Reconsidering Rideshare Services – Uber, Lyft, Or Both?

Uber And Lyft

I was a relatively late-adopter of Uber and Lyft, only taking my first ride about six years ago.  I backed into my first experience, arriving at a small Texas airport where the rental car desk was closed.  And “public transit” in that town was more of a punchline than a viable option.  Ever since, I’ve steadily used rideshare services more, but still primarily to and from airports.  Unlike much else in our hobby, I haven’t gotten around to overanalyzing rideshare services.  I primarily use whatever makes the most sense at a given time.  But Uber and Lyft do have unique angles to appreciate which can often sway individuals between the two.  I’m making the case for using each today.

Uber

“Free” via Amex Credits

In return for the annual fee, Amex Gold and Platinum cardholders receive a variety of benefits of varying value.  Uber credit is just one.  Gold cardmembers receive $10 monthly, while Platinum holders pick up $15 monthly and $35 in December.  That may not seem like much, until we consider that points and travel hobbyists often hold multiple of these cards.  Plus, those in two player mode can load these credits to a common Uber balance by simply adding their Amex cards to the same account.  And based on a given person’s situation, these credits alone may fulfill one’s rideshare service needs.  Hence, many have no need to look beyond Uber.

Versatility

Uber offers a wider variety of services than Lyft.  The latter focuses on traditional rideshare, adding in bikes and scooters in a select few metropolitan areas.  The former offers too many services to mention, but here are the big ones:

• Rideshare
• Food Delivery and Pickup via Uber Eats
• Rental Cars
• Package Delivery

Simpler Stacking

An individual can easily supplement their Uber Balance with discounted or “free” Uber gift cards, often from grocery stores or other Amex credits, such as the Business Gold’s flexible credit.  The monthly credits and gift card balances can be pooled in the same wallet, with the expiring monthly credits automatically used first.  Therefore, individuals can leverage multiple methods to cover and/or discount larger purchases across Uber’s services.

Lyft

It’s Cheaper!

In my experience, Lyft’s rates have been consistently cheaper than Uber’s.  Of course, this doesn’t always come into play for many situations, since we’d rather use our “free” Uber credits with their higher rates than going completely out of pocket for cheaper Lyft fares.  But based on our travel needs, we’re often going over Uber monthly credits, anyway, and I focus more on Lyft then.  I can’t ignore the better deal I get on Lyft at that point.

Category Bonus Earning

The Chase Sapphire Reserve and J.P. Morgan Reserve earn a whopping 10x Ultimate Rewards points on all Lyft purchases through March 2025.  That’s 12.5% cash back when I incorporate Pay Yourself Back, my favorite Chase redemption method.  But one doesn’t need to hold that ultra-premium card to earn big.

In that same timeframe, no-fee Chase Sapphire and Sapphire Preferred cardholders can earn 5x UR’s, and Freedom, Freedom Flex, Freedom Unlimited, Freedom Rise, and Freedom Student cardholders earn 5% cash back on Lyft purchases (phew).

Lyft Pink

Chase Sapphire Reserve and J.P. Morgan Reserve cardholders automatically obtain Lyft Pink All Access, a membership with a plethora of benefits, when enrolled by 31 Dec 2024.  Lyft normally charges $199 for this annual membership, but of course, I recommend you value it based on the benefits you actually use.

Uber and Lyft – Conclusion

Each service partners with other loyalty programs to provide more rewards – Uber with Marriott, and Lyft with Delta, Hilton, Alaska, and Bilt.  You’ll want to incorporate any of these preferred currencies in your rideshare decision, as well.

What am I doing?  I’ll continue defaulting to Uber rideshare services at the beginning of each month.  Based on other promos, I may use some of my credit balance on Uber Eats orders, as well.  Beyond the Amex credits, I should choose Lyft more regularly, particularly when the price is often better.  To that end, I plan to start buying more Lyft gift cards with my Business Gold cards to drive up my balance.  I can then more readily leverage “free” across each service at the most competitive rates.  Plus, more flexibility is generally better.  Beyond that, I’ll use my Chase Sapphire Reserve card to pay any Lyft overages.  I don’t have any plans to go fully out of pocket on Uber services, instead opting to top off now and then with gift cards via the Flexibile Business Credit.

That said, I’m confident rideshare services and our methods for discounting them will continue evolving.  It’ll probably come down to how often I want to reevaluate my rideshare service strategy, something that’s admittedly lower priority than other activities.

How do you balance your Uber and Lyft strategy to come out on top?

Disclosure: Miles to Memories has partnered with CardRatings for our coverage of credit card products. Miles to Memories and CardRatings may receive a commission from card issuers.

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