20+ Differences between Lyft And Uber (Explained)

Who has not booked a cab or taxi online in today’s world? Hardly anyone would have no idea about two of the most common ride-hailing services: Lyft and Uber. Lyft and Uber are so similar that people often confuse these two companies and use the terms interchangeably.

This is because Lyft and Uber are so similar yet so different. Lyft and Uber are two popular companies that were first launched in the United States of America (USA) that aim to provide on-demand transportation. Lyft was launched in the year 2012, while Uber was launched in the year 2009.

Comparison Between Lyft And Uber

Parameter	Lyft	Uber
Meaning	A growing American company that provides on-demand transportation services.	A comparatively more established American company that provides on-demand transportation services.
Founded By	John Zimmer and Logan Green founded it.	It was founded by Garret Camp, Oscar Salazar, and Travis Kalanick.
Founded In	It was founded in the year 2012.	It was founded in the year 2009.
Business Model	It is a peer-to-peer (P2P) business model.	It is a multisided production business model.
Countries	It operates in only two countries.	It operates in approximately 71 countries.
Size	It is comparatively a smaller company than Uber.	It is comparatively a bigger company than Lyft.
Services	The various transportation services offered by Lyft are Lyft, Lyft line, Lyft Plus, and Lyft Premier.	The various transportation services offered by Uber are Uber X, Uber Comfort, Uber XL, Uber SUV, Uber Pool, Uber Black, Uber Black SUV, Uber WAV, and Uber Taxi.
Market Share	It has a smaller market share in comparison with Uber. Its market share is estimated to be 31 percent.	It has a bigger market share in comparison with Lyft. Its market share is estimated to be 68 percent.
High Demand	“Primetime” is a phrase that is used to denote high demand for Lyft.	“Surge pricing” is the term that is used to denote high demand for Uber.
Price	In comparison with Uber, Lyft is comparatively cheaper.	In comparison with Lyft, Uber is comparatively expensive.
Average Price	Lyft’s average price is estimated to be $27.	Uber’s estimated price is estimated to be $32.
Price Calculation	A percentage-based formula is used in the price calculation of Lyft.	A multiplier model is used in the price calculation of Uber.
Prices during high demand	When there is a high demand, Lyft increases the prices by 7 to 8 times.	When there is a high demand, Uber increases the prices by 2 to 3 times.
Heat Map	Lyft uses a comparatively smaller heat map than Uber.	Uber uses a comparatively bigger heat map than Lyft.
Tips	Lyft has always allowed its customers to tip the drivers through their app.	Uber did not motivate its customers to tip the drivers, but recently, they allowed them to tip through their app.
Controversies	Lyft has always avoided controversies surrounding the company.	Unlike Lyft, Uber has always gotten involved with the controversies surrounding the company.

Major Differences Between Lyft And Uber

What exactly is Lyft?

Lyft is an American company that is known for providing on-demand transportation services. It was launched in the year 2012 by John Zimmer and Logan Green.

Talking about Lyft’s business model is a peer-to-peer (P2P) business model. One of the unique features of Lyft is that it only operates in the United States of America and Canada.

It offers services very much as Uber does. Lyft offers various transportation services: Lyft, Lyft line, Lyft Plus, and Lyft Premier.

Heat maps are a way to indicate busy areas, Lyft charges more for those areas, but one of the best features of Lyft is that its heat maps are smaller than Uber’s, and this help people to go to normal areas usually by walking a little.

Features of Lyft

A transportation service provider American company.
John Zimmer and Logan Green founded it in the year 2012.
It operates only in the United States of America and Canada.
It is a peer-to-peer (P2P) business model.
Its market share is estimated at 31% in ride-sharing and ride-hailing services.
Lyft offers affordable and friendly services to its customers.
According to 2021 statistics, a Lyft ride average costs $27.
The different types of rides offered by Lyft are Original Lyft, Lyft XL, Lyft Lux, Lyft Black, and Lyft Black XL.

Key Differences Lyft

Lyft is an American company that was launched in the year 2012.
John Zimmer and Logan Green are the founders of Lyft.
Lyft operates only in the United States of America and Canada.
The number of transportation services provided by Lyft is less than Uber.
The different types of transportation services provided by Lyft are Original Lyft, Lyft XL, Lyft Lux, Lyft Black, and Lyft Black XL.

