Wednesday, October 15, 2014

How competition drives down rates

The following Lyft rides reflect last December. As you can see, fares are no longer this expensive. A ride under a mile won't cost a passenger $7. Within a year, rates reduced again to decrease earning potential. Compare current fares to December 2013 fares below.

Can you still make money driving for Lyft? Do you want to fist-bump every passenger? Interested in attaching the fluffy Pink mustache on the car grill at the beginning of each driving shift?

If you earned $50 an hour, you would make those sacrifices. Nonetheless, Lyft ads are rotating with $20/hr earnings. The cost of gas, repairs, toll bridges and other expenses make $20 per hour seem like chump change.

It is not worth driving for Lyft right now. Their rating system is designed to weed out the lowest rated drivers. A driver with a 4.82 score can get deactivated once their rating reaches 4.79. Lyft doesn't care whether they terminate their drivers during Christmas season and/or on birthdays.

The daily statement for a December shift show how much donations have dropped in 10 months. Perhaps fare adjustments will drive down the competition and decrease the supply of drivers.

Lyft was once a great income generator. They gave drivers 100% of their earnings during Power Hours and Spring season.

A drive from the Marina to Downtown San Francisco may cost $10. Lyft does have an advantage that UberX is lacking; they feature a tipping option to reward good drivers.

Competing ridesharing companies are lowering prices. When one ride company reduces their fars,, another follows suit. It has a monopoly effect on driver earnings. Drivers must take more trips, drive more miles, spend more on gas, and reduce downtime to make decent earnings.

Check out the trips taken on a typical Saturday night back in December. Total cost of gas this night: $75. No commission taken.


Daily Summary



Driver summary for Dec 7, 2013
Trip Distance
Trip Time
Donation
Lyft Fee
Tip
Your Earnings
5.3 mi
13 min
$17
$0.00
$17.00
4.1 mi
18 min
$17
$0.00
$17.00
3.9 mi
16 min
$16
$0.00
$16.00
1.1 mi
6 min
$7
$0.00
$7.00
38.3 mi
46 min
$89
$0.00
$89.00
0.8 mi
5 min
$7
$0.00
$7.00
1.3 mi
6 min
$8
$0.00
$8.00
1.9 mi
8 min
$9
$0.00
$9.00
2.1 mi
12 min
$11
$0.00
$11.00
1.1 mi
7 min
$8
$0.00
$8.00
1.9 mi
10 min
$10
$0.00
$10.00
41.4 mi
65 min
$101
$0.00
$16
 $117.00

103.2 mi
212 min
$300
$0.00
$16
 $316.00
Passengers have 24 hours to donate, so amounts may not yet be final
Hours in Driver Mode:
6.3 hr

Your Earnings:
$316.00