How to Decide if You Should Drive for Uber or Lyft

Uber and Lyft are similar ridesharing companies, both of which are operated through an app downloaded to your smartphone or tablet. Both companies are always looking to hire new drivers, and can be good places of employment for someone who enjoys driving. If you’re considering applying to one company or the other, but are unsure of which is the better option, you’ll need to consider the amount of income you’ll make, the companies’ policies towards their drivers, and the amount of experience you need in order to be hired.

Part 1
Part 1 of 3:

Considering the Financial Incentives

  1. The dollar amount of a sign-up bonus that you can earn naturally depends on the city that you’re applying to drive in. Lyft generally offers larger sign-up bonuses than Uber; a typical Lyft bonus can range from $500–750, and may even reach $1,000. While Uber often does provide a sign-up bonus to new drivers, the amounts are substantially lower. In some cities, Uber may not offer a sign-up bonus at all. [1]
    • In order to earn your sign-up bonus for Lyft, you’ll be expected to give a certain number of rides before you receive the bonus. Depending on the city, the number can range from 25 to 100.
  2. The amount that a driver will earn from a single ride can vary based on the city, time of day, and other factors. However, broadly speaking, Lyft drivers tend to be paid a higher rate than Uber drivers. Lyft drivers on average make about $17.50 per hour. Uber drivers make about $15.68 per hour. [2]
    • The Lyft app also allows customers to tip their drivers, which the Uber app does not. Tips can dramatically increase a driver’s take-home pay.
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  3. Although both apps provide a similar service, Uber is still far more commonly used than Lyft, and provides a ridesharing service in more cities. Uber has a larger customer base, so as an Uber driver, you’ll have more opportunities to give rides and make money. This also means that, as opposed to driving for Lyft, you’ll stay busier and have more consistent passenger pick-ups. [3]
    • However, be aware that, if you drive for Uber, there will also be more drivers in your area with whom you’re competing to pick up the same clients. This may mean that, although more clients use Uber, the competition for those clients is stiffer.
    EXPERT TIP

    Christopher Batchelor

    Former Lyft & Uber Driver
    Christopher Batchelor has been driving for Lyft since July 2017 and Uber since August 2017. He has made more than 3300 combined rides as a driver for these ride-sharing services.
    Christopher Batchelor
    Former Lyft & Uber Driver

    If you live in an area where people are spread out, you might favor Uber. Chris Batchelor, Lyft and Uber driver, says: “Where I live, it takes about 10-15 minutes to get to most passengers, and sometimes up to 25 minutes. I prefer driving for Uber because they tend to compensate drivers fairly for their time if the time to get to the rider is more than 12 minutes away.”

  4. If you’re looking to rely on your ridesharing job as your primary source of income, it’s not a bad idea to drive for both companies. Regardless of which company you choose to start with, neither company has a policy that forbids drivers from working for the other simultaneously. This will give you added job security, as you can pick up Uber rides when the Lyft pings are coming in slowly. [4]
    • If you drive for both companies, you’ll also be able to avoid downtime between rides. Also, sometimes one app or the other goes down for no apparent reason. If this happens while you’re working, you can switch and pick up rides on the other app.
    EXPERT TIP

    Christopher Batchelor

    Former Lyft & Uber Driver
    Christopher Batchelor has been driving for Lyft since July 2017 and Uber since August 2017. He has made more than 3300 combined rides as a driver for these ride-sharing services.
    Christopher Batchelor
    Former Lyft & Uber Driver

    Both apps make it easy to get around town. Uber and Lyft driver Chris Batchelor says: "Some riders know Uber, while others are more familiar with Lyft, so a lot of people just drive for both. I like that they both offer in-app navigation, so I don't have to switch between apps on my phone.."

