If you decide to hitch a ride rather than drive on your own, Lyft or Uber is a more convenient and safer option to avoid traffic. Rideshare apps, such as Uber and Lyft, have become the new go-to for those who want to use a car without renting or taking a taxi. Not only is ridesharing more efficient, but it can also help save you time and money on travel expenses. But if you had to choose one app, which should it be? There must be a question in your mind such as Is Lyft or Uber cheaper? Let’s find out.
Lyft was founded in 2012 by Logan Green and John Zimmer as a ridesharing company that connects passengers with drivers through a smartphone app. Lyft's main competitors are Uber, Sidecar, and Hailo. The company is based in San Francisco, California, and operates in over 300 cities in the United States.
Uber was founded in 2009 by Garrett Camp and Travis Kalanick as a "black car" service that allows users to request private driver services through a smartphone app. The company is based in San Francisco, California, and operates in over 600 cities worldwide. In 2014, Uber expanded its services to include UberX, which allows Lyft drivers to use their own personal cars to pick up passengers.
Because they are in direct competition, there are no clear-cut victors regarding the price for Lyft and Uber. If Lyft were significantly less expensive than Uber, one would go out of business, and vice versa. The cost of getting started is about $1 per ride, $2 per kilometer, and $0.25 per minute. Actual pricing depends on demand, your destination, your route, and other factors. To get the best deal, compare prices by checking fares from multiple apps before booking your trip. It may be a little time-consuming, but even small savings can add up quickly.
Lyft operates in many areas of the United States and Canada. Although their requirements for drivers and vehicles vary by state, all applicants must have a four-door car that is relatively new with seatbelts for at least five people. Additionally, every driver must complete two background checks before being approved to work with Lyft.
The company offers several service classes, which vary by city.
According to a 2015 SherpaShare study, the typical cost of a Lyft ride was $12.53. However, prices appeared to rise significantly in 2021 due to a pandemic-ending combination of pent-up demand and a scarcity of drivers. In July 2021, Lyft's average transaction value was $27, up 45% yearly.
The service cost varies by city and the type of vehicle servicing chosen; for example, Lyft charges $1.48 per mile or $0.67 per minute for its basic service in New York City. Each ride has a base charge and additional calculations based on total miles traveled and travel time minutes. Additionally, the base price will be increased. When a customer changes their mind about taking a trip, the total cost is reduced for whatever reason. Customers pay via the company's smartphone app.
Uber delivers service to hundreds of cities in dozens of countries, including the United States and Canada, as well as other cities worldwide in Central and South America, Africa, Asia, Australia, New Zealand, and the European Union. Depending on your location, Uber may be the only taxi alternative available. In the United States, there are over 300 places listed on Uber's site, such as Las Vegas, Chicago, New York City, Fargo, Pensacola Beach, and Kalamazoo.
UberX: The most affordable Uber service, UBERX drivers use their own personal cars to pick up passengers.
UberXL: An Uber service that uses larger vehicles such as SUVs to accommodate up to six people.
Black Car: A higher-end vehicle service that uses luxury automobiles.
SUV: A large vehicle that can seat up to six people, perfect for families or large groups.
Lux: A luxury black car service only available in select cities.
Taxi: A traditional taxi service available in some markets through the Uber app.
Drivers using UberX, the cheapest option, aren't required to have a clunker. Depending on the city you're in, there are minimum vehicle requirements that all potential drivers must meet. For example, if you're looking for an Uber ride in Los Angeles, the car must be no more than 15 years old and have four working doors with air conditioning. Also, the car cannot be commercially branded and must pass a location-specific inspection process by authorities.
Uber's costs are a base fare plus a time and distance fee, which vary depending on the type of vehicle and the city of service. During periods of peak demand, surge pricing will raise the price. Every vehicle class has a minimum charge to make it worth a driver's time to pick up passengers, even for short trips. Uber does not provide up-front fare estimates in some cities; instead, it calculates the total charge after the ride. UberSUV is typically the most expensive option, while UberX usually has the lowest fares.
The free Uber membership rewards program gives you points for Uber rides and meals, which can be converted to Uber Cash. You won't save money off your bill like these other services, but you may recoup some of your expenses differently. The money you put into your account is never lost, costing just 5% more than bank transfers.
You earn different points with different Uber services. You'll earn more points for higher-priced services, like UberSELECT, and fewer with lower-priced ones, like UberPOOL. Lyft also offers a similar rewards program that gives you points for Lyft rides and food orders through the Lyft app. These can be redeemed for Lyft credits for future rides or orders.
Lyft has digital gift cards you may send to friends and relatives for $10, $25, $50, $100, or any custom amount. Lyft runs special offers that reduce the cost of your journey by a particular proportion, fixed discounts, and methods to pay a flat fare on demand.
