What it’s worthwhile to find out about Uber, Lyft and different app-based mostly automotive providers

What you need to know about Uber, Lyft and other app-based car services

For the primary time final month, I requested a automotive utilizing a smartphone. The app appropriately guessed my location utilizing GPS, gave me a ballpark arrival time with an actual-time map and even estimated the fare. A well mannered driver arrived on time and whisked me to my vacation spot. Once I tried to pay and tip, he defined that the cost was already taken (I might obtain a receipt by e-mail quickly) and that the service (Uber) forbade tipping.

Wait, what? No haggling, baggage charge, bank card refusal, time wasted on receipts and even tipping? This was an epiphany! However skilled taxi drivers who pay hundreds of dollars for a license are understandably not thrilled about these providers. Neither are many cities (and areas) that acquire these charges and say that Uber/Lyft/and so on. are harmful or improperly insured. The results of this conflict, so far, is chaos: bans, mass demonstrations and even violence. Regardless of all that, ridesharing poster youngster Uber was just lately valued at $17 billion. So, will app-pushed automotive providers achieve traction or be run out of city?


Uber and Lyft are one of the best-recognized providers, however different gamers embrace Sidecar, Wingz, Summon and Hailo. In Europe, there’s additionally LeCar, SnapCar, BlaBlaCar, Djump, Heetch and Carpooling.com. Uber has a number of barely totally different providers: It nonetheless operates its limo-type UberBLACK, which requires drivers to have a business chauffeur license and insurance coverage. Taxis can now join a service referred to as UberTAXI with their present permits and insurance coverage. Lastly, there’s the pure ridesharing service UberX and a good cheaper model referred to as UberPOP. For its half, Lyft, with its pink ‘stache, is ridesharing-solely, however lately introduced Lyft Plus, a premium service it says is cheaper than aggressive choices.

Consider it or not, Sidecar and Lyft solely launched two years in the past. Uber arrived in 2009, however was simply limos with apps till UberX launched in 2012. Oddly, the businesses type themselves as “peer-to-peer transportation” platforms, not passenger providers. So why the slippery terminology? We’ll cowl that quickly, however it’s largely about licensing, permits and insurance coverage.

What you need to know about Uber, Lyft and other app-based car services

When you drive for Uber, Lyft or Sidecar, you do not want a business license. Nevertheless, all of the providers require a clear driving report and Division of Motor Automobiles (DMV) verify. Additionally they carry out a ten-yr background examine to make sure drivers have by no means been convicted of a violent crime, sexual offense or DUI (for instance). Uber, Lyft, Sidecar and others additionally supply legal responsibility insurance coverage for drivers, passengers and pedestrians for as much as $1 million, however provided that the driving force’s private insurance coverage does not cowl an accident. Each Uber and Lyft now levy a $1 per-experience cost for insurance coverage.

A driver who works for all three corporations in San Francisco (let’s name him “Jasper”) informed me that Lyft and Sidecar encourage drivers to be additional-smiley and pleasant, full with fist bumps. He added that Lyft tends to overdo it, nevertheless, and a few drivers “do not drink the Kool-Help” and are not loopy concerning the “look-at-me” pink mustaches — which are not optionally available, by the best way.


What you need to know about Uber, Lyft and other app-based car services

Most ridesharing corporations have a smartphone app that works on iOS and Android. You have to enroll and provides your private particulars, together with a bank card or PayPal account. If you’re able to discover a experience, all of them work about the identical. You’ll be able to enter your location based mostly in your GPS coordinates, and add your vacation spot for those who want a worth estimate. With Sidecar, you should enter your vacation spot once you order a automotive. Most will inform you how shut the closest journey is in minutes, and present the automotive arriving on a map. You will additionally get the identify of your driver, their general score (for Uber and Lyft, it is on a scale of 1 to 5) and the kind of automotive they’re piloting.

