Competition between Uber and Lyft is as fierce as ever, with both companies having to show their stockholders and the market that they might turn a profit some day. Lyft recently announced major rate cuts in some markets, and Youtuber Torsten at Rideshare Professor posted a good discussion of new 42 cent rates in Las Vegas.
Take a look at his video, and scroll to the transcript to see the points he covers.
42 cents per mile in Las Vegas?
In the race between Uber and Lyft to finally show profits, I think that Lyft is going to extremes and it’s going to really, really hurt them. Lyft in Las Vegas is cutting rates down to 42 cents per mile effective August 14th. XL will and pay out 92 cents per mile.
Get advanced tactics and earn more! Maximum Ridesharing Profits has my top tips for earning more money. Click here to enroll.
If this is true, Lyft is committing suicide, right there and then. They can literally kiss those drivers goodbye. They will leave, they will go over to Uber.
I’m not sure what they are planning in the future. They believe that they’re gonna roll out this type of payment model in other cities. But it goes against everything that drivers are demanding, and that is an increase in pay. If you want to do anything, Lyft, increase the rates for Vegas passengers, for riders, and pass on a percentage of those earnings.
Our Top Tips for Drivers:
This is the exact opposite. If they roll out on this, I want feedback from the Vegas drivers. I’ve just been there.
Will anyone drive at these rates?
This is shocking. No one in their right mind should drive for these rates, right? And if they do switch to this, I ask you to leave, just focus on one platform only.
You cannot make money in this model. It makes zero sense at all. And they are testing this in the Vegas market. Like I said, August 14th. If this is true, I want to see screenshots. And take a couple of screenshots right now, of your Vegas regular trips and your XL trips, and let’s compare them with the new rates in one week’s time. Let’s compare apples and oranges here, and let’s see how much this goes down. And maybe drive for one or two days only.
This spells disaster if they want to introduce this formula and cut down to these type of rates. Who’s going to drive around for five miles and make $2.10 on the mileage rate? Right? Then another pathetic 18 cents on the per minute.
If I go over to this graph, these are the current Vegas Lyft rates for the six different categories. That looks very, very, very different. It almost looks like they’re cutting it in half. Do they think that drivers will actually continue driving at those rates? I don’t think so. I think a lot of Lyft drivers will pack up.
Is it the end goal to destroy their own Vegas market? I don’t think so. So why would you make these type of decisions? Now we understand that Lyft is losing money everywhere. But you’ve got to really figure out a plan, how to keep your act together and start pushing this company into a plus.
This is going to create the exact opposite. If you believe that you are going to introduce these rates in August, buckle up Lyft, you have a surprise coming your way.
Ready to Maximize Your Ridesharing Profits?
Maximum Ridesharing Profits is The Rideshare Guy's online video course. Enroll to learn how rideshare veterans earn more, spend less, and treat rideshare driving like a real business.