Although it may not look quite like the taxi-hailing days of the past, today’s ridesharing industry is bigger than ever. With a strong demand for drivers expressed by both Uber and Lyft, how can delivery and rideshare service providers decide where their time and energy is best applied? In this guide from CoachDee, we’ll cover the features and benefits of both ride-hailing apps, and give you the essential information you need to make your next business move with confidence and certainty.
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UBER vs. LYFT — High-Level Overview
As a passenger, you may not think twice about choosing between Lyft and Uber beyond the criteria of timeliness and price — how quick until arrival, how high in cost, etc. If you are a rideshare app driver, however, this dilemma may present itself as a bit more complicated. Why? It has to do with the individual business practices, standards of operation, and existing service capabilities that each of two primary platforms utilize, which we address and break down below.
- Established first; wider market and more drivers
- More geographically prevalent; Service in 50+ countries
- 24/7 ridesharing and advance-order rides
- Currently offers 7 service categories, including UberX and UberSELECT
- Established second; smaller market but less driver competition
- Geographic reach currently limited to U.S. in 46 states
- 24/7 ridesharing and pre-scheduled rides (used more often for advance orders)
- Currently offers 5 service categories, including Lyft Line and Lyft Premier
Comparing Prices Between Lyft & Uber
Pricing is an important point of consideration, both for the rideshare passenger and the driver. Uber and Lyft both cost about the same from the get-go, with a flat initial fee of $1 per ride, and an additional $1.50 per mile after that. Additionally, both apps feature a driver option to boost or “surge” their price of service in especially busy areas, or during high-activity times for ride requests. This is where the price similarities begin to deviate from one another.
If you’re driving for Uber and opt into price surging, you’ll likely see a big boost in the value of your ride. This is because the app uses a multiplier model, which means that an interest rate — essentially a “times-two” doubling — is added to the overall price of the ride.
By contrast, if you’re a rideshare driver for Lyft and you turn on surge-price settings during a peak hour, you won’t see as much of a boost in your per-ride payout (about 50% increase overall, versus a near 100% upcharge you’d get with Uber). However, you will be much more likely to get a greater portion of the rides — and therefore a larger take of profit from that day’s work period — since most riders would prefer to go with a cheaper option.
Other Considerations For Rideshare Drivers
As alluded to earlier, some rideshare drivers can and do choose to work for both Uber and Lyft. Still, it’s not for everybody, so it’s often necessary to choose between the two biggest names in the game.
If price points and general business specs don’t satisfy your personal knowledge enough to choose, you may want to consider these five other ways to gauge which of the two ride-hailing companies is more up to your speed:
- Experience both app services from the client perspective
- A ridesharing company is only as good as the drivers it hires
- Inquire into employee benefits and bonuses
- Is there room for growth and opportunities?
- Try working for both as a trial period
- Start short-term with two, proceed long-term with one
- Assess your auto insurance guidelines and policies
- Some insurance companies may adjust your monthly coverage costs if you enter into the ride-sharing profession
- Ask yourself about amenities you’re willing to provide
- As the market becomes more competitive, drivers for Lyft and Uber are increasingly offering amenities to riders such as water, hand sanitizer, and more
Bottom Line: Don’t Drive Without Directions
At the end of the day, what matters most as a driver for Lyft, Uber, or both is that you are satisfied with your job, from the pay you receive to the people you provide rides to. It’s up to you which ridesharing platform is best for your personal business needs. No matter which brand or company you ultimately opt into, there will still be areas to improve upon on your end as a driver.
You’re on the Right Track — Now Get Ahead of the Curve
How can you guarantee that you’ll see success and maximize your drive-time to earnings ratio? Educate yourself! You’re already on the right track with resources such as this one, but if you want to really gain a competitive edge in a rapidly growing industry, you have to set yourself apart as a truly stellar service provider.
Here at CoachDee702, our award-winning courses and online coaching programs for ridesharing drivers will teach you the skills and grant you access to assets you’ll be able to use to benefit your success. Improve professional status, boost ratings, and overall earn more from your efforts with each and every ride that you provide. Learn more about our currently available courses, and enroll today!