Well we knew it was going to happen eventually, but now it’s official. On Monday, Lyft announced that they would be bringing back commissions in a revamped form that rewards drivers with lower commissions the more you drive. Lyft will still take a 20% commission if you drive less than 15 hours during a given week but anything over that will result in a reduced commission.
Based off the reactions I’ve seen, there are a lot of upset drivers and I feel their pain. It’s human nature to get upset when you’re given something good and then it’s suddenly taken away. In this case, drivers were getting 100% of the fare and even though we knew it was only temporary it still stings when Lyft wants to start taking their cut again.
In my opinion, Lyft’s marketing team screwed up. There are much better ways they could have handled this promotion and I wouldn’t be surprised to see a lot of drivers switch back to Uber. Although the prices might seem similar, a dollar or two here and there can really start to add up when you’re doing hundreds of trips.
If you haven’t already checked out my Lyft vs. Uber Fare Comparison for Every US City spreadsheet I advise you to take a look and see whether you’ll be making more money driving for Lyft or Uber once commissions come back. The results are skewed pretty heavily in one direction, can you guess which company wins?
Related Article: Do Drivers Make More Money With Lyft or Uber?
Even though it’s now apparent which service you will make more money driving for, I think there are a lot of fringe benefits to consider too. I’ll be posting an article on Monday that will talk about which company you would rather drive for when you take into account the whole picture: getting tips, quality of passengers, number of requests and more.
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Uber Adds Turn By Turn Directions to its App – For a technology company, it sure did take Uber a while to figure this one out. Unfortunately the Uber iPhone still forces you to use CrApple Maps (see what I did there?!) so I’ll stick with Google Maps and the navigation on my smart phone.
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Here’s a list of all the other rideshare articles I read this past week.
Readers, what do you think about Lyft bringing back commission and the ongoing Uber vs Lyft war? Were there any other news stories that caught your interest this week?
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-The Rideshare Guy