The True Cost of Farming Out a Limo Trip, Worked Out
What it really costs to farm out a limo trip on LimoFarmOut: driver payout, platform fee, the $5 minimum, tax on the fee and refunds, with worked examples.
Before you hand a client's trip to another company, you want one number: what will this cost me, all in? With informal farm-outs that number is often fuzzy. There is the rate you agreed on the phone, then a "small" extra for parking, then a disagreement about the airport wait, and sometimes a favour you owe for months afterwards.
On LimoFarmOut the cost of a farm-out is visible on one screen before you pay. This guide breaks it into its parts and walks through real numbers, so you can price your client quote with confidence and know exactly what margin you keep.
The three parts of the price
Every job you post has the same structure.
- The driver payout. This is what you offer the chauffeur for the trip. You set it, or you let it be set by offers or a rising price. The driver keeps all of it.
- The platform fee. This is what LimoFarmOut charges you, the poster, for the job. During the launch offer it is 10% of the driver payout, with a minimum of $5. The standard rate is 20%.
- Tax on the fee, where it applies. Sales tax such as HST, VAT or GST can apply to the platform fee, depending on the country. It is charged on the fee only, never on the driver's payout.
You pay the total by card when you post. Nothing is added to the driver's side, and nothing is taken out of it.
Worked example: an airport run
Take the example LimoFarmOut uses on its own home page: an SUV from Toronto Pearson Terminal 1 to a downtown hotel.
- Driver payout: $120.00
- Platform fee (launch 10%): $12.00
- Total you pay at posting: $132.00
If the job's country charges tax on the fee, that tax is added to the $12 line, not to the $120. Your receipt shows it separately.
Now compare it with your client price. If you quoted your client $175 for that transfer, your cost is $132 plus any tax on the fee, and the rest is your margin. The chauffeur sees $120, takes the job knowing the money is held, and you never touch the driver's pay again unless extras are added after the trip.
Small jobs and the $5 minimum
The minimum fee matters on short, cheap trips. Ten per cent of a $40 payout would be $4, so the $5 minimum applies instead:
- Driver payout: $40.00
- Platform fee: $5.00 (minimum)
- Total: $45.00
Once the payout reaches $50, the 10% fee and the minimum meet, and above that the percentage takes over. If most of your farm-outs are short hops, it is worth knowing where that line sits.
Rising price: paying for flexibility without overpaying
Sometimes you don't know the right rate for a city you rarely work in. The rising-price option lets the payout start lower and climb over time to a ceiling you set. Drivers never see your ceiling.
The how it works page shows a real-looking case:
- Starting payout $85, so the fee at 10% is $8.50.
- Raise allowed up to $95, so you pay $104.50 at posting ($95 plus $9.50).
- A driver accepts at $86. The fee on $86 is $8.60, so the job costs $94.60.
- The unused $9.90 goes back to your card automatically.
You paid the ceiling up front, which keeps the job fully funded, but you only spend what the trip actually filled at. The page also shows what similar trips in that city paid, which helps you set a sensible start.
Counter-offers and offers
A driver can send a counter-offer if your price is too low. If you accept it, you pay the difference before the trip, and the fee follows the new payout. If you post a job as Taking offers, drivers send prices and you choose one, paying before they drive.
When you compare offers, don't look only at the price. Each offer shows the free waiting time included and the rate for each extra hour. A lower price with no free waiting can end up costing more at a busy airport than a slightly higher price with an hour of waiting included.
Extras after the trip
The trip price is not always the final cost. Waiting time beyond the free minutes, overtime on hourly jobs, parking, tolls and extra stops can be added by the driver when they close the trip. They come to you to approve before you pay them. Tips are optional and up to you.
The way to keep extras predictable is to set the waiting terms when you post: the free minutes included and the extra-hour rate. Then the driver knows the rules before accepting, and you can quote your client with the same terms. For hourly bookings, see our guide to hourly limo jobs, minimum hours and overtime.
What a cancellation costs you
Plans change, so build cancellation into your thinking:
- Before a driver accepts: cancel any time. The payout comes back to you; the platform fee is kept.
- After a driver accepts, 24 hours or more before pickup: the payout is refunded in full; the fee is kept.
- Less than 24 hours before pickup: the driver receives half of the payout for holding the time, and the rest comes back to you.
- Passenger no-show with the driver on location: the driver is paid in full.
The exact refund is shown on the job page before you confirm. Our guide to late cancellations and no-shows covers each case in detail.
What it doesn't cost
It's just as useful to know what you are not paying for:
- No sign-up fee and no monthly subscription, for operators, fleets or drivers.
- No charge to browse the board or receive alerts.
- No fee taken from the chauffeur, so you don't need to inflate the payout to cover one.
You only pay when you post a job. That is also the only time LimoFarmOut earns, which keeps the incentives simple.
Quoting your client with confidence
A simple routine keeps your margins safe:
- Decide the driver payout you would accept for the trip in that city.
- Add the platform fee (10% during the launch offer, $5 minimum) and any tax on the fee for that country.
- Set clear waiting terms and include the same terms in your client quote.
- Quote your client with your margin on top.
- If you are unsure of the local rate, use a rising price with a ceiling you can live with.
If the price is one you'd be happy to pay at the ceiling, the rest is upside. For the fee schedule itself and why the launch rate matters, read what the LimoFarmOut launch fee offer means for operators.
Your client needs a car somewhere you don't operate?
If you'd rather book a car for your own client directly, outside your area, you can do it here.
Chauffeur booker
Book a chauffeur in any city
Airport transfers, hourly cars and point-to-point trips with LimousineWorldwide.Directory member operators. Choose the vehicle, see the price and book in a few steps.
Many clients who need a car also need a flight or a hotel for the same trip. The travel desk from our partner BookingWorldwide.net searches those in one place.
Further reading
Card payments and driver payouts on LimoFarmOut run on Stripe Connect. If you want to find established operators in a city before you farm out there, the LimousineWorldwide.Directory lists member companies worldwide. On this blog, prepaid farm-out explained follows the money after you pay.
Frequently asked questions
How much does it cost to farm out a limo trip on LimoFarmOut?
You pay the driver payout plus a platform fee of 10% of the payout during the launch offer (minimum $5), plus any tax that applies to the fee. Joining and browsing are free.
Is the platform fee taken from the driver's pay?
No. The fee is charged to the poster on top of the payout. The driver keeps the full payout shown on the job.
Do I get the fee back if I cancel?
The payout is refunded according to the cancellation rules, but the platform fee is kept when a paid job is cancelled. The exact refund is shown before you confirm.
What happens to the unused money on a rising-price job?
You pay the maximum when you post. When a driver accepts at a lower price, the unused amount, including the fee on it, is refunded to your card.
Can extras change the final cost?
Yes. Waiting time, overtime, parking, tolls and extra stops can be added after the trip, but they come to you to approve before you pay them.
See the full cost before you pay
Ready to see the numbers on your own trip? Farm out a job and the full cost appears before you pay.
