Uber vs Lyft: Which One is Better In 2023?

Uber vs Lyft – Let’s know which ride-sharing app is best for riders and drivers. Also, which one stands out to be the best in the market?

Sometimes, it’s safer to keep the car in your garage and leave the driving and traffic to someone else. This idea eventually became a reality with apps like Uber and Lyft.

These two quintessential ride-hailing companies have dominated the entire taxi industry. From the app layout to Uber and Lyft business model, they merely have a handful of differences.

Did you know?

Few years ago, Uber and Lyft both has dominated the LA Taxi Industry by 42%.

You would be shocked to know how many people prefer using taxis over driving independently.

• The ride-sharing industry is expected to grow by USD 242.73 billion globally, by 2028 at a CAGR of 16.3%.
• In early 2023, Uber’s monthly users has grown to 130 million. And the trips that were carried out were 7.6 Billion in 7 countries.
• Lyft is a ride-sharing service available across 656 cities in USA and Canada.

People who are still on the fence about these taxi apps can find it strange to sit in someone else’s car but later would surely find it more convenient and comfortable.

On the contrary, it is a great source of income for drivers who would like to earn on their terms.

Well, both are innovative alternatives and long-established taxi service providers. We have an in-depth comparison between the two apps- Uber vs Lyft from the driver’s and the user’s perspectives. Let’s get into the details of the two and decide whether you should choose Lyft or Uber.

A Brief Overview of Uber vs Lyft Cost of Services and Operations

Uber and Lyft fundamentally differ, but still, some people prefer both apps for ride-sharing.

“Among the population in the USA, 63% users use Uber, 27% users use Lyft and the remaining 10% use both the taxi apps.”

If you are looking for a good taxi service, these two apps top the list. However, the battle remains unsolved though there are multiple other taxi apps in the market.

What Is Uber?

Founded by Travis Kalanick and Garrett Camp in 2009, Uber is listed on the New York Stock Exchange and has reported $11.27 billion in revenue within 10 years.

Uber and the stock market have been bumpy ever since, but it has become a multinational ride-sharing company with 1.5 billion trips in a quarter.

Operations

Uber rides to dozens of countries, including the USA and Canada, South America, Asia, Australia, New Zealand, and the EU. Only in the USA do Uber services list 30 different cities, and Uber offers you a yellow cab of several classes in each city.

Uber offers a wide segment of cars available under each category. You can always check which car is available under each category on the app, and let’s check each of them.

• UberX: a basic four-seater sedan service
• UberComfort: New cars that give additional legroom
• UberXL: Affordable and comfortable six-seater SUV car for long-run
• UberPool: allows customers from different pick and drop points along the route to share the sedan seat and the cost
• UberBlack SUV: Up to five passengers for a luxurious ride
• UberWAV: Wheelchair and scooter-accessible vehicles to assist disabled passengers

Any vehicle coming to pick up the user should be well-maintained with air conditioning, and the car should not be more than 15 years old. Further, the care cannot be commercially branded or without the vehicle, inspection passed.

Lighting the Way with Uber Beacon

Uber helps passengers easily identify their rides from a distance with a light-up beacon mounted on the front and passenger side windshield. The drivers have displayed placards with the Uber logo on the front and rear of the windshield.

How much does Uber Cost per Mile?

Uber estimates to be around $1 to $2 per mile on average. Though, Uber’s price consists of a base fare worth the driver’s time. However, it changes depending on the location and the vehicle chosen by the passenger. Surge pricing will also increase the fare during peak hours.

Although the total fare charges are calculated after the ride is completed. An Uber SUV is a more expensive option than UberX class.

Read also: How to Make an App Like Uber?

What is Lyft?

Founded in the year 2012, Lyft had started peer-to-peer rideshare for people looking for affordable transportation to carpool long distances.

Do you know what Lyft is preferred for? It’s like Uber, but better because you can drive too.

Lyft has predicted a rise of 34.4% to 38%, reaching $4.4billion this year.

How Much Does Lyft Cost Per Mile?

The average fee per mile that Lyft charges is $0.90 for just a standard lift ride. Besides, if you want to ride a Lyft Lux ride then it will cost around $2.05.

