Is Uber Better or Lyft?
Based on the comparison of earning potential, availability, and customer reviews, Uber is better than Lyft.
In terms of earning potential, Uber drivers have a higher average hourly rate than Lyft drivers, between $16.20 to $30.35 per hour, depending on their location and service tier. Additionally, Uber offers various features like surge pricing, which can significantly increase drivers’ earnings.
Uber is better for customers as it is available in more cities, over 3,000, than Lyft and has higher ratings. Customers appreciate Uber’s polite and professional drivers, clean vehicles, and reasonable prices.
Finally, Uber’s driver app received significantly higher ratings, at 4.6, than Lyft’s driver app, which only has a 3.7 average rating. It indicates that fellow drivers prefer Uber’s driver app more, making it a reliable app for your ridesharing service.
Uber Summary
- Earn up to $1034 per week including tips
- Receive payments up to 5 times per day
- Earn more during surge pricing periods
- You get to keep 100% of all rider tips
Lyft Summary
- Your working hours are up to you
- Instant payment with the Lyft debit card
- 3 different ways to earn more money
- 3rd party liability insurance offered
Uber vs. Lyft Comparison
| Uber | Lyft | |
|---|---|---|
| Earning potential | Up to $1000 per week or up to $30 per hour | $20 to $28 per hour or $600 to $800 weekly |
| Tips | At least 10% of ride payment | 20% of the ride payment |
| Schedule | Flexible schedule | Flexible schedule |
| Average delivery distance | 5 to 6 miles | 5 to 6 miles |
| Availability | Over 3,000 cities in the US | Over 650 cities in the US |
| Delivery methods | 4-door car | Car |
| Payments offered | Direct deposit or debit card | Direct deposit, and debit card |
| Payout | Instantly and weekly | Instantly, daily, and weekly |
| Driver reviews | 4.6 | 3.7 |
Uber vs. Lyft Requirements Comparison
| Requirements | Uber | Lyft |
|---|---|---|
| Type of car | 4-door vehicle | 4-door vehicles |
| Min age | 21 years old | 21 years old |
| Driving license | 1-year valid driving license | Valid driver’s license |
| Insurance | Auto insurance | Auto insurance |
| Social security number | Required | Required |
| Background check | Required | Required |
| Gear | N/A | N/A |
| Additional requirements | 15-year-old or newer car model, in good condition, and no commercial branding | None |
Uber vs. Lyft Earning Potential
How Much Can You Earn With Uber?
Uber does not reveal its drivers’ average hourly rate. Still, drivers’ earnings depend on various factors, such as location, time, and service tier. According to Uber, drivers can earn between $16.20 to $30.35 per hour, depending on their location and service tier.
Uber pays drivers based on time and distance traveled, with additional bonuses for peak periods and surge pricing. The formula for driver payment is as follows:
Fare = (time rate x time) + (distance rate x distance) + base fare + additional fees + bonuses**
Here are some tips and hacks to earn more:
- Drive during peak demand hours: You can earn more by driving during peak hours when demand is high. You can check your Uber driver app to see when surge pricing is effective.
- Drive in areas with high demand: If you drive in areas with high demand, you’re more likely to get ride requests. You can use the Gridwise app to track high demand in your area.
- Provide excellent service: Good ratings and positive feedback from passengers can increase your earnings.
- Take advantage of bonuses: Uber offers various bonuses for drivers, such as extra earnings for completing a certain number of trips or driving during peak hours.
- Use fuel-efficient vehicles: Fuel-efficient vehicles can save you money on gas and increase your earnings.
The average weekly revenue for Uber drivers varies by location. Still, it is estimated to be around $500 to $1,000 weekly after expenses and the 25% Uber commission.
The cost breakdown can include vehicle expenses, such as gas, maintenance, and insurance, and other costs, such as taxes and tolls. It is essential to keep track of your expenses to calculate your net earnings accurately.
How Much Can You Earn With Lyft?
Lyft pays drivers for each minute and mile of every trip, the rate of which varies from city to city. Passengers may also tip you for providing excellent service, which adds to your regular earnings.
Additionally, Lyft offers various bonus opportunities, such as challenges or bonuses when you drive during busy times.
The exact amount of money a Lyft driver earns daily depends on the city they’re driving in, the rates in different states, and the quality of service they provide.
On average, however, driving with Lyft, you can expect to earn anywhere from $20 to $28 hourly, averaging $800 weekly if you work 6 hours a day. As for costs, Lyft drivers are responsible for their own gas, maintenance, and insurance.
To maximize your earnings with Lyft, you can:
- Use real-time demand maps,
- Check demand forecasts,
- Keep on top of weekly opportunities,
- Aim for more tips by offering complimentary gifts.
Furthermore, you can apply for Lyft Direct to get a Mastercard debit card designed for Lyft drivers, which offers cashback rewards on groceries and gas, discounts on vehicle services, and access to the Lyft Rewards program.
Verdict: Uber is a better option for drivers who prioritize earning more money. Even though both companies offer similar earning potential, Uber has a higher average hourly rate than Lyft, with drivers making between $16.20 to $30.35 per hour, depending on their location and service tier.
Furthermore, Uber offers various bonuses and features like surge pricing, which can significantly increase drivers’ earnings.
