How Does Lyft Rate Compare With Uber’s Rate

by Julius Ijidola

Getting around has become one of the most natural things to do, all thanks to the revolution in ride-sharing. Whether you own a personal car or not, with apps like Lyft and Uber, you can move from one location to another whenever and however you want. 

Lyft Rate Compare With Uber’s Rate

In the short period since the concept of ride-sharing has come to be, Lyft and Uber have emerged as the two most reliable brands of the lot. As proof of how far ahead these companies are, in the first of the year 2019, they went public. Although these companies seem evenly matched, there’s a lot of difference in the nature of the services offered. One aspect which would concern most of their clients is how they differ in the price of the services. Basically, how much does a ride on Lyft cost compared with a ride on Uber assuming they are covering the same distance? 

To maintain relevance in the same space, Lyft and Uber compete to out-price each other. At the start of a ride, both companies charge $1, but as the ride progresses, per-mile charges of $1.50 and $0.25 are added to the total per minute. Depending on how far the rider goes within a minute, about $2.0 is added per mile of the original rate. The rates also change during periods of high demand. The “surge” and “prime time” prices are applied to encourage drivers to come out, so the demand for rides at this time of day is met. Here’s how surge and primetime rates work for each of these companies: 

SURGE PRICING FOR UBER

As demand for driver’s increases on Uber, there’s a surge rate added. Basically, this surge rate is multiplied by whatever the ride would cost outside of the rush hour. This amount is then added to the original fare the Uber cost, and usually, it varies between 1.3x and 2.1x. 

PRIME TIME FOR LYFT

Unlike Uber, Lyft charges additional fees in percentages rather than in decimals. For example, if the rate is 30% during prime time, a ride that would be otherwise $10 is now $13. 

Just like with surge pricing, primetime rates vary by location and demand. Take note that riders are informed ahead when these additional fees are active, ensuring that the rider doesn’t get any surprises from the cost of the trip when it ends. 

For the riders, they prefer to use Lyft as the multipliers from Uber can add up fast, especially in periods of high demand. While for drivers, since Lyft takes a smaller commission, they prefer to take rides on Lyft. As a way of combating this challenge, Uber offers a signup bonus to drivers, but since Lyft does the same thing too, it’s usually insufficient. 

In conclusion, during off-peak hours, the Uber fare and Lyft fare are about even so the best bet would be to go with the one closest to your destination.