Lyft is sitting back and watching Uber take more and more money from Their driver’s. It is sending more drivers to Lyft, something they need in order to gain percentage on Uber. Will it equate to more riders using Lyft that are currently using Uber? Both Companies are getting plenty of new riders but something new is happening, something that is also very old. Taxi drivers typically hate their Taxi Company, mainly because of the outrageous percentage that is taken from them. Uber seems to be following that same business model but the big difference is Uber has no overhead and no risk, all the risk is assumed by the driver. In the taxi industry at least the taxi company has investment and risk.
Lyft has a program that allows the driver to gain back much of the commission that is taken from each fare, Uber has no such option.
What does all this mean to the rider? It means that the happy Uber driver is no longer happy and the ride experience will suffer. The reason a Taxi ride is so hated is because the Taxi driver is typically so pissed off at almost every ride Your request, too far, too close, to slow or just not perfect for them. Uber drivers will soon be like that but they will fake it so they can get that perfect rating. The rating is what Uber holds over the driver’s head. A 5 star rating system is not understood by most People, a 4 is failure and a 5 is expected. A driver can be fired for averaging under 4.7. Most of the ratings are out of the driver’s control like traffic and bad addresses given for pick up.