Being a Lyft/Uber Driver Isn't Worth It

Being a Lyft/Uber Driver Isn't Worth It

Last month, I made a myTake about the Pros and Cons of Lyft driving, but after I got into an accident, not during a Lyft ride but afterwards, on top of some more analyzing and research, I look back and decided driving for Lyft was just not worth it as the risks are much bigger than the rewards.

Driving for Lyft was a catch 22 for me.

Last year I was getting tight on money, had debt, and wasn't making a whole lot from my main job so I had to find a side hustle.

I had friends who drove for Lyft/Uber and my biggest hesitations was getting a sketchy passenger or driving into bad neighborhoods. Having done Lyft for 7 months, that maybe happened 3-4 rides out of the 306 rides I gave.

I signed up for Lyft in January but didn't start driving until March when the weather and roads got better. Until I started driving for Lyft, I was donating plasma and doing paid surveys for extra cash. It's hard for me to work a regular side job where I clock in as I work 9 hours a day and commute 2 hours to work by train as it's about an hour each way by train to my main job, so I wouldn't have time to work when I got home. This was where Lyft came in handy with the flexibility and being able to start and stop when I wanted.

Being a Lyft/Uber Driver Isn't Worth It

In the beginning Lyft made financial sense because they would offer bonus incentives like my first week, it was $250 guaranteed for 10 rides, regardless of the distance of the ride. I only made $167 including tips so they matched me the difference. The problem is these only came to me my first 2-3 months of driving. After that, I was basically driving till reached my own personal goal. No wonder there is high turnover with these companies.

What I thought was some good side cash, all came to an end when I got into an accident last month on November 4th when my car hydroplaned into the guardrail while turning onto an exit ramp which totaled my car. I'm also screwed out of a car right now. Now I'm not saying it was Lyft's fault that I got into the accident but here are the issues with driving for Lyft/Uber that outweigh any positives.

1. Your Personal Insurance does NOT cover Ride sharing

I was a bit naive because when I initially signed up for Lyft, I had to prove insurance and assumed they communicated with my insurance about it. Apparently you need Rideshare/Commercial insurance which is so expensive where the amount you make will either result in a net loss or break even, depending on how much you drive. If you don't inform your insurance and they find out you drove for Lyft/Uber, not only will they not cover you but they can cancel your policy too. Now does Lyft does provide liability insurance, only while driving a passenger, but the deductible is $2500 if you get into an accident.

Now I'm thankful my accident happened after I was done driving and had my app turned off, but I didn't know this till after the accident happened.

2. After your expenses of gas, wear and tear, and accelerated depreciation, you really don't make that much.

Sure, I was able to make some money, between $100-200 a week, depending on how much I drove but it increased the frequency of oil changes and it wore out my tires, which might have caused my car to hydroplane in the first place. I did get a cushion, but not that much. I don't have enough to buy a cheap car in full at the moment and I only had liability insurance.

Even if I still had my car, a good amount of that money I made would have gone just to replace the tires as the tread was wearing out. Now I am aware that driving your car overtime as is causes your tires and other parts to wear out, but driving for Lyft accelerates that.

3. Your chances of getting into an accident increase.

This kinda builds off number 1, but while accidents can happen anywhere, the more you drive your car, the more likely you're going to get into an accident and obviously with Lyft/Uber, you're driving more as that's how you make money from it. Fortunately I never had an accident during the 306 rides I gave, but I had a few close calls where drivers would pull out in front of me or run red lights. Insurance still would have denied me as I was giving a Lyft/Uber Ride.

If you live in the suburbs or depend on your car for getting around most places in general, I'd honestly avoid driving for Lyft or Uber. I mean sure you take chances of getting into an accident when you drive regardless if it's personal/business use but you don't know when an accident can happen and the money to fix/replace a car will most likely exceed what you make from Lyft and Uber.

Overall, if you are looking to make extra money and are considering driving for Lyft, Uber or any rideshare company, PLEASE consider this. This past month has been rough as where I live, you need a car to get around and I'm stuck between getting another car or not getting one and moving to the city where I won't need one.


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Most Helpful Girls

  • Hey I think we talked before. I am also an Uber and Lyft driver but I haven’t been working for them since Sept 🙁

    “Apparently you need Rideshare/Commercial insurance which is so expensive where the amount you make will either result in a net loss or break even, depending on how much you drive.”

    ^Yeah that’s exactly my situation. Even if I were to switch insurance, the installments would be so high that most of my rideshare money would be to paying that off each month. To top it off I have to pay for health insurance out of pocket since my main job doesn’t have benefits.

    I actually really enjoyed driving for Lyft and Uber and it saddens me that I have to give it up, but maybe it was for the better. I hope something better comes along for both of us and things recover quickly and smoothly for you.

