As Uber Stumbles, Lyft Sees an Opening, and Bites Its Tongue

Both Uber and Lyft should pay for their drivers car depreciation. The drivers make money for both companies, however if their car get damage it comes out of the driver pocket. If you a driver you should wise up and start your own company! if those guys can do it, you could also! CHeers WISE UP

I have used both, Uber and Lyft. And I have 'interrogated' drivers - most of whom drive for both. The majority told me that the Nice-Guy image of Lyft is now bunk-just a PR stunt. Yes, Lyft used to be better at first - but are now exactly the same as Uber, as far as drivers are concerned. Some actually prefer Uber now that they have developed better ways to contact management and get answers/complaints resolved more quickly, as Uber's technology/management is more developed. Oh well...

As an environmentalist and a San Franciscan, I am strong supporter of both Uber and Lyft. Instead of driving alone to meetings in Silicon Valley, I can now either share a ride with an Uber driver going in the same direction (and other passengers using the pool option) or take my car and pick up a passenger going the same way. I am happy I have installed the Uber driver, Lyft driver, Uber passenger, and Lyft passenger mobile apps. I will never, ever again take a taxi as their service, speed, attitude, and quality if horrible and they are not enviromentally friendlys. Taxis are not sharing of existing unused car space, but creating a new car just to get around. I strongly urge everyone who owns a car and a smart phone to install the Uber and Lyft driver apps (and passenger app versions).

From a PR perspective, this strategy is smart. Don't knock your competitors when they're tripping over themselves. Instead, tout your own benefits. Customers will read between the lines — and appreciate the subtlety.

In my experience driving, Lyft pulled the same punches Uber did, they just didn't rub any of it in drivers' faces. Lyft just has a friendly pink logo and kept quiet while Uber led the way for them.

"[I]t has continued with feel-good marketing and an emphasis on driver-friendly policies."

I'm guessing many of Lyft's drivers would take issue with this assertion. While yes, Lyft has had an in-app tipping function since the very beginning -- and Uber is only now rolling out such a feature -- its driver-specific actions on whole have been effectively identical to Uber's. Both charge drivers a 20% to 25% commission, depending on the city and how long a given driver has worked for them. Both have uniformly followed the same pattern after entering a new market: charging relatively high rates for service, coupled with generous monetary incentives for new drivers, only to chop fares (which are identical in most markets) by 60%+ after the market has matured -- which chops driver incomes by nearly as much, despite both companies' claims that lower prices yield higher passenger traffic.

Finally, while Lyft passengers are covered by its $1 million liability insurance policy for every ride (and in some places it's as high as $5 million), the same cannot be said for drivers: they have zero coverage -- for their vehicles or their person -- in the event of a collision. Though many states now have riders for individual auto policies covering ride-hail use, many do not -- and those drivers face potentially huge hospital and collision bills.

Lyft may not have an executive suite and corporate culture as sketchy as Uber's, but the two have basically the same engine running under the hood.

Accountability is still an issue. My Lyft driver in Portland engaged with a road rage situation that (quickly) escalated to the other driver pointing a gun at our car, closest to my younger brother who was in the front seat. Our driver proceeded by FOLLOWING the armed Jeep, and then scolded us for not calling 9-1-1 fast enough, before the vehicle sped away. We pulled into an Arby's and waited to fill out a police report.

After emailing with Lyft's customer support and giving them a detailed account of how our driver unnecessarily put us in harms way, they offered to comp the $7.50 ride.

I downloaded Juno the next day.

And yet another reason the subways are so terrible, when the well off have options like a private car to valet them to and from who is left to pay for the public transport?

In the past month I took many Lyft-Uber rides in cities that included Seattle and San Diego. My sole criterion was price and in ~3/4 of cases Lyft won. Their discounts seem unsustainable to me.

The melt-down of the NY subway -- discussed today in the Times, and detailed for months in various articles -- is no doubt a windfall for the likes of Lyft and Uber.

NYC city streets have NEVER been more routinely packed with cars -- mostly black limo and car service cars -- especially in mid-town, than in the last several months than I've even seen them. Nice addition to air and noise pollution too...

