Uber vs. Lyft: Understand the Difference

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In this age of the booming side hustle, ride-sharing has become commonplace. Anyone with a car, a driver’s license and a cleared background check can potentially offer people rides and earn extra cash for doing so. But when it comes down to Uber vs. Lyft, which service offers the best experience for drivers and riders alike? Read on to find out.

Quick Take: Is Uber or Lyft Cheaper?

There’s not a blanket answer to the question of whether Uber or Lyft is cheaper across the United States. Here are some key takeaways for pricing:

• The prices of both services can vary according to factors like major city location, volume and surge pricing. 
• The best way to determine which ride service would be cheaper for you would be to check both apps for their current prices when you need a ride. 
• You can also use the Lyft fare estimate tool and the Uber price estimate tool to get an idea of which service would be cheaper.
• Although Lyft and Uber rides are similar, Uber has the larger share of brand recognition and market share. 
• Cost seems to be a significant factor in usage, and some customers use a third-party app to compare ride-sharing costs before deciding which service to use.

Uber vs. Lyft: Which Is Better For You?

Sometimes any ride in a storm will do, but it’s always good to know what rideshare platforms will offer you, how much it will charge you and which is best for your area. Though similar in their general convenience, Uber and Lyft have different offerings when it comes to transportation options, service areas and customer service. The best way to decide which is right for you could be to try them both and do a side-by-side comparison.

Uber Overview

Uber is a technology company based in San Francisco. It’s best known for being a ride-sharing service, but since its start in 2009, the company has been expanding its mission. Uber Eats, for example, offers food delivery. Uber is actively working on initiatives that move people forward, like self-driving technology, urban air transport and more seamless professional travel experiences.

Uber has made a bold sustainability pledge to become a fully electric, zero-emission platform by 2040. Its goal is for all rides to happen in zero-emission vehicles or, alternatively, to happen on public transit or with micromobility.

Lyft Overview

Lyft is a ride-hailing company based in San Francisco. It began in 2007 as a company called Zimride, which offered ride-sharing between college campuses. By 2012, Lyft became a ride-sharing service. It offers vehicle-based rides, as well as scooter and bike sharing.

Uber vs. Lyft: Which Is Better for Drivers?

Many Uber drivers have shared their experiences, and their thoughts vary. On one hand, it’s possible to set your own schedule, start driving quickly and meet interesting people while earning extra income. On the other hand, it can be difficult to earn as much as Uber suggests, and there are costs associated, like gas, insurance and maintenance.

Lyft Driver reviews on Indeed echo the sentiments of the other rideshare companies — there are benefits, such as independence, flexibility and socialization, and drawbacks, like auto maintenance needs, to being a Lyft driver.

Both Uber and Lyft offer discounts on auto-related expenses and offer perks for drivers.

Uber and Lyft also have similar payment policies. Both companies pay weekly via direct deposit but allow you to be paid instantly following each ride via a debit card. Alternatively, you can pay Lyft 85 cents to have earnings directly deposited into your bank account sooner than the regular weekly payout. Uber allows you to cash out up to six times per day.

How Much Does Uber Pay Drivers?

According to ZipRecruiter, Uber drivers make $19 an hour on average. The pay tops out at $30.77 an hour.

Here are the various types of pay rates:

• Standard trip fare, or time-based pricing, offers a base fare plus additional compensation based on the time and distance that you drive.
• Uber also identifies opportunities for peak pricing. Surge pricing allows you to go by a heat map to find out when and where there’s a lot of rider demand, enabling you to earn more beyond the standard fare.
• Drivers earn more pay for additional rider pickups on Pool rides, waiting for riders and minimum fares for short trips.

How Much Does Lyft Pay Drivers?

Pay rates for Lyft drivers can fluctuate based on various factors, including the specific demands of their location and the time they choose to drive. Here are some key takeaways to know:

• Lyft drivers see their ride earnings upfront. This transparency helps drivers make informed decisions about accepting rides.
• Drivers are guaranteed to receive 70% or more of the fare after external fees. If weekly earnings fall below this threshold in relation to passenger payments, Lyft compensates the difference.
• Lyft offers several ways to boost earnings, including Turbo during busy times, ride challenges that reward completing a certain number of rides within a timeframe and bonus zones that increase pay for rides started within designated areas.

Final Take To GO

In today’s economy, both Uber and Lyft offer similar benefits to drivers and riders, making them solid choices for anyone looking to engage in the ride-sharing market. As more people apply to drive due to the high cost of inflation, navigating the options between Uber vs. Lyft becomes a consideration of personal preference and convenience.

Daria Uhlig, Caitlyn Moorhead and Cynthia Measom contributed to the reporting for this article.

Information is accurate as of April 1, 2024.

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