Uber and Lyft are the most well-know private transportation services in the US. Judging by the news coverage of how they’ve both been jockeying for customers, many might think that the two startups operate on a level playing field in terms of financial performance and valuation.
That assumption couldn’t be further from the truth.
According to new research from FutureAdvisor, the competition isn’t even close as Uber is winning by a landslide in every category. By analyzing the credit and debit card transactions of 3.8 million Americans, the firm found $28.6 million was spent across the two services from June 2013 through May 2014.
$26.4 million went to Uber while Lyft accounted for the remaining $2.2 million. Or in other words, Uber’s revenue was about 12 times that of its rival. What’s more, Uber offered up more than seven times the number of rides and gets by with charging significantly higher rates.
On average, a trip with Uber costs $21 while a ride with Lyft only sets the customer back $13.
This may or may not be a surprise depending on how closely you’ve been watching the two companies. As Wired points out, Uber is valued at roughly $17 billion. Lyft, meanwhile, carries a valuation of around $700 million. You’re probably wondering why Uber is so far ahead of Lyft when the two offer practically the same service.
As Forrester analyst James McQuivey points out, much of it has to do with the fact that Uber had a significant head start in the industry. The company was founded in 2009 while Lyft launched in its current iteration just two years ago.