Lyft’s “70/30 Guarantee” Looks VERY Different Now

Hinzugefügt: 2026-05-23

[00:00:05][music] One thing I always say is work smarter, not  harder. If you aren't using the Solo app, then you may be working harder. So,  let's change that. Download the app, link your accounts where you can manage  your income, track your expenses, and project your taxes. Not only that,  but you can plan by optimizing your time, make more, and even guarantee your daily pay with  guaranteed earnings. download solo and begin to work smarter, not harder today. Link is in the  description. All right, let's get back to it.

[00:00:33]All right. Well, let's uh let's talk about the  7030 and the Lyft fee. The lift fee cap uh that it is now because it's not 7030 anymore. It's the  Lyft fee cap. And uh yeah, instead of going for a week, it's going for a month. And we're in  the first month right now. It's 519 as this date. Uh so you got 19 days in. How is it looking  out there? Let me tell you. How's it looking?

[00:01:00]It's not looking that good, is it? No. Well, you  can read Well, it depends on who you're talking to. If you're talking about Lyft, it's probably  looking pretty damn good for them because, hey, they be like, you know what we're going to do?  Screw 7030. We're going to charge we're going to pay the passenger uh or we're going to make  the passenger pay as much as we can. We're gonna pay the little the driver as little as possible.  We're going to take that difference that we do owe him. We're gonna hold it for a month. So, it's an  interest free loan uh that the driver's given us, but we're going to turn around. We're  going to make money on that money and then we'll finally pay them back the peanuts  that they're supposed to get if if we have to.

[00:01:41]If we have to, but why not? Why not just put  it at 50 60% of all the fairs and then that way they get a nice little chunk of change at the  first of the month and you know it kind of feels like welfare. Hey there you go. Yeah. But what's  happening that now Chris is Lyft has been saying that our take rate is 14% on average by going to  this I am I I called this after seeing at least couple of dozen screenshots and I put some of them  up. We can discuss that. You can read you can read the numbers to these to the to the listeners. Um  I think what's going to happen is this is Lyft's equal to Uber's upfront fairs four years  ago. I think Lyft has finally figured out and I'm not shameful or ashamed to say  it. I may buy myself some Lyft shares because cheap right now. Well, I don't know  about cheap compared to what it was the cheap, but what I'm saying is that I think this is going  to definitely improve the overall take rate, which they say is only 14%. Well, if you're taking  30% off the top, that's automatically going higher and you do the equal amount of chips, your take  rate goes higher by a couple of percentage points and billions of dollars of business, you're  going to rerate or reric your stock correctly.

[00:03:06]So some of these well I mean I mean think  of it this way if they were taking uh if they're saying that lift's take was 14% after  expenses but now it's still 14% before expenses and say they keep it at 14%. Mhm. The the before  versus after again it's the order operations.

[00:03:25]So that right there is is going to be a  higher cost. So they're going to collect more just off that even if they kept it oh  we only our our take rate is still 14%.

[00:03:36]No matter how you look at it, no matter how you  slice it, you know, if you did uh what was that that example? A $100 ride, let's say $15 in No,  we'll use $10 in it. Uh $10 in external fees, that left $90. So you took 14% of 90, that's  lower than 14% of 100. Yeah. Also, so right there, well, looking at the same example. Okay. So  $100 trip, $10 external expenses, right? Before May 1, the 7030 split was on the $90, right? So  the driver would get 70% of that 90 with a top off and lift would get maximum 30%. So let's do  that. 70% of 90 is $63. Okay. For the driver and $27 for Lyft. Cool. Cool. Well,  now Lyft is taking 30% from the 100.

[00:04:37]That's $30 for Lyft as opposed to  27. That's 10% higher automatically.

[00:04:42]So that's why I'm like kind of going, uh, I  think I'm going to buy me some lift shares.

[00:04:47]Well, either way, even if they say, "Hey,  we're keeping it at 14%." Then no matter what, they still increase their pay revenue. They are.  And so some of these chips that you guys sent me, and please send me these. Um, I know Lyft is  going to say, "Look, you know, there are a lot of chips that we don't take 30% either." This is just  an edge case. Come on. Well, I can assure you, Chris, I received about 20 of these screenshots.  I think one was less than 30%. 19 of them were above 30%. And you guys can see here on the one  on the left, $41 was the pay that the rider paid.

[00:05:24]What did the lift fee? What was the lift fee?  It's supposed to be 30% 66. And what percentage is that? 72% baby. Okay. So, it's supposed  to be 30%, right? And then on the next one, same thing. 21.97. Lift took all close to 45%. On  the next one, 25%. Lyft took $15. That's 70%. So, all is doing is Lyft is just taking way above the  30%. And maybe towards the end of the month, well, there's a couple more right there. $24.96, they  took $10. So that's about 45%. Passenger paid 34.

[00:05:59]Lift took 21. I mean, I haven't seen one one out  of 20 where that where Lyft took less than 30%.