What exactly is Uber?

Like Lyft, Uber is an American company known globally for its on-demand transportation services.

It was launched in the year 2009 by Garret Camp, Oscar Salazar, and Travis Kalanick. Uber is a gigantic company that operates in almost 71 countries. Speaking of its business model, it has a multisided platform business model.

It has numerous transportation services: Uber X, Uber Comfort, Uber XL, Uber SUV, Uber Pool, Uber Black, Uber Black SUV, Uber WAV, and Uber Taxi.

Just like Lyft, it also uses heat maps to indicate busy areas and demand, but its heat areas are generally large, which does not enable people to walk out and get into a normal area.

Features Of Uber

A well-known American company that provides transportation services in many countries of the world.
It was founded by Garret Camp, Oscar Salazar, and Travis Kalanick in the year 2009.
It operates in 71 countries of the world.
It is a multisided platform business model.
Its market share is estimated to be 68% in ride-hailing services.
Uber offers a few expensive and professional services to its customers.
According to the 2021 statistics, an Uber ride average costs $32.
The different types of rides offered by Uber are Uber X, Uber Comfort, Uber XL, Uber SUV, Uber Pool, Uber Black, Uber Black SUV, Uber WAV, and Uber Taxi.

Uber

Uber is also an American company that was launched in the year 2009.
Garret Camp, Oscar Salazar, and Travis Kalanick are the founders of Uber.
Lyft operates globally in approximately 71 countries.
Lyft offers more variety of transportation services than Lyft.
The different types of transportation services provided by Uber are Uber X, Uber Comfort, Uber XL, Uber SUV, Uber Pool, Uber Black, Uber Black SUV, Uber WAV, and Uber Taxi.

The Contrast Between Lyft And Uber

Meaning

Lyft: A growing American company that has existed for over a decade and is known for its on-demand transportation services.

Uber – A more established American company which is existed for more than nine years and is known for its on-demand transportation services.

Founded by

Lyft: John Zimmer and Logan Green are known as the founders of Lyft.

Uber – Garret Camp, Oscar Salazar, and Travis Kalanick are known as the founders of Uber.

Founder in

Lyft – Lyft was founded in the year 2012.

Uber – Uber was founded in the year 2009.

Business Model

Lyft – Lyft follows peer–to–a peer (P2P) business model.

Uber – Uber follows a multisided platform business model.

Operates in

Lyft – Lyft operates in only countries.

Uber – Uber operates in almost 71 countries.

Size

Lyft – Lyft is a small growing company.

Uber – Uber is a gigantic company.

Transportation Services

Lyft: The different kinds of transportation services offered by Lyft are Original Lyft, Lyft XL, Lyft Lux, Lyft Black, and Lyft Black XL.

Uber – The different kinds of transportation services offered by Uber are Uber X, Uber Comfort, Uber XL, Uber SUV, Uber Pool, Uber Black, Uber Black SUV, Uber WAV, and Uber Taxi.

Market Share

Lyft: Compared to Uber, Lyft has a comparatively smaller market share. Its market share is estimated to be 31 percent.

Uber – Compared to Lyft, Uber has a comparatively larger market share. Its market share is estimated to be 68 percent.

High Demand

Lyft – The phase of high demand is known as “prime time” on the Lyft app.

Uber – The phase of high demand is known as “surge pricing” on the Uber app.

Calculation of Price

Lyft: A Percentage based formula is used in the calculation of prices for Lyft.

Uber – A Multiplier model is used in the calculation of the prices of Uber.

Price

Lyft: The prices of Lyft are comparatively lower than that of Uber.

Uber – The prices of Uber are comparatively higher than the prices of Lyft.

Average Price

Lyft: The average price of Lyft’s transportation service is $27.

Uber – The average price of Uber’s transportation service is $32.

Prices during increased demand

Lyft: During peak times, when there is a high demand, the prices of Lyft are increased by 7 or 8 times.

Uber – During high demands, Uber prices usually increase by two times.