Operations

Lyft serves nearly 50 locations in the USA and Canada. The company has set a minimum vehicle with drivers that join only after two background checks for more safety.

Each vehicle should have four doors with five seatbelts. Lyft’s car condition varies from the city of operation. Let’s check the various classes of vehicles that Lyft has to offer.

• Original Lyft– Regular cars for seating availability of up to three passengers
• Lyft XL– Regular vehicles for up to five passengers
• Lyft Lux– A premium black car for a luxurious vehicles
• Lyft Black – A ride in a luxurious premium black vehicle
• Lyft Black XL– A premium black SUV with seating for up to five people

Lyft with Amp

Lyft cars are identified by their mustaches on the front. Now, it also uses a subtle system called Amp that helps the passengers identify the car from a distance by a specific color that lights up.

While waiting for the car, users get a notification of the color which helps them get the ride in the dark. All the Lyft vehicles have their logo stickers on the front and rear windshields.

Now, let’s move on to know the similarities between Uber and Lyft both ride-sharing apps.

Let’s read a Lyft review written by a frequent rider.

What Are Similarities Between Lyft and Uber? From User Perspective

The two top-most taxi-sharing apps are available across many cities in the USA and around the world. There might be significant differences between the two which we will surely pen down later in the article, but the similarities are what one cannot ignore while booking a cab service.

• A similar procedure for cab request
• The user is notified of the driver’s identity and cab details
• Customers can leave reviews for the driver and their overall experience
• Drivers can also leave a review for their passenger
• On-demand services – 24/7
• Advance cab booking
• Different pricing styles according to the class of vehicles and location
• Cab fare increases during rush hours

Must Watch Podcast Before Developing a Taxi Application:

What Are the Major Differences Between Uber and Lyft?

The battle between Uber vs Lyft is nothing new, and the ultimate goal of both companies is to provide users with convenient and affordable commuting. But what’s better Lyft or Uber? Since the platforms constantly mimic each other, let us study how they differ.

Lyft and Uber looked very different when launched. Uber mostly had black SUVs to drive, and Lyft featured a giant pink mustache and fit bumps. Though the services are almost identical, drivers are not called employees but contractors.

Overall Differences – Lyft vs Uber

• Area of Service
• Mobile Apps
• Level of Services

Area of Service- Uber Vs Lyft

Both Lyft and Uber are mature and evolving cab services that have built their reputation and scope of services. Because of this, their services are similar.

Uber has a wider range of areas covered than Lyft and is expanding to reach across the globe. Whereas Lyft focused on the west coast, it is now widely available in many cities in the USA.

Taxi Mobile Apps

Uber vs Lyft has one thing in common, the mobile app is amazing. Both the apps have an appealing UI/ UX design that urges customers to use them whenever they need a taxi.

They invested in developing a mobile app where users can experience an intuitive and user-friendly application. A user will not encounter much difficulty with the signup process to request a ride with either lyft or uber.

Both applications can detect the current location, and the users can enter their destination address to check the real-time and fare estimate. The only difference between the two apps is the design. On the contrary, Uber has a corporate look, and Lyft has a lively and bright look in the app. However, none of these makes any difference in the mobile app’s functionality.

If you have a startup idea and want to create a taxi app development, talk to us about your idea.

Level of Services- Uber Vs Lyft

Lyft vs. Uber- What is the most common thing people would search for while booking a cab?

Of course, they would like to commute in a luxurious car or a vehicle that makes them feel comfortable.

If users want to be economical, they also have ride-sharing options. Uber services break down into Economy and Premier, while Lyft follows a similar pattern. From simple cars to luxurious top-model SUVs, taxi services have classified each class with a different price.

However, the Uber vs Lyft prices differ from each other.

What comes next in Uber Vs Lyft?

Do they have anything for drivers and customers? Like a win-win situation for both, they are happy to drive for you, and the customers are happy to receive discounts or coupons for every ride.

Let’s take a peek at what’s in store with Uber and Lyft for the drivers and customers.

Which App Is Cheaper Uber or Lyft?

