RIDEGURU
Lyft is now testing paying drivers once we swipe accept. Boise, Rozwell, Hawaii are the areas this rolls out in on June 27th. Once the driver swipes ACCEPT the driver gets .45 then every min it takes you to get to the rider you will be paid .25 per min. & .57 per mile. Once you arrive and start trip ypu will get your regular rates. Will Lyft roll this out in every city? If so when? Will Uber follow? What are your thoughts?
Update:
After seeing post by RedAnt and looking into this further this may not be a good thing. What Lyft failed to mention is they cut rates first. As of now in the 6 markets this was rolled out to it seems like you may make better money for linger pick up but not on shorter ones. We will have to wait and see after getting feedback from drivers in those areas. RedAnt has a post to this thread that explains it more.
Comments
This change is horrible for many drivers.
In Seattle: (one of the test markets)
Per mile dropped from $1.11 /MILE to $0.63 /MILE (-$0.48 /MILE)
Per minute rose from $0.1875 /MIN to $0.285 /MIN (+$0.0975 /MIN)
Pickup fee of $0.45 was also added
45 cents + 9 cents a min doesn't overcome a 43% cut in mileage rate
After running the numbers on my last several days, MY AVERAGE FARE EARNINGS DROPPED BETWEEN 25 AND 34%.
From the Lyft email:
Note that you'll earn with the same rates as you would when heading to the passenger and when you're on your way to their destination.
Assuming pickup is 2 miles/5 minutes away, you'd:
lose 48 cents per mile x 2 miles = - 96 cents
gain 9.75 cents per minute x 5 minutes = 49 cents more + 45 cent pickup = + 94 cents
Net: 2 cents lost on the way to the pickup, and huge losses to passenger destination.
The driver that was telling the You Tuber about this made no mention about rates being decreased recently in their market. I dont know anyone in those markets but I'll see if I can find out if their per mile, per min rates were lowered recently. Thank you for the info. Red Ant do you mind if if I screen shot your comment to put in my email to the You Tuber?
I’m a lyft driver in Honolulu and after the first night I can vouch that I made at least 20% less than I would have! Looks like I’m mostly going to be driving Uber now... I’m disappointed in lyft. They cut our rates from $1.125 a mile to $.57 a mile. No way the increase per minute ($.165 to $.255) will make up for that. $.09 increase? Really lyft? I’d rather take the extra $.55 a mile. I’m not happy.
Per mile dropped. Per minute increased.
They are pulling the wool over your eyes. They are trying to make it obscure, so it's more difficult to identify whether this was a paycut or not.
Everything they do seems to screw us. They always make it seem like it benefits us somehow. When you do the math to take a trip with new changes its obvious they turned that scew driver even tighter. Dont think they can turn that screw driver much more before they strip us of everything:) They either think we are all total idiots, new drivers wont know the difference, or they just dont give a damn. Something has to give. They are going to have no drivers left, all newbies who will eventually see what they do & end up leaving, or someone is going to come up with a better rideshare co. One of the Rideshare You Tubers all ready working on it if Uber & Lyft keep cutting our rates. The Rideshare Professor. Just started a new site for drivers. Trying to get all drivers to join so we are all able to know whats going on, get the word out for Strikes, and for new company. Streetteams.com There are fees for certain sign ups but just to join is free.
Your analysis is spot on. In major cities it’s a cut on earnings. We did extensive research on RSG (the Rideshare Guy), came out to be a cut from 5-20% on average earnings.
RedAnt has posted the scenario for this new "get paid as soon as you accept a ride" with Lyft. She has made good points and shows that it is a loss to the drive. I watched a You Tube video by the Rideshare Guy's Channel, Jay Crader. Lyft claims they will start paying the driver as soon as they swipe accept. What they didnt tell you is the 6 markets they are testing this in they are lowering drivers overall rates.
Key Takeaways
According to the You Tube video shorter pick uos (less time) will cause drivers to lose $ compared to what they were making prior to this new "get paid as soon as you accept trip". However longer pick up times may increase driver earnings. Jay states, "it will take more time and expansion into more markets to get the final results". Just another way to screw the driver. Do they really think all drivers are cluless? That drivers dont see the info on forums and You Tube? The answer is They Just Dont Give A Damn about dri…
Read more...