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Part 2
Part 2 of 3:

Analyzing Your Driving Obligations

  1. Lyft is a smaller company than Uber, and, although its client base is growing, still has fewer regular customers. If you’d like to ease into your role as a rideshare driver, plan to start with Lyft. As a new driver for Lyft, you’ll be less likely to get back-to-back ride requests. [5]
    • That said, if you’d prefer to forego an easier beginning experience, sign up for Uber. You’ll likely be in a fast-paced driving environment immediately.
    • Although having many ride requests when you begin may be daunting, by the time you’ve learned the ropes, you may come to appreciate the lack of downtime and the resulting higher income.
  2. Both Lyft and Uber have strict rating requirements for the drivers: if an individual driver’s rating slips below a 4.6, their position may be terminated. Uber average’s a driver’s most recent 500 ratings, whereas Lyft only tracks the most recent 100 ratings. Older ratings are no longer counted. [6]
    • This means that if you acquired some low ratings as a beginner driver, they’ll only effect your overall rating for a short time under Lyft. With Uber, low ratings earned in the first weeks of driving will bring down your average for much longer.
  3. While both companies place certain vehicle requirements on drivers, Uber’s tend to be less stringent. Lyft only accepts drivers that have newer cars, while Uber permits drivers to have somewhat older vehicles. [7] Regardless of the company you apply to work for and the year of your vehicle, you’ll likely need to have some maintenance performed before you can start picking up customers.
    • Check the Uber and Lyft websites for more information regarding the type of vehicle maintenance each requires.
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Part 3
Part 3 of 3:

Factoring In Company Culture

  1. Lyft is known to have a welcoming company culture, which passes on various benefits to drivers. For example, Lyft gives riders the opportunity to tip their driver, while Uber has no tip function in their app. Also, Lyft takes certain steps to accommodate their passengers: if a passenger rates a drive with three stars or fewer, the app will not match this driver and rider again. [8]
    • Further, Lyft offers what are called “Power Drive Bonuses” to drivers who exceed a certain number of rides a week. This bonus allows busy drivers to keep a higher percentage of their fares.
  2. Uber asks its drivers to dress professionally and treat passengers as if the driver were a chauffeur: drivers are expected to open doors and lift luggage for their passengers. Nearly all Uber cars and SUVs are black, and the company discourages individual accessories on or in the car. [9]
    • Uber also encourages drivers to have a separate phone used specifically for the ridesharing app.
    • Conversely, Lyft does not discourage drivers from using their personal phones to run the Lyft app.
  3. According to some of the companies' ex-drivers, Uber can have strained relationships with its own drivers, whereas Lyft is generally an encouraging company. Lyft encourages community among its drivers, and the company makes it clear that it respects and appreciates its drivers. [10]
    • For example, Lyft sends drivers a “care package” consisting of a few small Lyft products after the driver has provided 1,000 rides to clients.
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      Tips

      • Lyft offers a service called “Express Pay” where, for a small fee, you can cash out your fares on the same day that you earn them. In most cities, Uber drivers do not have a similar service to take advantage of. [11]
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      References

      1. ↑ http://therideshareguy.com/5-reasons-to-start-driving-for-lyft-before-uber/
      2. ↑ http://clark.com/employment-military/is-it-better-to-drive-for-uber-or-lyft/
      3. ↑ http://clark.com/employment-military/is-it-better-to-drive-for-uber-or-lyft/
      4. ↑ http://therideshareguy.com/5-reasons-to-start-driving-for-lyft-before-uber/
      5. ↑ http://therideshareguy.com/5-reasons-to-start-driving-for-lyft-before-uber/
      6. ↑ http://therideshareguy.com/5-reasons-to-start-driving-for-lyft-before-uber/
      7. ↑ http://clark.com/employment-military/is-it-better-to-drive-for-uber-or-lyft/
      8. ↑ http://therideshareguy.com/5-reasons-to-start-driving-for-lyft-before-uber/
      9. ↑ https://pando.com/2014/12/03/uber-vs-lyft-a-former-driver-compares-the-two-services/
      1. ↑ https://pando.com/2014/12/03/uber-vs-lyft-a-former-driver-compares-the-two-services/
      2. ↑ http://therideshareguy.com/5-reasons-to-start-driving-for-lyft-before-uber/

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