When his housing fell through, Chris Berry resorted to living out of the car he rented from Lyft for $240 a week. Despite driving 20 to 60 hours a week, he couldn’t afford to rent an apartment on top of what he owed Lyft.
Lyft driver Sinakhone Keodara, 44, behind the wheel of the car he rents. Some who rent vehicles through Lyft's Express Drive program say its high costs and stringent requirements make it hard to get ahead.
When his planned Nashville accommodation fell through, Berry resorted to living out of the 2017 Nissan Altima he rented from Lyft for $240 a week. Despite driving 20 to 60 hours a week and giving an average of 45 rides, Berry couldn’t afford to rent an apartment on top of what he owed Lyft. According to regulatory filings, Lyft has “tens of thousands” of cars available to drivers in 30 cities across the U.S. for short-term rental. The company says those in its Express Drive program have earned more than $1 billion since its launch in 2016.
Lyft blames its higher rental prices and lower mileage rates on the cost of insurance. The restrictions are stem from the policies of Lyft’s rental car partners: Hertz, Avis and Flexdrive, the company says. But nights when he had $25 to spare were rare, Keodara said, because he was paying close to $1,000 a month to rent the car and $60 a day for gas.
In Los Angeles County, more than 15,000 people sleep in their vehicles, according to Safe Parking LA — a program that secures lots for people living out of their vehicle. More than a fifth of the 250 applicants each quarter are under 40 and working full time, including those who drive for Uber and Lyft, said program director Emily Kantrim.
Though Lyft's website tells drivers their insurance is “covered” by their weekly rental payments, the company told The Times the discrepancy in mileage rates also reflects the cost of insurance. In emails to drivers, the company has attributed the changes to “rising costs” that “have made Express Drive a more expensive program for us and our partners to operate at a break-even price.”
Drivers who rent a car through Lyft cannot drive for any other gig economy company, an option many contractors rely on to make ends meet. Lyft also mandates drivers perform at least 20 rides a week. That’s counter to the drive “whenever you want” language on Lyft’s website, and the arguments ride-hailing companies have used to justify classifying drivers as independent contractors rather than employees.
Renting a car to drive for Uber through Fair starts at an average of $130 a week if drivers expect to work for a month, and $185 a week with an option to renew if not.Jos Cashon — a student and an L.A. Uber and Lyft driver who also occasionally sleeps in her car — said she pays $340 a month for a 2017 Prius leased through Toyota directly. .
Drivers who rent through Lyft also qualify for the same bonuses personal vehicle drivers do, the company said.
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