Roundup

Friday Rideshare Roundup: Lyft is Bringing Back Their Commissions

By August 14, 2014February 10th, 20206 Comments

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4 min read

    4 min read

    Lyft is Bringing Back Their CommissionsWell 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.

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    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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    Top News Stories

    Ride Share News Survey – Here’s a cool survey I’m helping promote that aims to find out what drivers like/dislike about rideshare driving.

    Hailo Goes Guerilla to Take On Uber and Lyft as Ride-Sharing War Heats Up – Uber and Lyft are so busy duking it out they don’t even realize that their real competitors are still taxis.  There are still a ton of taxis on the road and now they’ve finally figured out that instead of protesting innovation maybe they should join the party.

    10 Ads That Show What A Circus The War Between Uber And Lyft Has Become – It seems like Uber is doing a lot more than Lyft to perpetuate this war on rideshare.

    Uber simulated a city to teach drivers how to optimize their earnings – This article kind of got buried in other news this week but I think the results are really cool and kind of align with my own strategy.  I usually wait for 5-10 minutes in the same area that I drop off passengers before making a move.

    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.

    Mike Maples on the future of ridesharing: Uber is U2, Lyft is the Grateful Dead – I tend to agree with a lot of what Maples is saying.  There’s no reason that one company needs to win out over the other, they can both be popular and everyone will win.  More competition is a good thing for passengers and drivers.

    Here’s a list of all the other rideshare articles I read this past week.

    CA Lyft Drivers Need to Get Their Car Inspected.

    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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    Harry Campbell

    Harry Campbell

    I'm Harry, the owner and founder of The Rideshare Guy Blog and Podcast. I used to be a full-time engineer but now I'm a rideshare blogger! I write about my experience driving for Uber, Lyft, and other services and my goal is to help drivers earn more money by working smarter, not harder.