Uber and Lyft are making a big splash in the ridesharing market by competing head to head with each other, public transportation, cab companies, and carpools. The interesting fact is that they are more focused on knocking each other out of the market than the rest of the competition. And, it’s a heated competition on and off the road.
There are many similarities when you compare them side by side. Both use their own smartphone app to connect passengers with drivers who are for hire, using their own vehicles. On this app, customers may request rides and track their reserved vehicle’s location. The fare charge includes fees for per minute, per mile, minimum fare, and safety fee. They both also have a “surge pricing” for peak times during the day.
The Lyft brand in more recognizable than the Uber brand. Have you noticed those pink mustaches on cars? Most drivers place that pink mustache to the front of the car for identity, leading toward brand awareness. The Lyft brand differentiates itself by being more personal than Uber. The moustache lends itself to a more casual brand and it does not stop there. The drivers allow you to sit in the front seat instead of the back and the more chauffer-driven Uber. Uber drivers are not allowed to be tipped, but Lyft encourages tips and has a reminder set at the end of the ride. This personalization extends to Lyft social media channels of Facebook and Twitter. The tone of Lyft’s facebook is more personal showing driver and rider experiences, while Uber is more corporate with of a sales tone.
The overall goal of each company is sales. How do increase sales? Offer a service where the customer is happy and feels engaged. According to the image below, Uber is the clear frontrunner with over 92% of rideshare between the two companies.
Lyft has a lower price point and Uber has been in business longer, but for the past year, it is evident that Uber wins…for now. So, does brand recognition equal sales? For now, it does not, but I believe that personal touch of Lyft will win over Uber in the future.
Griffith, Erin . (2014, September 11) Uber vs Lyft: The credit cards don’t lie. Retrieved September 13, 2014 from http://fortune.com/tag/lyft/
Lyft. (n.d). Official Twitter Account. Retrieved September 13, 2014 from https://twitter.com/Lyft
Lyft. (n.d). Official Facebook Account. Retrieved September 13, 2014 from https://facebook.com/Lyft
Uber. (n.d). Official Twitter Account. Retrieved September 13, 2014 from https://twitter.com/Uber
Uber. (n.d). Official Facebook Account. Retrieved September 13, 2014 from https://facebook.com/Uber