Wondering if Uber or Lyft is better to work for in 2023?
Uber and Lyft are both great companies to work for, but which one is the best?
In this article, we break down the differences between each of these money-making apps so you can make an informed decision about which one is right for you.
Uber Vs. Lyft: Overview
Choosing between Uber and Lyft can be a difficult decision as they offer the same service to users- but what about driving perks?
Both companies are growing rapidly and are constantly changing, and you want to sign up for the best one.
Uber Technologies is a rideshare company founded in 2009 by Travis Kalanick and Garrett Camp. It is one of the most popular rideshare companies globally and is available in almost any city.
Uber was the first to have a rideshare app for iOS and Android phones. In the beginning, they focused on business people and used only luxury cars, but they’ve now broadened their focus to all riders.
Through the years, Uber has focused on giving their riders more by lowering their prices, giving riders a variety of rides to choose from, and rewarding them with points for Uber and Uber Eats that they can use on future rides.
Growing their services has provided many jobs for people wanting to make money with their cars, just like you!
Lyft was launched in 2012 by Logan Green and John Zimmer and is a transportation network company based in San Francisco, California. It offers peer-to-peer ridesharing, taxi, and bike-sharing services in the United States and Canada.
They are the second-largest ride-hailing service in the world. Recently, Lyft purchased Postmates, which means that they also deliver food and other products like prescriptions and other essentials.
Riders can use the Lyft app on iOS and Android devices to request a ride. They are given ride options, and they can see who their driver is, where they are, and how far away they are.
Lyft launched a frequent riders option called Lyft Pink in December 2019, where they can use Lyft 2 -3 times per week each week for only $20.
To provide the best service for riders, ridesharing companies have driver requirements. No one is expected to be professional drivers, but the companies must ensure the safety of their users.
They want to make sure you are comfortable and safe with a qualified person to drive in the car.
Let’s take a look at the requirements Uber and Lyft have for their drivers.
Uber Driver Requirements
Uber has a list of driver requirements that are different depending on the country you are driving in.
In the United States, the minimum requirement Uber drivers must meet are:
- Be the minimum age to drive in your city or town
- 3 years of driving experience if you’re under 25 years of age
- At least 1 year of driving experience if you’re older than 25
- Have a valid US driver’s license
- Vehicle requirements: Be able to use an eligible 4-door vehicle
- Have proof of residency in your city, state, or province
- Provide proof of insurance on the car you plan to drive
Lyft Driver Requirements
The driver requirements for Lyft drivers are similar to Uber’s driver requirements. They are:
- Be the minimum age required to drive in your area
- Have a valid driver’s license
- Have proof of residency in your city
- Vehicle requirements: use an eligible 4-door vehicle, but varies per area
- Be able to pass a background check
- Provide proof of insurance on the car you’ll drive
Lyft has a few less requirements for drivers, mostly in years of driving experience, making them have fewer barriers to work for them.
Otherwise, Uber and Lyft have similar requirements for their rideshare drivers.
Driver Pay & Tips
Rideshare companies like Uber and Lyft are always looking for more drivers. It’s a great way to make money.
But what kind of driver earnings can you expect as a rideshare driver? And what are the best ways to make money with these rideshare apps?
Uber drivers make a variety of pay depending on the time of day, how long the ride is, and other factors.
Uber offers pay in a few ways, which we’ve broken down into categories:
- Per Ride: This is the base amount you make for each ride. The base pay varies depending on the city you are in.
- Per Minute: This is a bonus that you can receive if you drive in a high-demand area and your car is moving.
- Per-Mile: You also earn a small amount per mile that you drive.
- Tips: You’ll earn tips per ride, depending on your fares, and receive that money via the app at the end of the ride. You’ll keep 100% of any tips you earn.
- Bonuses: Surge pricing or incentives for driving at certain times, in certain areas, or completing a certain number of rides.
Like Uber, Lyft drivers’ pay depends on 4 factors:
- Time: Lyft drivers get paid for ride time, counting every minute of the delivery trip. The amount is based on the areas per minute rate.
- Distance: Drivers get paid for each mile of the Lyft ride. It is based on the area’s per-mile rate.
- Tips: The drivers get to keep 100% of the tips users give them.
- Bonuses: Drivers can earn bonuses during busy times and in busy areas. You can get a boost called peak hours for driving during rush hour or during a local special event.
Uber offers a base pay and more bonuses and incentives, leading to a higher earning potential.
Accepting Rideshare Jobs
When it comes to working as a driver for ridesharing services like Uber and Lyft, the most significant decision you’ll need to make is whether or not to accept rideshare requests at any given moment.
The Uber app will constantly be looking for requests for rides. You can also toggle between the “Open” and “Accepting” modes.
If you are in “Open” mode, you are available for any rides, but you will only be notified of rides close to your current location if you are in “Accepting” mode.
You can see the destination and price ahead of time, so you’ll know where a trip will take you and how much you may make.
