Uber vs Lyft – Which One Takes the Lead?

Mayur Panchal
blog updated dateUpdated Date: May 14, 2024

Uber vs Lyft

Since humans invented the wheel, transportation has evolved from caves to cabs! However, public transport changed forever in 1897 when Daimler Victoria’s first cab started operating in Stuttgart. Cut to 2024, and ride-hailing apps like Uber and Lyft offer hassle-free cab bookings.

Both the ride-hailing services are best, but you can’t take rides on two apps simultaneously (of course, you can if you are more than one!)

So, which one to choose then?

If you decide on Uber vs. Lyft, there is much to consider!

Especially from a user’s perspective, you need to compare ride quality, prices, trust factors, and more!

Then, there is the driver’s perspective, too, if you want to earn some revenue. Another way to drive earnings for you is by creating an app like Uber or Lyft. This article will simplify your comparison of Uber vs. Lyft with price comparison, market share, app experience and business models.

Uber vs Lyft: An Overview

Uber was the first to introduce ride-hailing ease to the world with its on-demand service in 2009. Since then, Uber has seen growth like no other on-demand app. With rapid growth across ride-hailing and delivery services, Uber now operates in all the US states and more than 700 cities worldwide.

On the other hand, Lyft first launched in San Francisco in 2012 and entered the ride-hailing app scene. In January 2013, It raised $15 million in Series B funding and expanded its services to Los Angeles.

Lyft gradually expanded to more than 60 cities by April 24, 2014. Currently, Lyft operates across 46 US states and Canada. However, when comparing Lyft vs. Uber in terms of global operations, Uber has the upper hand!

Uber has a better reach for a worldwide audience, making it more experienced in delivering the services you need! But does that reflect on their sales, too?

Lyft vs Uber – Sales Per Customer

lyft vs uber sales per customer
Knowing the sales per customer will allow you to understand why these ride-hailing apps are a preferred choice for customers. Uber’s average monthly sales per customer are $107, which has grown 6% year over year in March 2024, a 17% increase from March 2022.

At the same time, the average observed sales per customer for Lyft was $95 in March 2024. This was 5% higher than last year and 8% higher than March 2022 sales.

These sales data provide insight into which ride-hailing application is driving more revenue, which may seem attractive as a business proposition. However, there are intricacies of taxi app development that you need to know before developing a taxi app.

Must Watch Podcast Before Developing a Taxi Application:

But, it’s crucial to understand that better revenues and sales per customer have much to do with the well-defined business model.

Uber’s Core Business Model

Uber’s business model is based on a mediator approach. It creates a digital platform that acts as a mediator between riders and drivers.

The entire operation is powered by dedicated apps for riders and drivers and a centralized panel for admins. Uber automatically uses the “X” algorithm to assign the nearest driver to a user’s location. Riders place the request from the dedicated app, and drivers fulfill it by accepting the ride request.

This has led to a new business model called “UberX.” It is a model that many startups are now looking to build an app like Uber for various on-demand services.

Lyft’s Business Model

There is no stark difference between Lyft vs. Uber’s business models. Like Uber, Lyft is a mediator that helps riders and drivers connect through its platform.

Initially, there was a difference between the two ride-hailing apps, as Lyft’s business model only focused on carpooling services. However, Lyft’s team pivoted to shorter urban rides for more revenue.

Riders can now easily book cabs on the app with Economy, Premium, and Lyft XL options. Like Uber, Lyft allows customers to book rides Using a dedicated application. Drivers are notified and can accept or reject the request.

So, if both apps use the same business model, do they offer services at the same price?

The answer is “No!”

Lyft vs.Uber: Pricing Comparison

There will be some stark differences if you compare Uber vs. Lyft prices. For example, the average Uber fare costs around $24 in the US, while the average Lyft fare is $18. However, this scenario changes from city to city as there are differences in base fare.

For example, Uber charges $0.90 per mile in Chicago and $1.75 per mile in Dallas. Fares also change based on specific regions. So, if you ride to suburban areas, the average fare can be between $15 and $35.

Lyft, on the other hand, charges a standard base fee of $0.90 per ride In 350 metropolitan cities. However, for the more luxurious service, “Lyft Lux,” the average base fee is $3.50 per ride.

Uber may seem costly regarding average fare, but Lyft also has higher prices in urban areas. The Uber vs. Lyft price comparison is a close call, but Uber seems to have an edge due to the cheaper ride options.

Now that you know the difference between Uber and Lyft prices, it’s time to understand who is leading the market!

Market Share Insights of Uber and Lyft

When you compare Lyft’s market share to Uber’s, you can see Uber’s leading position. Uber dominates the rideshare market in the US with 76%. Lyft had a 29% market share of 33% in 2018 but has cooled off over the years.

A significant reason behind Uber’s success is its services, which extend from ridesharing apps to Uber Eats and delivery services for alcohol and groceries. Lyft mostly provides ridesharing and cab booking services. For a better understanding, here is a comparison of Uber vs. Lyft services.

Types of Services That Uber and Lyft Provide

When you compare the types of services that Uber and Lyft offer, Uber does offer more services.

