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Lyft Increases Commission to 25% for New Drivers

Lyft Increases Commission to 25% for New Drivers

Lyft is following Uber’s lead in increasing commission on drivers. This year, Uber have been systematically increasing commission on new drivers up to 25-28%. The only reprieve is that they also lowered UberXL commission down from 28% to 25% in some markets. It is unclear which Uber cities now have the higher 25% or 28% commission, but I think it is every city.

Lyft announced in its weekly email that they are increasing commission of new drivers to 25%. The commission should apply to Lyft and Lyft Plus. I have received confirmations about the increase in commission in the following cities, but it looks like it is nationwide:

This only applies to new applicants to Lyft as of Jan 1st. It kind of sucks that we were told on January 5th. Some mentors were upset that they weren’t notified earlier as they were still telling their mentees that it is 20% commission. They noted that some Uber drivers are signing up for Lyft because of their lower commission, but now this levels the playing field.

At this point, there is no change to Power Driver bonus so full time drivers can still take advantage of it. However, it is unclear if the Power Driver bonus will change upwards to 25% instead of 20% to cover the additional increase in commission on new drivers.

Here are some screenshots I received last night:

Did you get the same email in your weekly update about the increase in commission? Will this change your driving habits? Make sure to let us know in the comments below.

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