[00:06:07]Everything else was like these ridiculous numbers,  40, 50, 60, 70%. And the driver is still making whatever they're making. That's not the point.  The point is they're going to add all this up and at the end of the month, if they took more  than 30%, they're going to give you a top off.

[00:06:23]My bet is that the algo is so good that by  the end of the month they're going to kind of, you know, lower that that rate but pin it right  about 30%. And automatically their take rate is going to go up and that's again this is not  financial trading investment advice but I think I may I may buy me some lift shares. So well I mean  if you look at it May 16th, May 8th, May 13th, May 8th, May 2nd. So this is all first part of  the month. I mean, obviously, we're in the 19th, so it's, you know, you're just passing the 15th,  16th, so um what it'll look like, but this is this is what I'm I have been thinking about, and I said  this in the video when I was first mentioning this is week one, I mean, they got basically four and  a half weeks to to play with the numbers. So week one they could take 60 70% of the fair and of the  total fair and you could be a driver who drove you know a ton of rides and they took 50 60% right  there which means they owe you a ton coming back but then what they can do is the following week  they could say oh you have a bonus you could get a you could qualify for a bonus so if you you know  go towards uh whatever it is whatever bonus that they're they're pushing out there. Um, that's  week two. So then week two might show 5 to 10% take from Lyft. So now you went from 60 with a 5%  you just cut that down to almost 30% right there and and now you're almost at even. Maybe then  third week what they do is they do um you know maybe 40%. And then you're sitting about 30  if you do over the whole month you're maybe sitting around 40%. But then, you know, the final  week they bring it down to that 5 10 20% region and now maybe you're at 22%. So, they they make it  seem like, hey, you got a really good bonus that you were able to get, but the reality was you paid  that bonus from your earnings the week before.

[00:08:32]Yeah. Well, the other thing what you  mentioned is like the first, you know, if they're going to do this staggered kind of  a take rate game that they're going to play.

[00:08:40]Um, the first week or two or 10 days, they're  going to go hog wild and do collect 60%, 50%, 70% because, you know, it went from a weekly top  off to a monthly top off. Multiply that times million and a half drivers. Imagine the float on  that, right, for all that time, right? the free interest free loan that the drivers are giving  these companies and well and and that's the thing that first week if they wanted to float it at 60  70% and then come back week two or week three and say hey driver you have the option of bonus A  or bonus B what one would you like to choose or one would you here's the bonus make sure  you get the rides and and do what you got to do the problem is if you look at it the money  that you should have made from the 70 from the the 30% or greater or whatever that they took  that would probably feed that. So it would bring your total down to you know 5 10% lift  take rate and that way again it makes it look like you have a bonus but in actuality it was just  you floating the free money from the week prior.

[00:09:46]They're giving you your money back and they're  putting restrictions on getting your money back, right? Because they could do in a in a you know  form a ride challenge or something like that, right? But now they're forcing you to do 50, 60,  70 trips that week. I mean, do you see how smart this is, though? You see how smart Exactly. And  then and then that's the that's the thing. So week two comes around and Oh, I'm sorry. You missed  it by four rides. You didn't make your bonus.

[00:10:10]H you know, you you could try week three.  Yeah, we'll we'll a little bit. So, um Yeah. I mean, that that's the whole thing. And  then, hey, maybe they have to pay out everybody at the end of the month because they didn't  do do the bonus or something. But, you know, that questions the validity of these bonuses now  because if they're floating it like that, um, you know, it could just be your money that you're  supposed to get because of that lift fee cap of you have to work to get your money back. Yeah.  Yeah. So, this is evil and brilliant at the same time for them. You know what I'm saying? And they  don't say the fine line between genius and and uh oh wait what's what's the one thing too? Uh the  other quote they say no they say uh uh you either li live long enough to become the enemy or or  you die the hero or something. I don't I don't remember what it is. Um I know somebody in chat  probably knows and put it in there but I would like to see one month going out and have drivers  send me that monthly breakdowns. Okay. Yeah.

[00:11:15]Well, kind of a top off if they're going to  get a top off. I think the other thing is too, I'd love for the people that do track all of  your rides, and I know there are quite a few people that track all of their rides, they will  take the passenger payment and their payment, and you know, they'll be able to have all that  information. So, we have May coming, you know, we got another week and a half left of May. Um, so  what I'd love to see is at the end of the month, you know, look at see and see how their  take rates are. You know, week 1, week 2, week three, week four. Does it segregate out  differently? Is it all relatively the same or is it a few edge cases that are 60, 70%, the  vast majority of them are, you know, 10, 12, 15%. Um, you know, let's see what it looks like  when that comes down. So, uh, if you are keeping meticulous records of that, we'd love to be able  to see that and break that down. There you there's your That's what you were looking for. Yes. You  You either die a hero or live long enough to see yourself become the villain. Exactly. Yeah.  And that is um you know, there is a person here who just Thank you for the super chat, by the  way. Uh, Levi. Uh, Levi would figure that out.

