Customers love using ridesharing companies to book a driver via a mobile app or website quickly. The convenience and ease we’ve come accustomed to experiencing have led to a higher demand for drivers from popular companies like Uber and Lyft.

Many individuals love the flexibility of driving for ridesharing companies because it allows them to work full-time or part-time to earn some extra money. It’s also a great way for retirees to stay busy and interact with people or an afterwork side hustle to bring in some extra cash. Whether you want to boost your income or fill your free time, before you sign up to become an on-demand driver, you need to decide which company is the best fit for you.

Driving for Lyft

Before you sign up for one company or another, you need to know what the rules, regulations, and pay look like.

Earnings

The majority of potential drivers are likely most interested in how much money they can make. Lyft lets you see the fare you get paid before accepting a ride. You also get to keep 100% of all tips you receive from your passengers. Further, increase your pay by earning weekly bonuses when driving during peak times and to peak locations. Lyft gives you an overview of the best times and where passengers require frequent rides.

All earnings get deposited into your bank account once per week. You can use ExpressPay or a Lyft Direct debit card if you prefer faster payouts.

Requirements

The application itself takes just 30 minutes or less. Then, you need to pass a Lyft vehicle inspection to verify roadworthiness and safety. Lyft will help you find a location to schedule your appointment. Finally, you must pass a background check to review your driving record for safety.

Benefits and Drawbacks

There are several advantages to becoming a Lyft driver:

• Insurance coverage: Driving always comes with some risk of getting into an accident. With Lyft, you get additional auto insurance coverage at no cost to you, which acts as excess coverage after your own policy. This may include commercial auto liability insurance of up to $1 million per occurrence, comprehensive and collision insurance, and bodily injury for uninsured or underinsured motorists.
• 24/7 support and emergency assistance
• Option to leave passenger ratings
• Customer identity is verified using credit card information

Drawbacks:

• Rides and earnings are not guaranteed
• Vehicle maintenence and service costs are the drivers responsibility
• Peak times might not be ideal for your schedule

Customer Interaction

Driving for Lyft is a simple process. Once your application is approved, just open your Lyft app and turn on the driver mode. Accept ride requests sent to you and pick up your passenger on time. Once the ride is completed, you get paid from your passenger’s credit card via the app.

Driving for Uber

Now let’s dive deeper into what you can expect as an Uber driver.

Earnings

Uber, like Lyft, typically pays once per week by transferring your earnings to your bank account. However, you also have the option to use Instant Pay to cash out your payments a maximum of five times every day. This is a fantastic feature if you need fast access to cash. The Uber app tracks your earnings and displays your total so you know exactly what you’ve made at any given time. You can also earn bonuses in the form of Promotions and Quests.

Requirements

If you want to drive for Uber, you need a valid driver’s license, proof of residency in your city and state, and proof of insurance if you drive your own car. You should have at least one year of experience driving. If you are under 25 years old, you need three years of experience. You must submit all the required documents, along with a photo, when you apply. Other requirements include passing a background check and getting your car approved to drive. Once approved as a driver, you can log into the app and start accepting rides.

Benefits and Drawbacks

Benefits for driving with Uber:

• 24/7 support
• You can drive for Uber even if you don’t own a vehicle. Uber has a selection of vehicles available by the hour, by the week, or even longer. All have low rates and come with insurance and basic maintenance.

Drawbacks for driving with Uber:

• Renting a vehicle can be very expensive
• Terms of service can change frequently

You can drive for Uber even if you don’t own a vehicle. Uber has a selection of vehicles available by the hour, by the week, or even longer. All have low rates and come with insurance and basic maintenance.

Customer Interaction

Your customers give you a rating based on their experience, but you also have the power to rate them as well.

Which Company Is Better?

Keep in mind that if you want to succeed as a Lyft or Uber driver, it’s important to carefully consider your personality and preferences. If you are the quiet type that prefers to avoid conversations with strangers, this may not be the job for you. A friendly and open demeanor can help you make a favorable impression that translates to better ratings and more customers. Also, remember that whichever you choose, the responsibility for work-life balance is on you. Making your own hours is an excellent bonus for becoming a Lyft or Uber driver, but plan your schedule carefully to increase your chances of better earnings and support your own health and lifestyle.

After you decide that on-demand driving is a good fit, you must decide which company to choose. A major factor influencing which ridesharing company is best to work for is the market for each of them in your area. Do some research to discover which one is the most popular in your city. While one company may look better on paper, that conclusion won’t do you any good if the service isn’t even available in the area where you plan to drive.

Once you determine if Uber, Lyft, or both are available in your location, you can move on to other deciding factors like pay, company policy, and workers’ treatment to decide which one is best for drivers. Pay rates seem comparable for the most part, although a lot of your earning potential depends on your availability. Ultimately, the better company depends on your preferences and the availability in your area. 

You might also be interested in: How To Become A Lyft Driver In 6 Quick & Easy Steps