Rideshare Rundown: Uber vs. Lyft

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Video Transcript

Ken: Nerd alert, nerd alert. Ryan is here to give us the lowdown on what’s happening with Lyft and Uber, right, and everything surrounding that. Okay… 

Ryan: And what’s cheaper. Is it cheaper to own a car these days or is it cheaper to just rideshare? So these guys over here, The Zebra…they’re basically an insurance company online, they did a study, they took Uber for an entire month of Uber and Lyft for an entire month to compare what was better, driving a car or Uber. So this is the guy who did the study, his name is Josh Waldrum, I want us to give him some credit here. But what he did was he took his car, and he parked it in his garage for an entire month and only did ridesharing, and he found that he saved about $113 which is pretty crazy. Now he has some special circumstances, he only has $333 car payment, and his commute to work is only three and a half miles, so it’s not super terrible. So you might wanna do your own little study on whether or not it’s going to work, but overall you’re looking at about 320 to 420 a mile depending on what service you decide to use. And during this study, Uber actually lowered its prices a little bit, so it came out a little on top compared to the two services. Turns out you wait about four minutes for every time you press the thing, about four minutes more. Services are about the same to get your ride. 

But here’s some pros, if you go out on the town and decide to throw back a couple, Uber and Lyft will take care of it. My wife and I if we go out and decide on some fun. We have to decide who’s gonna drink and who’s not gonna drink. Go to Uber or Lyft, boom, we can have some fun. Also, you know, if you hold a phone in a car, if you even hold it in your hand now in California, you can get a ticket. So if you wanna do some texting or Facebook-ing or watch your stream for a good day in the back of your car, you can do that. Plus, you’re gonna eat less, because you’re not gonna go out to lunch very often, because you don’t have a car. So you’re gonna be able to eat at your desk and just relax, maybe save some few pounds. Here’s the other thing, now, on a car, you’re gonna lose a little bit of freedom, you’re not going to be able to drive anywhere you wanna go, if you decide to do just ridesharing because you going to pay every time. 

Also surge pricing, you’re gonna watch out for that. If there’s not enough drivers on the road, obviously, you can pay up to seven to eight times more for a ride, and Lyft has been known to go up to 200%. So be careful. Always keep both apps on your phones, that way you know which one is gonna be cheaper. That way if one has got surge pricing on you can turn to the other one. And obviously, you can also do carpooling in both services, it’s called Lyft Line or… 

Ken: Okay hold on, what is this? You’re separated by a foot. They’re like they don’t know each other at all. Like I don’t know you…I do not own you. 

Ryan: This is appropriate for carpooling, you don’t wanna be snuggling up, you know what I mean? Also with Uber, you’ve got Uber Select where you can get a luxury car, so if you wanna go out on a date and kind of show off a little bit, and picked up something that’s kinda nice. And both services have six passenger cars, so you can get a big SUV or a minivan to come pick you up. And if you’re gonna think about making a few extra bucks on the side, you can think about working for one of them. The comparison between the two, they’re about the same in terms of satisfaction for the drivers. 

Lyft is a little better because here’s the thing about Lyft, is you get tips in the app, and they have a minimum charge for riders, so if you’re thinking about driving for them, you’re gonna make a little bit more money with Lyft than you are with Uber. Here’s the thing though that Uber has more customers than Lyft, but there’s been a little bit of kickback with the whole Trump thing with Uber. So there’s a whole The lead Uber Campaign. Now, if you’re a Trump supporter, obviously, go Uber, but if you’re not, maybe go Lyft. You may wanna think about that. 

And last but not least you I want to make sure you get the correct kind of insurance both Geico and U.S.A. and what’s called Hybrid Insurance. So if you’re doing ridesharing, you pay a certain rate versus if you’re not. 

Ken: There you’re, there you go.

Ryan: That makes sense? 

Ken: Always good to see you thank you, Ryan, for sharing the information. Marianne back to you. 

Marianne: All right, thanks, guys.

Digital car insurance company The Zebra spent a month ridesharing to compare Uber and Lyft. What they found might surprise you. We were inspired by this research, so here we are with a rideshare rundown – should you Uber or Lyft your next ride?

The Zebra spent a month ridesharing to compare Uber and Lyft, but why? What is the big deal with ridesharing? Well…

Ridesharing can be cheaper than owning a car (depending on your car payment & commute). The author of this research had a $333 car payment and a very short commute (3.25 miles). If you pay for parking, street meters or valet, ridesharing could save you even more money.

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Uber & Lyft keep their prices very competitive. The average cost is about $1 to start ride, $1.50/mile + .25/minute. However in some markets this price is much lower. In The Zebra experiment, the author found Uber to be less expensive. Uber had just cut prices during his experiment, which is always a controvertial move as drivers and rival taxi companies feel the pinch.

The average wait time for both apps during this experiment was about 4 minutes. It was discovered that about 60% of drivers drove for both Uber & Lyft.

What are the benefits to using only ridesharing?

You can work or scroll through Facebook while you ride.

You can safely drink and make it home

You are less likely to go out to lunch – saving both your wallet and your health!

Sounds all good, any cons?

You will have less freedom to go where you want, when you want to without a vehicle!

Beware of surge pricing! Prices temporarily increase in peak times, this is to incentivize more drivers to sign on to take passengers. Uber increases prices an average of 7-8 times the original price. Lyft has increased their price up to 200 times, but this is rare!

Tips to get the most out of these ridesharing apps

You should keep both apps on your phone – if one is in a surge, check the other, it’s likely to be at the regular price.

Share your ride with others going the same way to share the cost. Lyft Line & Uber Pool allow you to share the car and split the price.

Uber offers upgraded ride options (semi-luxury & luxury), look out for Uber BLACK and Uber SELECT. Uber XL allows for groups to travel together in a larger 7 seat vehicle.

Lyft offers the ability to tip your driver in-app, which is much appreciated! Lyft Plus is for groups of 6 or more passengers riding together

Slides from our TV appearance:

Considering driving for Uber or Lyft?

Drivers seem to prefer Lyft
• Lyft pays slightly more
• Lyft has a rider minimum (Uber drivers can get stuck making a few cents per passenger)
• Lyft lets riders tip in app

Uber has historically had a larger customer base which means more rides for drivers

If you want support in your new job, Lyft has mentor program for new drivers
• Uber just sends you YouTube videos
• Lyft onboarding is more stringent – Uber is easier but provides less guidance for new drivers

Many feel Lyft is more favorable to drivers
• Allows drivers to respond to poor user ratings
• Easier to get paid for cancels & no shows

Consider insurance:
• If you are getting paid to drive others in your car, you’re supposed to have commercial vehicle insurance
• Uber/Lyft coverage only applies if there is a rider in your vehicle at the time
• Ask if your insurance offers a hybrid product for rideshare operators

USAA & GEICO are piloting hybrid coverage for rideshare drivers.

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