Which Rideshare Service Should You Drive For In 2023?

Among gig driving jobs, rideshare continues to be one of the highest-paying. Drivers regularly average $20 an hour and often more. 

Additionally, the time window for restaurant food delivery and grocery delivery is much smaller than for rideshare. Peak hours for restaurant food delivery are between 4:30 pm and 9:00 pm, with some business at the lunch hour. For grocery delivery, peak hours are typically daytime, with some later hours, although rarely past 9:00 pm. 

Conversely, rideshare is almost a 24/7 job if you live in the choice markets or know where to drive. There is always a demand for rides. 

Then comes the inevitable question: Lyft vs. Uber, which is better to work for? In this blogpost we will review

• Who pays more, Uber or Lyft?
• What is the signup process for Uber vs. Lyft?
• Lyft vs. Uber: the driving experience.
• Uber vs. Lyft: What incentives do the companies offer? 
• Bonuses and rewards programs.
• Referral programs.
• Can’t decide between Lyft vs. Uber? Try multi-apping.
• It might be Uber vs. Lyft, but Gridwise is here to help. 

Who pays more, Uber or Lyft?

Let’s start things off with what drivers want to know the most.

According to nationwide data from Gridwise for median driver earnings, these are the figures for 2022: 

Uber and Lyft driver pay

As you can see from the table, when it comes to Lyft and Uber driver pay, Uber paid drivers more in 2022. Consider, however, that these numbers take in both full-time and part-time drivers. Based on anecdotal evidence from various online postings, full-time drivers can make as much as $4,000 a month—sometimes more. 

What is the signup process for Uber vs. Lyft?

Signing up to be a Lyft driver: Lyft driver requirements

Lyft is often looking for new drivers, so there’s little worry about being placed on a waiting list. There are, however, requirements you must meet. You can view these on the Lyft website. As you’ll see under Lyft’s state and city requirements, these can vary from region to region. So here we’ll give you a just general idea of what’s needed:

• a valid driver’s license
  • Active duty military applicants and their dependents can have out-of-state documents and driver’s license. Please visit Lyft at your local hub to apply.
• to meet the minimum age requirement (from 21–25, depending on the city and state requirements)
• one year of driving experience and be 25 or older
• any smartphone that can download and run the Lyft app 
• passing a background check (criminal and DMV)

A four-door vehicle that 

• has a minimum of five seatbelts, maximum eight 
• has no body damage 
• is not a taxi, stretch limousine, or rental vehicle from Lyft’s Express Drive program 
• is not titled as salvage, non-repairable, rebuilt, or any other equivalent classification

Required documents

• valid car registration
• proof of current insurance
• proof of inspection

If you don’t own a vehicle, you can rent one, but only through Lyft’s Express Drive program.

What vehicles does Lyft not accept? Taxis and stretch limousines don’t qualify on the Lyft platform. There was a time that certain subcompacts were not allowed, but as long as there are five seatbelts, subcompacts are permitted (be prepared to get some complaints from passengers, though). To check for additional Lyft vehicle requirements, check your app, which reflects the most local requirements. 

Signing up to be an Uber driver: Uber driver requirements

If you decide on driving for Uber vs. Lyft, here are the requirements: 

• be at least 21 years of age 
• have at least one year of licensed driving experience in the US (three years if you are under 23 years old)
• have a valid driver’s license
• pass a driving record and criminal history check 
• possess a cell phone capable of operating the Uber app 

Vehicle requirements include

• an eligible four-door vehicle
• no older than 16 years (may differ in some markets)
• no body damage and not salvaged

Some cosmetic features may prevent vehicles from being used, including

• holes in the exterior
• taxi decals or taxi-style paint
• significant interior damage (torn seats, large permanent stains, strong permanent odors)
• paint oxidation
• different colored doors and hoods
• aftermarket modifications
• window tinting that violates acceptable standards in that state 

Documentation requirements include proof of

• vehicle insurance if you plan to drive your car (rental cars include insurance)
• car registration
• passed inspection

You can rent a car to drive for Uber, but only if you obtain it through a designated rental partnership. Check the Uber rental car guidelines to see what’s available in your area.

