Wednesday, January 13, 2016

Lyft still making $1,500 weekly guarantees

Lyft is advertising $1,500 driver earnings per week. On the opposing side, Uber is only guaranteeing their drivers $30 an hour in San Francisco to drive during high peak times, $20 an hour in East Bay and South Bay regions to drive the same hours, and lesser multiples during off-peak times.

When it is all said and done, Lyft drivers who work greater than 40 hours a week are making far more than Uber drivers duplicating these hours. Given these Uber guarantees, most drivers servicing areas outside of San Francisco are making very little hourly. Unlike holiday promotions held this past November and December, Uber drivers can't expect to come close to these earnings.

Lyft drivers are known to collect a large portion of their fares. This is in result of weekly guarantees connected to full-time hours devoted to the Lyft platform. However, the slow Winter is reducing Uber driver earnings. Lyft is confident in their weekly promotions to keep drivers happy.

According to an Uber employee, Lyft is a ridesharing platform that makes drivers the top priority. He shared that Uber's main focus is to keep their client's happy. How much more can Uber drivers take before they decide to reduce their hours and get another primary job?

In order for an Uber driver to earn $1,500 working in the East Bay, they may need to drive 100 hours. We know this is highly unlikely that Uber drivers will spend this much time on the road. Safety concerns are the most important mission on the Uber platform. $1,500 in a week won't happen for East Bay and South Bay Uber drivers. San Francisco-based Uber drivers may have a shot to make $1,500 after commission and fees, They will need to invest 60-70+ hours on SF city streets.

We would like to see Uber make better guarantees connected to trips completed. Their recent holiday promotions were the best they've ever held. As you may know, UberPool rider issues affect acceptance rates. Requesting riders choose to cancel multiple rides, which could impact the time and miles existing riders remain in vehicles while on trips. There must be a better system in place to avoid disqualifying drivers from promotions. Clients may request an UberPool for one rider and bring along 4 riders. Drivers have a right to cancel these rides, so make sure to do this if riders abuse the system.

Lyft got it all figured out. They are guaranteeing their drivers $1,500, if certain amount of hours are driven weekly. Lyft is vetting new drivers, also offering them this promotion to drive with them. Even more, Lyft drivers can receive tips from their riders via the Lyft app. However, Uber is still working on integrating an in-app tipping feature to reward drivers. It is a work in progress at Uber.

East Bay/South Bay Uber drivers working off-peak hours would need to stay online over 100+ hours a week to clear $1,500 per week. San Francisco drivers working off-peak would need to complete at least 80+ hours to earn $1,500 after commission and fees. When peak hours are worked, San Francisco drivers would need to stay online 65+ hours to clear $1,500 per week. East Bay and South Bay drivers would need to complete 100+ hours to receive $1,500 after fees.

Uber is kind for holding this limited time promotion to weather the Winter decline, but Lyft is extremely kind to reward their drivers with awesome incentives. Lyft drivers are raking in the dough with hourly guarantees and tips. Uber drivers face driving more clients, driving more miles, exhausting more fuel, and working more hours to survive the decline. Keep in mind that total trips per hour are factored into peak and off-peak hours.

Who is winning the ridesharing game? Lyft drivers and Uber clients/riders. Who are the current losers? Uber drivers and Lyft passengers.