RIDEGURU
Good old pink mustache Lyft, lowering rates to 43.5 cents a mile while IRS deduction is 58 cents. Pretty soon they'll ask us to pay them to drive for them. Bring on AB5! The evil must be stopped.
Lyft lowering rates to 43.5 cents a mile in Florida & Vegas
Posted 4 years, 8 months ago
Posted In
Angry Drivers
Passengers from hell? Complaints or suggestions for Uber and Lyft? Glaring problem with the industry? Do you have stories of your horrible experiences with rideshare services? Leave your comments here and share your stories.
Posted By
Sergio Avedian (Uberserge)
1300
Rider
Driver
Ride Apprentice from Los Angeles, CA
Blogger, Podcaster, Active Rideshare Driver/Coach
Active Uber/Lyft driver in Los Angeles, contributing writer for Rideguru and RSG (The Rideshare Guy), podcaster, rideshare driver coach, independent consultant to rideshare and tech companies.
Popular Links
- Maximum Ridesharing Profits
- Fare Estimator
- Rideshare 101
- Sign up for UberAd
- Sign up for Uber EatsAd
- Sign up for Lyft - $5 offAd
Comments
OMFG.
Sergio, great job on comparing this to the per mile IRS deduction. That REALLY puts it into perspective. Whatever they do to justify or calculate the IRS's mileage rules should be pulled up and compared against how Lyft justifies their own rates.
They don't care, they've oversaturated market to such extent that even if 20% quit they know they'll have more than enough new blood to suck on. Bring on AB5!
LOL re: pretty soon they will ask us to pay to drive for them. I wouldn't put it past them. They will find some sneaky way to make it seem like it is worth it. Perhaps a "special driver badge" for $29.99 a month that gives you certain advantages over other drivers but when you do the math you actually lose money. Yep, I bet that will happen.
Uber used to have medallions, pure money maker a few years ago, it's coming full circle but now UBER owns the medallions.
The rideshare companies don't care how cuts affect drivers as long as they continue to have an overabundance of drivers willing to work at those crap rates. Don't agree with it? Stop driving Lyft and move to Uber. If everyone stood up and walked away at the same time, they'd backtrack as fast as they did with the stupid ass Taco Bell "taco mode" idea.
Uber can't be too far behind. Lyft used to follow UBER now Lyft is taking the lead in many areas. I guess as long as they habe fresh blood to suck on, they'll keep bringing it.
That not counting the 25% commision that lyft takes either!
25% on a good day
So you lose 4.5 cents every mile you drive. Seriously, why would anyone work in Florida and Vegas?
That’s not even counting the Lyft’s 25% commision either!
Good question, that's the brow lift taking advantage of desperate people. It's more like 14 and a half cents loss a mile
That’s not counting the 25% commision lyft take either!
Bump.
You should put that IRS deduction in the title of the topic.
Wouldn't this be illegal in some ways? The rates being lower than the Federally approved per mile rate? I guess it all matters on what's agreed upon, huh?
But they increased the per minute rate considerably as I understand it and ARE paying you from the time you accept the ping. So now you DO get paid to go pick the passenger up, correct?
Not sure if you're a driver for either platform but do you think the time bump makes up for the 50% in mileage rates? Take a look at your rides and run a simple spreadsheet, you'll see what kind of hit you'll suffer.
It is hard to believe... Sounds like complete insanity.
IRS rate is supposed to be how much it costs to operate the vehicle in terms of fuel, wear and tear, maintenance fees, etc.
...and it does NOT consider for the time incurred by the driver.
If Lyft is really only offering this much, every ride will be at a loss.
The IRS rate is based on business vehicles, like semis and large commercial vans and box trucks that get under 10 mpg. Using that to figure out driver expenses is useless. FWIW, my average cost to operate my vehicle is approx 30 cents per mile.
Yes for the driver, most rides are at a loss with these rates. Not for Lyft or Uber though. Take a look at the rate cards I posted for Vegas and Phoenix, unconscionable!