This is an archived article that was published on sltrib.com in 2016, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.
Everette Bacon uses Uber or Lyft every day, so he lists many reasons why the ride-hailing services have tripled their Salt Lake City-area business in the past year.
Bacon says he can get to work using them in less than 15 minutes. "It saves an hour" compared to public transit, which requires him to transfer from bus to train.
"I don't have to tip," says Bacon, who is blind, and is president of the National Federation of the Blind of Utah. When he used taxis, he says he was pressured for tips. "If I didn't have my money organized ahead of time, I often wouldn't get any change back." Payment to Uber and Lyft is handled electronically by smartphone.
Bacon says Uber and Lyft have decreased fares several times during the past year to seek new riders. Going from his home near the University of Utah to his job near Salt Lake City International Airport now costs him about $9.
"I consider it my car payment," he says, adding that people like him could be money ahead by skipping the expenses of a vehicle and relying instead on Uber and Lyft. "And 99 percent of the time, the drivers are really friendly. It's almost always a nice experience."
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Big growth • With such advantages, ride-hailing services are growing. "We've grown our drivers by more than 2½ times and our rides more than three times" in the past year in the Salt Lake City area, Lyft spokeswoman Mary Caroline Pruitt says.
Uber spokeswoman Taylor Patterson says her company has seen similar growth. Both companies cite percentages and don't offer data on the specific number of rides. But each says it has thousands of drivers.
That is a vast difference from just two years ago — when Salt Lake City fined numerous Lyft drivers $6,500, complaining they were essentially operating unlicensed taxi services.
But the Legislature passed a law allowing them to operate legally in most places, and the city followed with ordinances clearing them to also operate at Salt Lake City International Airport — where officials say Uber and Lyft have now captured a third of the ground-transportation market.
"Uber now is part of the fabric of our daily lives," Patterson says. "We're seeing that users of our app are from every demographic, every age group."
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How they work • The companies provide smartphone apps to connect people who want a ride with nearby drivers who use their own cars. Riders can see how others have rated the driver, and obtain estimates of what the fare will be. All payments are made through the online app.
The companies do background checks on drivers and inspect their cars. They provide $1 million in insurance. Generally, the companies keep 20 percent to 25 percent of the fare — depending on driver agreements — but say the driver is the one providing the service, similar to getting a ride from a neighbor and helping to pay the gas money.
Lyft allows a "power driver" bonus for drivers who use newer cars, and have top customer ratings, that potentially allows them to earn back most of the 20 percent that goes to the company.
Patterson says the basic UberX service includes a charge of 68 cents to get in a car, then 17 cents per minute, $1.43 per mile plus a $1.55 booking fee.
At busy times, the companies use "surge pricing" to increase fares, sometimes steeply.
"When there are more riders requesting vehicles than there are cars to meet that demand, we implement surge to incentivize drivers to get on the road," Patterson says. "Once that supply is met, surge goes off."
She says riders can set their app to tell them when surges end so instead of paying the higher prices "they may hang out for a while with friends, go to dinner or have a cocktail."
Lyft's app allows riders to add tips electronically if they choose. "We've had over $100 million given to drivers" nationally, Pruitt says, adding that helps make it more popular with many drivers. "That allows drivers to go above and beyond to earn that extra money."
Uber's app does not allow tips. "With Uber, there's no need to tip," Patterson says. "But if you feel like your driver went above and beyond, you are welcome to do so in cash."
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Who drives • Many drivers work for both Uber and Lyft — and keep apps from both companies active at the same time to give them more opportunity to find rides. The companies allow that.
"I love the freedom to work when I want," says Draper resident Rick Killpack. He says his full-time work with Uber is flexible enough that he works on information-technology projects (his real career field) on the side.
"I clear $1,000 a week as a full-time driver," he says, noting he has provided nearly 5,000 rides in 18 months. "It gets better in the winter because of ski season."
He says he and other Uber drivers learn "to keep your thumb and heartbeat on when events in the community are happening, whether its Jazz and Bees games or concerts at USANA [amphitheater]," so they can be nearby to offer rides.
Patterson says the flexibility for drivers to set their own hours, work part time or be their own boss attracts many.
"We see a lot of teachers driving in the summer. We have a lot of stay-at-home moms who drop their kids at school and start driving, or military spouses," she says. "There are retirees who like the idea of socializing for a couple hours with people in the car. It runs the gamut."
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Popular destinations • Somewhat surprising is that Pruitt says almost 25 percent of Lyft's local business is taking people to transit stops. She says it is difficult for many to travel the mile or so from home or work to transit, so using ride-hailing services to cover it cheaply is increasingly popular.
Both Lyft and Uber say they are in discussions with the Utah Transit Authority to possibly form a partnership to offer such first mile/last mile service. Both say they have formed similar partnerships for subsidized service with other transit agencies nationally.
Patterson says the airport also generates much of Uber's business. "That is a significant contributing factor for our growth in the market. We will see that increase quite a bit once ski season hits as well."
Both companies say business also skyrockets during the Sundance Film Festival. "We give thousands of rides in the course of that festival," Patterson says.
The companies also often partner with festivals and fairs to offer discounted fares. Still, both say most riders use their services just for everyday trips.
"People use us for their daily activities," Patterson says. "They are going to see a show. They are going with friends. They are heading to an event and don't want to deal with parking."
For Uber, she says, the busiest times of day are normally from 4:30 p.m. to 10 p.m. She says other cities tend to be busier late at night, especially when bars close. "We don't see that here" as much.
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Bright future • Both companies see a bright future here.
Patterson says her company is seeing and expects increases, in part, because of new services it offers such as UberXL — which uses larger or luxury vehicles — and UberSki, focusing on ski resorts.
"It gives people a new reason to sign up," she says. "It gives some drivers a new reason to sign up."
She says Uber also soon will roll out a new service that will give upfront pricing, which would include any surge increases. Riders will be able to enter their pickup point and destination, and see their final fare before they enter a car.
Meanwhile, Lyft says it is working harder to ensure drivers are well paid and happy. "We've heard from many passengers that we work harder at delivering a unique experience," Pruitt says, "and that we're more community centric."
She notes that nationwide, Lyft now has more than 415,000 drivers and more than 5 million passengers. "It's constantly growing."