In early July 2021, Uber and Lyft drivers were about 40% below capacity. The companies have taken notice, and are investing millions worth of bonuses and base rates to convince drivers to return. But to turn things around, these ride-sharing companies might need to do even more to convince drivers to return. Show
"The companies don't really look at us as human beings, and they just consider us as profit," says Ben Valdez, a driver and volunteer coordinator for the group Rideshare Drivers United. "Once everything started to slow down, I was making... I think it was around $85 dollars for 12 hours." Uber's website says drivers make anywhere between $22 per hour in cities like Orlando, to $37 an hour in cities like New York. Lyft has a long list of incentives and bonuses for drivers. But for those who are still relying on ride-sharing platforms to make a living, the companies are not offering enough. In fact, many drivers switched to food delivery, like Chad Polenz, creator of Chad The Gig Economist. Polenz remembers, "I got turned on to InstaCart and Doordash, Amazon Flex, and I was driving like a quarter of the miles, and I was like making 200 bucks a day, easy." It was a bit like a gold rush for drivers who were not able to deliver passengers during the pandemic; while Uber's ride-sharing revenue decreased 43% between 2019 and 2020, its delivery revenue increased 179%, according to its 2020 annual earnings report. The driver shortage calls into question whether the ride-sharing business model is sustainable. Neither company has ever shown sustained profits, and instead have shown staggering losses compared with most other publicly traded companies. Uber lost $6.77 billion last year, and $8.51 billion in 2019, the last full year before the pandemic. Lyft lost $1.75 billion last year and $2.60 billion in 2019, although last quarter it was profitable for the first time on an adjusted EBITDA basis, which ignores costs like stock-based compensation and taxes. Profitability was a problem for these companies even before the pandemic, when Uber and Lyft were rapidly growing. Back then, these ride-share companies were subsidizing the price of rides with promotions, discounts, and even just lowering the cost of rides to bring in new customers. So the capital raised by these companies, in part, went to making rides more affordable, and making sure drivers were happy with their compensation. Now that Lyft and Uber are public companies, they have to worry more about making a profit. To turn things around, Uber has launched a $250 million driver stimulus, and Lyft has invested in more driver bonuses and incentives. Uber declined to comment for this story and Lyft spokesperson said in an emailed statement that "we've added thousands of drivers to the platform and expect rider wait times and prices to improve moving forward." 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? See: 3 Easy Tips to Turn Your Credit Woes into Wows About UberUber 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. More From Your Money: Choose a high-interest saving, checking, CD, or investing account from our list of top banks to start saving today. 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. Make Your Money Work for You 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:
About LyftLyft 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. Make Your Money Work for You 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:
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 16,500 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. Make Your Money Work for You 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. Which Is Better: Lyft or Uber?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 LineDrivers 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. FAQHere are the answers to some of the most frequently asked questions regarding Uber versus Lyft.
Daria Uhlig and Cynthia Measom contributed to the reporting for this article. Information is accurate as of Dec. 8, 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. View Sources Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.
Share This Article:  By Kelli FrancisDecember 9, 2022Related Articles
Make Your Money Work for You About the AuthorKelli FrancisKelli Francis is a writer and content strategist. She started her career with a degree in journalism from the University of Oregon and went on to work in some of the industry’s busiest newsrooms, from The Seattle Times to MSN.com, WebMD and Yahoo. In nearly a decade at Yahoo, she worked as an assistant managing editor at Yahoo Finance, specializing in personal finance content; a producer for Yahoo News; and a managing editor on Yahoo’s home page team. A perennial seeker, Kelli is currently expanding her knowledge of all things finance as a student at The American College of Financial Services. She is also the very proud mom of a wonderful and unstoppable 7-year-old with Autism Spectrum Disorder. Why is Uber so much more expensive than Lyft?Surge and high traffic times are the most important for comparing fares. Uber calculates its surge prices with a multiplier model, while Lyft uses a percentage-based formula. This means that the price for the same ride could have a very different price on each app.
Is Lyft really better than Uber?While Lyft is slowly expanding, Uber has a higher coverage area than Lyft. Lyft is a great choice in times of high demand or when there is a driver nearby and you need a low cost ride fast. If you need a ride that looks good, Uber has a better selection of vehicles.
Is Lyft cheaper than Uber 2022?To sum up, when it comes to the base fares, Lyft is typically more expensive than Uber. Indeed, Lyft does have a tendency to charge higher per-mile and per-minute rates. So, if your ride is going to be longer or involve more time in traffic, then Uber may end up being the cheaper option.
Why is Lyft so expensive now 2022?If you request a ride during times of really high demand, you'll pay an inflated rate. Times of high demand and low driver supply are called Prime Time. Prime Time fees are extra fees that Lyft charges during busy times.
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Why is Lyft less expensive than Uber?
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