By now, you in all probability know the gist of driving with ride-sharing providers: You utilize an app to attach with individuals who want rides. You drive them someplace in your personal automotive, they usually pay robotically by the app.
The 2 greatest gamers within the area — Uber and Lyft — proceed an intense rivalry, regardless of providing just about the identical service and neither riders nor drivers often realizing why they select one or the opposite.
Should you’re occupied with becoming a member of the ranks of rideshare drivers, you is likely to be selecting blindly.
May you lose cash with the flawed alternative?
That can assist you determine what’s greatest for you, we’ll evaluate the similarities and key variations between Uber and Lyft that will help you decide which is greatest for drivers.
Lyft vs. Uber: What Each Apps Supply Drivers
How every app works for drivers is basically the identical:
You’ll be able to signal as much as drive on-line or by the app.
You log in if you need to work, anticipate a notification which means somebody’s hailed a experience, then choose them up and drop them off at their vacation spot.
You earn cash based mostly on what number of rides you are taking, and also you robotically receives a commission every week (or extra usually, should you select) by direct deposit. Identical for every.
Driver Necessities for Uber and Lyft
|Meet min. age/metropolis||Meet age rule/area|
|1 yr driving expertise (or 3 years should you’re beneath 25)||1 yr driving experienc|
|Legitimate U.S. driver’s license (Some states require separate license.)||U.S. driver’s license|
|Legal/DMV background examine||DMV/background checks|
|Proof of state residency||Proof of insurance coverage|
|n/a||iPhone or Android cellphone|
Car necessities range based mostly on state or native rules. They’re related for each providers, with a few notable variations.
Car Necessities for Uber and Lyft
|Uber Car Necessities||Lyft Car Necessities|
|Meet metropolis age guidelines||Meet area age guidelines|
|4 doorways||4 doorways|
|5 seatbelts, together with driver||5-8 seatbelts|
|Good situation||Go security inspection|
|Proof of registration||Present registration|
|Proof of insurance coverage||Proof of insurance coverage|
|No business branding||n/a|
Should you don’t have a automotive that meets the necessities, every firm affords rental choices or reductions to purchase in sure cities.
Should you don’t have a automotive that meets the necessities, every firm affords rental choices or reductions to purchase in some cities:
- Uber’s Car Options enables you to hire a car by the hour or the week, apply for a versatile lease with limitless mileage and funds deducted out of your Uber earnings.
- With Lyft’s Specific Drive rental choice, you’ll be able to hire companion Lyft vehicles with a versatile lease and no long-term dedication.
You’ll be able to even use the automotive you hire as your on a regular basis automotive, no matter how a lot you drive it with Uber or Lyft.
How A lot Can You Earn With Lyft vs. Uber?
Like another sharing-economy gig or freelance work, Uber and Lyft drivers are thought of impartial contractors in all 50 states as of this writing.
Meaning your earnings are largely based mostly on how a lot you need to work and the way you handle your time.
Driver earnings for the apps are related: Riders pay a base price plus further value per minute and per mile.
As a driver, you earn based mostly on what number of rides you are taking, and the way far you drive for every. You’ll get an earnings enhance if you drive throughout high-demand occasions — like rush hour or throughout an area particular occasion — referred to as “surge pricing” with Uber and “peak hours” with Lyft.
Each Lyft and Uber provide ideas, which drivers get to maintain 100%.
How A lot Does Uber Pay?
The typical wage for Uber drivers throughout the U.S. is simply over $29,000 a yr, based on Certainly. Nonetheless, drivers’ actual earnings will rely on the place they reside, distance pushed and ideas.
How A lot Does Lyft Pay?
The typical wage for Lyft drivers throughout the U.S. is $30,344 a yr, based on Certainly, however that may range extensively by location. Nearly all of your earnings are based mostly on the time and distance pushed, based on Lyft. However ideas and bonuses add to your earnings.
California Gig Employee Ensures
The state of California kicked off a push towards reclassifying rideshare drivers and supply drivers as staff in 2020 with a state appeals court docket ruling adopted by a reversal on the polls with the approval of Proposition 22 in November 2020.
Underneath Prop 22, California rideshare drivers are nonetheless contractors, however you’re assured 120% of the native minimal wage per hour you’re engaged, $0.30 per mile in bills and a medical insurance stipend should you common greater than 15 hours per week.
Additionally beneath Prop 22, you’ll be able to’t work greater than 12 hours a day and not using a break of not less than six hours. (Lyft now units this restrict for drivers throughout the board, whereas Uber drive closing dates range by state.)