You’ll need to provide a profile picture, forward-facing, with just your head in the photo.

Lyft vs. Uber: the driving experience

Driving for Lyft

Lyft refers all its drivers to the Lyft Driver Guidebook, containing many finer points about signing up and driving with Lyft. The guidebook also acquaints you with the Lyft app.

Throughout the guidebook, you’ll find many tutorials. Some are mandatory for viewing, while others are for extra help. Get familiar with the app so you won’t be frustrated once you’re using it on the road.

When you get a ping, the passenger’s picture comes up on your screen, along with their star rating. You can accept or decline the ride—but be careful about declining. Doing so can affect your eligibility for bonuses and other pay incentives. 

Accept the ride within a few seconds; if you miss it, it counts as though you declined it. If you take a break, turn off the Lyft app. Ride requests you missed while absent will count against your acceptance rate.

When you accept the ride, you’ll see a photo of the passenger and be guided to your pickup point by the app. Once the passenger gets in, click or swipe again to verify that you’re on the way to the destination. The navigation system will guide you there, step by step. Navigation is almost identical to using a GPS and should pose little problem.  

Locating your passenger is typically easy, but sometimes it can be more difficult. The Lyft app allows you to text or phone the passenger to find their exact location. If they do not show up within the allotted five-minute period, you can cancel the ride and get paid a nominal fee. This doesn’t happen often though.

Once you drop the passenger off, you end the ride on the app. The amount you earned and any tip show up on the screen. You’ll also get a chance to rate your passenger. 

Lyft layers its navigation system over Google Maps, so it will be familiar if you’re used to that way of getting around. If you prefer to use WAZE, which also tells you about everything from the fastest route to a police presence or pothole in the road, you can change your preferred navigation to WAZE under settings. 

Ease of driving with the Lyft app. The Lyft app is state of the art, visually appealing, easy to use, and not the least bit confusing. Also, the map is clear and exceptionally detailed.

Lyft rating system. You can rate your passengers, and they, in turn, can rate you. Lyft uses a star system from one to five, and you need to keep your ratings up. Tips for doing this are in the Lyft Driver Guidebook. If you are polite and friendly with your passengers, maintaining a five-star rating, or close to it, is easy. Occasionally you will have that problem passenger, but if you do your best, even a bad rating will be canceled out by an outstanding one. If you decide to decline a passenger because of their Lyft rating, it’s a good idea to text support through the app that you did so. This might encourage support to overlook the decline, preventing your acceptance rate from being affected. One Lyft veteran said, “It takes a few bad ratings to get a passenger below four stars. If your fellow drivers gave a passenger a bad rating, there is a reason.” 

Lyft Support. Before the pandemic, Lyft support operated through Hubs, where you could go to get in-person help. Many of the Lyft Hubs are no longer operating. Assistance mostly now comes through the Lyft app. You’ll get responses within reasonable time frames, but this may vary depending on where you live and how busy it is. You’ll find many answers to your questions as a Lyft driver in the Lyft Driver Guidebook. Look on the website or the Lyft app for a Hub in your area. 

Driving for Uber

When you drive for Uber, you’ll find tutorials on driver safety and community standards that you need to take. The Uber app is not much different from the Lyft app. When you get a ping, the passenger’s name appears on the screen, as well as how long it will take to get to the pickup (and if you have Uber Pro status, how long the ride will be). The passenger’s rating also appears, and then you can accept or decline the ride.

If you don’t accept soon enough, you’ll lose the ride and it will count as though you declined it. Again, this is something you want to avoid because you have to keep a high acceptance rate to receive specific incentives.

