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How much does a Lyft driver earn?

brent-noorda.blogspot.com

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Re: How much does a Lyft driver earn?

#11

Post by jdmichal »

FaceKicker wrote: post #5
jdmichal wrote: post #4

Earlier quoted context omitted.

But it's not like his car payment magically disappears when he becomes a Lyft driver. Or magically stop having to carry insurance. It's a good estimate to use for cost, especially considering the author did not even own a car and would have to purchase one.

> But it's not like his car payment magically disappears when he becomes a Lyft driver. Or magically stop having to carry insurance. Right, my point is that those costs are essentially fixed w.r.t miles driven, not that you wouldn't need those things. If you drive 36000 miles a year as a Lyft driver your car payment is still the same as someone who drives 12000 miles a year, whereas the author's model assumes the pay…

Ah, I misunderstood. Yes, you are correct. I would use the US government's rate per mile, which comes out to about $17 for 30 miles. Unknown what components this is expected to include beyond fuel and wear/tear.

http://www.gsa.gov/portal/content/100715

EDIT: Found further clarification. "The TDY mileage rates consider the fixed and variable costs to operate a car (gasoline, insurance, wear and tear, etc.) and are intended to reimburse the average expense of using a POC for the official government travel."

http://www.defensetravel.dod.mil/site/faqmileage.cfm

Re: How much does a Lyft driver earn?

#14

Post by brent_noorda »

yid wrote: post #3

> I’m just guessing that I’ll average a speed of 30 miles/hour while I’m doing my Lyft job. So my expenses will come to about $22.80 per hour. You're implying that you will driving 30 miles each hour, on average. That is a ridiculous overestimation for the type of urban driving Lyft will involve. I'd guess closer to 15-20 in off-peak periods, and perhaps something close to 10 miles on average. That brings maintenance…

Maintaining 30 mph in a dense city, such as downtown SF is probably high (although then enough time is spent idling that my costs-per-mile estimate becomes too low). Fair point. I pulled the 30 mph out of someone else's guess in the AMA article mentioned, and from the most recent Lyft report I read, saying it wasn't uncommon to drive to the airport (removing the Mustache first, of course) during which time 30mph is low, and the time-between-rides becomes high.

Re: How much does a Lyft driver earn?

#15

Post by sliverstorm »

artag wrote: post #12

According to IRS, $0.58 per mile is fair comp (for driving your own car). http://www.irs.gov/uac/2013-Standard-Mileage-Rates-Up-1-Cent... . In city, you can hardly drive over 35 miles/hour and you stop frequently. Even if you drive 10-20 miles per hour, that's $6 - $12. per hour.

The IRS is definitely lowballing it though.

Re: How much does a Lyft driver earn?

#16

Post by TheCoelacanth »

jdmichal wrote: post #4
FaceKicker wrote: post #2

> According to this Consumer Reports article, “the median car costs more than $9,100 a year to own” over the first five years of ownership driving 12,000 miles a year. That means the median cars costs about 76 cents per mile driven ($9100/12000). I’m just guessing that I’ll average a speed of 30 miles/hour while I’m doing my Lyft job. So my expenses will come to about $22.80 per hour (0.76*30). Doesn't that $9100 a y…

But it's not like his car payment magically disappears when he becomes a Lyft driver. Or magically stop having to carry insurance. It's a good estimate to use for cost, especially considering the author did not even own a car and would have to purchase one.

But he calculated his per mile costs using 12000 miles per year. A taxi driver is going to drive far more than that, so the fixed costs will contribute a smaller amount to the per mile cost.

Re: How much does a Lyft driver earn?

#17

Post by fleitz »

yid wrote: post #3

> I’m just guessing that I’ll average a speed of 30 miles/hour while I’m doing my Lyft job. So my expenses will come to about $22.80 per hour. You're implying that you will driving 30 miles each hour, on average. That is a ridiculous overestimation for the type of urban driving Lyft will involve. I'd guess closer to 15-20 in off-peak periods, and perhaps something close to 10 miles on average. That brings maintenance…

Urban driving incurs a higher cost per mile driven, and unless you're driving a hybrid increases fuel costs.

Re: How much does a Lyft driver earn?

#18

Post by brent_noorda »

fks wrote: post #13

I know Uber drivers count driving/car costs as business expenses for a tax write off. Something to think about...

Lyft drivers could surely benefit from the tax deductions as well. I assume they report their Lyft payments to the IRS? This complicates the "how much they earn" formula further.

Re: How much does a Lyft driver earn?

#19

Post by mschuster91 »

It is also possible to drive a used car, which can drastically lower the initial and operating expenses. This way, even "luxury" cars are a viable option to drive.

Also, most people tip their drivers, which is basically tax-free income (at least in Germany).

Re: How much does a Lyft driver earn?

#20

Post by brent_noorda »

KaoruAoiShiho wrote: post #8

@Brent Noorda, awesome! You've identified a market opportunity to provider a more consumer friendly and driver friendly alternative! Give back to the community! All you need is some servers and lattes.

Given what the drivers and passengers put into it, it does seem that Lyft's 20% cut seems high - but that 20% is also what justifies backing from the investors. If so, then there's room for a service doing the same brokerage deal for, maybe 10% or 5% (if they cut out the lattes), advertising itself as "cheaper than cabs, AND cheaper than Lyft". Maybe Craig will offer a really crappy UI and do it for free?
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