# Tips essentially go straight to Lyft on hourly guarantees.



## Trafficat (Dec 19, 2016)

So in my market, there was a March 17 hourly guarantee if you did 2 rides per hour you got 80% of $40 guaranteed for that hour. Lyft must have lost a lot of money, because there is no way you can get $40 in gross fares during an hour with Lyft under normal circumstances. One thing that sucks about in-app tips is that they use the tips in the calculation for hourly guarantee. They take the guarantee amount and subtract your gross fares PLUS tips for the hours, and the bonus is the difference. So basically, unless you can manage to exceed the hourly guarantee, you make the same amount during hourly guarantee periods whether you get in-app tips or not. Each dollar you get tipped is a dollar that Lyft won't give you in bonuses.

I got a generous in-app tip from a passenger. They probably would not have given it to me if they had known that it would not effect my bottom-line.

So during Lyft hourly guarantees, cash tips are king for sure. Cash tips won't count against your bonus. Unfortunately, very few Lyft pax give cash tips.


----------



## MiddleClassedOut (Jun 11, 2015)

So tell people not to tip during guarantees. I've told a bunch of people to ask their drivers if they're on a guarantee and if they are, to not bother tipping.

I was even thinking about making a sign to hang up, ie., "Guarantees are in effect. Please don't tip as they will count against our incentive earnings.", but I don't want to discourage tipping more than necessary.


----------



## tohunt4me (Nov 23, 2015)

Trafficat said:


> So in my market, there was a March 17 hourly guarantee if you did 2 rides per hour you got 80% of $40 guaranteed for that hour. Lyft must have lost a lot of money, because there is no way you can get $40 in gross fares during an hour with Lyft under normal circumstances. One thing that sucks about in-app tips is that they use the tips in the calculation for hourly guarantee. They take the guarantee amount and subtract your gross fares PLUS tips for the hours, and the bonus is the difference. So basically, unless you can manage to exceed the hourly guarantee, you make the same amount during hourly guarantee periods whether you get in-app tips or not. Each dollar you get tipped is a dollar that Lyft won't give you in bonuses.
> 
> I got a generous in-app tip from a passenger. They probably would not have given it to me if they had known that it would not effect my bottom-line.
> 
> So during Lyft hourly guarantees, cash tips are king for sure. Cash tips won't count against your bonus. Unfortunately, very few Lyft pax give cash tips.


Tips should not be counted towards this !


----------



## Adieu (Feb 21, 2016)

Maybe thats why no one tipped yesterday night lol


----------



## 2CV750CC (Nov 18, 2015)

Trafficat said:


> So in my market, there was a March 17 hourly guarantee if you did 2 rides per hour you got 80% of $40 guaranteed for that hour. Lyft must have lost a lot of money, because there is no way you can get $40 in gross fares during an hour with Lyft under normal circumstances. One thing that sucks about in-app tips is that they use the tips in the calculation for hourly guarantee. They take the guarantee amount and subtract your gross fares PLUS tips for the hours, and the bonus is the difference. So basically, unless you can manage to exceed the hourly guarantee, you make the same amount during hourly guarantee periods whether you get in-app tips or not. Each dollar you get tipped is a dollar that Lyft won't give you in bonuses.
> 
> I got a generous in-app tip from a passenger. They probably would not have given it to me if they had known that it would not effect my bottom-line.
> 
> So during Lyft hourly guarantees, cash tips are king for sure. Cash tips won't count against your bonus. Unfortunately, very few Lyft pax give cash tips.


not true

your tips are yours

wait till the end of the week and you will see that the tips stay intact



Adieu said:


> Maybe thats why no one tipped yesterday night lol


not true but so many more uber fpax on lyft now that is why there are fewer tips

hate it - so many cheap a$$ pax but the. ones on the long and overcharged rides still tip generously, go figure


----------



## JimKE (Oct 28, 2016)

Some of you better read the fine print on guarantees.

Yes, of course you get your tips. BUT...tips are counted as part of your gross fare revenue for the purposes of computing guarantee payments. So...tips reduce your guarantee payments by whatever your net payout percentage is.

