Uber Is Playing Catch-Up to Lyft With Female-Driver Option

Uber said the rollout of its Women Driver Preference feature would begin in Los Angeles, Detroit, and San Franscisco. (Photograph by Spencer Platt/Getty Images)

Uber Technologies will become the latest ride-sharing company to give women passengers in the U.S. a chance to request a female driver, two years after Lyft made a similar move.

In a news release Wednesday, Uber said it would roll out its “Women Driver Preference” feature in the coming weeks. Female riders will have the option to book a ride on demand or reserve one in advance. They also will be able to set a preference for a woman driver within the Uber app.

The company declined to share details about the timeline for deployment, saying simply that pilot programs would kick off in Los Angeles, San Francisco, and Detroit “in the next few weeks.”

Lyft began rolling out its Women+ Connect feature in select cities at the end of 2023.

Similar initiatives, courtesy of Uber itself, have been under way in countries including Australia and Mexico for years. The company took the first step in 2019 when it launched Women Driver Preference in Saudi Arabia, one year after the country lifted its ban on women driving.

Still, it is the first time the company offers the service in the U.S., offering an option that may have been an advantage for Lyft. While Uber is much bigger—its market cap of $194.45 billion compares with Lyft’s $6.15 billion—that doesn’t mean it shouldn’t be wary of its peer.

Lyft reported in May that it had achieved its 16th consecutive quarter of double-digit growth in gross bookings from the previous year. Wall Street has noticed Lyft’s efforts to become a more formidable player in the ride-sharing space.

Goldman Sachs analyst Eric Sheridan noted at the time of the earnings report that Lyft’s efforts in the self-driving space were “supportive of rational competitive behavior in the years ahead.”

It remains to be seen how Uber’s initiative will pan out. Uber noted Wednesday that most drivers are men, saying that “making this work reliably—not just symbolically—required thoughtful design.”

It isn’t clear whether an imbalance between the supply of women drivers and potential demand will complicate matters. People commenting on Reddit have said requesting women drivers can mean longer wait times.

Uber shares were up 2.1% at $91.79 on Thursday while Lyft fell 1%. The stock has gained 52% this year.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com