The closest driver is dispatched based mostly on their GPS location, and simply earlier than they arrive, you will obtain a textual content message. “Jasper” advised me that Uber’s driver app will not transmit your vacation spot to the driving force, in contrast to Lyft’s and Sidecar’s apps. As an alternative, he has to enter it manually when the passenger arrives, so most Uber drivers pack a second telephone or GPS. Nevertheless, as talked about, Sidecar clients should enter a vacation spot, which drivers like because it provides them an in depth concept of their fare. He stated that lots of his clients keep away from Sidecar for a similar cause, although — they’d relatively not be bothered.

What you need to know about Uber, Lyft and other app-based car services

Once I used UberX a few half dozen occasions on a current journey to San Francisco, not one of the drivers had a score lower than four.7 out of 5. Nevertheless, the standard of automobiles different. I rode in an older, not-very-fancy (however clear) Toyota Corolla and in a brand new, deluxe Honda Accord. Some drivers have been very conversant in the town and drove me effectively to my vacation spot (I checked), however a number of occasions, they overshot it or took a fallacious flip. By the way, Uber drivers maintain monitor of passenger scores, too, however hold them underneath wraps to keep away from confrontations — a low sufficient passenger score can get you kicked off the service. The one solution to discover out is to ask a driver, who might or might not reveal it. I used to be advised that on all three providers, if both you or your driver provides a score of three out of 5 or much less, you will by no means be paired collectively once more.


When you arrive, the driving force will cease the “meter” and that is it. You possibly can simply say “bye” and cut up as a result of your fare has already been calculated and the cost taken mechanically. Tipping is not permitted on most providers, although 20 % is routinely added on UberTAXI (that may be modified globally). So how a lot does it value? That relies upon, however the chart under for San Francisco — the house base of Lyft, Uber and Sidecar — gives a tough concept. A lot of the providers are available round 10 to 30 % lower than a daily taxi… with some big caveats. Uber’s notorious “surge” pricing, for example, might make a visit far more costly relying on demand, whereas Lyft’s completely happy hour pricing might make it less expensive (which aggravates some drivers). UberBLACK, XL and VAN providers are greater, extra in keeping with the worth of a taxi or limo.

San Francisco Rideshare/Cab (common charges) UberX Lyft Taxi Base Fare $three.00 $2.25 $three.50 Per Minute (ready-just for taxis) $zero.30 $zero.27 $zero.fifty five Per Mile $1.50 $1.35 $2.seventy five Protected Experience (or comparable) Payment $1.00 $1.00 $zero.00 Minimal Fare $6.00 $5.00 $three.50 Cancellation Charge $5.00 $5.00 NA Worth for five mile, 15 minute experience $sixteen.00 $14.05 $18.ninety five

[Supply: Uber, Lyft, SFMTA — assumes 4 minutes of visitors/pink mild delays for cabs]

Sidecar permits drivers to pick their very own charges — both decrease or as much as 1.25 occasions greater than the so-referred to as group common (the corporate does not submit these figures). That lets customers decide a driver with a low payment or, say, a excessive score. Jasper informed me, nevertheless, that Sidecar gives drivers another fascinating choices. For example, throughout their very own commute, drivers can decrease their minimal fee drastically to make sure they’ve a fare, relatively than driving empty. If a neighbor goes to work on the similar time, as an example, the driving force might give him an affordable experience day-after-day — a win-win deal.

How a lot fee ridesharing corporations take is one other fascinating facet. Jasper stated that proper now, Uber is charging a 20 % fee, whereas Lyft is charging zero in San Francisco. (He added that charges appear to drop when corporations get new rounds of funding.) As well as, drivers may be provided bonuses for recruiting different drivers — Uber is reportedly providing as much as $500 for brand spanking new recruits proper now.


It is exhausting to see the draw back of ridesharing for passengers. The elevated provide of automobiles makes it simpler to discover a journey, for one factor — even should you choose taxis. It additionally avoids the traditional calling or wandering round to hail a cab, and provides you a standing of your experience from the second you request it. It is typically cheaper than a cab, and there is not often a dispute about undesirable charges or questionable route selections. And the score methods assist hold drivers (and passengers) trustworthy.

