Ride-sharing platforms from drivers’ perspective: Evidence from Uber and Lyft drivers

Abstract

Uber and its main competitor Lyft are competing aggressively to attract more drivers and in turn limit the access of their competitors in the drivers’ supply base. To control the supply side, it is important to analyze the ride-sharing platforms from drivers’ perspective. Using Uber and Lyft drivers’ online reviews, it is shown that drivers are slightly rating Uber higher than Lyft. Addi- tionally, comparing Uber and Lyft rating trend over time, the analysis shows that they are closely competing to attract more drivers. On the aggregate level, drivers count job flexibility, work/life balance, and meeting new people as the main advantages of working in the ride-sharing platforms. On the other hand, the results show that drivers suffer from insufficient compensation of their operating costs, poor job security, experiencing bad riders’ behavior, and poor customer service.