Tuesday, November 18, 2014

Lyft advantage over ride competition

According to Lyft's Facebook page, their drivers are paid out on Tuesday and Wednesday. On Uber, direct deposits arrive on Thursday. Lyft drivers have 1-2 day advantage over their UberX counterparts.

This extra day or two payout process thus increases the likelihood that Lyft drivers may get on the road to increase their earnings. The sooner Lyft drivers get paid, the more funding they have available to complete trips and earn additional money.

UberX drivers who invest their previous weekly earnings into driving on the weekend must now wait until Thursday to get paid. It is a vicious cycle to wait 8-10 days to get paid for trips completed Monday-Wednesday. UberX drivers can sustain this setback through driving on weekends, where the payment turnaround for trips given is 4-6 days.

Lyft has something good going on here with these faster direct deposits. Last year, Lyft paid out their drivers on Thursday morning. On a few occasions, direct deposits arrived on Wednesday morning. They know that their drivers need to get paid as quickly as possible to get back on the road.

The best part of Lyft was their "Power Hours" last year. This made Lyft an awesome ride platform to see more of ridesharing earnings. Commission-based trips reduce earning potential.

As explored in the drawbacks of ridesharing, slower payouts, reduced fares, poor cancellation policy, and other setbacks may keep drivers off the roads. In result, surges are activated to increase supply.

UberX clients may complain about constant surge pricing. The underlying problem may be related to driver issues concerning reduced fares, low supply, slow payment process, and constant cancellations due to a poor ETA indicator measuring inaccurate times. Plus, UberX clients have no idea what drivers must do to reach them.

If this driver is going in the opposite on the freeway and/or on a 1-way road, they must take a longer route to reach their client. These clients assume drivers are lost, but don't take into account the obstacles driver face in the field. On a much bigger scale, this is like trying to inform the public of the rigorous obstacles American military servicemen encounter in protecting their country.

We believe it is fair to discuss the positive and negative aspects of all ride app companies. In this way, these companies, drivers and clients/riders/passengers can become successful. It is not a game of pointing fingers, as the transportation goal to make everyone efficient. We all want to be happy.

Faster payment processing and direct deposits would make drivers more mobile. Their productivity would increase, while the supply of vehicles on the road could provide clients with a quicker pickup. We still believe Uber is a first-class ride platform. They allow drivers to move around, while Lyft requires their drivers to stay within their approved region (this policy may have changed since Dec 2014). A huge that Uber has over Lyft is giving their drivers access to an expanded territory (anywhere in California). Unlike Lyft, Uber won't require a change of venue to drive.

UberX drivers can service the Bay Area, Sacramento, Central California, upper Northern California and Southern California. Moving around different areas could reduce job burnout. As we most know, San Francisco is an extremely busy city. Daily driving there can take a toll on drivers. In order to keep driving strong, drivers can work outside of their traditional area.

We'll touch on the advantages of driving in other transportation markets. Every ride app company has a unique system that gives them an advantage over their competitors.