Working for Uber is a great thing, and
that’s not just because of its flexible platform. Cab
app driver payouts happen to
be an integral segment of the success of Uber’s business model.
Especially, with dynamic pricing strategies like ‘Uber Surge’ and
‘Lyft Prime’, drivers can figure out the immense revenue
enhancing possibilities that open up with their continued association
with Uber.
Today we look at these two dynamic
pricing tactics and see which one scores better than the other.
Why is it important to choose the
right platform?
Choosing the appropriate platform can
make a huge difference. The driver’s earnings can increase from $10
per ride to $50 per trip. Therefore, it becomes extremely essential
to know about these platforms for assessing an idea of the total pay.
Before diving deep into the discussion,
let’s check out the crucial parameters for this comparison.
- Prime Time v/s. Surge: Comparing the UI
Uber displays surge pricing in a unique
manner. With multi-colored tiles on the ‘Uber Partner Application,'
Uber shows the surge pricing rates and demands. Colors vary from
yellow and orange to red and blood red. Users will have to zoom in
the exact tile for a crystal clear idea of the surge prices.
When the ‘red’ hue gets deepened,
it’s time to understand that surge pricings are quite high. Once
you opt for a ride, drivers will receive notifications along with
surge pricings. They will have the option to choose or decline the
ride.
When it comes to Lyft Prime Time, the UI
happens to be lag behind the Uber Surge UI. Although the Lyft Prime
Time application displays surge rates and pricings, it’s not quite
clear. The platform uses two colors to display Prime Time rates and
levels-magenta and pink. Differences in shades create further
problems, as users fail to understand the true meaning of the
respective tiles. Lack of transparency in the platform can be cited
as a potential reason for it. Drivers fail to decode surge pricing
rates at the right moment, which reduce their income opportunities.
- The Verdict
If User Interface is the first parameter
for comparison, then Uber Surge comes out as the clear winner with
its shading and instant visibility.
- Side-by-Side: Uber vs. Prime Time
Knowing about surge rates in advance will
prove to be tremendously beneficial for drivers. However, that’s
not what Lyft thinks. While Uber displays surge pricings on a
particular ride well in advance, Prime Time refuses to do that. The
company might be under the notion that knowing about surge pricings
in advance will result in cherry-picking. Drivers will choose the
highly profitable ride options and simply decline the others.
- The Verdict
In this particular case, the verdict is
indeed interesting. By displaying surge pricings in advance, Uber
attracts more drivers to the platforms. With numerous driver-partners
joining in, the price surge will automatically come down. What is of
paramount importance is Uber’s success in getting more drivers and
vehicles on road.
Prime Time lags way behind, as drivers
don’t get the hang of the price surges. That results in
never-ending wait times for customers, leading to frustrations and
inconvenience. This also brings down the loyalty factor and the fear
of riders adopting other taxi booking services.
- Refresh Rates: Prime Time vs. Surge
The refresh rates also play a vital role
in this context. Whether it’s Uber’s Surge or Lyft’s Prime
Time, refresh rates can make a huge difference. Lyft takes about 2
minutes while Uber’s Surge refreshes within a minute or so. Such
minute differences can have bigger impacts on rides.
Difference in refresh rates presents a
different picture to drivers and passengers. Ride rates seen by
passengers are quite different from that of drivers. Simply put,
drivers receive payments according to what passengers see while
booking a ride.
- The Verdict
With shorter refresh times, Uber’s
Surge happens to be the clear winner yet again. Drivers will not have
to bear the brunt of low payoffs for long.
- Surge or Prime Time: Which is more?
When it comes to the area of operation,
Uber covers a larger area compared to Lyft. While Uber targets large
chunks of a city, Lyft has its core areas of operation. Lyft’s
Prime Time focuses on small areas, which leads to a massive price
hike. In a given point of time and place, Prime Time might also
charge around 200% extra, whereas the other parts of the city are
within normal pricings.
- The Verdict
By offering rideshare services to a wider
area, Uber wins the crown yet again.
- Presence of price caps: Uber vs. Lyft
Other than natural calamities, Uber’s
Surge comes without price caps. On the other end, Prime Time capped
its pricings at 200% but stopped doing it from February 2016.
When it comes down to price surges, Uber
will hit the 3.0x or 4.5 x marks whereas Prime Time will stay at
200%.
- The Verdict
The consequence is quite clear in this
context. Uber’s Surge wins hands down.
- Guarantees: Lyft vs. Prime time
Those working for Uber are quite aware of
this aspect. The company offers surge guarantees to some of its
specific partners. You have to be lucky to get the offer, which is
often available at a particular place over a specific period.
- The Verdict
Quite unlike the other cases, the verdict
is quite different in this context. If you consider the ease and
flexibility of use, Lyft happens to be a far better option than Uber.
The platform doesn’t make its own choices. Rather, drivers have
equal opportunities to reap the benefits of Guaranteed Prime Time.
Lyft will notify all the partners about
Prime Time guarantees together, thus giving them a chance to increase
their profits.
What about payoffs?
Whether they are working on part-time
verticals or full-time job arrangements, every driver-partner will
wish to have the highest payoffs. There’s no denying the importance
of high revenues and earnings.
When it comes to assessing income
opportunities offered by ‘Uber Surge’ and ‘Lyft Prime Time’ a
majority of drivers vote for Uber. As drivers have the opportunity to
check out surge pricings in advance, they will get the benefit of
choosing profitable rides. When you are driving for Uber and know
your ride is on a surge, you will not have to face overbearing
stress.
Surge happens to be the greatest option
for numerous drivers. Especially, those choosing to work for this
platform on a part-time basis find it highly profitable, convenient,
and beneficial. However, that isn’t the case for full-time drivers.
With the ‘Power Driver Bonus’ option offered by Lyft, ‘Prime
Time’ seems to be a better option for them.
Parting thoughts
It’s not always about the figures and
statistics. A unique driving experience is also important. You might
be making enough money, but fail to achieve the desired driving
experience. Therefore, it’s highly imperative to choose an option
that offers a perfect combination of high revenues and amazing
driving experiences.
Whether you are a seasoned driver or a
new entrant in the taxi
software business, Uber’s
surge will prove to be a better option than Prime Time. For the best
experience, make sure you place your bets on the uber clone apps.
