In recent news, Lyft announces that they would bring back commissions. This was disappointing news for rideshare drivers. The commission increases for Lyft may be great for the company, but for drivers it hits them in the pocket. This is just another reason why it is important to work for multiple rideshare programs.
In the past, Lyft and Uber have made it tough on drivers, as they are constantly creating price wars. This constant up and down made it hard for drivers to determine how much money they were making an hour. Even changes to fare reductions made it hard to tell if these would be covered by the company (Lyft or Uber) or by the rideshare driver. This lead to the big question –Which program has the best platform to help make you more money?
Lyft VS Uber Analysis
To start my comparison, I reached out to drivers from all over the country through Facebook. With an increase in commissions, I was sure Uber would now be the best option for rideshare drivers. But in Denver, CO one a driver posted that he was still able to gross 20% more with Lyft then with Uber. Sure enough, he was right.
I did a little more research and I discovered that each city differed between Lyft and Uber. In order to give an accurate analysis, I was going to have to do some more research and create a simple spreadsheet. This would allow me to show which company would help maximize rideshare drivers earning depending on which area of the country you live. This analysis would help take the guess work out of determining which company was best, for rideshare drivers.
After all, the most important knowledge a rideshare driver can have is the understanding which company would make him or her the most money. For your driver’s, my easy to understand spreadsheet will help you understand which company is best for you (depending of course on some basic information, such as – the city you live). I’m not saying you can’t make more money with one company over the other. This is just an average analysis of what I have researched for each company based on cities across the United States.
As I complied the pricing data from each city, I ran it through Sherpa. Sherpa is a program that helped me determine the average trip length (miles and minutes) for all major cities in the United States. After I determined those inputs I was able to compare the payouts between Lyft and Uber for each of those major cities.
Each of my spreadsheets has been created using Google Docs. To download the spreadsheet, you will need to have access to an excel file or Google Drive. These are the only two places this document can be edited. Take a look at the results. These results may surprise some of you (or new drivers trying to determine which company is best for them).
Spoiler alert, DO NOT READ ON IF YOU DO NOT WANT TO READ WHO THE BIG WINNER IS!
If you have read the spreadsheet (or you are like many readers reading this article and have just skipped to this spoiler alert) you will see Uber is the big time winner. Uber was the highest paying wages for rideshare drivers in 41 out of 54 cities. Even though Lyft may be cheaper for passenger customers, for rideshare drivers Uber pays better.
After precise calculations with Sherpa (4.54 miles and 12.5 minutes), I was able to see Lyft was only higher than Uber in 10 cities. In 3 cities, Uber and Lyft actually tied in rideshare wages. I based this on just 10 hour drive time a week. By continuing on with my input, I discovered at 30 hours (or more a week) Lyft would actually beat Uber in most cities. How many hours do you drive?
You can continue to change the results by playing around with the mile and time inputs to see a more accurate comparison of your city. If you are one of those drivers who put in 30, 40 or even 50 hours a week, the results will be different. If you are just a part-time rideshare driver 5, 10, or 20 hours a week, your best bet is to opt for Uber.
Sure wages are important, but there are other factors drivers need to consider when deciding between Lyft vs Uber. These factors include tips, quality of your passengers, the amount of ride request per hour, surge charges, etc… Good tips from high-end passengers can increase wages in major cities across the United States.