Lyft vs Uber: The ‘Tech enabled Mobility’ industry is gaining momentum with each passing day since 2012-13 onwards. Everybody wants to live a life of comfort and save time. But very less are able to make their own life comfortable for themselves. For the majority of the chunk who are not able to make their own life comfortable, companies like Lyft vs Uber are built to enable ease of commutation and reduce the stress of travel.
In the age of modern technology, it is difficult to find a proper taxi or a mode of transport amidst a big crowd and high demand chaos. This problem was recognized by the founders of Lyft vs Uber and in no time, the companies were launched which aimed towards building a model that caters to the needs of the public by offering them a service which would reduce their daily stress to boost daily efficiency.
Any service or offering that solves the consumer problem thereby providing them convenience, wins in the industry. With increasing population, the demand for transport services are ever rising. Keeping that in mind, the founders of the companies developed a sustainable model which shall cater to all the classes of the population and will meet the demand of size of the population.
Lyft vs Uber:
Lyft and Uber are two largest transportation network services in the USA. These ride-hailing services have provided employment in large numbers to the people living in America. It is kind of a self-employed work in which the revenue is shared with the company.
The services include peer to peer servicing. The main motto behind doing this to make a customer profitability model that facilitates economic mobility for the workforce, thus fulfilling the demands of the general public. Interesting part is that both the companies had filed their IPOs on the same day. Such is the cut throat competition in the transportation service market.
The Points of Difference Between Lyft and Uber are as Follows:
1. Global presence:
Services of Lyft are restricted to the United States of America and Canada whereas Uber is present in these two countries plus other countries worldwide. Softbank capital and fierce expansion strategies were the main catalysts to this resultant differentiation.
This makes Uber a perfect demographic fit amongst all other transportation service companies. For example, in India, the company Uber is recognized more than Lyft. The global presence matters in many ways in terms of brand awareness, brand recognition, brand equity, brand recall and much more.
Word of mouth publicity is much more in the case of Uber. Reason being, people are aware of its services since they have used it personally in their own country and elsewhere. The global presence also affects the revenue, profits and survival of the company in case of tech consumer products and services.
As aforementioned, global presence is a crucial factor shaping cash flows and new initiatives. Since Uber has a bigger presence, it has more revenue in comparison. Lyft had its revenue increase at a faster pace in 2018. Yet Uber remains the leading player because its strategies are shot like a wildfire which spreads all around.
Right from the beginning, Uber worked fiercely. One such fierce action that the company took was, removing the founder itself from the company. Lyft, on the other hand has a targeted set of countries in Northern America and hence its strategies revolve only around them.
3. Features of the app:
Uber shows you the saved places through which you can choose your location easily. There is an option of saving the places that you visit frequently. Whereas, on Lyft’s app there is no available option that lets you save your desired locations.
You have to search all over again. Thus on the user-friendly front, the app of Uber is better than that of Lyft as per public surveys. Another point of differentiation is, Uber does not show any greeting whereas Lyft will show a greeting while the time of booking.
The terminologies in the app of Uber and Lyft are different. For example, Pool in Uber is called as Share in Lyft and UberX in Uber is called as Lyft itself in Lyft. The terminologies play a great role in deciding the company market share. The name is a powerful tool which should be consumer centric to gain attention.
4. Pricing for the users:
Uber is comparatively high priced than Lyft at certain time intervals as per customer feedback on surge pricing transparency levels. This is one of the reasons why the demand of Uber is more than Lyft even in North American countries.
Price as a factor plays a key role in deciding the traction on the app. Before booking any ride, a user checks the price on other apps as well in order to get a ride at a reasonable price rate. But timely cab availability also plays a key role. This is the reason why Uber is chosen by most of the people over the other transport services.
There is another case in this pricing scenario wherein Uber also hikes prices when the demand is large and it is a peak period. In such cases, users tend to choose the ride from which they have been travelling the most. It also depends upon the kind of customer on the app. If the customer is a variety seeker, he or she will choose unconventional mode of transport.
5. Range of Offerings:
Uber has a better range of services than Lyft. It has different types of cars which is suitable for different kind and size of audiences. Uber has UberXL which fits in people in a group of 8 or 6. This makes feasible for people to run errands with their friends or family while being together in the journey.
Lyft Plus also offers the same kind of service but the availability is often low. One difference between Uber and Lyft in their range of cars and services is that Uber offers wheelchair-accessible rides whereas Lyft doesn’t have this option. While both Uber and Lyft are convenient in showing the location and it is permissible to change the locations midway, only Uber allows to split the ride fare with others in app.
Lyft had this option earlier but has removed it since some months. Uber allows to share the location and the contact details with the authorities by dialing 911 whereas Lyft just allows to share the information with friends or family. Both Uber and Lyft app allows the user to pay through various payment gateway channels. Uber offers an exclusive service through Uber cash.
It allows you to pre-pay for the ride by offering a 5% discount on the ride. Lyft at times avoids deep discounting. Uber app lets a user book electric bikes as well. It differs from place to place and demand. Though Lyft has in its offerings some high-end vehicle options.
6. Food delivery option:
Uber delivers food through UberEats, whereas Lyft does not constitute of any option like this. This adds to another range of services that Uber has which makes it more acceptable and accountable.
Uber is was introduced in 2009 as UberCab whereas Lyft was introduced in 2012 as Zimride. Both have a significant journey. Lyft being three years younger to Uber has substantially got in neck breaking competition with Uber.
Both companies have contributed significantly in the transportation services industry and are competing against each other to deliver the best of services to its users. Overall, the transport landscape is seen to be evolving as the consumer behavior pattern changes and the demand of the population camouflages which changes in the market radically fueled by innovation.