Ride Sharing Showdown: Uber Vs Lyft
Ride-sharing services Uber and Lyft make it easy to take a ride with your phone, get you where you’re going in minutes, and automatically pay for your ride without the need for cash or a card at hand. We decided to find out which one is the best ride.
Applicants
Sharing services make it as easy as tapping on the phone to travel through sprawling cities. This is usually cheaper than calling a taxi, and since there are so many independent drivers working for each service, it is much faster. Ride sharing also makes it easy to get to the train station or spend a night in the city without worrying about the designated driver. Heck, using sharing services on your next trip might even be cheaper than renting a car . We decided to take a look at these two main players in the car sharing market:
- Uber : Based in San Francisco, operates worldwide.
- Lyft : Based in San Francisco, operates nationwide.
There are other similar services out there like Sidecar , but these are shifting the focus to shipping and we wanted to focus on the two most popular and most widely available.
Availability
In general, ride-sharing services are only available in urban areas where the population can support the required number of drivers and the demand for travel. Some states have been slow to revise their laws regarding services, but overall, it looks like travel sharing isn’t going anywhere.
Uber is currently available in 58 countries and 300 cities around the world. You can see a list of all North American regions where Uber is available here . Lyft is currently available in 65 US cities with expansion plans both domestically and internationally.
Winner: Uber
Numbers don’t lie. Uber is currently in more locations and you are more likely to find an Uber driver in your area than a Lyft driver. While Uber and Lyft compete in most of the same markets within the US, Uber is the only option if you live outside the US.
Pricing
The price of each service is probably the deciding factor for most people, but finding the “cheapest” one is difficult. Depending on the service and time of day, things can turn out randomly. In addition, prices vary from city to city depending on local legislation. But one thing’s for sure: Uber and Lyft are cheaper than taxis .
In addition to “Surge Pricing” (Uber) or “Prime Time” (Lyft), an informative report from What’s the Fare blog found that standard Lyft rides were generally cheaper than Uber rides in Los Angeles, New York, and San. -Francisco. However, another comparison of data from Chicago found that Uber was generally cheaper (with the caveat that Uber had cut prices somewhat during timed “sales”). However, both services have periodic sales and special offers, so it’s good to take advantage of them when available.
Fortunately, the difference in speed in both comparisons is quite small, and the intense competition between the two services keeps the rates roughly the same. Outside rush hours, you usually look around $ 1.00–1.50 for your base fee, and around $ 1.50 per mile thereafter. However, rates are constantly changing, and it all depends on the supply and demand in the place where you are, so it is impossible to unilaterally say that one service has a better price than another.
Winner: Lyft
Peak hours change everything. Lyft “Prime Time” prices are three times the regular base rate during peak hours. However, Uber’s “leapfrogging” rates can be as much as eight times the base rate. Plus, we’re betting that if you’re trying to head out on a Saturday night or need to be driven home from a bar after it closes, you’re going to face a spike in prices just because, well, everyone else wants to ride too. There are countless horror stories from Surge about outrageous Uber bills, but if you search for stories of expensive Lyft rides, there aren’t many. Because of this, and because you can save on the dollar in some areas, Lyft will remain the pricing winner.
Use of the Service
Both services use an app that you can download for free for iOS and Android. At a basic level, both apps work well and offer most of the same features:
- Request a ride at your GPS location
- Insert your destination address
- Monitor drivers in real time via GPS
- See what time it is before your driver arrives
- Rate drivers after driving
The big difference in service stems from the different levels of travel available. Uber offers seven different service levels:
- Pool : Your driver will take you and another passenger to wherever you want to go, but he may pick up another passenger along the way.
- UberX : Only you and your passengers will sit in the car during the trip (four people in total).
- Choose : Similar to UberX, but high-end sedans with leather seats.
- Black Car : high class city cars and professional drivers.
- SUV : UberX with lots of seats (up to six).
- LUX : Top cars like BMW, Mercedes and Porsche.
- Access : Service for disabled guests.
There are only three of them in Lyft:
- Line : Similar to Uber Pool. You may or may not share the ride with another or two passengers.
- Lyft : Similar to UberX. There are four seats and you won’t be sharing the trip with anyone else.
- Plus : The car has room for six people, leather upholstery, and Spotify Premium in-car access so you can listen to whatever you like while driving.
It might seem like Lyft is missing something, but most people will only use Pool and UberX or Line and standard Lyft most of the time. Registration in both cases is quick and requires the typical combination of name, phone number, email, and password creation. You also need to enter your billing information. Uber and Lyft accept Paypal in addition to major credit cards.
The process for requesting a ride is almost identical for both services, but some research shows Lyft gets to you a little faster in some cities . However, the difference is no more than a few minutes, and it is highly dependent on your location, as well as on the random placement of where the nearest driver may currently be, and which driver will take your fare first. That being said, both services usually reach you within 10 minutes of requesting a ride during off-peak hours.
