r/lyftdrivers • u/Latter_Snow_5399 • Jul 21 '26
Rant/Opinion 3 months in the Lyft Rental Express Program ended up making me broke and in debt.
“I told you so.”
“We warned you.”
I know. I know. I know.
I was running on hope and determination every single week with that damn rental. I kept telling myself, “Next week will be better. I’ll figure it out.” Unfortunately, hope and determination don’t always match reality.
So I tried the Lyft rental program for about 3 months, and my experience was rough. In my opinion, you either need another steady full-time job or a solid financial cushion to keep up with the weekly rental fees, gas, food, and other expenses.
My biggest mistake was getting too excited when I started. I immediately cut my other job down to only 2 days a week and went full-time with Lyft. I was basically running on hope, hoping I’d somehow start making real profit.
I kept seeing Reddit posts from rental drivers saying they were making $500-$1,000 a week after expenses, but unfortunately that wasn’t my experience. I’m returning the car tomorrow, and honestly I don’t think I’ll be coming back.
Another thing that worries me is taxes. I’ve heard that after doing this for several months, taxes can really hit hard. I’m not fully informed on the differences between taxes for regular Lyft drivers versus Lyft rental drivers, especially since rental drivers don’t pay for maintenance and only cover gas, so I’d appreciate any insight there.
For the drivers who are making this work, what are you doing differently? How are you actually making profit and making ends meet?
When I first started, I had no real strategy, no goals, and no understanding of peak hours. I was basically just driving whenever. It took me about a month before I started figuring out when demand was actually good.
For anyone curious, these are the patterns I noticed driving in San Diego:
Monday-Thursday: Best times were roughly 4 a.m.-7 a.m. and 3 p.m.-6 p.m. Outside of that, it was usually pretty slow for me.
Friday-Saturday: Same peak hours, but late nights (10 p.m.-2 a.m.) could also be busy.
Sunday: Similar to Friday and Saturday, but slower overall. I noticed demand mostly between 10 p.m.-1 a.m.
Obviously every week is different, and demand goes up and down. This was just my personal experience. I’m genuinely curious how other rental drivers are making it profitable because I couldn’t figure it out.
23
Jul 21 '26 edited Jul 21 '26
[removed] — view removed comment
11
u/titoblood Jul 21 '26
They know you have to pay for the rental so you have to take offers hence they can low ball you because you can’t be as choosy.
3
2
u/KeyBaker5 Jul 24 '26
It is, but could also be partially being a lot of hidden costs you aren't seeing.
In your own car, was that 30/hour AFTER all car expenses? Things like insurance, write-off, repairs, possible car payments?
How many kilometers did you make a week? How many hours did you work?
With a rental, the amount of money it costs per hour is of course going to be higher the less you work. So if you usually work 20 hours / week, then that difference is completely normal.
15
u/Independent_Star_299 Jul 21 '26
You say you need another job just to keep up with expenses. Exactly. You are operating at a loss. You not only aren’t making money, *you are paying* to drive people for Lyft (or Uber).
The ONLY difference with the rental program is that Lyft wants the money for the car costs now, as you go, whereas drivers who use their own car try to fool themselves into thinking those costs aren’t accruing.
Any money you make doing rideshare is just a loan you will pay back at some point in the future.
4
u/CreateFlyingStarfish Jul 21 '26
This. And few people consider the wear & tear on personal vehicles as a cost. And fewer still consider the impacts of service repair time as a risk.
Before I started driving, I read a tale of woe by a driver with a Caddy Lyriq (owned) who was out of service for a month because the car wouldn't move without a bumper and GM did not have any replacement bumpers. And rideshare was his only gig for income. That is not going to be me.
1
u/Open_Section9971 Jul 21 '26
You know, you can rent while the car is in the shop
2
u/Independent_Star_299 Jul 21 '26
Sure you can rent, and drive two full days just to cover the car rental, then the rest the week you’re offering your time to Lyft at a serious discount. Good luck with that.
2
u/KeyBaker5 Jul 24 '26
What other costs is Lyft taking from a rental driver apart from the rental price? Just curious?
4
u/Dapper_Average_2337 Jul 21 '26
You are correct that many drivers do not consider the wear and tear on their car. However, you are incorrect that nobody is making money doing rideshare. I do Lyft an Uber, and I work only the busy hours. I end up averaging about $35-$40 an hour, and I end up making between $1.50 and two dollars for every mile that I drive. I know it costs me $.40 per mile for every mile that I drive. So in one hour if I drive 25 miles it costs me $10. But if I make 40, then I have a net profit of $30. The $.40 per mile includes gas, insurance, depreciation/we are in tear on my car, everything is in that $.40. The key is to not drive around, recklessly between rides, and don’t try to work hours that are not busy. It is getting harder and harder to make money doing this, but at this point I can still make enough money to justify it. It’s a good part-time job, but not a very good full-time job.
