Recently, there has been a lot of talk in the media about the gig economy and different ways that people are utilizing various side hustles in order to achieve their financial goals. One of the most popular categories of this new section of the economy is working as a driver for a ridesharing company. While there are numerous ridesharing and delivery start-ups that have been flooding the market recently, the two indisputable juggernauts remain Uber and Lyft. While they may seem fairly similar in concept on the surface, there are actually a number of items that you or a friend should take into consideration before deciding which company is right for you. So let’s figure it out once and for all, Uber or Lyft, which is better to work for?
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Lyft | Uber | |
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Sign-Up Process | By all accounts, the sign-up process for Lyft is much simpler than the one to sign-up to drive for Uber. This apprears to be due to the fact that Lyft seems to automate many of the processes that Uber does manually. Typically, the process with Lyft takes a few days whereas Uber can take up to two weeks. | Similar to Lyft, Uber required you to pass both a criminal and a driving background check. Unlike Lyft, it seems as though Uber may take longer to get you throught the process so, if you're trying to get on the road as soon as possible, Lyft may be the way to go. |
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Brand Image | Lyft is a well known and respected ride-sharing app. As is probably made evident by the fuzzy pink mustaches that help distinguish their cars, Lyft tends to have more of a fun, easy-going brand image in comparison to the more polished Uber. Some drivers report this as a major plus as they tend to get positive reviews for dressing up themselves and/or their cars with themse and costumes for the holidays or whatnot. | Uber is geared more towards a working professional clientele. This can have both positive aspects to it as well as drawbacks. In the case of brand image, Uber definitely tries to appear more akin to a chauffer service whereas Lyft tries harder to feel like "a friend with a car". Which one is best for you depends on your personality type and what you're looking for exactly with this particular side hustle. |
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Vehicle Requirements | Vehicle requirements vary due to state and local laws for both Uber and Lyft. Make sure to view their respective websites and information for your area to see if your car qualifies. | Vehicle requirements vary due to state and local laws for both Uber and Lyft. Make sure to view their respective websites and information for your area to see if your car qualifies. xt |
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Application | While Lyft is still a relatively effectively streamlined and easy-to-use app, it still falls ever so short of the excellent app design, interface, and features that are provided by Uber for both drivers and riders alike. | Uber's application definitely takes the winning spot here. Sleek, professional, and an excellent user experience, Uber's app gives a driver just about all the tools they need in a way that's easy to figure out whether or not you're a seasoned techie or just a casual smart phone user. Extra bonus features like the compliments feature allow both for extra feedback for drivers and a fun way to interact with the clientele. |
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Popularity | In most smaller markets, Uber has done a better job saturating the field. That being said, in the majority of mid to large-sized cities, the difference between the popularity is pretty much negligable and other factors may end up being more of a draw. | More popularity = more riders = more money. A lot of times, what ends up driving down a driver for Lyft or Uber's hourly wage is the amount of downtime spent between rides. With a more popular service, drivers for Uber end up working more which, of course, leads to more money in the long run. |
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Compensation | This category is Lyft's high-point in terms of both pay and bonuses. Reports show that Lyft drivers end up taking home a larger percentage of the income they make driving for Lyft. Lyft generally takes a smaller percentage comission than Uber and depending on your area, frequently does promotions offering bonuses of up to $5000 so make sure to check for that if you decide to sign up! | Uber's commission rate being higher is generally understood to be the reason employees tend to take home a smaller percentage of each ride than the typical Lyft driver. While Uber does also ofter sign-up bonuses, they are often not as lucrative as those offered by their competitor. |
In short, there are reasons to work for both companies and one doesn’t clearly edge out the other in terms of obvious superiority. With an easy sign-up, great bonus programs for new drivers, and a lower fee per ride, Lyft can be a great way to make money quickly and may be better suited for the casual driver who only wants to offer the occasional ride for a little income boost. Uber, on the other hand, has a much sleeker platform and its overall dominance in popularity may lead to a larger income in the long run. All this being said, it is important to find the right fit for you and never forget, there are no laws and neither company has a policy that prohibits you from working from the other so at the end of the day… why not both?