RedAnt has posted the scenario for this new "get paid as soon as you accept a ride" with Lyft. She has made good points and shows that it is a loss to the drive. I watched a You Tube video by the Rideshare Guy's Channel, Jay Crader. Lyft claims they will start paying the driver as soon as they swipe accept. What they didnt tell you is the 6 markets they are testing this in they are lowering drivers overall rates.
Key Takeaways
According to the You Tube video shorter pick uos (less time) will cause drivers to lose $ compared to what they were making prior to this new "get paid as soon as you accept trip". However longer pick up times may increase driver earnings. Jay states, "it will take more time and expansion into more markets to get the final results". Just another way to screw the driver. Do they really think all drivers are cluless? That drivers dont see the info on forums and You Tube? The answer is They Just Dont Give A Damn about drivers and what they are paid.
I understand why veteran drivers still drive. Some know their market, know when and where to drive and can still make $. What I dont understand is why people would still be signing up with these companies to drive. Unless they did their research or another driver handed them all the info you could possibly need why would you sign up to drive? Anyone thinking of driving please do your research, know your market, and most important dont go out and buy a new car to drive for Uber and Lyft. Rates are being cut, these companies are operating at a loss, and drivers all over are not happy. Make sure you know what you are getting into before quitting your job to drive.
Read less...
It’s another pay cut. We did extensive research on RSG, if it came with a lesser cut in mileage rates, it would have been a positive. Long pickups are more palatable now, this is horrible for drivers in the big urban cities. This is only good for drivers in rural areas where average pickup is 10 miles away. The pay cut is anywhere from 5% to 20%. When was the last time U/L did something good for the driver. Stop drinking their Koolaid people!
I ALWAYS was a proponent of paying the driver for every minute he or she is working. I wouldn’t ask for time between fares, but it totally make sense to every minute after the ride is accepted.
We get hired for the time working for our customer. Very simple model. At the end of the day, they’re laying for our time.
Good job to Lyft for recognizing this and being considerate for our time.
Especially since Lyft request tend to be 10 min or more away. Most of the time is 15/20. Uber does pay over a certain threshold for long pick up. Lyft to date hasnt. Sounds good if they do this but hopefully they atent lowering rates first.
Isn’t this Lyft’s response to the long pickup fee? Paying drivers for the time it takes to get there.
Sounds like it. On Uber there is a threshold in each market. My market is 10 min. If I get a long pick up 20 min away in certain areas & its a long trip I will take it. I will make approx. $10 to go get them on top of the fare of the long trip. I am getting mixed answers on them paying while picking up the passenger. It seems they are lowering rates then adding the adding the additional fare for the pick up. This is causing a loss for the driver. Funny how they make it seem like they are doing something good for the driver but just pushing the knife in further. See RedAnts post above. I am going to watch a You Tube video to see what he figured out. Ill report back after viewing it.
I am a lyft driver in Honolulu, one of the test cities for the new rate system. It was launched yesterday and after my first night driving with the new rates, I am not a fan. Lyft made it seem like this was such a great thing for drivers, but it was just a way for them to hide a pay cut from us. Some rides, yes, you make more money, but I’d say 80% of rides you actually make less money. Only if you are sitting in traffic or if it is a long pick up (most rides aren’t) you make more money. I drove for 6 hours and I should have made at least $150 with the old rates. Instead I made $125. Here are the old rates vs. the new rates.![]()
That is a full $.55 less per mile!!! I am not happy.
CEO's of Uber and Lyft are despicable deceitful human beings. They really must think drivers are idiots and will not realize they are making less money. Both companies continue to cut drivers rates, bonuses, etc... sadly it doesnt surprise me. They put info out to drivers in other markets about getting paid once you swipe accept but never mentioned they were reducing anything. If it wasnt for the drivers they wouldnt have a company. It sucks. Hopefully CA drivers will do the right thing and force these companies to at the very least increase fares. Not holding my breath. Hang in there. Maybe they will get whats coming to them. We hzd our XL fares lowered cant wait to see what they are going to next.
Oh. I went in reading this thinking they were getting paid in advance at the time of swiping Accept. You mean they now pay for the time you drive for pick up. That’s a great news!
Great news, maybe if it was not paired with a pay cut, but these great news come with a pay cut so you will make less in the end.
True. They probably do this to just confuse the drivers while they are actually cutting our net pay.
I am all for being paid for the time I work.
Love the thought of certainty during the pick up. Seriously, I hate that time when I am on my way for pickup.