Lyft Commission Guidelines – How does Lyft’s Commission Work?
Are Lyft drivers charged 20% or 25% commission?
Lyft takes a Commission on ALL Lyft rides, and the fee is deducted from a driver’s overall trip revenue.
Lyft’s commission also applies to Prime Time rides.
How does Lyft’s commission system work? Are Lyft drivers charged 20% or 25%?
Lyft’s commission system is different for different drivers, depending on WHEN a specific driver initially signed up to the Lyft platform. Lyft used to charge only 20% commission on each ride, but it has since raised the rate to 25% in most markets.
HOWEVER – Lyft drivers who signed up with the Lyft platform before a certain date are ‘grandfathered-in’. In other words, the raised commission rate does not apply to them.
In short, here’s how Lyft’s new commission system works:
- All Lyft drivers who applied to become drivers before 12.00am on January 1st, 2016 are permitted to keep the following commission percentage: 20% Commission
- All drivers who applied after 12.00am on January 1st, 2016: 25% Commission
Are there any other charges or commission-related details Lyft drivers need to be aware of?
Yes. For other services, including Lyft Premier and Lyft Plus, drivers will be subject to the same rules as outlined above.
For drivers based in Manhattan/New York City, it is also worth noting: Lyft charges a 11.4% ‘administrative’ fee, which is related to the TLC department and city transportation laws.
Does Lyft take a commission on tips?
Fortunately for drivers, Lyft currently takes zero commission from tips given by passengers.
Lyft’s App allows passengers to add tips for drivers (if they so choose), but any additional revenue generated from tips is protected from Lyft’s 20% or 25% commission collection, regardless of whether it’s cash or electronic.
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