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Uber vs Lyft: Comparison of Uber & Lyft

Uber vs Lyft: Introduction

Since both these applications created, they become the most recognized alternative to public transportation, especially taxi cabs. To examine their differences; first take a look at similarities of Uber vs Lyft.

Uber vs Lyft

 

Uber vs Lyft

Similarities of Uber & Lyft

  • They both are available in many countries all around the world and they are still getting bigger every day.
  • When you need a ride but you don’t have your own car with you, both of these organizations are good alternatives for you.
  • Both of them basically Ride-share organization.
  • They both give service in many big cities 7/24.

Both of these organizations are strong competitors in their business industry and they have quickly become household names. When we look at the analysis, it’s clearly available to see that Uber uses uber invite code. Thus, Uber has more market share than Lyft. It has almost 70% of the market and Lyft has nearly 30% of U.S. market. In another perspective, Lyft has demonstrated that Lyft has a better reputation. You can use lyft yahoo finance to see their financial status online. We’ve seen it plagued with scandals at 2017 with #deleteuber hashtag on uber bloomberg. 

Beyond these important differences, these both rideshare companies gives extremely similar services as lyft for business vs uber for business. Especially in Canada and United States. Also, they both have similar marketing strategies and consumer acquisition. If Lyft brings something one, also uber does it. If one of them offers to new user good amounts of free credits to motivate them, the other also does the same.  In this article, we will compare both of these organizations under some significant perspectives.

Uber vs Lyft: Comparing Services

The consumer Value Framework (CVF) effect

CVF basically depends on two parameters. Internal and External influences. The internal influence depends on other subjects such as consumer Psychology, Implicit memory, perception, memory, attitudes, motivation, personality, lifestyle, etc. And the External influences are consumer’s social Environment, culture, social class, family influence, etc.

An appropriate firm which is aware of CVF should think about the effect of all these parameters on consumers’ attitudes. One most important one is the vehicle options that firms offered to the consumers.

Vehicle Difference between Uber vs Lyft

When we look into the fight between Uber and Lyft, one of the most important factors that set both of these services apart from each other is the available vehicle options for the passengers.

Vehicle Options: Uber

Uber has a common range of vehicles to pick from.

  1. U. POOL is the cheapest option that riders share riders if they’re going to the same route.
  2. U. X, again, a regular, everyday car with available room for 4 people will come and get you.
  3. XL, an SUV with 6 people capacity will come and get you.
  4. U. SELECT, this is a luxury sedan (Mercedes commonly) type car with 4 doors which is also available for 4 people.
  5. U. BLACK is the default service of the firm. This type of rides features high and luxury cars with 4 people capacity.
  6. U. SUV is the last and the most expensive Uber service. It contains availability for 6 people and it is always luxury cars.

Vehicle Options: Lyft

On the other side, Lyft doesn’t have much options like Uber.

The first one is Lyft Line. It is same as U. Pool. People who goes to the same way shares a ride. And the next one, Lyft is the budget option. It includes a regular, everyday car with 4 people capacity.

Also, there are plus and premier options. Plus, option includes a daily car with 6 people capacity and the last one, Premier includes more luxury levels compare to to previous ones. These are generally high-quality vehicles with 4 passenger capacity. Car options are important depending on the luxury wish and number of people.

When we look at these options in both organizations, it’s clearly to see Uber has more options than the other. In business world, sometimes it’s not good to have too much options for consumers because they can get confused and think that if they pick one, even if they really want the one, they picked, it’s possible to be sad for the others that have not chosen. However, there is another important parameter aside the vehicle options. Which is the experience level of the rider.

Experience level of rider

Since Uber leans towards businessman, Uber drivers are professional people and they do their best to drive you. On the other hand, Lyft drivers are on the market with “Your Friend with a Car” slogan. Lyft’s drivers are warm and friendly people and it makes some people to feel safe and comfortable.

Comprehension, Memory, and Cognitive Learning

When we evaluate mentioned points, both of these firms have some differences to make their own point. Both of them are offering different options such as experience of the driver, vehicle options, luxury options depending on vehicle options, etc.