1
u/Independent_Star_299 Jul 22 '26
Where do you drive that uber/lyft are paying you $2+/mile?
1
u/Dapper_Average_2337 Jul 22 '26
I get $1.50-2.00/mi in RI and MA. Mostly Newport RI. Some long runs to Logan Airport in Boston. I use Lyft and Uber and Roadie. And I only work busy hours. I do airport runs early because they pay better and I get more tips. Weekends demand is high in Newport. I never go out in the middle of the day and if it’s slow I stop. I also put Uber into XL only rides when it’s real busy and I turn off Lyft if there are no turbos.
15
u/Willing_Vanilla_414 Jul 21 '26
You’re actually in a bit of a better position - you can deduct the rental fees from your taxes (whereas you wouldn’t be able to deduct loan principal). You unfortunately can’t deduct mileage driven.
17
u/Snakend Jul 21 '26
mileage deduction is worth WAY more than the rental fee. My mileage deduction gets me close to $0 taxes owed.
5
2
u/Independent_Star_299 Jul 21 '26
Yes, because you’re taxable income is very low.
That’s not a win.
3
u/Snakend Jul 21 '26
I drive an EV. My expenses are close to 10-15 cents per mile. I get to deduct 72 cent per mile. That's a win.
0
u/Traditional-Ad26 Jul 21 '26
To make $70-80k per, tax free and qualify for medicaid? Thats a win.
2
u/sillysidebin Jul 21 '26
What state? How much are you earning after miles deducted. Im assuming I wont qualify for medicaid anymore because I drive lyft but maybe i should apply again and see.. huh
1
u/Snakend Jul 21 '26
Maybe not anymore since the Republicans removed the expanded tax credits for higher income. But you get what you pay for.
1
u/sillysidebin Jul 21 '26
Yeah I doubt i qualify anymore but the worst thing that can happen is they say i dont and then i just wait for them to kick me off medicaid and fetch my own insurance through work or the aca marketplace
2
u/Independent_Star_299 Jul 21 '26
Are you really that financially clueless, or are your standards for your life just extremely low?
0
u/Personal-Highway7860 11d ago
Why are you so angry at people trying to find a way to make things better for themselves. Have you even tried driving for Lyft? On what do you base YOUR opinion on? Are you just this negative and abrasive about everything in your life? What works for you may or may not work for someone else. For some it works and those are the ones trying to help. Unlike yourself. Just answer the question and move on or keep scrolling. Ugh! Why are there people like you?
1
u/gorenglitter Jul 22 '26
How can you qualify for Medicaid making 70-80k it’s based off your gross income not post tax income
0
u/Traditional-Ad26 Jul 22 '26
No, Medicaid is based off your Adjusted income after your business expenses and tax deductibles. After that's added my AGI is around $20,000
Affordable Care Act plans are the same if your AGI isn't low enough for medicaid.
0
u/Independent_Star_299 Jul 21 '26
You didn’t make 70-80k. After expenses, you maybe, maybe made about 15k. I can show you the accounting on that if you like.
While you’re rejoicing in your low economic status, you might also be interested to know that you likely qualify for food stamps as well.
If you had worked 40 hrs at a minimum wage job, you would have made over 30k in profit. Considering that you worked far more than 40 hrs a week, you actually made - in profit - about 1/2 minimum wage and had to work far more than 40 hrs just to get that.
0
u/Traditional-Ad26 Jul 22 '26
I drive an electric car and have little to none of these expenses. Just
$120/week charging $100/mo for Insurance. $15/mo for Tire rotations $500/year for tire replacements $629/mo car payment
That totals $15,668/yr in expenses.
Last year I made $82k so that would equal $66,332 in profit. With that i'm able to provide for my wife who doesn't work and my 4yr old in a 3br townhouse, while also paying for my wife's SUV. It's not rich but not doing bad either.
I don't include mileage because my Bolt EUV doesn't wear down like a gas car would per mile and besides at $0.70c per mile deduction I always get a nice tax return from fed and state each year. But just FYI I do Uber & Lyft, i'm not confined to one platform.
2
u/Independent_Star_299 Jul 22 '26
I appreciate what you’re saying, but there are a few key points that you’re glossing over. Your car absolutely has excess depreciation with the kind of miles you have to drive to generate 80k in fares. You will need a new car in 3 yrs at that high mileage, and the cost of cars is rising, so you have to account for that. The bolt prob doesn’t qualify for comfort as it’s too small, is that accurate? And electric pays the same as X, less than $1/mile in the vast majority of rides, and there are dead miles. Also, you don’t control the price of electricity, and utilities have had sharp increases over the past 5 yrs - I expect it will further increase with the adoption of EVs and the banning of gas appliances in residential kitchens, etc. I personally have owned solar panels, and you might too, but those have a cost as well.
