For Montrealers looking to save on ride-hailing, a simple habit could be worth hundreds of dollars a year: checking both major apps. A recent week-long experiment tracking prices between Uber and Lyft in the city revealed significant and consistent differences, changing how one rider books his trips.
The Experiment: 100 Trips Compared
The test involved comparing 100 trip requests over a week in Montreal, including both actual rides and hypothetical routes across the city. The method was straightforward: at the same moment, identical start and end points were entered into both the Uber and Lyft apps. To ensure a fair comparison, the test used new accounts and excluded promotions, tips, and subscription perks like Uber One.
The results were clear. Lyft offered the lower price approximately eight out of every ten times. By consistently choosing the cheaper option between the two services, the average fare was reduced by about 11 percent per ride. Estimated arrival times were generally similar and showed no correlation to the price being charged.
This local finding echoes a larger academic study. Researchers from Johns Hopkins University and Harvard University audited over 2,200 trip requests in New York City, finding prices flipped between the two apps, differing by about 14 percent per ride. That added up to roughly $180 in annual savings for the average rider. Despite this potential, the study authors noted most people still do not compare prices before booking.
Why Do Prices Differ? The Algorithmic Black Box
Both Uber and Lyft state they do not personalize base fares using individual rider data. Instead, prices are set dynamically in real-time based on a complex mix of factors including location, distance, traffic, current demand, driver availability, and estimated travel time.
"These are real-time marketplaces where prices shift constantly based on actual supply and demand conditions on each platform," explained Donny Nordlicht, a spokesperson for Lyft. Jonathan Hamel, a spokesperson for Uber, added that fares are not based "on personal data, past behaviour or the device used."
However, the exact weighting of these factors within each company's proprietary algorithm remains a secret. Setareh Farajollahzadeh, an assistant professor of operations management at McGill University who researches ride-hailing platforms, breaks down the pricing differences into three main causes.
First, the platforms use different algorithms in immensely complex markets. Small design choices can lead to different prices for the identical trip. Second is competition: riders can switch apps, and drivers, as independent contractors, can choose the platform offering better pay at that moment. Third, particularly relevant for Montreal, is the impact of new market entrants like Lyft, which can aggressively price to gain share.
Lyft's Montreal Strategy: Discounts to Gain Ground
Lyft only expanded to Montreal in the summer of 2025, entering a market where Uber has operated for over a decade. This newcomer status is a key driver behind its current pricing advantage.
"As Lyft expands here, it will have 'cash to burn' to penetrate and increase its market share," Farajollahzadeh explained. This often translates to more promotions and discounts for both riders and drivers. "Then the prices become more alike as it reaches equilibrium," she added.
Lyft's spokesperson confirmed the company has been offering incentives such as half-off first rides, discounts to reactivate dormant users, cash-back rewards, and sign-up bonuses for drivers.
The experiment found that while most routes showed differences ranging from a few cents to about 20 percent, the longest trips offered the biggest potential savings. Notably, airport pricing behaved differently, consistently showing larger gaps. A simulated weekday trip from Montreal-Trudeau Airport to Fairmount Bagel at 5:30 p.m. showed a stark contrast: $95 on Uber versus $40 on Lyft. During peak times, Lyft was often 30 to 50 percent cheaper for airport runs.
Farajollahzadeh notes that airport riders, often tired visitors, prioritize ease and reliability. Uber's larger global footprint and brand recognition give it an advantage here, allowing it to potentially charge more, which in turn can attract more drivers to its airport queue.
The Future: Self-Driving Cars and the Habit of Comparison
Looking ahead, the next disruption may come from autonomous vehicles. Companies like Waymo (Google's self-driving car unit) are testing fully autonomous ride-hailing services. Lyft has already partnered with Waymo, while Uber is developing its own strategy.
Eliminating human drivers could reshape the economics by removing labour constraints, allowing fleets to operate around the clock. Yet, Farajollahzadeh emphasizes, the principle of comparison will remain crucial. "Then the question is: who can buy more self-driving cars and then put them in the city operating?" she said.
For now, the barrier to saving is remarkably low. Michael Luca, an economist at Johns Hopkins who co-authored the New York study, calls them minor "frictions." Simply opening a second app or waiting a few seconds for a price to load can be enough to stop people from comparing. His research found riders compared services only about 16 percent of the time, leading to collective overspending in the hundreds of millions.
The lesson for Montreal riders is clear: while Lyft is currently the frequent price leader in its expansion phase, this dynamic can change. The most reliable way to secure the best fare is to make a quick two-app check a standard part of your booking routine. Those few seconds could translate to substantial savings over the course of a year.