Heat Map

Uber – Uber uses bigger heat maps so that people have no choice but to pay extra prices.

Lyft: Lyft uses smaller heat maps to indicate peak times and areas. The use of smaller heat maps benefits people as they can walk a little to reach a normal area, and they end up saving money for peak time.

Tips for the driver

Lyft: Since the beginning of Lyft, it has allowed people to tip drivers via their app.

Uber – Uber did not motivate tips for drivers since it was launched, but recently it added the feature of giving tips in its app.

Interaction of Controversies

Lyft – Unlikely, Lyft has always liked to stay silent on its controversies.

Uber – Unlike Lyft, Uber has always responded and got involved with the company’s controversies.

Types of transportation services offered by Lyft and Uber

Lyft

Original Lyft – This is the most common type of Lyft, which allows up to four people in a regular vehicle.
Lyft XL – When there are generally more people that can not fit in Original Lyft, Lyft XL comes into play which allows five people in a comparatively larger vehicle.
Lyft Lux – Lyft Lux is the beginning stage of premium cars offered by Lyft. It provides customers a luxury experience with a Sedan/SUV, leather seats, and a driver rating above 4.8.
Lyft Black – As the name suggests, Lyft Black offers a luxury black car with a leather seat and a high-rated driver.
Lyft Black XL – Lyft Black XL is similar to Lyft Black, except Lyft Black XL that it offers seats for up to six people instead of 4.

Uber

Uber X – Uber X is the primary and most used Uber service, which provides travel for four people in a regular car.
Uber Comfort – As the name suggests, Uber Comfort is known for comfortable car rides. It usually includes new cars, comfortable seating, and drivers with experience.
Uber XL – A bigger car generally allows up to six people to sit or four with luggage.
Uber SUV – As the name suggests, Uber SUV provides an SUV that allows six people to travel.
Uber Pool – It is one of the affordable methods of traveling through Uber. This method of traveling lets people get in a Uber car which has all the passengers that are going in the same way and have different stoppages.
Uber Black is a luxury ride in a black car that aims to provide a luxury experience to its clients.
Uber Black SUV – It is a luxury black colored SUV whose aim is as same as the Uber Black.
Uber WAV – The WAV in Uber WAV stands for “wheelchair accessible van,” which is an accessible method of traveling for people who use a wheelchair and have difficulty traveling.
Uber Taxi – This service lets people book a typical yellow-colored taxi.

Conclusion

Lyft and Uber are two of the most widely used apps that provide on-demand transportation services.

The nature and business of both companies are so similar that they often confuse people. But despite all the similarities, both companies have various differences.

For example, Uber is a gigantic company with a market share of 68 percent that exists in almost 71 countries.

In comparison, Lyft is comparatively a smaller company with a market share of 31 percent that exists in only two countries. In addition, the cost of Lyft rides is considered less than that of Uber rides.

Frequently Asked Questions (FAQs)

Q1. What are the different transportation services offered by Lyft and Uber?

The riding services offered by Lyft are Lyft, Lyft line, Lyft Plus, and Lyft Premier. And the riding services offered by Uber are Uber X, Uber Comfort, Uber XL, Uber SUV, Uber Pool, Uber Black, Uber Black SUV, Uber WAV, and Uber Taxi.

Q2. What are the main countries where Uber operates?

Some major countries where Uber operates are the United States of America (USA), Australia, Canada, India, Israel, Italy, Japan, South Korea, New Zealand, Pakistan, Saudi Arabia, Spain, the United Kingdom, the United Arab Emirates, etc.

Q3. Who are the founders of Lyft and Uber?

John Zimmer and Logan Green are known as the founders of Lyft, and Garret Camp, Oscar Salazar, and Travis Kalanick are known as the founders of Uber.

Q4. What are the major differences between Lyft and Uber?

The major differences between Lyft and Uber are –
1. Uber was founded in 2009, whereas Lyft was founded in 2012.
2. Uber operates in almost 71 countries, whereas Lyft operates in only two countries.
3. Uber is a big company, while Lyft is comparatively a small company.
4. Uber is comparatively an expensive option.
5. Uber has a market share of 68%, whereas Lyft has a market share of 31%.