Uber vs. Lyft: Pros and Cons of Each Rideshare Service

In this age of the booming side hustle, ridesharing 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 which service is best and what is the experience like?

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About Uber

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. And Uber is actively working on initiatives that move people forward, like self-driving technology, urban air transport, more seamless professional travel experiences and easier access to healthcare.

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.

What’s It Like To Drive for Uber?

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.

How Much Does Uber Pay Drivers?

According to Uber’s website, a full-time driver in Washington, D.C., is likely to earn about $1,452 per week, including tips. The estimate was based on D.C. drivers who’d driven during the previous four weeks.

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.

About Lyft

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

What’s It Like To Drive for Lyft?

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

How Much Does Lyft Pay Drivers?

Pay rates can vary depending on the driver’s city, region and time of day. Lyft doesn’t currently disclose driver pay on its website, but it previously reported that drivers in Washington, D.C., earned up to $35 per hour. Several factors influence a driver’s pay:

• Distance rate is the dollar amount earned per mile.

• Time rate refers to time-based pricing, or the amount earned per minute.

• Drivers can also receive tips and bonuses.

Using Lyft’s app, drivers can access forecasts and demand maps that update in real time.

Uber vs. Lyft: Which Is Better for Drivers?

Over 4,900 driver reviews on Indeed.com give Lyft a cumulative rating of 3.5 out of five stars. Uber’s profile on Indeed.com reflects 16,300 driver reviews, with a cumulative average rating of 3.6 stars out of five.

Research firm Statista notes that Uber has significantly higher market share, which means you might have more driving opportunities than with Lyft.

Both companies provide 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 $0.50 to have earnings direct-deposited into your bank account sooner than the regularly weekly payout. Uber allows you to cash out up to five times per day.

Is Uber or Lyft Better for Customers?

Although Uber and Lyft 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 ridesharing costs before deciding which service to use.

Is Uber or Lyft Cheaper?

There’s not a blanket answer to the question of whether Uber or Lyft is cheaper. The prices of both services can vary according to factors like location 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.

Uber vs. Lyft: The Bottom Line

Drivers can rest assured, for the most part, that the ridesharing services offer similar benefits. Drivers are likely to benefit from Uber’s mindshare among consumers, and both drivers and consumers stand to benefit from Uber’s willingness to release safety statistics.

With inflation at a record high, more people are now applying to drive for Uber or Lyft. The result is that the companies are cutting back on recruitment incentives that were popular when drivers were in short supply during the pandemic, which is a disappointment to many drivers.

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

Information is accurate as of Sept. 26, 2022.

Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.

This article originally appeared on GOBankingRates.com: Uber vs. Lyft: Pros and Cons of Each Rideshare Service