• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Exclusive

An hour in the Oval Office with President Trump Fortune Editor-in-Chief: Alyson Shontell sat down with President Trump in the Oval Office for an hour. Tariffs, Intel, AI, Boeing, Iran—and the question every CEO eventually has to answer: who's next?

An hour in the Oval Office with President Trump Fortune Editor-in-Chief: Alyson Shontell sat down with President Trump in the Oval Office for an hour. Tariffs, Intel, AI, Boeing, Iran—and the question every CEO eventually has to answer: who's next?

An hour in the Oval Office with President Trump Fortune Editor-in-Chief: Alyson Shontell sat down with President Trump in the Oval Office for an hour. Tariffs, Intel, AI, Boeing, Iran—and the question every CEO eventually has to answer: who's next?

An hour in the Oval Office with President Trump Fortune Editor-in-Chief: Alyson Shontell sat down with President Trump in the Oval Office for an hour. Tariffs, Intel, AI, Boeing, Iran—and the question every CEO eventually has to answer: who's next?

An hour in the Oval Office with President Trump Fortune Editor-in-Chief: Alyson Shontell sat down with President Trump in the Oval Office for an hour. Tariffs, Intel, AI, Boeing, Iran—and the question every CEO eventually has to answer: who's next?

An hour in the Oval Office with President Trump Fortune Editor-in-Chief: Alyson Shontell sat down with President Trump in the Oval Office for an hour. Tariffs, Intel, AI, Boeing, Iran—and the question every CEO eventually has to answer: who's next?

An hour in the Oval Office with President Trump Fortune Editor-in-Chief: Alyson Shontell sat down with President Trump in the Oval Office for an hour. Tariffs, Intel, AI, Boeing, Iran—and the question every CEO eventually has to answer: who's next?

An hour in the Oval Office with President Trump Fortune Editor-in-Chief: Alyson Shontell sat down with President Trump in the Oval Office for an hour. Tariffs, Intel, AI, Boeing, Iran—and the question every CEO eventually has to answer: who's next?

An hour in the Oval Office with President Trump Fortune Editor-in-Chief: Alyson Shontell sat down with President Trump in the Oval Office for an hour. Tariffs, Intel, AI, Boeing, Iran—and the question every CEO eventually has to answer: who's next?

An hour in the Oval Office with President Trump Fortune Editor-in-Chief: Alyson Shontell sat down with President Trump in the Oval Office for an hour. Tariffs, Intel, AI, Boeing, Iran—and the question every CEO eventually has to answer: who's next?

In price wars, some Uber and Lyft drivers feel the crunch

By
JP Mangalindan
JP Mangalindan
Down Arrow Button Icon
By
JP Mangalindan
JP Mangalindan
Down Arrow Button Icon
May 28, 2014, 5:20 PM ET
Boston, MA 071613 Hunter Perry (Cq)( a regular Lyft user gets picked up on July 16, 2013 near his office on Harrison Ave. The vehicles participating in the Lyft program wear a pink mustache on their front grille. (Essdras M Suarez/ Globe Staff)/ MET
Boston, MA 071613 Hunter Perry (Cq)( a regular Lyft user gets picked up on July 16, 2013 near his office on Harrison Ave. The vehicles participating in the Lyft program wear a pink mustache on their front grille. (Essdras M Suarez/ Globe Staff)/ METPhotograph by Essdras M Suarez — The Boston Globe/Getty Images

FORTUNE — Uber and Lyft’s aggressive expansion may be great news for passengers of their ride-sharing services but less so for some drivers who say their bottom lines have suffered in recent months.

The two startups, which compete against taxis, have grown increasingly aggressive in trying to one-up the other with price cuts. But many drivers now complain that they are earning less as a result along with being saddled with the high cost of maintaining their cars.

“We aren’t getting the full pay we used to,” said Luke McCready, who began driving for Lyft five months ago, after quitting his sales job at Well Fargo. While McCready, 33, averages $30 an hour on busy days and $20 on slower ones ferrying passengers in his Honda Civic, that’s significantly less than the $35 hourly rate Lyft advertises.

In January, Uber slashed prices by over 20% to become the cheapest service of its kind in many U.S. markets. In April, Lyft cut fares nationwide by as much as 30%.

While fares have dropped, the commissions both Lyft and Uber collect on every ride have seesawed. Uber recently increased the cut it takes on each ride to 20% percent from 5%. Lyft declined to follow and, in fact, temporarily eliminated its 20% commission completely “to provide our growing driver community with peace of mind” during the price drop.

But lower fares still translate into less money for some drivers given steep fare cuts. In a sign of the discord, nearly 100 UberX drivers protested outside Uber’s San Francisco headquarters earlier this month for higher pay. Uber managers tried to make peace by handing out pastries to the protesters. But the company didn’t offer what the drivers really wanted – more money.

