LYFT VS UBER

LYFT VS UBER

In this modern era, if you don’t have a car, the probability of using Uber or Lyft rather than a regular taxi is high. This is because these are the two most popular taxi-alternative services in the U.S. However, these rideshare apps have similar services and options so it might be a struggle to choose one.

When these two companies are put side by side, they have several notable differences and these differences can help you in choosing one depending on your personal preference.

We will feature an in-depth description of both companies, while also comparing them.

About Lyft (https://www.lyft.com/)

Lyft is a rideshare platform currently operating in the U.S and parts of Canada. The platform was launched in 2012 and went public through a Nasdaq listing in March 2019.

It was birthed by Zimride, a company founded by Logan Green and John Zimmer. Zimride, a peer-to-peer rideshare matchmaker for college students looking to carpool securely, was sold so the duo could focus on Lyft. Once the name changed to Lyft, it expanded to cities.  Green is currently the CEO and Zimmer is the company’s president.

It is based in San Francisco, California, and offers mobility services such as ride-hailing, vehicles for hire, motorized scooters, a bicycle-sharing system, rental cars, and food delivery.

Customers book rides with their smartphones through the Lyft app, which is available via Google Play or the App Store. Fares are quoted to the customer in advance but vary using a dynamic pricing model based on the local supply and demand at the time of the booking.

To use Lyft services as a passenger, people need to create user accounts and download the Lyft app. Passengers should install the app on their smartphones and set up the preferred payment method for paying for rides such as a credit card. It supports Android, iPhone, and Windows Phones. Thereafter, passengers just need to launch the Lyft app and request a ride along with some required info like pick-up location, preferred car type, etc.

About Uber (https://www.uber.com/)

Uber is a public American technology company that is best known for being a ride-sharing service. It was founded in 2009 by Travis Kalanick and Garret Camp as UberCab. Garret Camp and Travis Kalanick founded it in San Francisco, California to reduce transportation costs from professional drivers.

It is a ridesharing company that hires independent contractors as drivers. It matches riders with drivers, hungry people with restaurants and food delivery service providers, and shippers with carriers.

To use Uber services as a passenger, people should create a user account and install the Uber app on their smartphones. Passengers have to set up the preferred payment method for paying for the cab rides such as credit card, PayPal, etc. It supports Android, iPhone, and Windows Phones. Thereafter, you just need to launch the Uber app and request a ride trip along with some required information like pickup location, preferred car type, etc.

LYFT VS UBER COMPARISON

PRICING 

Lyft vs Uber Pricing ratings  

In July 2021, Lyft’s average transaction value was $27, a 45% jump year-over-year due to price surges. The service fee varies by city and the class or category of vehicle service chosen; for example, Lyft lists New York City ride costs as $1,48 per mile or $0.67 per minute for the basic Lyft service. Fees have a basic charge for each ride and additional calculations for total miles travelled and the minutes of travel time. Also, prime-time service will increase the base price.

On the other hand, for Uber, In July 2021, the average Uber trip was $20, a 20% increase from the year before that. Uber’s fares consist of a base fare plus a time and distance rate. Fares also vary by vehicle type and the city of service. Surge pricing during times of peak demand will increase the fare. In some cities, Uber does not provide up-front fare estimates but rather calculates the total charge after the ride.

Determining which service is cheaper depends on the type of service you intend to take. According to average ride costs, Uber is the cheaper option compared to Lyft.

Surge and high traffic times are the most important for comparing fares. Uber calculates its surge prices with a multiplier model (base fare + distance rate + duration)* (surge multiplier) + other fees), while Lyft uses a percentage-based formula. During the surge period, Uber is usually more expensive than Lyft as it increases the price up to 8x the original rate Immediately.

In some cities, including New York and Seattle, frequent riders can sign up for Uber’s subscription service Ride Pass for $25 per month, which promises to save you money while Lyft also has a subscription service called Lyft Pink which costs $20 a month.

ACCESSIBILITY

Uber has more drivers in more cities worldwide and is more established than Lyft, though Lyft has now proliferated in most American cities. Currently, Uber offers services in over 10,000 cities in 65 countries, while Lyft only provides services in 321 cities in North America and nine Canadian cities.

Lyft has less coverage in terms of the number of cities or areas. It is more focused on the west coast while Uber has a very wide coverage and provides services in numerous cities and many countries around the world. They are both available 24/7 though their services may be difficult to get quickly at midnight.

Also since Uber was the first rideshare app, it has excellent availability. The number of Uber drivers increases daily. Drivers flock to it for potential customers, and Sprint and AT&T have it preinstalled on some of their smartphones.

Uber has global availability and over three times more drivers than Lyft so it wins in this category by a milestone.

OPERATION AND SERVICES

Lyft has a set minimum vehicle requirement, and the drivers must pass two background checks before approval with the company. Vehicles must have four doors with a minimum of five seatbelts. The company also offers several service classes which vary by city. Its services include; Original Lyft, Lift XL, Lyft LUX, Lyft Black, Lyft Shared, bicycle or scooter, and Lyft Black XL.

Unlike its counterpart Lyft, Uber offers several more services whose availability varies by city and they include; UberX, Uber Comfort, UberXL, Uber SUV, Uber Pool, Uber Black, Uber Black SUV, Uber WAV, Uber Green, Uber LUX, Uber Flash, Uber Pet, Uber Eats, Uber connect, Uber Freight and Uber Taxi.