Upstate New York Uber Drivers Can Acquire Unemployment
An unemployment lawsuit in upstate New York in 2021 categorised rideshare Uber drivers particularly as staff for the aim of gathering unemployment, based on the Nationwide Legislation Evaluation.
The choice doesn’t apply to all of New York (it doesn’t attain New York Metropolis). It might not even apply to Lyft drivers, because the swimsuit was solely in opposition to Uber Applied sciences, Inc. And its ramifications past unemployment aren’t clear.
Later in 2021, a statewide transfer for laws that might let rideshare drivers unionize didn’t move, reaffirming drivers’ standing as contractors.
Rumblings Across the Nation
After small shifts in California and New York, analysts anticipate the push to reclassify drivers as staff to proceed and unfold to different states within the coming years, which may trigger a seismic shift in what it means to be a rideshare driver.
New Jersey lawmakers launched a invoice in 2019 to set clear parameters on who may and couldn’t be categorised as an impartial contractor, mirroring the small print of California’s profitable AB 5. The invoice seems to have stalled in committee.
The Nationwide Labor Relations Board has invited briefs to find out whether or not it ought to change its requirements for classifying impartial contractors versus staff which might have implications nationwide.
What Lyft Provides That Uber Doesn’t
In 2017, Lyft expanded to 40 “full” states, which means it lets drivers choose up anyplace in these states, not restricted to a metro space. In accordance with Lyft, this implies the platform covers greater than 94% of the U.S.
Lyft additionally affords Amp, a nifty system that makes it simpler for drivers to attach with riders at busy spots — and for drivers who’re deaf or arduous of listening to to remain on prime of latest rides.
What Uber Provides That Lyft Doesn’t
For years, Uber has had one enormous benefit over Lyft: It was in additional locations. However now each providers can be found in all 50 states and in most areas inside these states.
Now Uber’s major benefit is that extra riders are more likely to find out about it. Many individuals exterior of coastal cities might solely have heard of Lyft prior to now few years because it’s expanded to their areas, they usually would possibly simply choose Uber as a result of they knew it first.
Supply With Uber Eats
Uber’s 2014 enlargement into package deal and meals supply gave it a lift over Lyft for some drivers, too.
If it’s out there in your metropolis, Uber Eats provides you a option to earn cash if you don’t have (or don’t need) passengers. It additionally has much less strict necessities: The minimal age could also be decrease in some cities, and your automotive solely wants two doorways.
In some cities, you’ll be able to even make deliveries in your bike or scooter should you don’t have a automotive — you solely should be 19 years outdated to ship by scooter and 18 to ship by bicycle.
Lyft Providers vs. Uber Providers
Relying on the place you reside and what you drive, you would possibly discover you’re a greater match for both Uber or Lyft due to the providers out there in every app. Right here’s a comparability of the providers riders can order by every app.
(Providers range by metropolis, and rider limits is likely to be diminished on account of COVID-19.)
Lyft Providers vs. Uber Providers
|Lyft App||Uber app|
|Normal Lyft (as much as 3 riders)||UberX (as much as 4 riders)|
|Lux (luxurious automotive as much as 3 riders)||Uber Black (luxurious automotive)|
|Lux Black (black automotive service as much as 3 riders)||n/a|
|Lyft XL (SUV as much as 5 riders)||Uber XL (as much as 6 riders)|
|Lux Black XL (luxurious SUV as much as 5 riders)||Uber Black SUV (luxurious)|
|Shared (share with riders headed in identical route)||Uber Pool (identical as Lyft)|
|Precedence Pickup (sooner service, greater value)||Uber Reserve upfront|
|Wait & Save (cheaper price, longer wait)||UberX Saver (like Lyft)|
|Most well-liked (rider can request quiet and regulate car temperature)||Hourly (a number of stops)|
Lyft or Uber Who Wins?
The underside line is there’s in all probability no clear winner. Lyft versus Uber is a bit like a Mac versus PC debate. It’s a must to choose what works to your life-style and funds.
As a result of every firm affords some clear benefits, many drivers work with each in cities the place each can be found.
This technique enables you to maximize the riders you’ll be able to join with and earn cash with much less downtime. The businesses don’t love competing for drivers, although, so maintain a watch out for restrictions or insurance policies that restrict how simply you’ll be able to swap between apps whilst you’re working.
Dana Sitar is a Licensed Educator in Private Finance and has been writing and enhancing for on-line audiences since 2011, protecting private finance, careers and digital media. She is a former staffer at The Penny Hoarder. Her work has appeared within the New York Occasions, CNBC, The Motley Idiot, Inc. and extra.