Best Uber & Lyft Alternatives
Delivery Job Top Pick
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No experience or training required
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Easy sign-up process (around 10 min)
Uber vs. Lyft Driver Requirements
Uber Requirements
To become a driver with Uber, you must meet the following minimum requirements:
- Meet the minimum to drive in your city
- Have at least 1 year of licensed driving experience in the US (and 3 years if you’re under 23).
- Have a valid US driver’s license.
- Use an eligible 4-door vehicle.
Your vehicle must have four doors and be manufactured after 2004. Salvaged cars are not allowed. Additionally, each city may have its own vehicle requirements.
You may need to pass an annual vehicle inspection. Your city may reject a car with cosmetic damage or not allow commercial branding. Uber will notify you of any specific requirements in your location after you complete your driver application process.
Once your car meets the requirements, you must also submit additional documents. These include a valid US driver’s license, proof of residency, proof of vehicle insurance (if you plan to use your own car), and a driver profile photo. The photo must be well-lit and focused, including the driver’s face and the top of their shoulders.
Lyft Requirements
To become a Lyft driver, you must have a valid driver’s license, undergo a criminal background check, and meet the age requirements for driving in your region.
Additionally, your vehicle must have four doors and meet regional vehicle requirements. If you do not have a car, you can rent one through Express Drive.
You will also need to upload your car registration document and valid insurance, and some regions may also require a vehicle inspection.
Verdict: Lyft is better than Uber regarding the vehicle and driver requirements. Becoming a driver with Lyft is more uncomplicated and more straightforward. While both require a valid driver’s license and vehicle insurance, Lyft has fewer restrictions on the model year and type of car that can be used. Lyft also allows drivers to rent a car through Express Drive, which can be a more affordable option for those who don’t own a vehicle or have a car that meets the requirements. Additionally, Lyft’s vehicle inspection requirements are more flexible, and some regions may not require an inspection. Finally, Lyft’s driver application process is generally faster and less complicated than Uber’s.
Uber vs. Lyft Payout Structure
How Do You Get Paid With Uber?
Uber pays drivers based on the length of each ride. Passengers pay through the app, and Uber pays drivers weekly via direct deposit. However, if you want to get paid faster, you can use the Uber Instant Pay feature, which allows you to withdraw your earnings up to five times daily.
There is a $0.50 fee per transaction to withdraw cash to your personal debit card. Still, instant payment is free if you request a withdrawal on your Uber Visa debit card.
How Do You Get Paid With Lyft?
Lyft offers three payment methods: Direct, Express, and Weekly Pay. With Direct Pay, you will be paid instantly after completing each ride. To use Direct Pay, apply to Lyft Direct and get a debit card designed for Lyft drivers.
Express Pay allows you to cash your earnings to your bank account within a few hours, subject to a $0.50 fee.
However, note that Lyft will transfer your earnings to your bank account every Tuesday morning if you opt for Weekly Pay. It will arrive in your account typically within two days.
Verdict: After weighing the pros and cons of each payment option, it seems that Lyft is the better option for drivers who prioritize getting paid as quickly as possible. With Direct Pay, drivers are delivered instantly after completing each ride.
While Uber does offer the Instant Pay feature, which allows drivers to withdraw their earnings up to five times a day, there is a $0.50 fee per transaction to withdraw cash to your personal debit card.
With Lyft, there’s no fee to use Direct Pay, making it the more cost-effective option for drivers who want to get paid as quickly as possible.
Uber vs. Lyft: How to Start Earning Money?
Uber Sign-up Process
To start driving for Uber, follow these steps:
- Sign up as an Uber driver by providing basic information about yourself and your car in an online application.
- Share the required documents, including a valid US driver’s license, proof of residency, proof of vehicle insurance, and a profile photo for the app.
- Get screened by Uber recruiters, who will review your driving and criminal records.
- Once approved as an Uber driver, you can log into the app and activate the driver mode to start making money.
Lyft Sign-up Process
To start driving for Lyft, follow these steps:
- Check if you meet the eligibility requirements.
- Download the Lyft driver app on your iPhone or Android smartphone.
- Sign up for an account using your phone number and email address.
- Receive your welcome kit in the mail.
- Complete your vehicle inspection if required.
- Start accepting ride requests using the Lyft driver app.
- Choose how you want to get paid: Direct Pay, Express Pay, or Weekly Pay.
Verdict: Regarding the sign-up process, Lyft seems to be a better option than Uber as it is less strict and complicated.
Uber vs. Lyft: Which is Better for Customer?
| Uber | Lyft | |
|---|---|---|
| Availability | Over 3,000 cities in the US | Over 650 cities in the US |
| Number of restaurants | N/A | N/A |
| Average delivery time | 16 to 20 minutes | 16 to 20 minutes |
| Trustpilot reviews | 3.4 | 1.1 |
| Google Play reviews | 4.7 | 4.0 |
| Apple Store reviews | 4.8 | 4.9 |
Verdict: Based on the above comparisons, Uber is better for customers because it is available in more cities than Lyft. It also has higher ratings, and customers pointed out the following things they liked about Uber:
- Polite and professional drivers
- Clean vehicles
- Reasonable prices