Ride sharing services have been around for years now, but have really taken off in the last couple with the increase of smartphone ownership and awareness that the taxi alternative exists. Uber's successful business model inspired other companies to jump into the lucrative market. I was unaware of Uber's biggest competitor prior to moving to Texas, but quickly began hearing the world "Lyft" tossed around. "Don't worry, we can just call a Lyft," friends would say.
When I asked people about the differences between Lyft and Uber, I received a mix of responses. The general consensus seemed to be that Lyft is generally cheaper than Uber, but more "sketchy." The sketchiness revolved around people having to meet Lyft drivers at weird pickup locations, such as nearby parking garages and the rumor that the company doesn't require its drivers to be background checked. The latter is not true as both companies run extensive background checks on its drivers.
I have tried both Uber and Lyft in the past month. Both services offer free rides and discounts for signing up and referring friends. Both apps, available on iPhone and Android, offer intuitive user experiences. The user can open the app and use his or her current location to summon a pickup. The available drivers are displayed on the map in real-time and arrival estimates are given. The final destination can also be inputed to configure a cost estimate, which is then paid for internally by either a PayPal or credit card account in the system. No cash is exchanged and the customer can rate the driver post drop-off.
Both Uber and Lyft seemed very similar, so I wanted to research to discover what made each service unique. Uber was founded in 2009, whereas Lyft came onto the scene in 2012. Both companies are headquartered in San Francisco, with plans for rapid growth. Thanks to its head start, Uber is active in 58 countries and 300 cities. Lyft is only available in 65 U.S. cities at the moment.
Another differentiator is tiers of service. Uber has seven tiers of service, while Lyft only has three. Uber has "Pool" and Lyft has "Line," which both allow the driver to pick up one other passenger along the way — this is usually a cheaper option. Lyft's "Lyft" tier calls a car with four seats available and is strictly your party's passengers. Uber has four tiers for Lyft's one option: "UberX," "Select," "Black Car" and "LUX," which vary by car brand and driver professionalism. Have a larger party? Uber's "SUV" and Lyft's "Plus" options fulfill this need, as both deliver cars that fit six people. Finally, Uber offers "Access," which ensures that the vehicle is wheelchair accessible.
The above tiers of service vary by price. Ride prices also vary by city, length of the trip and demand. Demand can increase the price of an Uber as high eight times the base rate during "Surge Pricing" and three times the base rate during "Prime Time" for Lyft. This increase in price occurs during peak travel times where many people are looking for a ride share service. Lyft's cap at three times the base rate usually makes the service cheaper than Uber.
Drivers are required to be 23 years of age or older to driver for Uber, while drivers must only meet the minimum age of 21 years old for Lyft. Drivers make around 80 percent commission for both Uber and Lyft, but Lyft allows riders to tip their drivers in the app. Uber discourages tipping as a way to simplify and streamline the process. Lyft drivers generally make more because of this feature and earn a slightly hire rate, but this really depends on the market they are driving in. According to Lifehacker, drivers usually prefer driving for Lyft. Many drivers, however, drive for both companies.
The ability to tip typically makes Lyft drivers more friendly and outgoing. The Lyft brand is also known to be more fun and quirky, while Uber has a more techy and professional vibe. Both Uber and Lyft ensure that riders reach their final destinations in a way that is usually cheaper than taxis; it's completely up to the riders and drivers as to which platform they prefer to use though.
