Lyft’s Cancellation Policy & What It Means For Drivers

How does Lyft’s Cancellation Policy work for Drivers?

Lyft attempts to show commitment to its drivers’ time and effort in various ways – incentive systems, bonus programs, etc. Another way is via its Cancellation Policy – whereby the company charges riders a (reasonably significant) Cancellation fee if the ride is not carried out by a passenger.

If a driver takes the time to drive to a pickup location (only to have a no show), Lyft will charge the rider a cancellation fee based on their city. The cancellation fee will be added to the driver’s total earnings of the day.

Notably, these fees are also not subject to Lyft’s commission; drivers keep the full amount. 

Lyft Rider Cancellations 

It can be extremely frustrating for drivers when a rider cancels their ride while they are already on their way to the pickup location. If this scenario occurs, drivers are protected. A driver must simply proceed with cancelling the ride by selecting the Cancel Option on the right-hand side of the Lyft App.

Rider cancellations and driver compensation do have to adhere to specific criteria, however.

• Firstly: at least 5 minutes have to have passed since an initial ride request before a cancellation fee can come into effect.
• Secondly: a driver has to be on track to arrive within those original 5 minutes. This time frame is used to either assure a short wait-time for a ride, or to protect drivers from long wait-times for riders to arrive at the vehicle.

Rider cancellation fees will also vary based on location.

Cancellation fees by location can be found on the Lyft website.

Lyft Line Cancellation Rules

Riders may also sometimes cancel their ride as a participant in a Lyft Line trip (i.e., a trip involving multiple passengers). In this case, if it is the first party in a Line ride who cancels, then the same criteria mentioned above applies.

If a second or third party in a Lyft Line cancels, a driver will not receive the cancellation fee payout because they are already part of an active ride. Lyft Line cancellation fees of $1 may occasionally appear in a driver’s payout summary. This fee is charged to Lyft Line passengers who cancel and meet three very specific criteria: they have to be paired with another passenger in a Lyft Line; they must have cancelled a Lyft Line recently; and, thirdly, the driver has to already be on their way to receive them.

If a rider cancels a Lyft Line and meets this criteria, a driver will receive a $1 earning.

Rider No-Shows

When riders are ‘no-shows’ for their Lyft ride, they will be charged a cancellation fee, and a driver will be compensated.

In order to be compensated, the scenario must meet a few specific criteria:

1. A Lyft driver must have indicated through the Driver App that they have arrived at the passenger’s location.
2. A Lyft driver must have waited at least 5 minutes.
3. A Lyft driver must have been in active contact with a prospective rider.

If the scenario meets these criteria, then the driver is free to cancel the ride by selecting “Passenger isn’t here” in their app.

Again, cancellation fees also apply to Lyft Line and Lyft Plus rides. To recap, the following criteria must be met:

1. The driver has arrived at the location for pickup
2. The driver has waited for the timer to reach 0:00

If the following criteria are met, a driver can choose the “no-show” option on their app and select “charge passenger.”

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