From a ridesharing driver’s perspective, it is principally all good, too. You will by no means get stiffed on a fare, and the providers usually shuffle automobiles round effectively, minimizing downtime. The pre-registration course of and automated journey-logging additionally add a security issue for each events. In fact, most cab drivers would fairly that ridesharing providers go away. They see them as novice interlopers who pay no hefty charges, however steal valuable fares. As identified by The New Yorker, if peer-to-peer transportation corporations proceed on their present trajectory, they might put a variety of taxi drivers out of enterprise. That might transform dangerous for passengers in the long run, too — with much less competitors, fares would go up.


What you need to know about Uber, Lyft and other app-based car servicesA demonstrator kicks a automotive, suspected to be a personal taxi, throughout a protest in Madrid, Spain.

The ridesharing problem has two loud camps — which have actually come to blows prior to now. Cab drivers name Lyft and Uber companies-for-revenue — not “peer-to-peer transportation” — and consider they need to pay the identical license charges and insurance coverage as taxis. Cities, states and nations really feel the identical, in lots of instances. Uber began up in Vancouver in 2012, however was shortly shut down on the grounds that it was technically a limousine service and needed to cost a minimal of $seventy five per journey. Equally, it was barred in Virginia and is technically unlawful in all of Belgium.

As well as, although Uber now does thorough background checks, it wasn’t all the time so cautious. Following an investigation by the Chicago Tribune, it needed to apologize for hiring a driver with a felony conviction and was pressured to redo hundreds of driver screenings. Different black marks embrace an allegation of kidnapping towards one Uber driver (the cost was dropped), and questions of insurance coverage gaps for passengers. The brand new $1 charge for “passenger security” and insurance coverage addressed these points, however one pundit famous that it was like paying a charge not to get assaulted.

What you need to know about Uber, Lyft and other app-based car services

However, taxis have a horrible fame in lots of cities. Based on the Washington Publish, some 12,000 complaints have been filed towards cab drivers in Chicago via the town’s Enterprise Affairs and Shopper Safety fields, or round 33 per day. Amongst these, one passenger cited a driver that left him on the curb when the driving force noticed that he had a information canine, whereas one other cabbie refused a buyer that needed to pay with a bank card. Worse, many drivers have been cited for racist conduct or flat-out harmful driving. Ridesharing providers say their drivers can be banned on the first signal of such conduct, or weeded out by awful buyer scores. Additionally they say there would not be a requirement for his or her providers within the first place if cab corporations did not mistreat clients so poorly.


What you need to know about Uber, Lyft and other app-based car services

One of the simplest ways to seek out out if ridesharing providers are for you? Seize one of many apps, enroll and provides it a whirl. You will discover them by looking for Sidecar, Uber, Lyft, et al on the iOS and Google Play app shops. Sadly, not one of the main gamers have official Home windows Telephone apps in the mean time — Uber did at one level, however the app was pulled. Uber additionally has a BlackBerry app. Lyft’s, Uber’s and Sidecar’s blogs element new metropolis places, service modifications and different information. Uber additionally makes use of its blogs to debate controversial subjects, just like the banning of automobiles in Brussels. You possibly can take a look at the Washington Publish’s story concerning the litany of Chicago taxi complaints, the Day by day Beast’s argument towards Uber’s $1 “security” charges and why ridesharing insurance coverage complications might worsen. Forbes’ function particulars the competitors between Uber and Raise whereas GQ’s Uber Cab Confessions touches on the business’s sordid aspect. Lastly, we right here at Engadget have coated Lyft, Uber and Sidecar intently since ridesharing turned “a factor.”

Replace: Hailo reminded us that you simply “have to be licensed by native regulators” to drive on its community. The article beforehand said that no business license was required on Hailo. It has been up to date with the right info.

[Image credits: AP (Lyft); Uber (Passengers, Car interior and London); Lyft; Paul White/AP (Protestor); Justin Sullivan/Getty Images (Taxi and Lyft)]

Do you employ an app-based mostly automotive service in your transportation wants?

 Cover Feedback zeroFeedback

Featured Tales
Examine Your Devices

What you need to know about Uber, Lyft and other app-based car services

Immediately examine merchandise aspect by aspect and see which one is greatest for you!

Attempt it now →