Winner: Uber
Uber offers more ride options (if you need them), but there are three more things that give Uber a slight edge over Lyft. First, while both apps will estimate the cost of your trip, Uber shows you the cost of your trip in real time. This worries me personally, but it’s a nice touch for anyone looking to estimate the cost of travel en route to your current destination. Second, the Lyft app allows you to tip the driver. Don’t get me wrong, this is good for Lyft drivers, but the simplicity of Uber’s phrase “we’ll take you here, that’s the price, end of the transaction” may seem simpler and less frustrating to some. Third, Uber has a big advantage if you need to get to a hospital or medical facility, especially if you are disabled (Uber Access).
Be a driver
To become an Uber driver, you need to have a valid driver’s license, proof of valid insurance, and pass background checks, DMV checks, and criminal records. You must also be 23 years old. To become a Lyft driver is the same process, except you must be only 21 years old.
In terms of how much you can earn as a driver, again, it depends on the location. Aaron from idrivewithuber.com gives some insight into the driver from Los Angeles and also explains how the system works:
Let’s say, for example, someone is driving from West Hollywood to downtown Los Angeles (roughly 8 miles 30 minutes). Also, let’s add a splash of 1.3. The trip calculation looks like this:
(8 miles x $ 1 + 30 minutes x $ 0.18) x 1.3 hops + $ 1 in royalties = $ 18.42
This is the total amount charged to the passenger. What is the percentage of Uber drivers earning? Uber takes commission from $ 18.42. After deducting a $ 1 fee, drivers withhold 80% of the total fare for that trip. Uber takes 20% of the fare. So here’s the math for our example after the Uber commission:
$ 18.42 – $ 1 in royalties – ($ 17.42 x 0.20) = $ 13.93
This is the amount paid to the driver, excluding any expenses. My rule of thumb (this may not be the exact number for you) is that I spend about 10% on gasoline and other vehicles and 10% on taxes on average (after all deductions). Which in this case is calculated as follows:
$ 13.93 x 0.80 = $ 11.14
A similar system to Lyft. In this example, all things considered, the driver would be making more than $ 20 an hour, assuming another rider lined up to him. Not too shabby. Harry, the founder of The Rideshare Guy blog , is a regular driver of both Uber and Lyft. He lives in Chicago and explains that overall he makes more money from Uber, but in fact Lyft pays higher rates in 38 markets (Uber is the highest paid in only 8 markets). He maintains a constantly updated Google spreadsheet that lists rates in 54 different cities.
Winner: Lyft
I have personally used Uber and Lyft countless times, and I always ask my drivers the same two questions: “Do you drive for both companies?” and “What do you like to drive more?” Most of them tell me that in fact they drive in both cases, because it is effective. A lot of people also tell me that they enjoy driving in Lyft better. They usually did not go into details, but in a roundabout way they explained that Lyft was simply “more in the know.”
Numerous polls have also shown that drivers are more satisfied with driving in Lyft. One survey by Zebra found that 100% of drivers are happy with Lyft and only 84% are happy with Uber. According to a separate poll published by New York Magazine , nine out of ten drivers who drive both cars also choose Lyft. Lyft even uses its driver satisfaction metrics as a means of advertising. Plus, some Uber drivers have been pretty behind-the-scenes when it comes to poaching at Lyft fairs .
The price hikes may allow the driver to get a higher rate with Uber in general, but you have no control over when it goes up and when it doesn’t, and you’ll probably be happier behind the wheel of Lyft. And if you don’t plan on driving during peak hours, Lyft will still pay a better price. Plus, the Lyft app allows the driver to tip the driver! Uber does not allow this on the app and discourages passengers from tipping; which makes the whole “should you or shouldn’t” aspect of tipping the driver all the more confusing and controversial with Uber. Luckily, you can drive both without any fines, so you don’t have to choose. It looks like Lyft takes better care of its drivers, but you can mix and match both to find the perfect combination for you.
Showdown Champion: Lyft
Uber beats Lyft in terms of accessibility, and hardly loses out when it comes to usability, which may be the most important to the end consumer. Lyft, on the other hand, can be much cheaper to use and seems to have a better corporate culture when it comes to caring for its drivers and their passengers.
It’s also important to note that both Uber and Lyft have had some security issues in the past. Website Who Drives You? maintains a list of all suspected attacks by Uber and Lyft drivers that you can view. All in all, Uber has a few more accidents, driver assaults on passengers , alleged kidnappings, and more, so take it anyway.
The bottom line is that both services are nearly identical in many ways, but if you have the opportunity, Lyft seems to do its best when it comes to caring for both customers and drivers. If you’ve only used Uber, you can try Lyft, and vice versa – it’s okay to try both and call yourself, but our research shows you will enjoy Lyft better. What ridesharing service do you prefer and why?