The prominent question amongst users is Uber cheaper than Lyft. Or vice versa. Then, Uber tends to charge $20 whereas, Lyft charges $27 for the trip. Hence, Uber is cheaper than Lyft. Moreover, Lyft charges vary from city to city and the category of vehicle class you choose.

Although, a basic ride fare in New York City costs $1.48 per mile or $0.67 per minute. The fare will affect the last taxi fare for any passenger who changes the pickup or drop point while the ride is already underway.

With the above information about Uber and Lyft business, can you guess which one is the best?
You could only understand the Uber vs Lyft cost and what class of vehicles they operate.
As mentioned before, we have curated the entire information about Lyft vs Uber. Let’s now jump to know between Uber vs Lyft who tends to pay the driver better?

Uber or Lyft: Which Is Better for Drivers?

It seems like almost many individuals are either driving Uber or Lyft to earn some extra dollars. A few might be full-time employees of these ride-sharing companies. So, which is better for drivers? How much does a driver make per day or month? The Uber vs Lyft price calculator can help you with it. Read more To know the income of both apps.

Income of Uber Drivers

Since its inception, around 3.5 million drivers have worked for Uber, serving 93 million customers. Together they ride 1.44 billion each quarter.

Uber leads in the rideshare option, with 68% of the industry’s rides booked through an app.

Earlier, the drivers worked for 30 days=75 rides=$500. Gradually, drivers started showing their disagreement while a few were very contend with this scheme.

Unfortunately, these statistics do not work well as there isn’t any fixed ride every day, and the ride fare varies on location, time, distance, and daily fare.

However, below we have bifurcated the basic parameters in which driver’s commission is calculated.

• Standard Trip Fare

Per-minute and per-km fares vary from city to city. Earn the base fare that prices for each city.

• Surge Pricing

The heat map in the mobile app can detect where the rider’s demand is high to earn more profit above the standard fare.

• Other Earnings

Make more money by picking up additional passengers through ride-sharing routes.

• Service Fee

This fee that the company receives helps develop an app and post-development services.

• Booking Fee

Driver’s commission is also included in the booking fee that covers the safety, insurance, and other operational costs paid by the rider.

• Cancellation Charges

If a rider cancels the ride, drivers will receive the cancellation charges paid by the rider.

Income of Lyft Drivers

Lyft takes 20% of the gross fare, and the rest is paid to the driver from the final amount earned after completing the ride.

The booking fee includes base fare, Time per Minute, and Distance per KM.

So how much do drivers earn? Let’s read an example.

A driver accepts and completes a ride for $15. As per Lyft’s rule, they give 80% of the fare to the drivers, which calculates to $12 to drivers’ pocket and $3 to the company.

On a typical day, if you compare Uber vs Lyft pay, the rate per hour for Lyft is estimated at $17, which is $2 more than Uber.

According to a recent survey, drivers have recorded $210 per month compared to Uber, and if the driver is a full-time employee of Lyft, he earns around $800/ month.

If you are reading this article to understand the income of a Lyft driver, look into the following points below.

• Factors That Add to a Ride Fare

Lyft starts the calculation of a ride with the time. For example, from Detroit to Denver, the per-minute rate for rideshare is calculated. With the polite behavior of the driver, passengers do give a tip and it’s solely the driver’s right to earn.

• Lyft Pricing

Once you sign up as a driver, you can read the fare card- the base rate and the minimum rate based on the location. The fare card gives you the minimum price you will earn per ride, and you can easily predict the per-week income.

• Bonuses

Lyft offers multiple bonuses to its drivers. Suppose you have multiple rides in a row and accept all to make a streak. In that case, you will earn extra money. Impress your passengers by keeping the taxi clean and hygienic, and add an auxiliary cord or snack for the passengers traveling long distances. They might give you more tips.

Pros and Cons of Uber and Lyft

Uber and Lyft are two of the most popular ridesharing platforms that provide similar services but have their own pros and cons. But which is cheaper uber or Lyft? Let’s dive in to understand the pros and cons of Uber and Lyft:

Uber Pros:

• Availability: Uber is available across numerous cities and countries, making it the most convenient ridesharing platform among travelers.
• Service Options: Uber has multiple service options like UberX, UberPool, and UberXL for various group sizes and budget options.
• Advanced Features: Real-time tracking, in-app rating, and upfront pricing to enhance user experience are some of Uber’s advanced features.
• App Integrations: Uber has collaborated with apps like Google Maps. This makes it easy to book Uber rides directly from these apps.

