An ex-cabbie, now Lyft driver opens up about the economics of being a driver in SF

Gabriel Foley was once a cab driver, but now works with Lyft as a driver. He broke down the differences between the two services from the driver's perspective. Gabriel Foley was once a cab driver, but now works with Lyft as a driver. He broke down the differences between the two services from the driver's perspective. Photo: Robin Jerstad, San Antonio Express News Photo: Robin Jerstad, San Antonio Express News Image 1 of / 35 Caption Close An ex-cabbie, now Lyft driver opens up about the economics of being a driver in SF 1 / 35 Back to Gallery

This story was updated on Nov. 20 at 11:45 a.m.

Gabriel Foley's car is immaculate.

Like most Lyft vehicles, the interior smells fresh and leathery, with nary a speck of dust visible on the dash. But there's one thing about Foley's car that's less common: A tip bucket invites riders to either give a cash gratuity or leave a couple extra dollars when they pay via the app.

Foley, 40, was a cab driver for seven years and, when working for Yellow Cab, riders always tipped. When he started driving for ride-hailing apps, he rarely got tips.

"With a ride-share, I could be driving a month without getting a tip," says Foley, who has the look of a cabbie with his handlebar mustache and a faux-leather bomber jacket. "Actually, my dad thought of the tip jar. Everybody likes it. Now, I might get $5 to $10 a day in tips on average. Sometimes I get nothing. I just use it for my lunch."

This is all part of the economics of being a driver in San Francisco, something Foley understands well since he has been in the business for more than eight years. While many people drive as a side gig, he has made it a full-time job.

One thing that sticks out from his varied experience is that back in the day, he made a lot more driving a cab than working for Lyft.

When Foley started with Yellow Cab in 2012, he rented a medallion and a cab, and drove 11 hours a day, five days a week, averaging $300 to $450 in profit a day. He paid $107.50 per day on weekdays in rental expenses and $77.50 on weekends. At the time, buying a medallion would have cost about $250,000. Gas was an extra $20 to $25.

This all changed with Lyft and Uber dominating the roads. Cabs got fewer rides and the medallions became worthless. (He's relieved he didn't buy one.)

Foley says that by 2018, when he was still driving a cab, he was averaging $80 to $110 a day. "Then I had like four zero days," he says.

In January 2019, Foley gave up Yellow Cab and switched to Lyft, and while he's making more than he did last year, he's bringing in less than in the heyday of being a cabbie.

READ ALSO: A study said that 60 percent of Uber riders don't tip. Here's what rideshare drivers had to say.

He's now working 15- to 16-hour shifts, five to six days a week, depending on the success of his driving days. Most days, he drives about 300 miles, and the goal is to bring in $300 in profit a day. “I try to make $315 to $325 to pay for my toll and my gas," he says.

Foley says sometimes his income is boosted by special incentives Lyft offers — such as an extra $300 if you do 155 rides — but these are never consistent.

"That’s like an extra $1,200 a month, and that’s pretty good," says Foley. "I don’t know why they stopped it. I was working another 10 hours a week. It’s hard to make more than $25 an hour on rides alone. With the bonus, it’s $30 to 35 an hour."

Foley's shifts are long, but he says they're reasonable compared to those of some other drivers.

"I know one guy who sleeps in his car," he says. "He’s working 20 hours a day. One month he made $12,000. That’s dangerous. You need to sleep. A lot of people take caffeine pills to stay awake."

Foley spent $15,000 to buy a 2014 Jetta hybrid. Driving for Lyft, he has already put 40,000 miles on it in 11 months. Because the car is a business expense, he can take a mileage deduction (as of 2019, the rate is 58 cents a mile) or deduct a percentage of car expenses, such as maintenance and car washes. Drivers, however, can write off only the percentage of expenses reflecting a vehicle's use on the job. If half your miles are for Lyft, then you can write off 50 percent of expenses.

But a lot of this may change starting January due to new legislation passed in November with requirements that will push ride-hailing services to treat drivers more like employees than contractors, with some exceptions. The change may come with some perks, such as health care and paid time-off, but drivers are still waiting to find out how their payment structures may change.

"We received an email saying this new legislation is going to be bad for the company and you’re going to only be able to work certain hours, certain times and certain areas," says Foley. "I heard Gavin Newsom say something that was totally out of touch. He said, 'Oh they should make minimum wage.' That’s like a slap in the face. You can’t do it with no tax credit and you’re driving around for only $15 or $17 an hour. He doesn’t understand what it means to be a driver. San Francisco is a challenging city to drive in."

Regardless, Foley hopes to stick with driving as he saves money to supplement a side project. He enjoys the work, especially meeting people from all backgrounds and from all over the world.

"It’s sort of like a personal thing," he says. "They get in and they start opening up their life story. I picked up one guy, he was 97 and he showed me his license and his cell phone. He said I remember this building downtown, there was the only building on that block. He was a San Francisco native guy."

Foley learned to be a driver when he first started working for Yellow Cab and took a multi-day class. He said he had to pass a driving test and also an English exam. He knows how to get around the city efficiently and safely, and received awards two separate times from SFMTA for driving a cab. He likes making friendly conversation with riders who are in the mood to talk.

"The ideal situation is they’d give us $45 an hour because that will cover the gas and the cost of the car and then you're making like $35, and that's what you used to make driving a cab," he says. "That’s what I think would make it worth it. Most likely, they won’t even come close to it."

Story updated, Nov. 20, 11:45 a.m.: In response to the article, Lyft shared a statement, "While Gabriel’s perspective is important, it’s worth noting that based on the number of hours he drives, he is quite unlike most of our drivers. In fact, 85% of drivers in San Francisco drive fewer than 20 hours per week and only about 1% drive more than 40 hours per week. Also, on average, drivers earn $2.36 per hour in tips."

Amy Graff is a digital editor for SFGATE. Email her at agraff@sfgate.com.