Business Debate: Lyft vs Uber??? Or Just Go Limo?


Will Lyft and Uber take over the Limousine Business?

With alternative options of transportation becoming more and more appealing to the public, does this mean that the limo business might become a thing of the past?

Lyft and Uber are basically the same thing. Both work to arrange rides for people with drivers who work under their name. The person just clicks on the app and pushes a button that connects them to a local driver who is ready to pick them up. Then, they are driven wherever they want. It’s that simple.

These drivers go under extensive background checks and drive personal cars that have also been checked. But then again, that can be a drawback. They drive their own cars. In one sense, that means they know the car well and how it runs, but it also gives vulnerability because there is a greater chance for something to go wrong since they are not owned/maintained by the actual company.

Limos, as Jason Townsend, CTO at points out, have a nicer feel.

“They are a bit classier since they are just an upper type of ride. You get to choose from a nicer selection of cars because that’s the point.”

The driver is also at your command. Since limos are typically rented by time and not by destinations, you can go wherever and they are right there. You don’t have to wait around to go someplace else, and basically you just have a lot more control. Plus if you are business executive, having a limo and driver makes a lot more sense than calling a driver when you want a fancier look.

Their drivers also go under background checks, so safety isn’t really a problem there. Although in both cases, you are relying on the fact that the companies actually uphold what they say they do. Both take pride in offering good service, so you can assume that they do.

The cost for Lyft and Uber is typically cheaper, however, it depends on the need again. If you are going to be in the area for a long period of time and want to get around quickly, a limo is your best bet. If you want to get from point A to B, and that’s it, then Lyft or Uber are probably better. Limos are mostly flat rate, whereas the others are a flat rate plus an amount for however far you go. Although, Lyft and Uber would still be cheaper than a taxi or bus.

Especially for occasions, getting a limo versus hailing a local “taxi” type would impress better, and also be easier because limos are more compatible with bigger groups. Uber and Lyft cars typicall have 4-6 seats at most, just because the cars are owned by locals, who have their own use for the car.

Now, if Lyft and Uber started renting out limos as part of their service, then maybe there would be some contest. Even then, it would be interesting to see how each competed for business. But since both serve a different type of need as of now, because that is their sell point, there should really be no competition.