Uber and Lyft did not respond to requests for comment.

The stakes are high for both companies because their businesses are based on an ample supply of drivers to meet demand. The happier the drivers, the more of them are on the road and the less time passengers have to wait for a ride — an important point compared in trying to compete with taxis.

Another driver for Lyft and Uber, who requested anonymity to avoid retaliation from the companies, complained that he’s been working more hours to make the same amount of money. Last fall, when he first started, he made $35 an hour. Now, his take-home pay is far less as the companies “race to the bottom,” as he put it.

“I feel like I’m just a commodity,” said the driver, a 50-year-old father from San Francisco.

He also didn’t account for the natural wear-and-tear on his new Honda from driving for eight months including $500 to change the tires and over $600 to fix the brakes. Because of that, he’s now trying to wean himself off of Uber and Lyft as his primary income to work elsewhere including in film production.

“I can’t rely on them — they’re so unpredictable,” the driver said about the two ride-sharing services.

In the race to recruit drivers, Uber has tried to make the job more attractive by offering a one-time bonus. New drivers get $500 after picking up their first passenger. Additionally, Uber is hammering the point home that its drivers can make a decent living. On Tuesday, the company said that the average full-time UberX driver in New York City makes more nearly $91,000 annually. In San Francisco, the average pay is more than $74,000.

Uber also stresses its importance in creating jobs at a time when they can be difficult to come by. In a typical month, the company said it creates jobs for 20,000 new drivers nationwide.

Indeed, it’s worth noting that not all ride-sharing drivers are hurting.Todd Pivetti, a 23-year-old actor from San Francisco who drives part-time, argued that the benefits of driving for Lyft are two-fold.

“I get to make an income without being dictated by a schedule, and I get to network like a boss when I’m driving,” Pivetti said. “It’s the new way to network.”

About the Author
By JP Mangalindan
See full bioRight Arrow Button Icon

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

‘This is what the consumer wants’: A new lawsuit about PFAS and other ‘forever chemicals’ is heating up the cookware industry
Big TechLawsuit
‘This is what the consumer wants’: A new lawsuit about PFAS and other ‘forever chemicals’ is heating up the cookware industry
By Catherina GioinoMay 19, 2026
29 minutes ago
How Coach earned 800,000 new Gen Z customers and became responsible for 89% of sales at Tapestry
NewslettersMPW Daily
How Coach earned 800,000 new Gen Z customers and became responsible for 89% of sales at Tapestry
By Emma HinchliffeMay 19, 2026
41 minutes ago
Tom Brady wearing commencement regalia behind a podium at Georgetown University
SuccessCareers
Tom Brady tells Gen Z to treat their careers like the Super Bowl: ‘You may only get one chance to impress your boss or land a promotion’
By Preston ForeMay 19, 2026
48 minutes ago
Top CD rates from major banks May 19, 2026: Chase CDs, Bank of America CDs, Citibank CDs, and more
Personal FinanceCertificates of Deposit (CDs)
Top CD rates from major banks on May 19, 2026: Chase CDs, Bank of America CDs, Citibank CDs, and more
By Joseph HostetlerMay 19, 2026
49 minutes ago
Current price of Bitcoin for May 19, 2026
Personal FinanceCryptocurrency
Current price of Bitcoin for May 19, 2026
By Joseph HostetlerMay 19, 2026
2 hours ago
Current price of Ethereum for May 19, 2026
Personal FinanceEthereum
Current price of Ethereum for May 19, 2026
By Joseph HostetlerMay 19, 2026
2 hours ago

Most Popular

While Trump insisted the Iran war would end ‘soon,’ an account in his name was buying millions in oil, defense and gold
Economy
While Trump insisted the Iran war would end ‘soon,’ an account in his name was buying millions in oil, defense and gold
By Eva RoytburgMay 18, 2026
21 hours ago
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
Politics
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
By Jake AngeloMay 12, 2026
7 days ago
Current price of oil as of May 18, 2026
Personal Finance
Current price of oil as of May 18, 2026
By Joseph HostetlerMay 18, 2026
1 day ago
Spirit Airlines apologizes to all the Americans who can't afford any summer vacation flights as it shuts down
Travel & Leisure
Spirit Airlines apologizes to all the Americans who can't afford any summer vacation flights as it shuts down
By Rio Yamat and The Associated PressMay 18, 2026
1 day ago
EXCLUSIVE: An hour in the Oval Office with the CEO-in-Chief, President Trump
Politics
EXCLUSIVE: An hour in the Oval Office with the CEO-in-Chief, President Trump
By Alyson ShontellMay 18, 2026
1 day ago
Current price of silver as of Monday, May 18, 2026
Personal Finance
Current price of silver as of Monday, May 18, 2026
By Joseph HostetlerMay 18, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.