The navigation system on the Uber app allows you to set up Google Maps or WAZE, similar to the Lyft app. 

As with Lyft, you’ll want to familiarize yourself with the Uber app before going out to drive. The website can help, but it’s best to review the app yourself.

The ride portion works the same as with Lyft. You navigate to the pickup point and start the ride once the passenger is in your vehicle. Tap “Navigate” on the ride screen. 

Being activated on the Uber app means that you can also deliver for Uber Eats. Check your settings to see if you’re open for Uber Eats deliveries. Whether you want to deliver, do rideshare, or both on the same shift is up to you. Make sure your settings reflect your preference. Usually, the app defaults to leaving you available for both. If you don’t want to deliver though, you can turn off deliveries.

Uber rating system. Like the Lyft app, the Uber app rating system goes both ways, and it pays to do what it takes to keep your rating high. It will affect not only your ability to keep driving for Uber but how the Uber rewards program, Uber Pro, will treat you (more about that in a bit).

Uber Support. Like Lyft, Uber used to have in-person support at their Greenlight Hubs, though much has changed in the last year. Online and phone help is available, but the priority your emails and calls receive depends on your Uber Pro status. 

Uber vs. Lyft: What incentives do the companies offer? 

Lyft and Uber offer three types of incentives: driver rewards, premiums and bonuses, and referrals.

Lyft Rewards

Lyft has a driver score for all drivers, which is based on their acceptance rate, star rating, and any red flags appearing on their record. 

Points vary by market and depend on earnings. Eligible earnings include the base fare, time and distance rates, shared ride pickups, and tips earned during your market’s busy hours. The designated busy hours vary by market and are found on your app under Lyft Rewards. If you don’t see the Lyft Rewards tab on your Lyft app, the program has not launched in your market. 

Lyft Rewards Incentive Programs

Drivers start with a blank slate on the first day of each month. When they attain the requirements for a level, that level unlocks for the remainder of that calendar month and the next month. This means drivers can maintain or increase their level each month if they meet the requirements. 

Uber Pro

Uber’s Uber Pro rewards system also works in tiers: Blue, Gold, Platinum, and Diamond. 

Uber Pro Program

The requirements vary for attaining the various levels, depending on the region you drive in. Information for your specific area is available on your Uber app. Whereas Lyft is month-to-month, Uber tiers award drivers per quarter, calculating their star ratings, acceptance rate, and cancellation rate. Some rides are worth one point, while those accepted during busy hours are worth as much as three.

You can look at your profile on the Uber app to see how many points you need to reach a specific tier. It will tell you which tier you are in and what you must do to make it to the next one. You can find all the details in the Introducing Uber Pro publication.

Bonuses and reward programs

Lyft

Lyft offers drivers a wide range of bonuses and rewards. 

Streak bonus. This sets a dollar amount for a certain number of rides given in a busy period—for instance, three rides from 6:00 pm to 7:00 pm. Streak bonuses can be interesting because you can complete your three rides in that hour and then start another streak. Some of the streak bonuses only require that you start your first ride in that hour. Streak bonuses typically appear on your app a few days before they are available, making it easy to plan for them. 

Personal Power Zones. This promotion, indicated by a heat overlay on your Lyft app, offers incentives for drivers who start rides in specific areas. Personal Power Zones are profitable, but they can appear and disappear quickly. Unless you are very close when a zone appears or you find yourself in the middle of one, it doesn’t make sense to chase them. 

Lyft’s program is extensive, and like most program features, what you get will vary depending on where you live. 

Uber 

Uber promotions work on a similar model to Lyft, with some tweaks. 

Surge pricing. Surges increase the amount a driver earns in hot areas on the map. These are similar to Lyft’s Personal Power Zone. 

Quests promotions. Quests allow drivers to earn extra for completing a certain number of rides over a period of days, usually Monday to Thursday and Friday to Sunday. 