You can enable text alerts in your Notifications Preferences, alerting you when these incentives and deals become available. If you link your email address with Lyft, it will also notify you about any specials. The firm also gives new users a free promotional code.
Enrolled World Elite Mastercard holders can earn $10 in credit monthly for taking five rides with Lyft. The credits are valid for 30 days. Frequent riders can take advantage of subscriptions, while more savvy riders can save money by using referrals strategically.
Lyft: If one of your friends uses your unique referral code, you'll get $10 in credit. You'll receive $250 in credit after a driver you referred signs up and gives 165 rides in their first 60 days if they use your referral code.
Uber: If you use a friend's Uber referral code when you sign up, you can enjoy $5 off your next ride. Similarly, if a friend uses your invite code, they'll get $2 off their first three rides.
So, is Lyft or Uber cheaper?" Here is a price comparison using the Uber and Lyft fare estimator tools. The prices were compared in 10 of the most famous cities in the United States during regular and rush hours using the exact pickup and drop-off points.
|Chicago|| Regular ride: $15.95 |
Rush-hour ride: $20.93
| Regular ride: $20.10 |
Rush-hour ride: $22.99
|Dallas|| Regular ride: $8.30 |
Rush-hour ride: $15.82
| Regular ride: $14.80 |
Rush-hour ride: $11.85
|Denver|| Regular ride: $22.98 |
Rush-hour ride: $41.55
| Regular ride: $23.79 |
Rush-hour ride: $44.15
|New York|| Regular ride: $11.60 |
Rush-hour ride: $12.16
| Regular ride: $11.84 |
Rush-hour ride: $11.72
|San Diego|| Regular ride: $10.91 |
Rush-hour ride: $47.15
| Regular ride: $13.99 |
Rush-hour ride: $17.41
|Phoenix|| Regular ride: $16.39 |
Rush-hour ride: $31.00
| Regular ride: $16.85 |
Rush-hour ride: $18.08
|San Francisco|| Regular ride: $20.50 |
Rush-hour ride: $45.38
| Regular ride: $12.86 |
|Los Angeles|| Regular ride: $48.95 |
Rush-hour ride: $61.63
| Regular ride: $46.70 |
Rush-hour ride: $64.96
|Seattle|| Regular ride: $22.22 |
Rush-hour ride: $49.92
| Regular ride: $27.99 |
Rush-hour ride: $49.41
|Washington DC|| Regular ride: $9:25 |
Rush-hour ride: $12.92
| Regular ride: $12.96 |
Rush-hour ride: $13.47
You can use Uber and Lyft for airport rides in many major U.S. airports, such as LAX, Denver's airport, SFO, and Las Vegas. Whichever app you choose, compare both rates to get the most affordable ride to your respective airport.
Keep in mind that Uber and Lyft do not have flat-rate airports. As a result, the only thing you can do to discover the best cheap taxi service for your next airport transfer is to compare it.
The cost of Uber and Lyft rides varies depending on the time of day. Both services use "dynamic pricing," meaning prices increase or decrease based on demand. This is why you may have noticed that your ride is cheaper during off-peak hours.
However, at night surge pricing is often in place. This means that gig workers make more money per ride while prices are higher. For example, the rate for a standard Lyft ride was recorded as $79.17, whilst the rate for a standard UberX was only $56.08. In general, Uber is cheaper than Lyft late at night, but this can differ based on your city and the specific rates currently active.
Conclusion about Lyft or Uber Cheaper
Compared to Uber, Lyft's base fares are usually more expensive. For example, Lyft charges higher per-mile and per-minute rates. So, if you intend on taking a longer ride or one that will be caught in traffic for a while, then Uber would likely cost less overall. Regarding discounts, both companies offer analogous specials like money off your first ride or promo codes for particular dollar amounts of savings.
In high demand or when a driver is accessible, Lyft is an outstanding alternative for a low-cost ride fast. If you need a ride that looks nice, Uber has a wider range of vehicles. If you want to save money on UberPOOL, go with Uber.
With Uber X, you can expect to pay approximately $18 for a 20-minute ride. With Uber Comfort, budget around$19 for the same duration of time. And with Uber XL, plan on shelling out about $20 for 20 minutes.
On average, you can take home more money per trip when driving for Lyft because their booking fees are lower than Uber's. The charges vary by city, but in general, bookings with Uber cost between $1.85 and $2.45, while the range for Lyft is only $1 to $2.
The bad times to request an Uber are 9 a.m. and 12 p.m., when there is high demand for drivers and surge pricing goes into effect. However, regular pricing may return if you can wait just 10 minutes. Another time of day when surge pricing is every day is late at night when bars close for the night.