I drove for Lyft a few years ago when I was saving up for a vacation. On-boarding with Lyft was thorough (personal interviews, background check, car inspection) but pleasant. I had nothing but positive experiences as a driver (and a rider) and am happy to support Lyft over Uber. (I still can't figure out what to do with that giant pink bumper mustache, though...)

I'm a retired San Francisco cab driver who did well. I worked nights for 21 years. And I'm proud of it.
Since WWII, cab drivers made a decent living, albeit on a lower income rung. It was always a "way out", a way for avoiding the "rat race" and a way to be your own boss. Driving a taxi was like a fail-safe if you knew the city -- as some would say: "If all else fails, I can always drive a cab". It was never for everyone. But now it's not a way out for anyone. Now it's just a starvation gig.
Joseph in Missoula

Living in NYC, I have many transportaion options from public transportion that I support, Lyft, Gett, and inexpensive Via shared car ride. I have many great options besides Uber. Never Uber, I boycott nasty arrogant Uber!!!

Lyft may be the good guy relative to Uber outside of Austin, but here they are just the sidekick. When Austin developed ride-sharing regulations including fingerprinting of drivers, Lyft was in lockstep with Uber, screaming about the safety reg, threatening to leave, not leaving but instead causing a referendum on which Uber spent an astonishing $10 MILLION in losing the vote, and THEN leaving in a figurative huff, turning off their apps the day after losing. Lyft could have been the good guy & cooperated with the city rules, but it mimicked Uber so closely many thought there must be a secret association between the two. And after Uber bribed the Texas Legislature to override (so to speak) all local safety regulations last month, Lyft came back in tandem with Uber. They are drafting with Uber if not actually associated. BTW, the good guy in Austin is a nonprofit called RideAustin. They filled the void when Uber & Lyft abruptly shut down their apps last year, pay drivers better, support local charities with voluntarily rounding up...and probably will go under now that U & L are back in town.

I decided to join the throngs of the virtuous and switch from Uber to Lyft. My girlfriend already had the app, and had seen a message saying she would get a credit if she signed up a friend. That friend, in turn, would get a $10 credit to start riding. We did it. I did get that credit - subdivided into 5 rides, with a maximum of $2 credit/ride (and because I did it while visiting family in New Jersey, it would be valid only there. I don't think I have to spell out that all this fine print -- this deception -- was nowhere to notice during the sign-up process.) Oh, but I did get an email from Lyft saying my girlfriend thinks I would make an excellent driver! She, of course, won't get her credit - perhaps subdivided into 25 $1 credits? - until I take my first ride. She's accepted my regrets; I won't be taking that ride, ever.

Lyft has the right idea. I gave up Uber a while back because I couldn't tip the drivers. When driverless cars became a topic, it was clear that Uber's drivers were a stopgap measure. I've never driven for Lyft, but it's not a cloud on my conscience from what the drivers tell me.

I've always used Lyft instead of Uber as Uber's shady business practices have been public for a few years now. I love Lyft and their driver support. Zimmer is "...earnest and mild-mannered entrepreneurs..." How novel. Now even more reason to support Lyft.

Where I live many driver display both Uber and Lyft decals. Are they trying to optimize their chances of being paid?

Have we now reached a stage at which we choose our taxis by their politics?

God help us. We are well and truly pathetic.

Key factor for me is whether these companies accept responsibility for their drivers. Until they do, I'll take a taxi.

I've been using Lyft much more often and the drivers seems to be driving for both Uber and Lyft. To a person they appear to prefer Lyft. I do not find the app to be a problem (on my iPhone, T-mobile).

So I conclude from this article that Lyft has positioned itself as the virtue-signalling company, and is making inroads because of it?

We live in an amazing culture.

Zimmer is being clever, but probably laughing like hell in private. He doesn't need to do anything. Kalanick self destructed, just like every other greed crazed psychopath does eventually. Trump is next. He doesn't know it yet, but neither did Kalanick. Too busy thinking about his next bimbo, or next huge wad of money.

Where I live, in Alameda, Lyft is gradually taking over. Let's hope that becomes a national phenomenon. The thing about a reputation is that, once ruined, you can hire all the PR people you want, and claim you've changed, and it won't make any difference. The pathology for both Kalanick and Trump is just too deep, and is embedded in the executives they hired, too.