If the details appear to be something you’re not interested in, you can ignore the request and let nearby drivers take it. If they are acceptable, just swipe to accept the job, and you’re on your way!
You can set up filters so that you only receive requests for rides you are interested in when fewer drivers are available. For example, you can filter by ride type, destination, or time of day.
Lyft has a similar feature on its app, and drivers can also choose to either accept or reject ride requests.
To start accepting rides, tap the “Go Online” button. You’ll then see all of the available rides in your area.
When a request comes in, you’ll see the passenger’s name, how long it will take to pick them up, and the rider’s destination. You can calculate the estimated fare and decide if you want to accept or reject the ride.
If you want to accept the ride, just tap “Accept,” and you’re on your way!
Like with Uber, you also can set “filters” so that you only receive requests for rides you are interested in. For example, you can filter by ride type, destination (like priority airport pickups), or time of day.
Uber wins this category, primarily because you get an estimate for how much you’ll make, rather than calculating the fare yourself.
Uber and Lyft offer similar features regarding accepting or rejecting rides, though, so that’s really the only difference setting them apart.
Rideshare drivers use the company’s app to accept rides and to be paid. Both companies have apps that are available on iOS and Android devices.
The app is essential for Uber drivers to receive ride requests and to be paid.
The Uber app is available on both iOS and Android devices. The app is easy to use, and you can quickly accept or reject rides.
It is also used to receive your driver’s pay. You can direct deposit your pay weekly or use a debit card to get paid instantly up to 5 times a day.
The Uber app has a built-in GPS and is used to get directions to your passenger’s location. It also has a real-time traffic feature to help you avoid traffic delays.
Lyft also has an app that is available on iOS and Android devices. The app is used by Lyft drivers to receive ride requests and to be paid.
The Lyft app is easy to use, and you can quickly accept or reject rides.
You can be paid via direct deposit or with a debit card. You can also cash out your earnings instantly up to 5 times a day.
There is a Cash-Out limit on Express Pay of $3,000. Any earnings not cashed out by Express Pay are added to the next week’s direct deposit.
Lyft has a navigation setting in their app to help you get to your passenger’s location. It also provides real-time traffic updates.
Both apps offer similar things. It’s hard to pick based on the apps alone.
Driver safety is essential to both companies. They have implemented safety features to help ensure that drivers are safe while on the job.
Uber takes their driver safety seriously and has several features to help keep drivers safe.
For one, their app has GPS tracking, so Uber can see where drivers are at all times. They also have a driver verification process to ensure that only qualified drivers are on the platform.
Additionally, Uber has a “Share My Trip” feature that allows drivers to share their location and trip details with a friend or family member. This way, someone always knows where you are and can check in on you if needed.
In addition, Uber has a two-way rating system, so both riders and drivers can rate each other after a trip. This helps ensure that everyone behaves well and that there are no issues.
There is also an emergency button in the app that drivers can use to call 911 if needed immediately. It shows the driver’s location and contact information to the emergency responders.
The Uber app keeps the driver’s phone number private. Passengers can only contact drivers through the app, so drivers don’t have to worry about getting unwanted calls or texts.
The phone app can also notify the driver if the phone is not in the phone holder or if the phone is being held. The feature helps to prevent distracted driving.
Lyft also takes its driver safety seriously and has several features to help keep drivers safe.
The Lyft driver app has an emergency button that connects you with ADT, the national security company. It also provides your location and contact information to the emergency responders.
Lyft’s app can also predict if something is going wrong in your ride. If the ride stops too soon or too late, the app will ask if everything is okay.
The app also lets the driver share their trip with friends or family members. This way, someone always knows where you are and can check in on you if needed.
Lyft’s support staff is also available 24/7 to help with anything that might come up.
Additionally, the app has a two-way rating system as well for reviewing everyone involved.
I would have to say that Uber is the winner in this category. They have many features in place that help to ensure driver safety.
These features include GPS tracking, driver verification, and the “Share My Trip” feature. Their app also has an Emergency button that drivers can use to call 911 if needed immediately, which is a huge plus in my book.
Final Verdict: Drivers
After looking at all of the factors, I would say that Uber is the better company to work for as an Uber driver in 2023. They are available in more markets and have many features to help ensure driver safety.
They offer surge pricing and bonuses, which help increase Uber drivers’ pay each week, and they seem to care about driver safety with all the additional features available.
Uber vs. Lyft on paper is a little different than experiencing work for either company. You may find working for one or the other doesn’t fit with you, but don’t worry- we’ll tell you some options down below to make money with your car in other ways!
Driving Apps For Users
Both Lyft and Uber have many features that are appealing to most users. Let’s take a look at a few features for the user.
Uber Services & Cost
Uber caters to most riders and has many services that Uber riders can choose from.
