Took a 20 minute Uber today, cost me $19.89. Driver took home a little over $5. 

Uber's take is 75% - that seems surprisingly high. I would have expected a split closer to 50-50.

Technowatermelon. Elder Millenial. Building Farcaster. 

nf.td/varun

Chiming in as someone who worked on this at Lyft until 2022

Take rate is actually low, like 10%. That’s why Uber/Lyft aren’t profitable

This is take rate over all driver expenses though. Per ride, it’s highly variable 

That’s because most of your fare goes towards incentives to get drivers on the app, on the road, and at the right time and place

Eg. A $15 bonus to do 3 rides in the evening downtown, or a $1000 bonus for new drivers to sign up and do 100 rides, a $5 bonus for driving to an area we expect will have lots of riders soon, etc. such that when you call a ride, there’s a driver nearby

Still, 25% of your fare is quite low, we had limits on this at Lyft

building world's largest lottery. currently, crypto's largest /megapot • 🟪 #45, FID #1575 • ex @uniswap, now south park commons

So there’s more nuance than I originally thought… though it sounds to me like an inefficient system.

Taking 75% just to give most of it back to drivers in round-about ways?

Curious, would like to hear more!