Lyft and Uber are very similar in terms of the product they offer customers when it comes to getting a ride. Both companies provide a mobile app-based service that allows users to choose from a range of vehicles, including sedans and black cars. In fact, many drivers work for both companies, so there is often little difference to customers in terms of the experience they have. Ultimately, the main differences between the two services come down to which app customers choose to use and how much they are willing to pay for their ride.
Uber and Lyft have significantly increased prices due to driver shortages, high demand, and the need for profit. In addition, passengers are subject to surge pricing, which is caused by too many riders and not enough drivers. Instead of giving incentives to drivers to pick up passengers, drivers wait until prices rise to pick up rides. Savvy passengers wait for prices to fall or walk a few blocks away from the surge area.
Lyft is taking a step to differentiate itself from Uber and is trying to eliminate surge pricing, or “primetime” pricing as Lyft calls the practice. In an earnings call with investors, Lyft CEO David Risher said the company is trying to “price in line with the market.” This includes doing away with the surge pricing model. From TechCrunch:
[Primetime pricing] is a bad form of price raising,” said Risher. “It’s particularly bad because riders hate it with a fiery passion. And so we’re really trying to get rid of it, and because we’ve got such a good driver supply…it’s decreased significantly.
While the practice isn’t 100% gone yet, Lyft said the number of customers who experience surge pricing fell 35 percent from the first quarter this year to the second. This is helped by the fact that Lyft’s driver supply is the highest it’s been in three years, and average hours per driver exceed 2019 levels.
Lyft hopes to do away with surge pricing entirely. I’m definitely going to check prices between each service when I need to get a ride.
Want to comment on this post? Great! Read this first to help ensure it gets approved.
Want to sponsor a post, write something for Your Mileage May Vary, or put ads on our site? Click here for more info.
Like this post? Please share it! We have plenty more just like it and would love it if you decided to hang around and sign up to get emailed notifications of when we post.
Whether you’ve read our articles before or this is the first time you’re stopping by, we’re really glad you’re here and hope you come back to visit again!
This post first appeared on Your Mileage May Vary