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Well, yes and no.
After going to Uber’s and Lyft’s websites, it’s apparent that they aren’t exactly 100% transparent in disclosing the driver pay, but the variables of pay and charges are disclosed.
What Determines Your Pay?
Booking Fee – this is the initial amount that is charged, it covers administrative costs.
Base Fare – this initial fee that is charged for the pick-up.
Time – Even if you aren’t moving, stuck in traffic for example, you are still being charged for using the drivers and seemingly, Uber’s time as well.
Distance – Along with time, you are also charged for the amount of distance you cover during the ride.
Surge variable – Supply and demand will always play a role in pricing. If the demand is greater than the amount of drivers available, a surge variable fee is added to the fare.
Tipping – If a person chooses to tip, this will be added to the fare as well.
Both Uber and Lyft claim they only charge a 25% fee to the drivers, but if you start driving for either one of these companies, you’ll see that it’s a little more than that. Based on research done by ridester.com, the fee that Uber and Lyft both charge can be as high 40% or more.
Does this mean you shouldn’t drive for Uber or Lyft? Absolutely not, but be aware there are several factors that will determine your pay. Become familiar with the factors and use them to your advantage when you start driving for one or both of these companies.
So How Do You Make Money With Uber & Lyft?
First you have to sign up and do the necessary background check. Then you can choose your method of payment.
You can choose direct deposit, and your payment will go directly to your bank account every Thursday for Uber and Every Tuesday or Wednesday for Lyft depending on processing time.
Tips on How to Make Money with Uber & Lyft
Go the distance – the longer the drive, the better.
Short travel fares end up paying less in the long run. Try to position yourself at locations that will potentially result in long drives, that result in higher fares. Many Uber and Lyft drivers position themselves at the airport or at least nearby so they can pick up those long distance fares.
Enjoy the nightlife or at least try – Many Uber and Lyft drivers will position themselves downtown by the club scene.
There are always plenty of passengers that need to get home after a night of partying. Keep in mind, while this may result in larger fares, sometimes you can get passengers that are highly intoxicated. Their behavior could be rude to say the least. This may be a good opportunity for you to make some cash or it may not be for you.
The Daily Grind – While you may be venturing out on your own with your new side hustle, the majority of people will still be working their daily 9 am to 5 pm jobs. If you position yourself near busy business areas with very little parking, you could make decent money taking people home for work.
Tipping – Great service isn’t always rewarded but sometimes it is.
If you lend your ear to a passenger coming home from a hard days work, they may appreciate that and compensate you in return, but this isn’t always the case. As a rule, simply try your best to provide great service to all passengers and show compassion and professionalism across the board. Sometimes you’ll be compensated well and sometimes not, but make sure your service stays consistent.
So Is Uber & Lyft Worth Doing?
Based on the responses I received from Uber and Lyft drivers while using their services, the answer has to be yes. While some drivers had a few complaints about fees or company policies, the majority of drivers said they enjoy working for both Uber and Lyft.
The main point that I heard over and over again was the freedom. Freedom from the day to day grind, freedom to make their own hours, and being able to spend more time with their families.
Full disclosure, we have no affiliation with Uber or Lyft. Some of the data used in this article can be found on ridester.com Check out their website for a more in depth study on the ins and outs of Uber, Lyft, and ride sharing in general.
Not looking to make money driving? Rather stay in the comforts of your own home? That’s totally fine. Check out other ways you can make money from home — Learn more here.