Motivations and Emotions

We have mentioned the slogans of Lyft and professionality of Uber drivers. Both firms care consumers emotions and both of them are different types of motivation sense.

Ones gives professional service by their worker’s outfit, self-care, vehicle quality, etc. The other gives services as friendly and warm. In some cultures, the second one is more important than professionality.

Also, both of these firms offer generous deals to encourage new users. Motivating users is an important part of consumer decision making.

Personality, Lifestyles and Attitudes

Personality and Lifestyle of consumer is too important according to the CVF. As we mentioned before, both of these firms have different types of expertise. If the person is an experienced driver and have a luxury car, it appears it’s more appropriate to work for Uber.

On the other hand, Lyft is a good ride sharing application. It’s easy to use and start. It’s more appropriate for Part time workers or people who wants to work at night. According to these information, personality and lifestyle of consumer is an important parameter.

Group and Culture Influence

We have mentioned that both of these applications are available in many countries. There are too many different types of people around the world. They eat different, sit different, speak different, and have different needs. Culture and the work region are too important. For example, at some countries people wish to prefer their own traditional taxies or cabs. At some countries, internet is not that much as popular in over 35> ages. So, young people are most likely to prefers these services.

At some countries such as Turkey for example, people (taxi drivers) did not accept the existence of those ride-share companies. They could not get in a battle with them and wanted the destroy it. Turkey’s taxi drivers even called an Uber driver and beat them.

After a while, they started a campaign to finish both those applications. Government intervention to the problem and tried to find an appropriate way. Still, many cities do not use Uber in Turkey.

Consumer Decision making

There are a few parameters that affects consumer’s preferences such as pricing, quality, convenience, service tiers, Driver and passenger Ratings, Map option to see availability, safety availability in where ever you are (abroad trips).  There may be cost inequalities between cities, the Lyft and Uber rates in the same city are almost always very similar.

Both companies charge similarly based on the service you choose, as well as the estimated travel time and distance.

Basic fees and service fees are also typical for Uber vs Lyft. So, you can use our price prediction tools for Uber and Lyft to find the most affordable price in your area. Both companies charge about $ 1.00 to start a journey, and then charge 0.25 cents per minute, $ 1.50 per mile. When we think about the average cost per mile, it goes down to about $ 2.00 per mile, which is much lower cost compared to a taxi. About the safety, both companies are taking proactive measures to keep drivers as safe as possible. Both Lyft and Uber driver requirements provide drivers:

  • Background check without violence, sexual or drug-related offenses
  • Passing the DMV record check without major mobile violations in the past three years
  • If you have a valid driver’s license and Social Security number
  • Making valid car insurance and registration
  • If you are at least 21 years old with licensed driving experience at least one year old

Vehicles should also meet the year requirements set by each state and be audited annually. You will always see your driver’s name, vehicle model, vehicle color, ratings, and license plate number before getting into the car.

Uber vs Lyft: Conclusion

Consumer needs is effective for both firms’ actions. Firms have methods to motivate and encourage new users such as giving free credits, offering different quality types of services, different prices, etc.

We have also mentioned culture’s effect on consumers. Different countries have different perceptions. So, it means different types of consumer needs. In different places, firms must have some changes to ensure the continuity of consumer satisfaction.

Also, consumer’s personality and lifestyle are game-changing parameters. All these consumer needs are collected under the term of Consumer Value Framework (CVF). As a conclusion, both of these firms’ efforts enough to satisfy consumer needs and are good for part-time workers as driver.

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References

Venkatesan, R., & Kumar, V. (2004). A Consumer Lifetime Value Framework for Consumer Selection and Resource Allocation Strategy. Journal of Marketing, 68(4), 106–125. https://doi.org/10.1509/jmkg.68.4.106.42728

 (“Value & The Consumer Value Framework Chapter 2”, 2020)

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Engin

Author Since: 08/08/2020

Hi,
My name is Engin. I am the founder of pureassignment, a traveller, fitness lover and a cat person.

2 Comments

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