Changes in Lyft Market One Year Later

SIOUX FALLS, S.D.-It’s been a year since Lyft came to Sioux Falls and within that time the ride-sharing service has evolved. Tom Anez was one of the first Lyft drivers in Sioux Falls. He started driving October 24th 2017. He says a lot has changed since his first day.

“We probably had less than 50 drivers out by that weekend,” said Anez.

He estimates it’s grown to over one thousand. The demand from passengers has also grown, causing it to become more competitive for drivers.

“Some drivers feel that we’re in an over saturated driver market already, where as we use to make a lot more money on the weekend when there weren’t as many drivers. We make less money now with more drivers,” said Anez.

This past year passengers and drivers both have had to navigate how Lyft works and are still learning. Not all passengers have been tipping, but drivers want people to know that’s how they are able to make an income.

“When you think about the wear and tare in our vehicles, the gas prices of our personal vehicles and the time commitment we spend you know out driving around, we make a lot more money off the tips than we actually get off the ride itself,” said Anez.

Drivers have dealt with different ordinance changes and figuring out best tactics. However  reflecting back on the year they feel they’ve helped decrease the number of drunk drivers.

Lyft also affected the taxi companies. At the beginning some went out of business. The ones that stayed like Champion Chauffeur And Taxi say they struggled at first, but feel like they’ve bounced back.

It’s been a total different strategy, like I said you’re marketing to different customers,” said Jerrod Atkinson, owner of Champion.

Most of their customers are people who want to schedule rides days in advance or want to be able to choose a specific driver as Lyft does not offer those options.

“In the end you know, both are good for the city. We needed more for the concert nights. There just wasn’t enough taxis in town, so now it’s just a good balance,” said Atkinson.

Lyft is also available in Pierre, Aberdeen and Rapid City.

 

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