wow! They need to get 50% of the ride cost, this is crazy!
When I started in 2016, I got 75% of the fare and some more senior drivers got 80%. But that's when Uber's prices were low and they were losing billions.
They changed all that in late 2017 or 2018, and started paying by mile and distance. At first it was okay, because the fares were still low and the pay was about the same. They also paid drivers a decent part of any surges they charged riders, and they had some other good promotions for drivers. But gradually they lowered the pay rates, eliminated good promotions, and changed surge pay to flat amounts -- mostly small amounts, like $2.50 when the rider was paying $10 more.
Those changes are why many drivers (including Joel and I) quit even before covid. They had to work longer and longer hours, put excessive miles on their car, and another pay cut was always just around the corner. December 31, 2019 was my last driving day and I was home by 10 PM!
Lyft, as they always do, copied everything Uber did.
This is also why I don’t tip in the app and provide a cash tip.
Uber gives the driver all of the tip, but if you want the driver to know immediately that you appreciated their service, a cash tip is better. It also guarantees a better rating (yes, riders are rated too...every ride).
With Lyft, cash tips are especially important because of the way Lyft does many promotions. With Lyft, many of their promotions are "guarantees" that a driver will earn a certain dollar amount if they work a particular area during certain hours. IF they fall short, Lyft makes up the difference.
However...there is a catch. Lyft counts tips as "earnings" for the purpose of the promotion -- so if you tip in the app, you are actually tipping Lyft instead of the driver. If he/she falls short of the "guarantee" your in-app tip means
Lyft pays less, not the driver makes more.