More Benefits: Instead of starting from scratch wherever you move when it comes to generating a supplemental (or fulltime) income, it is good to know that Lyft service will still be available.
Another benefit of this figure is the recognition that comes along with it.
Pro Tip: When explaining side jobs and other business opportunities with less notoriety and recognition, it is easy to get discouraged by the confused responses and facial expressions you may get in return.
Thanks to the increasing popularity of Lyft services throughout the country, though, it makes it much easier to spread the word and be proud of what you do.
As you consider driving for Lyft fulltime or even part-time, you may typically start with the money that the company makes and how well it treats its employees/contractors. However, you will inevitably focus on how you will benefit directly from working for the company – especially when it comes to the money you make and the fine print you will encounter.
According to Medium, the Head of Driver Communications and Community (Laura Copeland) wanted to set the record straight on this topic back in April 2018. Copeland wrote that Lyft wanted to “shed some on [their] approach to helping drivers earn the most” with their company.
Pro Tip: Keep in mind that there are various elements factored into the calculation of wages – including trip request acceptances, trip durations, and the overall market. Within a scenario where the driver accepts and completes a ride, according to Lyft, the median earning nationwide is $29.47 per hour – reaching $31.18/hour in the company’s top 25 markets. Before you get overly excited about that number, though, you must maintain a realistic perspective and consider all the factors involved.
For Instance: You must deduct the amount of unpaid time spent online and/or waiting for fares. According to Tech Crunch, this brings the total down to $18.83 each hour ($21.08 in top markets).
Good to Know: You also must calculate the other expenses associated with this line of work – including car maintenance, gas and taxes. One report estimates that Lyft drivers can expect to deduct $3-$5 per hour in expenses. Even when you consider the expenses and other deductions, though, the income potential for hard-working entrepreneurs is still considerably higher than many other opportunities available.
Make sure that you plan ahead and follow these 7 key strategies that will make it possible for you to start a money-making business.
During a survey of 89 Uber and Lyft drivers in 6 cities, 31.5% of them confirmed that they had their own side businesses in addition to the time spent behind the wheel. According to Forbes, a small percent of them even had marketing materials in their vehicles on display for their passengers.
Pro Tip: It is imperative to not violate the well-known rule of driver-passenger etiquette that prohibits you from focusing the rides on selling other products and services to your fares. That is a quick way to lose your job and tarnish your reputation! However, this figure is still important to consider because it reflects the entrepreneurial spirit shown by many Lyft drivers.
Good to Know: Many people dream about running their own businesses, but honestly have no idea where to start. As a Lyft driver, you are giving the resources and assistance to essentially make that dream come true. You are also put in situations where you are required to interact with different people from various backgrounds, lifestyles and preferences daily.
This type of social interaction and insight can prove to help you in many other areas of your life – personally and professionally. Therefore, even though you may not ever get any customers for your side business from the passengers who ride in your car, you will still acquire knowledge and skills that will help you to do so elsewhere.
If you would like to find a side business to start and make even more money, here are 70 other ideas that will help you to earn a significant amount.
As you consider driving for Lyft fulltime and whether it is worth it, you must remain realistic! It is easy to become distracted by the advantages – such as the money and other perks that the company provides.
However, you must also carefully consider the downside and disadvantages that come along with it as well just like with any other legitimate business opportunity out there. For instance,CNBC reports that most Lyft drivers average $377 per month.
Remember: That number is just an average. It does not mean it will be your monthly pay after you sign up and start accepting requests. As referenced above, there are a lot of factors to consider when calculating your projected income.
Keep in mind that Lyft drivers are not paid salaries. As a Lyft Driver, you will not even receive a standard hourly rate just for logging in via your mobile app. Simply put, your income is primarily based on your workload. The more work you put in, the more income you will generate from your efforts.
This means that you will need to be strategic and persistent – just like any other hard-working entrepreneur or ambitious business owner. From location and timing to shift timing and customer satisfaction, you must take this business opportunity seriously to get what you want out of it.
As stated, you must keep a close eye on your goal and the purpose for why you even thought of driving for Lyft in the first place. For instance, perhaps you have a certain number in mind of the money you want to make. Well, that figure is just as important (if not more than) any other figure considered.
Everything that you do should focus on achieving that goal. Having a goal or objective will keep you encouraged during the hard times, such as when the requests are not coming in as quickly as you might like.
This type of goal will also keep you excited and engaged as a Lyft driver when you experience a big fare or just a great day when everything seems to be in your favor. Since you are obviously thinking about driving for Lyft fulltime or on the side, what is your goal? For those who have already started driving for Lyft, what is the strategy that you personally use to work towards achieving your own goal? Please share!
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