- UberX – This is the standard service and is the cheapest ride option for a private ride
- Uber Pool – This is a shared-ride service that is shared with riders headed in the same direction
- Uber XL – Up to 6 people can get a comfortable van or SUV
- UberComfort – With this selection, you can get newer cars with more legroom
- Uber Black SUV – High-end luxury vehicles and is the most expensive option for a private ride
- Scooters – With this selection, you can use scooter rentals to get around your area
- UberWAV – This selection offers rides in wheelchair-accessible vehicles
The cost of Uber services can vary depending on the service you choose and your city. However, Uber is typically around $1 per mile with a $2 base fare. The expected average Uber cost per minute is $0.40 each minute.
When demand for Uber is low, fares are usually the cheapest. This typically happens during weekdays between 9:00 a.m. and 12:00 p.m., 2:00 p.m. and 4:00 p.m., and after 6:00 p.m., except on Fridays.
Want to estimate how much your Uber ride fare may cost? Try using the Uber Estimate calculator.
Lyft Services & Cost
Lyft riders have a choice of several services as well. For some of the services, you may see an option to share a ride with someone going in the same direction on the same route. These services include:
- Lyft Cars Rental – You can reserve a rental and drive yourself with an everyday car with this option
- Lyft – This is the standard service and is the most popular
- Lyft Priority Pickup – This new feature allows you to get picked up first
- Lyft Lux – This is a luxury service and is more expensive than the standard Lyft service, that’s usually more spacious, and is you’ll only get top-rated drivers
- Lyft XL – This SUV can seat more people with plenty of trunk room and more seats
- Lyft Preferred Mode – This option offers newer vehicles, top-rated drivers, and in-app tools so you can request preferences for temperature and quiet rides
- Lyft Wait and Save – This feature allows you to save money on your next ride by waiting a few minutes for a driver nearby
- Bikes and Scooters – You can also use bikes and scooters with this service
- Transit – You can check the transit options in your area with this feature
The cost of Lyft services can vary depending on the service you choose, how many drivers are available, and your city.
However, Lyft’s standard service is typically around $1 per mile with a $3.50 base fare for Lyft Lux. The expected average Lyft cost per minute is $0.09 each minute.
When demand for Lyft is high, fares are usually the most expensive. This typically happens during weekends, holidays, and rush hours.
You can estimate the fare before booking the ride by using the Lyft Fare Estimate tool. The fare may change for the actual ride.
Frequently Asked Questions
Am I considered an employee for tax purposes when I work for a ridesharing app?
No. Rideshare drivers are considered independent contractors and must report your income as self-employed you are self-employed and are not considered an employee.
Can I work for more than one driving app at a time?
Yes! You can usually work for more than one driving app at a time. Many drivers often drive for more than one company.
Some rideshare apps like Lyft typically encourage it, so you could sign up for Uber and Lyft together.
Please make sure you are familiar with the policies and procedures of each company before you start driving for more than one of them.
Driving for more than one service can help you make money quickly, but it’s also important to remember that you need to be safe when you’re behind the wheel.
What are the benefits of driving for a ridesharing app?
There are several benefits of driving for a ridesharing app, including:
- Flexible hours
- Make money with your own car
- Ability to make more money
- Available in more cities
- Chance to meet new people and other drivers
- Opportunity to learn new skills
- It can be fun and exciting!
Alternative Driving Apps
Rideshare drivers gigs not your thing?
Or, not sure if you want to drive for Uber or Lyft? Many rideshare drivers apps and delivery apps will pay you to drive for them.
Some of our favorites are:
To become a Dasher, you must be at least 18 years old and have a valid driver’s license and insurance. You will also need to pass a background check.
DoorDash pays weekly, and the amount you earn depends on the number of deliveries you make, the distance of the delivery, the time it takes to complete the delivery, and any tips you earn.
Learn more in our Doordash vs. Postmates review!
Postmates is an on-demand delivery service that was founded in 2011. Postmates has a fleet of more than 500,000 active drivers and provides food delivery services from restaurants, and they deliver from liquor stores, grocery stores, and more.
To become a Postmate, you must be 18 years or older and have a driver’s license and insurance. You will also need to pass a background check.
Postmates pays every week, and the amount you earn depends on the number of deliveries you make, the distance of the delivery, and any tips you earn.
Grubhub is an online and mobile food ordering and delivery service founded in 2004.
Grubhub has a fleet of more than 65,000 active drivers and delivers from restaurants, liquor stores, grocery stores, and more.
Grubhub pays every week, and the amount you earn depends on the number of deliveries you make, the distance of the delivery, and any tips you earn.
Instacart is an on-demand grocery delivery service that was founded in 2012. Instacart has a fleet of more than 100,000 active drivers and delivers groceries from more than 25,000 stores.
Instacart pays every week, and the amount you earn depends on the number of deliveries you make, the distance of the delivery, and any tips you earn.
Our Thoughts: Uber Vs. Lyft
Uber and Lyft are two of the most popular ridesharing services globally, but which one is better to work for?
Both companies have pros and cons, but we prefer Uber and think it is the better company to work for in 2023. They offer more flexible hours, the ability to make more cash, and they are available in more cities worldwide.
Sign up for Uber today and get started earning more income!