By now, you in all probability know the gist of driving with ride-sharing companies: You employ an app to attach with individuals who want rides. You drive them someplace in your individual automotive, they usually pay routinely by way of 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 understanding why they select one or the opposite.
In the event you’re eager about becoming a member of the ranks of rideshare drivers, you is likely to be selecting blindly.
May you lose cash with the mistaken alternative?
That can assist you work out what’s greatest for you, we’ll examine 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 possibly can signal as much as drive on-line or by way of the app.
You log in if you wish to work, look forward to a notification which means somebody’s hailed a trip, then choose them up and drop them off at their vacation spot.
You earn cash based mostly on what number of rides you’re taking, and also you routinely receives a commission every week (or extra typically, should you select) by way of direct deposit. Similar for every.
Driver Necessities for Uber and Lyft
Uber | Lyft | |||
---|---|---|---|---|
Meet min. age/metropolis | Meet age rule/area | |||
1 12 months driving expertise (or 3 years should you’re underneath 25) | 1 12 months driving experienc | |||
Legitimate U.S. driver’s license (Some states require separate license.) | U.S. driver’s license | |||
Felony/DMV background test | DMV/background checks | |||
Proof of state residency | Proof of insurance coverage | |||
n/a | iPhone or Android cellphone |
Automobile necessities range based mostly on state or native laws. They’re comparable for each companies, with a few notable variations.
Automobile Necessities for Uber and Lyft
Uber Automobile Necessities | Lyft Automobile Necessities | |||
---|---|---|---|---|
Meet metropolis age guidelines | Meet area age guidelines | |||
4 doorways | 4 doorways | |||
5 seatbelts, together with driver | 5-8 seatbelts | |||
Good situation | Cross security inspection | |||
Proof of registration | Present registration | |||
Proof of insurance coverage | Proof of insurance coverage | |||
No industrial branding | n/a |
In the event you don’t have a automotive that meets the necessities, every firm gives rental choices or reductions to purchase in sure cities.
In the event you don’t have a automotive that meets the necessities, every firm gives rental choices or reductions to purchase in some cities:
- Uber’s Vehicle Solutions helps you to lease 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 Express Drive rental choice, you possibly can lease companion Lyft automobiles with a versatile lease and no long-term dedication.
You possibly can even use the automotive you lease 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 some other 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 wish to work and the way you handle your time.
Driver earnings for the apps are comparable: Riders pay a base fee plus additional price per minute and per mile.
As a driver, you earn based mostly on what number of rides you’re taking, and the way far you drive for every. You’ll get an earnings increase if you drive throughout high-demand occasions — like rush hour or throughout a neighborhood particular occasion — known as “surge pricing” with Uber and “peak hours” with Lyft.
Each Lyft and Uber supply suggestions, 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 12 months, based on Certainly. Nonetheless, drivers’ actual earnings will rely on the place they stay, distance pushed and suggestions.
How A lot Does Lyft Pay?
The typical wage for Lyft drivers throughout the U.S. is $30,344 a 12 months, based on Certainly, however that may range broadly by location. Nearly all of your earnings are based mostly on the time and distance pushed, based on Lyft. However suggestions 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.
Below 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 underneath Prop 22, you possibly can’t work greater than 12 hours a day with no break of at the very least 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 labeled rideshare Uber drivers particularly as staff for the aim of accumulating unemployment, according to the National Law Review.
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 did not go, reaffirming drivers’ standing as contractors.
Rumblings Across the Nation
After small shifts in California and New York, analysts count on the push to reclassify drivers as staff to proceed and unfold to different states within the coming years, which might 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 might and couldn’t be labeled as an impartial contractor, mirroring the main points of California’s profitable AB 5. The bill appears to have stalled in committee.
The National 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 Gives That Uber Doesn’t
In 2017, Lyft expanded to 40 “full” states, which means it lets drivers choose up wherever in these states, not restricted to a metro space. In line with Lyft, this implies the platform covers greater than 94% of the U.S.
Lyft additionally gives Amp, a nifty gadget that makes it simpler for drivers to attach with riders at busy spots — and for drivers who’re deaf or exhausting of listening to to remain on prime of latest rides.
What Uber Gives That Lyft Doesn’t
For years, Uber has had one large benefit over Lyft: It was in additional locations. However now each companies can be found in all 50 states and in most areas inside these states.
Now Uber’s fundamental benefit is that extra riders are more likely to learn about it. Many individuals outdoors of coastal cities could solely have heard of Lyft prior to now few years because it’s expanded to their areas, they usually would possibly simply favor Uber as a result of they knew it first.
Supply With Uber Eats
Uber’s 2014 enlargement into bundle 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 technique 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 possibly can even make deliveries in your bike or scooter should you don’t have a automotive — you solely need to be 19 years previous to ship by scooter and 18 to ship by bicycle.
Lyft Companies vs. Uber Companies
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 companies out there in every app. Right here’s a comparability of the companies riders can order by way of every app.
(Companies range by metropolis, and rider limits is likely to be decreased on account of COVID-19.)
Lyft Companies vs. Uber Companies
Lyft App | Uber app | |||
---|---|---|---|---|
Commonplace 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 path) | Uber Pool (identical as Lyft) | |||
Precedence Pickup (sooner service, larger worth) | Uber Reserve upfront | |||
Wait & Save (cheaper price, longer wait) | UberX Saver (like Lyft) | |||
Most well-liked (rider can request quiet and alter 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 way of life and funds.
As a result of every firm gives some clear benefits, many drivers work with each in cities the place each can be found.
This technique helps you to maximize the riders you possibly can 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 possibly can change between apps whilst you’re working.
Dana Sitar is a Licensed Educator in Private Finance and has been writing and modifying for on-line audiences since 2011, protecting private finance, careers and digital media. She is a former staffer at The PNW. Her work has appeared within the New York Instances, CNBC, The Motley Idiot, Inc. and extra.