Service Category Uber Lyft
Standard Ride Booking UberX: The standard service, offering rides in everyday cars. Lyft Standard: Compared to UberX, Lyft provides rides in regular cars.
Large Vehicle Service UberXL: Larger vehicles for groups of up to six passengers. Lyft XL: Larger vehicles for groups.
Comfort Rides Uber Comfort: Enhanced comfort with newer cars and more legroom. Lyft Lux Black XL: Luxury SUVs for larger groups.
Premium Rides Uber Black: Premium black car service with professional drivers. Lyft Lux Black: High-end luxury rides.
Luxury Rides Uber Lux: Luxury rides in high-end vehicles. Lyft Lux: Premium black car service.
Car Pooling Uber Pool: Shared rides with other passengers heading in the same direction. Lyft Shared Rides: Shared rides with other passengers.
Food Delivery Uber Eats: A Food delivery service. N/A
Freight Management/Logistics Uber Freight: Freight and logistics services. N/A
Scooter Rentals Uber Bike and Scooter Rentals: Environmentally friendly options for short trips. Lyft Scooters and Bikes: Short-distance rentals for bikes and scooters.

The above comparison between Uber vs. Lyft provides an insight into what services riders can expect. But if you are a driver, commission charges and compensation matters the most.

Driver Compensation and Benefits

If you are a driver working with either of the two ride-hailing services, understanding the Uber vs Lyft compensation difference is crucial. It allows you to maximize your revenue and know which app is worth accepting rides on.

Ideally, an Uber driver makes $19.73 per hour and a Lyft driver gets $17.49 per hour. So, Uber does offer more earnings than Lyft.

But what about other perks and benefits?

Here is a comprehensive comparison of drivers’ different perks with Uber and Lyft!

Perks & Benefits for Drivers Uber Lyft
Flexibility Drivers can set their schedules and balance commitments Drivers can set their working hours
Bonus and Incentives Bonuses and promotions for driving during peak hours Drivers bonuses and earn reward points during busy hours and unlock pricing tiers for better earning
Cashback on Gas N/A Drivers get cashback on fueling by completing a specific amount of rides
Access to Wellness Perks N/A Lyft provides a debit card facility that allows drivers to have wellness perks
Community Stories N/A Lyft’s driver blog allows drivers to share stories, details of local events and other updates

User Experience For Uber and Lyft

This comparison covers many aspects, from Uber vs. Lyft’s cost to compensation and market share. However, it will be incomplete without comparing user experience for both ride-sharing apps.

Uber and Lyft’s app experiences are almost identical, with a few exceptions. Both offer ease of booking or scheduling and allow users to have preferences for the ride. Further, Uber and Lyft use special devices on driver’s dashboards to help riders identify their rides. Uber uses a Beacon, and Lyft uses an Amp to help riders know which one is their ride.

The dedicated rider app also provides live ride tracking, instant communication with drivers, and fare estimation. While these may seem basic features, replicating them requires an analysis of Uber app development costs. The cost may be higher depending on the complexity of the feature.

As a user choosing between the two ride-sharing apps for your ride bookings solely based on app experience may seem complex. However if you consider all the factors compared above like pricing, types of services, app experience and market share, the choice becomes a little easier!

Future Outlook and Innovations for Uber and Lyft

Both Uber and Lyft focus on innovations that improve sustainability. For example, Uber is working on including a fleet of autonomous vehicles in their existing lot.

Uber is also working to create a super app that goes beyond ride-hailing services and offers ticket bookings for planes, buses, and trains. It has also pledged $177 million to help drivers in London switch to electric vehicles for ride-hailing services.

On the contrary, Lyft wants to go 100% electric by 2030. It has also launched a green cities initiative for better sustainability. Though Lyft has no plans to be a super app, it has partnerships with GrubHub and Taco Bell.

Uber vs. Lyft: It’s Verdict Time!

Uber has a competitive edge over Lyft, and there is no denying it. Because if you look at the operational capabilities, ride experience, driver compensation, and future plans, Uber excels in every aspect. Uber’s market share and sales numbers are even higher then those of Lyft. However, the choice of ride-hailing application depends on multiple factors.

Both have regions where they compete, but for a user, choosing the best depends on localized services. The choice will differ if Uber is better in one area and Lyft in another. Uber is the ideal choice for drivers, but again, it depends on how many perks each ride-hailing app offers in specific regions.

But if you are a business looking to build apps like Uber or Lyft, you need experienced taxi app development services. Contact us now to learn more about on-demand development services.


1. What Are Significant Differences Between Uber and Lyft for Drivers?

Uber and Lyft have tipping policies. Uber riders can tip in cash or before the trip ends, while Lyft allows tipping within 72 hours of the trip. Uber has faced criticism for driver pay, while Lyft has been accused of deducting money from drivers for driving on interstate highways.

2. How Does Lyft differ from Uber?

Lyft allows tipping within 72 hours, while Uber accepts cash tips or tipping before the trip ends. Uber is available in more cities globally, while Lyft offers greater transparency in trip receipts.

3. Which is Cheaper: Lyft or Uber?

Uber is generally cheaper than Lyft in 33 states, with the biggest price difference in Wisconsin. While exceptions exist, such as New York City, where Lyft is cheaper, Uber is cheaper in 34 out of 50 of the most populous cities. In New Orleans, LA, Lyft costs $12.20 more than Uber due to factors like local laws, time of day, and demand.

4. Is it Possible for Multiple Drivers to Share a Car When Using Uber or Lyft?

Yes, as long as they meet city requirements for insurance, background checks, and minimum ages.

Mayur Panchal
Mayur Panchal is the CTO of aPurple. He is passionate about tech trends, clone apps, on-demand app solutions, and innovations across various domains. He loves to share his expertise through engaging content and inspiring others to discover the future of the IT world.

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