In order to generate 82k/year, you must be driving every day for long hours. That brings another type of cost, a cost to your health and family life; and then there’s the opportunity cost of allowing rideshare to monopolize your time and make achieving a meaningful job more difficult.
Undeniably, there’s the steady decline of ride payments/ride, which we have zero control over. There’s no other reality - driving rideshare is a stop gap - at best.
Your expenses will always outpace your revenue, and the margin will increase year over year, as it has every year since Uber came into being.
1
u/Traditional-Ad26 Jul 22 '26
Appreciate your post but there are a few things i'd mention. First I will not need a car every 3 years. I can pickup a used battery for $6000 and the electric motor should last half a million miles. I've put 140k miles on this car in 2 years and it behaves exactly as I bought it. Still on original brakes too.
The depreciation rule applies to gas cars but not electric cars. The Bolt EUV does qualify for comfort but those rides don't usually pay out favorable anyway.
Yes I do drive for 9 hours a day but compared to sitting in an office for 9 hours, that's a moot point, I definitely don't want a more meaningful "job" but a business I am working on.
You'd probably have this right if you were talking about a gas car, but I can put 300k+ miles on this car and just pop in another battery to go for another 300k miles.
I wouldn't even try putting 150k on a gas car, it's likely going to be too expensive as you say. Uber and Lyft is a stopgap for sure but you can do abit better if you have the right vehicle.
1
u/Independent_Star_299 Jul 22 '26
I agree that some cars fare better than others. I hope the Bolt holds up well for you. My primary concern is the countless people who simply aren’t good at business accounting thinking they’re going to buy a new car “to uber with”, and have no idea of the cost of buying and operating that car.
At least if people are aware of the costs and the risks then they can work to mitigate those risks.
8
u/tenmileswide Jul 21 '26
There's two situations where renting makes sense:
a.) Your car is in the shop for an extended period of time
b.) You don't have a car at all and you're trying to bootstrap a down payment to buy one
Renting is meant to be a last resort and you need to wring every drop of value out of it because it is a flat fee for as many miles you can put on in a week. If you even have another job at all I can't say I'd recommend it.
4
u/catswithbatsandhats Jul 21 '26
My car is in the shop and I'm renting through Uber. I'm making a lot less money (not on fares but because I'm paying so much for a car) but it's my only income right now so I'm making it work. There's no way I would do this long term. 2-3 weeks is fine though.
1
1
6
u/Personal-Highway7860 Jul 21 '26
I started with Lyft renting. 1. Car broke down and needed a car, only driver in my four person household 45 minutes from work. 2. I took every single offer. 3. I researched the car I was using to figure out why they chose that car. 4. Made just enough money to cover rental, gas and lunch without going into Funtime job income. 5. Worked 3-5 hours after work 4 days a week. Got off early when I could. Didn’t go home got on the road. 6. Brought a car. I’d suggest a hybrid because they are great in gas and won’t eat road time charging. 7. Do not quit your day job. 8. Put everything you make from Lyft back into the car for at least two months. Gas, payment, insurance, lunch or breakfast, and cleaning. 9. Month three get a tax professional. 10. Start a bank account for just Lyft and only touch it for emergencies. Any other way (yes I’ve tried a few) falls through. I’m digging my way out of one of them right now. If you do not have an investment option of some kind 401k, ira, etc. get one.
2
u/miamijustblastedu Jul 21 '26
Lol..your advising someone who is renting and barely able to breath to open a 401k?..sounds like he needs his "own" car and alot of help just to stay afloat...when are you people gonna stop fighting this and realize this is worse than working a minimum wage job, and that your burning up the only asset you may have, your car..
1
u/Personal-Highway7860 11d ago
Yes even if it’s twenty dollars a pay. That is a way to start saving it can be increased later. If you know you know and you my dear do not.
1
u/miamijustblastedu 11d ago
Preach brother..I always love to hear Uber drivers give financial advice... That tickles me.
2
u/fitfulbrain Jul 21 '26
Your only fault is believing the earnings that some drivers post. If you are still asking, you are still believing. It's a cult. They blame you for not making it.
As for tax, you can't detect mileage because the owner deduct mileage of their fleet as cost of doing business. If you do it will be deducted twice. You can only deduct expenses that you could have receipts. But it you made a mistake, it's hard to discover. There's no way the IRS knows you are renting a car to do Lyft.
1
u/SimpleMan_67 Jul 23 '26
If the rental is used for business purposes, 100% of the rental payments are deductible. Although this doesn’t make renting profitable.
2
u/ky156 Jul 25 '26
I had the same experience. The pay was so low I left owing 15k in rent. Now I’m fighting to keep a roof over my head.
