Switching Cost: Uber versus Lyft
Have you made your choice between the ride-sharing apps Uber and Lyft? Do you prefer one over the other? Use both? Flip-flop?
What would it take to get you to switch?
This is a question executives and marketing professionals at both companies are wondering.
I'll admit I haven't looked back since downloading the Uber app in mid-2012.
The app/service just works. Nothing of substance to complain about. When there is something to complain about, Uber handles it promptly and mostly in your favor.
One tactic Lyft leverages to help you overcome the switching cost is free rides.
You probably see these all the time. “Free $25*” and in the fine print you will find “*For first time users only”
Essentially, they are trying to pay you to switch. Hey Lyft, - you can pay for school but you can't buy class...
Until now, I have said that my switching cost is higher than the offer… I got to thinking about this… is my switching cost that high… to find out I gave it a try…
- Downloaded the app (2 mins)
- Set up the app (2 mins)
- Set up my credit card (2 mins)
A total of 6 mins to save $50… put another way… $500/hour… I am ashamed I didn't at least try it before now…
Ok, Lyft you found my switching cost. “The water” has been there for a while, but this “horse” finally “drank.”