[00:12:30]Uh because Levi loves spreadsheets, but I  don't think Levi does enough lift trips though, but Levi probably would figure that out. Um well,  but what we want to do is look, I mean, you know, the 7030 I I'm pretty sure it's a earnings cut  for the driver. If you just look at the math, it is. Yeah. It's just order operation change.  Yeah. Because you're putting the you're putting the percentage first now before the  subtraction. So, because it's a percentage, that means it's worth more than before. Before  it was the hocus pocus of ex interchangeable line items, right? External expenses.  When external expenses were very high, lift fee was very low. When external expenses were  very low, lift fee was very high. And then they, you know, they played that game. Now it's  not that game. Now they take 30% off the top.

[00:13:20]External expenses are still going to get deducted  and then whatever is left over is left over.

[00:13:25]But I would like to see a lot more screenshots  other other than 20. Okay. So, send me your lift screenshots. Uh send me your uh Lyft receipts,  right? You see it right after the trip ends. Are there drivers? I'm really interested in this topic  because I have a meeting with Lyft on June 10th with the number two guy at Lyft and I would like  to have a really good idea about this this topic right here because I'm sure he's going to try to  sell me this idea that it's a fantastic thing for the driver. And if you're a driver that's lift  is only taking 10% off the top on each trip and you're making more, great. But send me those.  Send me all the screenshots please of receipts.

[00:14:07]High or low, doesn't make a difference.  And at the end of the month, please send me your monthly month end totals how this is going  to look because this was from the one driver.

[00:14:20]All these five, six screenshots, Chris, I  mean, looking at those numbers, [laughter] he's going to get [ __ ] ton of money back. Well,  that's that's the whole thing. They'll be like, "Oh, you could get a $700 bonus on the final  week. You just got to get 120 trips." Yeah.

[00:14:38]Yeah. Or or you could just be smart and be like,  "Yeah, I'm not going to worry about that and I'm going to float that money because you're going to  have to owe me a good chunk of change uh coming on June 1st." Yeah. I I um I don't know. I  think Yeah, you guys got to be smart about that.

[00:14:55]The The thing is though, they keep the tracking.  They keep So, they show the tracker on there. Um, so I I'd be curious as to what that  driver's tracker is at sitting at right now.

[00:15:06]Is it above that 7030 threshold or is it something  like, you know, close to to 40, 50, 60%. Yeah, send me all these screenshots, folks. Regardless  of like where you're currently standing, right, keep tracking because there's a tracker of the  overall trips instead of individual trips. that tracker is keeping track of what Lyft's fee is  off the top. Mhm. And let's see where you are because Chris Chris's point is should be  really really paid attention to here, which is if they're really really ahead of you, they  may throw you at the end of the, you know, last week a ride challenge that looks completely  like salivating, right? You just go like, "Oh my god, $800 for 120 trips." but they're going  to owe you that 800 anyway. So, be smart about doing that 800 to get your money back from them  because they're going to give it to you anyway.

[00:16:03]So, keep it pay attention on your tracker where  you are and don't do extra work for it because you're getting your money back, but they're going  to make you work for it. So, be smart. Yeah.

[00:16:12]I mean, that that's one of the the things I could  see actually happening and then it seems, oh yeah, we're we're getting the the challenges  back or we're getting bonuses back or whatever it might be. or you might start  start seeing extra turbo or this the flash incentives just pop up out of nowhere and all  of a sudden wait wait wait a minute the rides are actually coming in pretty good now. Um  so yeah, I I wouldn't be surprised if you start seeing that maneuvering of rides throughout  the weeks of the month and then all of a sudden the June 1st hits and you see oh Lyft just took  70% Lyft just took 48% Lyft just took 32% 64. So, um, yeah, who knows how that's all going to  going to play out, but that's what I'd love to see is the full breakdown of lift rides on  the month and then you could see, you know, is there a correlation between the first half of  the month, second, you know, weekly, um, are there changes there or is it pretty pretty standard the  whole through? Yeah. So, send me the screenshots of your tracker, current tracker. Forget sending  me individual trips. There is a part that shows you the tracker where you're standing as of the  18th or 19th, what lift fees have been, right? So, that keeps track of all the trips you're doing  and what percentage they're at. And um and also pay attention to what kind of trips they're  sending you, right? How they're finagling the numbers to take you back down to 30 so they  don't owe you that, you know, that much money.

[00:17:40]But this is fascinating to me. It's, you know,  I I think whoever figured this at Lyft should get a bonus. I think this is their upfront fair  uh moment like Ubers was four years ago. Yeah, very possible. All right, thanks for watching.  That short little clip was from our live stream, Show Me the Money Club with Sergio and myself.  Tuesdays, 600 p.m. Eastern, 3:00 p.m. Pacific.

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