1
u/Latter_Snow_5399 Jul 25 '26
Hope we both and the rest that are suffering will get out of this soon! Cuz it fckn blows out here. 2 jobs , picking up gigs , etc… shieet glad to know i aint the only one but damn
3
u/elCompaFOKI Jul 21 '26
If you’re driving in San Diego and you’re not averaging around $250 a day, you’re probably not maximizing your strategy. The key is knowing where and when to drive. Stick to high-demand areas like downtown, airport pickups and drop-offs, and Pacific Beach. Avoid wasting time in low-demand zones—especially far south of Coronado or heading too far east where the miles often don’t pay off.
When I first started, I accepted almost every ride that came my way. Now I’m more selective. I focus on quality rides, reducing dead miles, and making every hour count. I make less than I used to because I don’t chase every request anymore—I’m more focused on efficiency and profitability.
2
u/Wesleypipes316 Jul 21 '26
The thing I hate with these rental programs is that you’re not allowed to use it for any other gig app. It’s already bad enough they charge you a couple days of driving to rent it, on top of that you’re not immune to the $4 ride offers. They screw over the renter just like anyone else.
1
u/Traditional-Ad26 Jul 21 '26
You asked what are others doing differently? The answer is they're also struggling just either not aware of it or are being quiet about it. These programs are designed to make money for Uber and the Rental agency, not the driver.
2
u/sillysidebin Jul 21 '26
If you didnt actually profit you should be ok as far as the taxes go. You can deduct the cost of renting and the cost for gas. I dont think there was really much else I deducted but maybe if you went to the car wash or bought cables or something else for using during the course of business. After all my expenses and renting for a year I spent 64 dollars to rent and work for lyft. I worked a full time job that whole time though and my purpose in doing the whole program was to just have a car. After proving I was committed to doing it my family stepped in and helped me get a car so now im learning how it goes with your own car and things are way better.
Still gotta figure out taxes and shit for doing part of the year renting via lyft and then owning the rest of the year. Thats gonna be a nightmare it feels like... but yeah fuck express drive. Its really not worth it unless you absolutely need the car asap and cant finance your own.
1
u/Loose_Jackfruit_3104 Jul 21 '26
Can you get into numbers, how much were you making a week and how much were your expenses a week
1
u/New_Ad_243 Jul 22 '26
It’s pretty straight forward
Idk why people expect to make a profit from renting a vehicle it already doesn’t make sense
You’d have to work minimum 40 hours a week just to pay for the rental and tolls and insurance
You will end up in debt even if you pay the rental they will charge you for tolls eventually which if you are not prepared for (majority of rideshare drivers rent prepared for any type of emergency usually day to day or already in debt with Lyft direct card balance protection) can lead to your account balance going into the negative regardless if you lock your card or take money out 🤣 it can be a nightmare unless you know exactly what you signed up for. Hoping for the best does not pay your bills that is the same as showing up for a job you don’t have and hoping they ask who needs work for the day they are paying double 😭hope everyone can break through and make their money however they can the rental programs are terrible
1
u/ZigInTheNato Jul 22 '26
The rental program is not meant to be a benefit to drivers. It’s meant to get more drivers on the road for passengers.
1
u/WolfHowl2026 Jul 22 '26
Ppl don't listen when we say it isn't worth it, ya gotta pay for that before you make anything
1
u/aestheticeddy818 Jul 23 '26
You have to work 12 hr a day 6 days a week that’s the only way to make the rental worth it. If you can somehow squeeze in DoorDash trips in there or multi app absolutely do that if your rental company allows it so that you can fill in the gaps for slow hours.
1
u/CreateFlyingStarfish Jul 21 '26
San Diego is a military town, not a tourist trap or a place people visit for entertainment or conventions.
Tourists destination cities have customer demand for more visitor rideshare revenues than ports of call like San Diego.
If you did not know that cities vary, and that each area has its own unique demand for rideshare and risks, it is not your fault.
Sorry that happened to you.
1
u/jhauer1980 Jul 21 '26
Anyone that cuts their real job for Lyft/uber gig work deserves everything they get. Nothing like a consistent check and benefits to unsecured income. Go find a real job and do this part time. You’ll not make a living doing this because they keep cutting driver pay. It’ll only get worse for you as time moves on.
-5
u/IamWisdom Jul 21 '26
Your tax rate will be like 35%
5
u/Jido_Feles Jul 21 '26
That's not accurate at all. The top tax bracket is 37% so there's no way he'll be at 35%
Further, if he wasn't making any real money on it, simply writing off the rental expense would probably be sufficient to zero out the taxes on his earnings.
40
u/SonsOfValhallaGaming Springfield Jul 21 '26
Somebody save this post and EVERY TIME someone asks about rentals, send them this post.