Lyft Hourly Guarantees
How Lyft’s Average Hourly Guarantee Works
Lyft provides drivers with a useful (and financially-beneficial) feature – in certain cities, drivers will be guaranteed their average hourly gross earnings.
Lyft’s average hourly guarantee assures drivers that if they do not quite reach their guarantee on their own, Lyft will compensate them for the remaining amount. Average hourly guarantees vary by driver and city, but a driver’s guaranteed hours; ride requirements; and other driver-specific information can be found in the e-mails they receive directly from local Lyft representatives.
But first…drivers must qualify for average hourly guarantees.
How To Qualify for Lyft Hourly Guarantees
Lyft drivers MUST respond to weekly e-mail offering drivers the chance to “opt in” for a ‘pay week’.
Each pay week, drivers who opt into these e-mails will receive more guaranteed hours.
It is important that drivers opt in every week (as opting in the previous week does not automatically opt you in for the upcoming week). This process must be completed before midnight every Sunday.
Secondly, drivers must maintain a weekly acceptance rate of 90%. Drivers are required to keep a high acceptance rate in order to be eligible for ‘guaranteed pay’.
And, lastly, drivers must spend 50 minutes of each hour in driver mode and complete the required amount of rides for that hour, each hour.
How Lyft Hourly Guarantees Are Calculated
Firstly, Lyft reviews all guaranteed hours within certain criteria.
This can seem confusing, at first, so here’s a brief explanation:
For example, if a driver’s earned amount is 20$ per hour, Lyft will calculate the guaranteed hours multiplied by 20.
Secondly, Lyft reviews your ‘eligible gross ride receipt’ (which is calculated from your pre-commission time and distance, Prime Time rides; and tips from rides; and from the hours with the specified amount…in this case, the $20).
Third, Lyft will calculate your earnings as follows:
Total “eligible gross ride receipt” = the number of hours a driver is qualified for a guaranteed amounts (again, in this example, $20).
From there, Lyft repeats the process, in order to qualify the eligibility of other ‘worked hours’, and ascertain whether they are eligible for ‘guaranteed amounts’.
Although it takes some additional planning and calculation, using Lyft’s Hourly Guarantees feature can significantly benefit drivers.
Check out our analysis of Lyft Weekly Guarantees Here for further information on Lyft’s Driver Guarantee Systems.