Retired? Just starting out? Forge Your Fortune on the Open Road with Lyft.
Forget golf! Ditch the cubicle! This ex-CEO reveals how Lyft can become your $900/week freedom machine (Tesla tips included).
In the realm of retirement, where aimlessness looms like a specter, an alternative exists for those who hunger for autonomy and self-reliance. Lyft stands not as a mere casual pursuit but as a crucible for shaping individual worth through sheer fun, determination, and inventiveness.
Discard the chains of stringent employment, with its stifling regulations and trifling politics. Embrace the dynamism of the open road, where your earnings ebb and flow solely based on the caliber of your service and the efficiency of your drive.
But let’s be unequivocal; this path isn’t for the faint-hearted. The gross income, while commendable, won't thrust you into the realm of billionaires. It's the net income, the yield of your calculated endeavors, along with the fun experiences, that hold the genuine reward.
When some people retire or semi-retire, they may take up golf, enjoy a hobby, or learn a new skill, and, I like to do different “experiments.” For me, I’ve thought of starting up another business, though I have zero interest in dealing with the multitude of regulations and dealing with employee politics, as I used to do.
I happened upon driving, in this case, Lyft, purely by accident due to one of my experiments. If you love driving and people, it’s the perfect stressless gig. About 8 years ago, I did a 3-week experiment driving for Lyft to see what drivers made for a living, and much to my surprise, it was the funnest thing I’ve done, and it became an addiction, a healthy addiction. It’s been a while since I’ve posted about Lyft since I haven’t done it since COVID, and now that I moved to the Space Coast (East Central Florida), thought I would see what it’s like up here.
I just finished a one-week experiment to see what may have changed and/or what drivers make here as opposed to South Florida, and much to my surprise, it is very similar to South Florida - income-wise. Lyft is great from the perspective of the variety it provides (going to different places every day and picking up a wide variety of people). Driving with Lyft has a substantial amount of freedom, as you can go onto the platform whenever you want, at 3 a.m. or 3 p.m., and you can go on for 1 hour or 10 hours, with no set schedule. One thing is for sure, you’re never late for work.
USE THIS LINK TO SEE MY PREVIOUS EXPERIENCE BLOG POSTS PRE-COVID
So, in this past week’s experiment, I intended to drive for 40 hours, as if someone was doing this for an actual job. But much like my prior experiments with Lyft, life gets in the way, I only did 26 hours, and did collect enough data to give you a true idea, if driving for Lyft would make sense for you, and then near the end, I will conclude this post with my opinion as to how to make the most net income with Lyft. This past week, I grossed $24.76 per hour, $644 for the 26 hours, and from that, one must deduct the expenses of their car (gas, insurance, tires, maintenance, etc.). I could increase my per-hour gross income by driving in the evenings and during special events. I choose not to. If you did, you could likely get around $40/hour.
Since the expenses of one’s car can vary dramatically, I’ll use the IRS mileage deduction as a guide, for 2023 is 65.5 cents per mile, and in this case, I drove 578 miles; the deduction is $378.59. Later, I will get into why that is a good thing and how to reduce your car expenses to increase your net income from driving. So using the relatively high 65.5 cents per mile, your net income would reduce it to $10.20 per hour, which doesn’t sound too exciting. But you can soar that net $ per hour with some different strategies. In my case, I have calculated my net income per mile to be $22.40 per hour (taking into consideration taxes, tires, insurance, etc.). So, if someone worked 40 hours per week, one could net just under $900 per week ($896) AFTER taxes. So, as mentioned in other posts, it is not something you’re going to get rich doing, but you’ll make some half-decent income.
To make the most money driving for Lyft, as mentioned in prior posts, you need to reduce your costs per mile. The best way to do that is to use a car that needs as little maintenance as possible (a newer car ) and reduce your fuel costs to as little as possible ( a hybrid or electric car). If doing it for a regular job, I would recommend doing both Lyft and Uber, so that you maximize your time.
BEST PRACTICES TO MAKING THE MOST MONEY DRIVING
Here is the best way to make the most net income driving rideshare:
Use a Tesla Model 3 Long Range ($46,000 before $7,500 tax credit & full tax depreciation). Use my referral code to get some extras: https://ts.la/karl529508
Use FPL’s $31/month EV home charger program. https://www.fpl.com/electric-vehicles/evolution/home.html
Don’t drive excessively “looking” for rides. Put yourself in a busy area and times.
Schedule high-income rides in advance.
Focus on the rider, not yourself. Know when to keep your mouth shut and when to engage in conversation. My experience as a rider myself with drivers has exposed me to some horrible drivers out there. You don’t need to provide snacks and bottled water unless you’re doing luxury rides; just adjust the music and temperature to your rider’s liking. It’s all about the rider, not you the driver.
Accept every ride, and rarely, if ever, cancel a ride.
Become a Platinum Lyft driver to qualify for many perks outside of driving. This comes after you meet certain criteria each month.
Structure your income to avoid self-employment taxes, legally and ethically.
You can get additional income by getting other drivers on board using a referral code Lyft gives you. The dollar amount is different for different metro areas. And use my referral code to get some extras once you start driving: https://www.lyft.com/drivers/karl153743
Although I don’t do it, drive during peak times, especially in the evenings. The driver app will tell you the busiest times and areas to focus on.
Don’t ask for tips! If you’ve given a rider a great experience, it will come.
Photo by Mariia Shalabaieva on Unsplash