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    • We did. Yeah and even if you don’t tell your insurance company you do Uber/Lyft without getting rideshare insurance, you’re at a bigger risk of getting your personal policy dropped.

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    • Yeah it’s crucial and it’s important to drive slower when it’s raining/snowing.

    • I hear you. I usually avoid driving in those conditions anyway, especially when I was doing ridesharing.

Most Helpful Guys

  • Way back in the 1980's, the company I worked for paid me 25p (30-40 cents, I guess) per mile when I used my car for business (to cover depreciation, wear and tear, petrol, etc.). If you get less than that now, you're losing out.

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    • With Lyft, you deduct 55 cents per mile as a tax writeoff. I would say the insurance policies are a much bigger concern.

    • When I worked for Comcast, doing to door sales, they gave us a $300 monthly gas allowance which was more money in my pocket if I didn’t have to drive far for the neighborhoods and kept my car parked most of the time I was working those neighborhoods.

      I was also a direct employee and not a 1099. I imagine your job was the same?

  • Ya most people don’t seem to factor in depreciation of the car. They just look at gas for the most part lol

    In a way what you are really doing is slowly converting the value of your car into cash
    —> any other way you can’t really sell 2% of your car lol but with these services. You are essentially cashing in on a small percentage each time you drive

    And Uber basically is making monkey off you but we aren’t making money. Typical business model designed to have Uber profit but not us. We in reality not us but people don’t always realize it

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    • Yeah when I bought my car in June 2016, it was $6000 for a 2004 Pontiac Vibe with 57,000 miles on it. After the accident, my car had 105,000 miles and was worth $3800. Now keep in mind, most of those miles didn’t come from Lyft driving as I only started doing Lyft at the end of March this year. It definitely added to it though.

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    • Not really. Pontiac Vibes have a Toyota engine can last a long time if you keep up on oil changes and regular maintenance. Aside from replacing the blower motor and tires since I got it, the car ran pretty well. Little to no issues.

    • I was also pissed because I totaled my car a week after replacing the blower motor and was driving for Lyft to recoup that cost.

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What Girls Said 8

  • Thanks for the informations, u deserve some big tips

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    • I actually got some pretty good tips from passengers and a high rating, at 4.83/5.0. But like I said, the insurance and accelerated wear and tear trumps all those benefits. Lyft is good for some quick spending money at best.

  • Lol hey dont post stuff like this I might need a ride soon :D

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  • Nice take

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  • Good take

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  • Interesting

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  • my brother makes like 1000 a day from it

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    • He either is working in a busy area , doing it all day or both. That’s pretty rare someone makes THAT much in a day from that though.

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    • Nothing is free
      The time He puts could be put somewhere else and making money off it

    • @TripleAce he already has a job

  • Not for me.

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  • I think only people do it because they cannot really do another type of job. The drivers are kinda creepy and little crazy. haha

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    • They exist but that’s not all Lyft/Uber drivers. Then again I’ve only taken Uber/Lyft a few times as a passenger but haven’t had any issues.

What Guys Said 11

  • Excellent advice on the financial side of things. Sorry to hear that it didn't work out for you, but thanks for sharing your experience.

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    • No problem. Yeah while Lyft/Uber is really common as most people can do it, there is also high turnover for a lot of the reasons I mentioned.

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    • Yeah and by no means is plasma the sole way to make extra money.

    • No, I'm in Germany.

  • I have uber a go at one point and I experienced the same thing you did. It isn't worth it. Too many hidden costs.

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    • How long did you do it?

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    • Yeah I did it for about 7 months. I still gotta file the taxes for it next year. My accountant who did my taxes this year said the mileage/gas deductions kinda balance out what you owe.

    • Yeah I did my taxes for it. My accountant said it isn't worth it.

  • Yeah, I figured it didn't look as lucrative as they tried to make it look like on TV.

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  • Wow, i had no idea. Big tip if i ever use these services.

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    • Yeah, I'm surprised more drivers don't mention it. I talked to Lyft/Uber/Via drivers about their thoughts about it and they didn't really mention these issues in the take.

      Then again a lot of people leave Lyft/Uber for different reasons or avoid it because they don't like the idea of strangers in their car.

  • Great take

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  • I have a friend that does that

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  • Dude seems like a bad idea

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  • Olabride

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  • Front realuse how many bad things about it

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  • Ya not worth it unless I really have to for some reason.

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    • Yeah and I think that’s a huge problem with our gig based economy today. A lot of people, including myself are having to work extra jobs just to make ends meet despite having a college degree and working full time.

    • True man I feel for ya

  • You can also get ran over or hit or killed tomorrow; so, I recommend not leaving your house.

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    • That is a consideration too. Honestly, Lyft wasn’t my first choice for a 2nd job. I applied for part time work near where I live months before I started and never got callbacks.

    • Why can’t you get a better main job or get a higher position at your main job?

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