Monday, September 22, 2014

Lyft drivers get tipped; UberX drivers no tips

Lyft passengers can tip Lyft drivers. UberX passengers can't tip their UberX drivers. Nonetheless, Lyft drivers receive good tips. Unfortunately, UberX drivers are unable to receive tips based on Uber's app lacking this tipping feature.

On many occasions, UberX clients requested to use the Uber app to tip drivers. Tough luck UberX drivers! You must inform UberX client that no tipping option is available on the Uber app for UberX drivers. We thought Uber wanted to compete against Lyft. All we see is Lyft drivers getting tips to make up the difference in commision. However, UberX drivers trying to stay operable under challenging circumstances without receiving tips. In the tip department, the score is Lyft 1 and UberX 0.

Ridesharing drivers struggle to get on the road. They're quickly realizing that a lack of gas and reduced fares are influencing their overall earnings. On busy weekend nights, ridesharing drivers must stop driving since weekday driving exhausted their fuel. There is no bargaining with fuel; you either have it or you don't.

Clients/riders/passengers want to tip drivers. Lyft drivers get tipped. UberX drivers don't receive any extras on the Uber app. With reduced fares, drivers are losing money and know this. Their fares are much cheaper. One UberX driver drove a client from Oakland to San Francisco in heavy traffic. The driver and client waited in traffic on the Bay Bridge. Overall, the trip took 49 minutes and the driver only earned $35. After safe rides fee and Uber commission, this driver will make less than $30 on this trip. Before, a driver could make a few airport trips in an hour and earn greater than $70.

Times are changing fast for ridesharing drivers. No more $45 per hour promotions to guarantee earnings. Not even $35 an hour and/or $10 per completed trip during special hours. The latest $4 guarantee per trip during rush hour with 5 trip minimum is too little to make a difference

Of course, ridesharing drivers want to get on the road and make money. However, these drivers are realistic that there is little profit to be made once all expenses are taken into account.

UberX drivers could find success with receiving tips. They deserve these tips. Only Lyft and SideCar drivers receive tips, whereas UberX drivers don't have this option to make more. Occasionally, surge pricing may help with the bottom line and this provides an incentive to drive during these times. Nevertheless, clients are being cautious with surge pricing to avoid paying high fares.

Go figure. UberX drivers are told that cheaper fares translate into extra income. Uber absorbed the reduced Summer rates. But for the most part, this recent price reduction is now deferred to drivers. It is tough to earn decent money because deposits are smaller and there is no money left on deposit day to drive on weekends.

The big difference that give Lyft and SideCar a competitive advantage over UberX is that passengers can tip drivers. These tips can help ridesharing drivers to remain on the road longer.  No gas, no driving.