Lyft Driver review

How it works

You apply through Lyft's driver page, submit your license, vehicle information and documents, and complete a background check. Once approved, you go online in the Lyft Driver app and accept ride requests. Lyft's fee is taken from passenger payments, and the page notes that the fee is capped at a percentage of the fare. You must maintain personal auto insurance that meets state minimums, and the company describes its own commercial coverage that applies in some situations where the law allows.

Pros and cons

Who it is for

Lyft suits drivers with a suitable car and insurance who want flexible rideshare income. It is also useful as a second platform for drivers who use Uber. It is less suitable if you cannot cover vehicle costs or if you need guaranteed hours. For delivery rather than rides, see DoorDash.

Insurance and what the platform covers

Lyft's driver page says drivers must maintain personal auto insurance that meets minimum state requirements. It also notes that most personal policies will not cover you while you use the app, and that Lyft maintains commercial insurance for drivers where laws allow. The exact coverage depends on the period of the trip, such as when you are waiting for a request or carrying a passenger.

Before you go online, call your insurer and ask how your policy treats app-based driving. Some insurers offer a rideshare endorsement, which can close gaps in coverage. Do not rely on assumptions about what is covered.

Fees and what you keep

Lyft takes a platform fee from passenger payments, and the company's driver page states that this fee is capped at 30 percent. The fee is only one part of your costs. Fuel, maintenance, tires, insurance and phone data also come out of your earnings, so calculate what you keep after all expenses rather than focusing on the fare.

Use the same method you would use for any contractor work. Track miles, earnings and costs for several weeks, then divide the result by the hours you spent online and driving to pickups. The how much gig apps really pay after costs guide walks through that calculation.

Taxes, safety and scams

Rideshare income is usually self-employment income. Plan for estimated tax payments and keep mileage records. The gig workers and IRS reporting guide explains the forms and records to keep.

Be cautious with any offer from outside the official app that asks you to pay for a driver kit, training or a background check, or that promises guaranteed rides. Apply and manage your account only through the official Lyft driver page and app.

Alternatives worth comparing

Uber is the closest comparison, and many drivers test both apps to see which pays better in their city. For delivery work, DoorDash and Instacart use a different pay structure. For short tasks that do not involve driving passengers, TaskRabbit is another option.