Many people have asked: Which do I like better, Uber, or Lyft? And what's the difference? I thought I might use this blog post to try and answer that question.
Driving for Both Uber and LyftI can drive for both Uber and Lyft because I am an independent contractor, a driver for hire. Each company has very similar requirements, though in this county, Lyft is probably more stringent. (They require licensing in both Seattle and Tacoma, whereas Uber just requires Tacoma. Lyft also requires a Washington State business license; Uber does not. Both require a federal defensive driving course certificate, and also city knowledge courses, as well as passage of a vehicle inspection and background security check.)
The Seattle business license is more than twice the price of the Tacoma one. But now that I have a driver for hire business license in both Tacoma and Seattle, I can pick up riders in both Pierce and King Counties. Which means I don't necessarily have to "deadhead" it back from an airport fare, but can pick up riders on the way back. (This sounds great in principle, but I have yet to find any riders returning from the airport. There is a long queue for both Uber and Lyft drivers at the airport.)
Both Uber and Lyft use sophisticated apps for drivers. It is easy to tell the app you are available for riders. I typically turn both apps on at the same time, and wait for my first rider. If the pickup is within 20 minutes, I accept the fare, and turn the opposite app off for the duration.
What I Like About Driving for Both Uber and LyftBoth services give you a great deal of flexibility. If you want to work, you simply turn on the app. When you are done, you just turn it off, and that's that. As an independent contractor, you are basically your own boss.
With both services, I've found you have the potential to make between $10 and $20 per hour. They both advertise that more is possible, but I have yet to figure out how to actually make more. So much simply depends on the luck of the draw: The fares you get, how quickly you get them, how far away they are (your drive to the fare's pickup location is totally on your own dime), what kind of gas mileage your vehicle gets (you pay for your own gas), whether or not the fare is picked up in a "surge" area (more about surging later), how far the fare is traveling, etc.
What I Don't Like About Driving for both Uber and LyftMy main frustration about both services is that neither tells you (until your fare is in the car) exactly where you are taking them. For all you know, they're going to Montana, and once they are in your vehicle and you discover this, you are pretty much committed to taking them there. This is (obviously) a major problem for drivers.
One Sunday afternoon I wanted to do a little driving. My first fare was to the SeaTac airport, a 45-minute ride up from Graham. I got paid (minimally) for the 45 minutes up, but the 45 minutes back were at my own expense. (This is called "deadheading.")
My next fare wanted to go to Seattle. I made a little bit more on the ride up, but now the deadheading back took an hour.
I decided to take one more fare, and prayed it would be local. It was nearly dinnertime and I was quite tired. But they wanted to go to a restaurant north of Seattle. It took more than an hour to get there, and at least that much time (unpaid) back.
I had invested more than 5 hours of driving the three fares. I made a little over $100, but my gas was probably $30, so $70 for 5+ hours of driving. Barely over minimum wage, and I was exhausted.
What's worse is when you drive out a half hour to puick someone up, only to discover they want to go 2 miles. (They could have walked.) You make the five or ten-minute drive with them, get paid about $5, then have to drive a half hour back to your point of origin. You've invested over an hour (plus about $5 or $10 in gas) for a $5 fare.
This could all be prevented if both Uber and Lyft would simply tell you (before you accept a fare) their destination. But neither do, because they want you to accept every fare, even if it means you as the driver get the shaft in the process. Both services obviously care more about riders than they do about drivers.
Pros and Cons of EachThis major drawback is partly alleviated by something Lyft does which they call "destination mode." If you go to the airport, you can move into "destination mode," which means you tell it you only want fares that are heading your direction (home). You get far fewer fares, but at least you don't wind up with someone who wants to go north of Seattle while you are trying to head south toward home (and dinner).
But, in this county at least, Lyft has far smaller market penetration than Uber. This means you get fewer requests, and that you have to travel further for the few you get. I frequently get pings from Lyft to ask me to pick up a fare a half hour away. My personal cutoff is 20 minutes, but I have no way of telling either Uber or Lyft this, so I end up denying a lot of requests, and they chastise you for this (if your "acceptance rate" is "too low").
However, most drivers (and riders too) seem to like Lyft better than Uber. I think this is because their customer service is a little better, and there are a few things they do that make more sense for both drivers and riders (like allowing drivers to filter according to destination).
Lyft also allows riders to tip using their credit card, and Uber does not (although we drivers can accept cash tips from Uber riders).
Because Lyft's market penetration is lower (at least here in Pierce County), that also means Lyft riders experience longer wait times for a ride than Uber riders do. Which is probably frustrating, since they are paying a little bit more than Uber riders.
Surging"Surging" happens when a supply-and-demand algorithm determines that there is a higher demand for drivers than there is supply in a given area, and therefore prices for the riders increase. I have seen surge pricing go as high as four times the normal fare, and I've heard it can go even higher than that under extreme circumstances.
In this area, Uber surges daily. I have yet to see Lyft surge anywhere.
But even Uber's surges are very unpredictable and temporal in nature. Surges often last just a few minutes, much quicker than you can typically get there. And by driving into a surging area with your app on, you may change the supply-and-demand balance. I've frequently seen surges evaporate in front of me as I drive into surging areas with my app on.
Also, the services inform riders about surge pricing, and they are often savvy enough to know that if they wait a few minutes, the surge might evaporate. So I've had the frequent experience of driving through a surging area, only to get fares as soon as the surge has ended.
This experience leads me to believe that surging is primarily a gimmick to entice drivers to get out there and drive. It's a rainbow to chase, that you can rarely catch. I have (by sheer luck) gotten one or two surge-priced rides, but such things are rare. So, mostly I've learned to ignore surging, and just drive when I am available to drive.