There is no such thing as "ride sharing". If that were a real thing no company would be involved nor would the exchange of money take place since you are "sharing" not selling.

It's still a criminal organization whose business model is crime.

Why is it legal for these criminal organizations to raise money on Wall Street?

I'd love to use Lyft but, unlike Uber, it has a poorly implemented first time user log in that does not work on many low cost cell phone text apps. I use an iPhone which is on the Sprint network (not small) but my voice and text service is via a company that uses voip when it can and only uses the cell towers when I am driving. The long and short of it is that Uber works on it and Lyft does not!

That Uber still has such a powerful base in ride sharing has made me wonder about my fellow citizens. Are there really that many people that don't follow the news? (I ask this out of curiosity and not judgement) Or do they know the culture at Uber and just not care? I understand Lyft doesn't have the coverage in smaller towns but it scares me to think of how many Uber customers in cities know the stories but just can't be bothered to switch apps.

I've been a LYFT customer for over 4 years...with friends have several times taken UBER but do not use its app. In the Bay Area, the newspapers/TV news have reported many incidents with UBER but not one bad report about LYFT. LYFT drivers are polite, helpful, friendly and willing to follow routes that I suggest.

I'm happy to have given up my car years again, saving hundreds of dollars a month in parking space rent, insurance, gas and anxiety over insane traffic in the City. Now I use MUNI, Caltrain, LYFT and ZIPCAR....and am having to leave the driving to others most of the time. Note that I use taxis rarely...but my car service TOCA is the best for airport transportation!!

I really do love LYFT...not interested in UBER.

I really did enjoy this article. John Zimmer seems, very much indeed, like just a nice person.

I used Uber a lot previously when I was travelling all over the US for business, only due to their popularity. It was always... so strange that there was no tipping option within the app. I always had to leave cash, and sometimes, I unfortunately just didn't have any.

I gave Lyft a shot once, and it was much the same as Uber. No drastic differences; I can't really judge on driver differences, etiquette, etc. Not much data for me to compare. However, I will share a story of mine that did leave a very negative impression on me (and sorry for the long post!)

I once ordered an Uber, and the person driving had 0 idea how to function the app, let alone a phone, and their car was older than 10 years. How it passed Uber's "10-year-old" rule & how this person was able to get qualified to drive I have no idea. This person did not know how to read a GPS, and I had to be the one to instruct her: "take this exit here". They then told me they had just came from their cell-phone store where a worker there showed them how to user the Uber app. Just... this person should not have been qualified to drive for Uber.

I don't want to channel my inner-hipster/"go-against-what's-popular-vibe", however here, I'll have to do so:
Go Lyft. Rooting for you.

I'm for one rooting for lyft! Nice guys can finish first... And it's up to us to make it happen.

I've always used Lyft, never Uber. Very pleased with that choice.

i won't use Uber. I also find in talking with drivers, they far prefer working with Lyft than Uber. Given a choice, I want my dollars going to a good corporate citizen.

I switched to Lyft for all of my personal and business use after the first Uber crisis months back and haven't looked back. I'm not interested in supporting a company that treats women and drivers poorly.

I switched from Uber to Lyft because of their treatment of their drivers--lower wages and no tip option on their app. Ride convenience should not come at the expense of people just trying to earn a living.

Refreshing to read a business article that isn't about cutting throats or stomping others into the dust. I'll definitely give them a try.

A small but telling point... This month, my credit card was set to expire. Both Lyft and Uber have the card on file. Lyft sent me an email reminding me to update -- which I had forgotten to do, as I don't use either service often enough to have it on my list of places to update. Uber did not. Seems that Lyft wouldn't have wanted me to be scrambling to update as I was trying to book a ride. Very nice -- and good business.

Sometimes nice guys finish first--I'm rooting for pink.

I've been impressed with Lyft's efforts to work with community transportation programs, primarily directed at seniors, especially with those who aren't as internet savvy. They also had a campaign that helped raise money for the Alzheimer's association. Granted, these kind of efforts also help boost the bottom line, but senior transportation is a huge issue easily overlooked.