In this category, it is a win for Uber as it has far more ride options than Lyft. Riders can choose eco-friendly or luxury options on both apps, but Uber has variety and also offer more services.

DRIVER’S PAY RANGE

Lyft vs Uber Driver’s pay range ratings  

Both Lyft and Uber consider their drivers as independent contractors, so they do not receive benefits. They also have to pay their taxes since they are seen as independent contractors.

While Uber drivers typically generate higher hourly pay, the company takes 25% of the total fare. In comparison, Lyft only takes 20% of the total fare.

Both Lyft and Uber offer one-tap tipping options to show appreciation for a driver, but you are never under an obligation to tip. 10-20% for a good ride is standard. Lyft riders can tip their drivers through the app at the time of destination payment or up to 72 hours after the ride is completed whereas Uber extends tips up to 30 days after the ride is completed. Drivers keep 100% of their tips.

Uber’s 72% market share and higher hourly rate give it the earning potential edge for most drivers. Unfortunately, these statistics do not work well as there isn’t a fixed ride every day, and the ride fare varies on location, time, distance, and daily fare. It is not so easy to conclude this category as price and earnings range from city to city.

According to a survey conducted, an Uber driver earns up to $15.68 per hour while a driver at Lyft can earn about $17.50 per hour. This means from a more realistic point of view, a driver can earn more by driving with Lyft on average.

People however have argued that Uber provides a better work atmosphere and driving experience.

DRIVER’S BEHAVIOUR

Lyft vs Uber

Lyft drivers tend to have a friendlier ride experience like a friend with a car, whereas Uber drivers tend to be more sophisticated and reserved just like your private driver. Uber promotes a work culture of professionalism and more etiquette-based behaviour.

According to Ridester, one of the reasons Uber and Lyft drivers behave differently is because they are targeting different riders. Uber is focused on business people and as such provides a quiet and professional route from pick up to drop off. Uber is also expanding its services into the luxury market and employing professional, commercially licensed drivers for this purpose.

Lyft requires drivers to pass strict driving and background checks and they also tend to have more in-depth interviews of the drivers. Uber does the same too.

Picking a winner here boils down to your personal preference since both company drivers are professionally trained to ensure a smooth ride.

CUSTOMER SERVICE

Lyft vs Uber Customer Service ratings

In the aspect of customer service, both Lyft and Uber offer outreach services via email, a website, in-app support, and an emergency line.

Lyft however has had overall better customer ratings as it takes more time with individual problems and gives more direct answers. You can get more personable support from Lyft since they lack Uber’s market share and are friendlier as well. Uber on the other hand has many predetermined responses on the help portion of their app and site.

This shows it is an obvious win for Lyft in this category.

APP FUNCTIONALITIES

While Lyft and Uber have user-friendly apps, they have a few key differences.

Uber has an Intuitive and navigable interface while Lyft has more issues with glitching compared to Uber. Uber has a clean, organized look, and the map works well while Lyft’s map has issues with zooming and navigation, putting drivers on unusual paths. The developers encourage the drivers to navigate via Waze rather than Lyft when travelling.

Both Uber and Lyft let you see the driver’s picture, car model, colour, and license plate. You can also track the location of your driver and see how far they are from you.

However, while Uber allows you to see the arrival time before booking, Lyft does not.

When it comes to the app, Uber has more updates than Lyft and functions better which makes it take the lead in this category.

SAFETY

Uber and Lyft both have safety issues, yet they have taken measures to improve their platforms. The safety measures taken by both companies are similar. Both apps let you contact emergency dispatchers, share your location, view your driver, and rate their performance. They also vet their drivers thoroughly and check that they have clean records.

Uber and Lyft have both faced accusations of sexual assault of passengers from drivers. By far, more assault complaints have been directed at Uber than Lyft.

However, with the high number of cases Uber has been charged for, even with it rolling out better safety measures, the riders still pick Lyft as a better option.

While the safety options of these companies are similar, Ridester argues that Uber has the edge when it comes to safety. This is because of luxury services offered by Uber use professional commercially licensed drivers. However, for basic rides, Lyft’s unique colour-matching system may make its services the safer option. This system allows riders to check that they’ve identified the correct vehicle by pairing a colour on the app with a colour shown on the car’s dashboard.

In this category, none of these companies wins. They both have new safety features being pushed out frequently but this hasn’t still cleared the security issue being faced by most riders.

LYFT VS UBER – FINANCE AND STATISTICS

As of September 2022, Uber’s market Capitalization is at $57.52 Billion while Lyft’s Market capitalization is at $5.15 Billion.

Lyft’s revenue as of 2021 was $3.21 billion while Uber’s revenue was $17.46 Billion.

In 2021, Lyft’s employee base rounded up to 4,453 employees while Uber’s employee base rounded up to 29,300 employees.

With these statistics, it is obvious who the bigger company is. Uber takes the lead in this category.

It is quite difficult to conclude who wins in this comparison. From a global point of view, Uber is the clear winner as it is accessible in more cities and is more popularly known. However, in places in the U.S personal preference play a big role in riders choosing the best option. I would personally say you don’t choose one but rather try both and with time see which is preferable for you.

With global statistics, Lyft still comes second in the ride-sharing industry, following Uber closely at the top position.