My Lyft commission rate is 25%, so if I get a $10 tip on the app, my gross goes up by $10 and I get $7.50 LESS in guarantee payment.

This is one of the many reasons why I ignore Lyft guarantees, but the main reason is the guarantees are much less than I would make driving Uber alone or a mix of Uber/Lyft. Our guarantees are typically $20 or less per hour, which is only $15 net if I don't get tips. Not worth adjusting my driving pattern for.



tohunt4me said:


> Tips should not be counted towards this !


Agree, but they are.


----------



## Trafficat (Dec 19, 2016)

2CV750CC said:


> not true
> 
> your tips are yours
> 
> ...


While you technically "keep your tips", they pay you a smaller bonus. For every $1 tip, you get $1 less bonus. So the effect is the same as if they took the tips.

According to here, they include tips in your earnings that applies towards the hourly guarantees:
https://help.lyft.com/hc/en-us/articles/214218157-Average-Hourly-Guarantees



> We'll review all the guaranteed hours at a certain amount - Let's take hours with a $25 guarantee as an example.
> We'll review your eligible gross ride receipts from hours with that amount - That's your pre-commission time and distance, Prime Time, and tips across all hours at this guaranteed amount. Tolls and The Service Fee aren't included.
> Then, we'll calculate your average hourly gross ride receipts - That's the total in Step 2, divided by the number of eligible hours that you qualified for at that guaranteed amount ($25, in this example)..
> You'll get paid - If your average exceeds the guaranteed average, that's great! If not, we'll bonus you the rest after taking out Lyft's commission. The bonus isn't eligible for Power Driver Bonuses. You'll see the guarantee bonus in your Tuesday weekly summary (not dailies) and that week's direct deposit.
> We review the hours for other guaranteed amounts - Then we repeat this process for any hours with different guaranteed amounts.


I suppose I will see when I get paid, but I can already see from my dashboard that it is showing I will get less of a bonus because of the tips.


----------



## Luber4.9 (Nov 25, 2015)

For someone that uses the tipping option in the app as a major marketing plug, that's really, really low.

What would the two founders of Lyft say if you asked them about this?


----------



## 2CV750CC (Nov 18, 2015)

Trafficat said:


> While you technically "keep your tips", they pay you a smaller bonus. For every $1 tip, you get $1 less bonus. So the effect is the same as if they took the tips.
> 
> According to here, they include tips in your earnings that applies towards the hourly guarantees:
> https://help.lyft.com/hc/en-us/articles/214218157-Average-Hourly-Guarantees
> ...


my bad, you are right, used to be different, shows for how long I didn't do any of these


----------



## DJ-916 (Feb 24, 2016)

Actually they don't take their commission out of the tips though. So if you get a tip, they only take the commission out of whatever you made on the ride and the balance of the guarantee. So you get 20% or 25% of your tips depending on your commission on top of the hours payout.


----------



## CatchyMusicLover (Sep 18, 2015)

It's been like this for at least 15 months. Pretty well documented on this forum


----------



## fairsailing (May 16, 2016)

What often gets overlooked with AHG's is that if you drive for them, as opposed to drive normal, Lyft is essentially paying you not to drive. In this $1/mile market I have dropped my miles per take home dollar from 1.2 - 1.5 to 0.6-0.8 miles per dollar driving only AHG hours. But there is no question that you can make more per hour in gross receipts by driving flat out and hustling for every ride for the majority of AHG hours (our rates run from $20 to $45/hr AHG in this market, and $20 is very marginal). However I am less certain that you can make more per hour if you factor in a real vehicle cost, I use $0.30/mile and count all period 1-3 and off-line repositions.


----------



## Coolrider101nk (Jun 21, 2016)

Had a puker I kept having to stop for tell me she was gonna make it up to me and I was thinking cash cause usually someone in the group does give cash in these circumstances. They helped her out, pulled out the phone, tapped it and walked away. I'm screaming NOOOOO!!! In my head and they tipped $20 but had it been cash I would have qualified for another $12. It happens, we agreed to it. If you don't like it, start your own platform.


----------