Consecutive rides. This promotion rewards drivers with a set bonus for taking three consecutive trips. For example, you get a bonus if you start your first ride in the designated zone and complete two more trips after that without turning off your app or declining a ride. 

Uber’s bonuses range from $3 to $25, depending on where you live and how much Uber wants to incentivize drivers on a given day.

Referral programs

Lyft referrals

With Lyft’s referral rewards program, you can make extra money referring drivers. When you sign up to drive, you’ll get a referral code. If you invite someone to sign up for Lyft and the person starts driving, you’ll receive a referral fee. The new driver must complete a certain number of rides within 30 days of signing up with Lyft. 

This usually takes the form of a “guaranteed earnings” agreement. If the new driver completes the requirements, Lyft guarantees they make a certain amount. If actual earnings are lower, Lyft pays the difference. Once the driver has completed all the requirements, you get the referral fee. Actual referral fee amounts vary by region. 

Lyft is trying to lure back drivers who have left in the last few years, so they are allowing active drivers to refer former drivers who have been inactive for a while. So, at least for now, the person you refer to Lyft doesn’t have to be a total newbie. It could be someone who’s taken time off from driving, as long as they weren’t deactivated. Again, this program is not available in all markets, and the particulars differ from region to region. 

Uber referrals

Uber’s referral program is not as elaborate as Lyft’s, but that doesn’t mean you’ll be left without an opportunity for referral bonuses. 

You’ll also see that Uber isn’t precise about its exact terms because, like Lyft, they vary from time to time. The app is the best way to find out what’s offered in your area. Go to your Earnings tab and scroll down to the referral program information.

Business cards

Printing some inexpensive business cards for the rideshare company you work with is always a good idea. Pass them out to anyone who inquires. Along with including your contact information and referral code, listing a handful of cash apps on your business card is prudent, too. The service departments of many car dealerships, some health plans, and other entities have arrangements with rideshare companies to transport customers or patients. Although these passengers are not paying for the ride, they may want to tip you, which they can do through one of your cash apps. 

Can’t make a decision between Lyft and Uber? Try multi-apping

The question of Uber vs. Lyft, which is better for drivers? isn’t necessarily easy to answer. The companies are similar in how they operate, and there are some regions where Uber may pay more, but Lyft has a stronger presence. 

Another option is multi-apping, running two apps at the same time. Gridwise revealed some strategies for multi-apping in a recent blog post titled The Art of Multi-apping: How-tos and Strategies for Gig Drivers. It’s a good idea to try multi-apping only after you’ve been driving rideshare for a few months, have worked with both apps separately, and understand how they operate.

There are drivers for whom multi-apping is a vital part of their strategy. Others find it challenging. Some drivers will use one app or another, depending on which company offers better incentives that week. One of the other advantages of multi-apping is that you have a backup. If you encounter a problem passenger and get deactivated due to a complaint, you can immediately switch to the other app until you have resolved the issue. 

Gridwise helps rideshare drivers earn more

The real secret to success as a rideshare driver might not be choosing between Lyft vs. Uber but using the most essential tool for any gig driver—the Gridwise app. The Gridwise app can link to the gig driving apps you use. It allows you to track and analyze earnings, maintain more accurate mileage records, and monitor other gig-related expenses. Tax time is a breeze with Gridwise. 

Gridwise also makes you a more efficient driver. Features such as When to Drive and Where to Drive allow you to be at the right place at the right time. Check out peak airport arrival/departure times so you know when to be there. Gridwise also informs you when sporting events and concerts are letting out, with all those fans needing rides home. 

Oh, and Gridwise is the first app to provide affordable benefits specifically for gig workers. We know what you need and we’ve carefully hand picked providers to give you valuable benefits at a fraction of the cost.

Download Gridwise now

Not a rideshare driver? Gridwise still keeps all your gig work earnings, expenses, and mileage in one place to make tax season stress-free.

And have fun out there!