Everything you should know about Lyft's innovative rental car service

The travel industry is currently experiencing the most severe rental car shortage in years.

At the pandemic's onset, traditional rental car companies rapidly sold off their fleets to generate quick cash, which seemed like a smart move at the time. However, travel rebounded faster than anticipated, causing rental prices to soar.

In fact, it's not unusual to encounter prices soaring into the hundreds of dollars per day in popular tourist spots like Hawaii and Florida. So, during a Memorial Day getaway to Los Angeles, I assumed finding an affordable rental car would be impossible... until I opened the Lyft app.

Lyft has been providing rental cars through its app for some time now. Generally, these vehicles come from traditional rental car company Sixt. However, in San Francisco and Los Angeles, you can rent directly from Lyft, as the company maintains its own fleet in these cities, complete with a dedicated rental car pick-up counter.

I rented a car from Lyft for five days during my Memorial Day getaway, and it exceeded my expectations: straightforward, no-frills, and affordable. Additionally, there were a few advantages that traditional rental companies don't provide. This was a welcome change after several disappointing experiences with major players like Enterprise and Hertz.

Let's dive into my experience with renting a car from Lyft and explore why it might be a great option for you the next time you need a vehicle. I’ll begin with the booking process, followed by my experiences with picking up, driving, and returning my Lyft rental car.

How to rent a vehicle through Lyft

Getting a car rental with Lyft is surprisingly straightforward.

Simply open the Lyft app and tap the car key icon in the bottom right corner of your screen. From there, you can choose your city at the bottom to see available rental options. As of this article's writing, Lyft rentals are primarily provided by Sixt, with true Lyft rentals available only in Los Angeles and San Francisco. Rentals from Sixt and Lyft are managed differently.

This article will exclusively focus on Lyft rentals.

Choose your desired rental location to view the available vehicle types. Typically, standard rentals are hybrids, and you can opt for an SUV or larger sedan for an additional fee. Daily rates are displayed next to each vehicle type.

You can now enter your desired rental dates and times and view a price estimate at the bottom of the screen.

If everything looks satisfactory, tap the Next button to access the review page. Here, you can opt for rental car coverage (though I suggest using a card that offers a damage waiver, such as the Chase Sapphire Preferred® Card). You can also request a ski rack, car seat, and tire chains at no extra charge.

Next, scroll down to input your driver's license details. This information will be saved for future rentals, so you'll only need to enter it once. When you're ready to proceed, confirm your payment method at the bottom of the screen and click Reserve.

And that’s all there is to it. There are no corporate codes, booking platforms, or extra steps involved. The price displayed is the final amount, and the entire rental process is managed within the Lyft app. Just remember to bring your phone to the pick-up counter when collecting your vehicle.

My experience renting a vehicle through Lyft in Los Angeles

Now that you know how to make a reservation, let’s review how my experience with the Lyft rental car went last month.

Pricing and additional benefits

The primary reason I chose to rent a car with Lyft was the affordability. Memorial Day weekend typically brings high rental car prices, but due to the current shortage, traditional companies were charging over $600 for my five-day rental. Even with my university corporate code, which usually secures great deals, I was facing exorbitant rates.

In contrast, Lyft offered a much more reasonable option. My five-day standard hybrid rental totaled $368 before the multi-day discount available for rentals of two days or more. This 29% discount reduced my rental cost by $109, resulting in a final price of $283.61 before fuel. This was over $200 less than similar rentals from Avis, Enterprise, Hertz, and National.

Regarding fuel, you aren't required to refill your Lyft rental before returning it. The Lyft app provides a market-rate gas price based on nearby stations when you rent. Given the high gas prices in California right now, I was quoted $4.30 per gallon, which matched the nearest gas station I passed.

The same applies to tolls. Each Lyft rental vehicle comes equipped with a pre-installed toll transponder. Lyft will charge you for the tolls incurred after you return the car, with no additional fees—unlike many other rental companies that impose hefty surcharges.

One of my favorite features of the Lyft rental experience is the included ride credits. You receive a $20 credit for your trip to pick up the rental and another $20 credit after returning it. These credits must be used entirely and can only be applied to rides to and from the Lyft rental lot. However, they can be used for any class of Lyft ride, including Lux.

This is much simpler than any other rental car service I've experienced before.

Picking up my rental vehicle

Lyft operates two rental locations in Los Angeles: one near Santa Monica and another at Los Angeles (LAX) airport. I chose to rent from the LAX location since I was staying in Marina Del Rey and needed to return the car when I flew back home after my trip.

I utilized the $20 pickup ride credit to take a Lyft from a coffee shop close to my hotel to the rental location. Upon my arrival, I walked through the parking lot to the main Lyft building. This facility appears to be shared: one side serves as a driver onboarding center while the other houses the Lyft Rentals pickup counter.

A friendly Lyft employee quickly greeted me and requested my name, credit card, and driver's license. He then took a set of car keys and went outside to bring my rental car. He returned driving a Hyundai Ioniq Hybrid. While it's not the most thrilling vehicle by any means, considering the ongoing gas shortage, I was very grateful to have a hybrid.

Unfortunately, the car wasn't in the best shape. It had several scratches on the exterior, a small stain on the backseat, and the radio buttons were quite worn. However, the Lyft representative documented all these issues to ensure I wouldn't be charged for any damage upon return.

After that, I was off and running! The car drove well and navigated the Los Angeles highway system without any problems. I consistently achieved over 40 miles per gallon, which was excellent given that gas was over $4 per gallon during my trip.

Returning my Lyft rental car

After five days of exploring LA County, it was time to return the car. I scheduled my drop-off for 11:30 a.m. that day. I drove back to Lyft's LAX location, entered the parking lot, and another Lyft representative came out to inspect the vehicle.

He confirmed that there was no damage and that I would only be charged for the half-tank of gas I used. Keep in mind that, unlike other rental car companies, Lyft charges the market rate for gas with no additional fees. I paid about $20 for the half-tank.

My flight back to New York City was scheduled to depart LAX at 3 p.m., so the extra time allowed my girlfriend and me to go planespotting at the In-N-Out Burger just north of the airport. We used the $20 Lyft return credit to take a Lyft Lux there since it was just under $20.

Final thoughts

Overall, I had a great experience with my Lyft car rental. The entire process was quick, from booking to returning the vehicle. Although the car wasn’t in pristine condition, it was still much more affordable than other options in the area, so I can overlook a few door dings and a backseat stain.

More importantly, Lyft simplifies the rental car experience. There's no charge for returning the car with less than a full tank of gas or for using the toll transponder; you’re simply billed the market rate for both. Additionally, the $20 Lyft credit to and from the rental lot is far more convenient than using a rental car shuttle, making it ideal for locals renting for a few days.

I look forward to Lyft expanding its rental services to more cities across the U.S. It will undoubtedly become my preferred choice for car rentals once that happens.

Feature photo by Andrew Kunesh/Dinogo