Uber Cons:

• Variation in Pricing: Uber spikes their pricing during peak hours or high-demand periods. This will significantly increase the cost of a ride.
• Limited Driver Income: It has been reported that drivers face difficulties in earning a sustainable income because of this platform’s vehicle maintenance cost, commission fees, and competitive nature.

Lyft Pros:

• Fair Pricing: Lyft provides fare estimates to the riders that comprise of a base price with a few fees.
• Driver Support: Lyft is extremely favorable towards its drivers. It has received positive feedback from drivers regarding accessible customer service.

Lyft Cons:

• Availability: Unlike Uber, Lyft isn’t available across various countries. Lyft is only available in the US and Canada.
• Driver’s Income: Like Uber, Lyft drivers have reported challenges in earning sustainable income due to high competition.

Which is Better: Uber or Lyft?- Choose The Best Ride-Hailing Service

You might have noticed minor differences while reading this article on Uber vs Lyft. Both ride-sharing companies operate in the USA and Canada, but Uber caters to a wide range of countries around the world. As a customer, you can read Uber reviews from anywhere.

However, what makes lyft vs uber different is the pricing. Ultimately, the best ride-sharing option would be both. Don’t choose one, but try both to compare uber vs lyft price. Play around with both apps and benefit from money-saving schemes and convenient and safe rides.

Read also: Want to Build a Taxi App in Dubai?

Uber vs Lyft: What’s Your Favorite Route?

Research says, that two friends were searching for a local cab and were unable to find one, came up with the outstanding idea of starting an online cab booking service “Uber”.

Similarly, have you ever thought of starting your own company that helps people solve their daily commute?

After reading the entire article on Uber vs Lyft, what do you think would suit your business the best?

Well, trying both for a ride is a good idea, but to start a ride-hailing business, you need to understand the business model of Uber and Lyft.

There’s nothing better than developing a clone app like Lyft or Uber. These top most taxi service apps will give your startup a boost within no time. A fully-integrated clone of Uber or Lyft that includes an admin panel, driver’s app, and customer’s app is what your company will need.

Contact highly experienced developers and use app development services to uplift your taxi business.

FAQs

Why is Lyft cheaper than Uber?

Lyft has claimed to be the cheapest for Uber ride-sharing as it charges you less than what Uber charges per hour and on the contrary, Uber pays less to the drivers for about $2 per hour. This is why people prefer Lyft to ride and drive.

Which is better: Uber or Lyft?

Uber and Lyft, both offer ride-sharing services in the USA and Canada. It is better to try both apps and check which one serves you better in terms of class of car, price, time, and schemes.

How reliable is Lyft scheduled rides?

You can book a ride in advance and specify the drop-off location. The driver assigned and booked will surely pick you up from the given location and time and drop you at the destination you need. However, Lyft works on an algorithm of how likely it is that a driver is available while a user makes a request for a ride.

How reliable is Uber scheduled rides?

You can book a ride much in advance with its scheduled feature on the app. However, your taxi is confirmed once a driver is allotted to pick up and drop you from said locations. Scheduling a ride will never be reliable however, booking a ride a little before the time you plan to leave is the best option and Uber ensures to complete the ride successfully.

Which is safer, Uber or Lyft?

Ride-sharing companies are similar in terms of providing safety to its customers and drivers. Uber still has an edge in safety options as it provides luxury services with professionally licensed drivers. They are trained well and they drive safely ensuring the user reaches their destination happily.

Author

Mayur Panchal

Mayur Panchal is the CTO of aPurple. He is a thought leader in web and mobile technologies. Through his excellence and a keen interest in the latest technologies, he has successfully led many app developments and web development-related projects. He believes his immense knowledge on this stuff should be sent out to the outer world through articles and blogs so he writes a weekly article on this clone app-providing company.