They let me not let them. Lyft lets me tell iOS to share my location with it only "while using the app". Uber used to do this. But now that option has disappeared--it's only "always" or "never".
There's an opportunity for Lyft to be "Uber, but for not scummy business practises" here, but I suppose most users don't really care. Austin would have been a good test of that, but Lyft withdrew along with Uber.
I've been a longtime Lyft user because of the stories that surfaced a few years ago about Uber considering blackmailing reporters and politicians with their ride data, but the last time I had to use the app, Lyft for some reason just wasn't working - their auth service seemed to be broken. I ended up downloading Uber and signing up because I had to get somewhere in a hurry and didn't have the time to look up another rideshare service. Their text notifications about driver arrivals are also always off, on the order of up to a minute or two (I don't know if Uber is better, but I would assume it is.)
FWIW, I'd also sunk something like $300 into Lyft rides just two weeks before that for business travel, and I didn't experience a problem once.
From where I stand, we have great engineering and product talent. Perception is tricky - I see that we're very agile with (sometimes far) fewer resources, from the view I have.
I'd be glad to dig into the auth issues you ran into if you're able to ping privately with a few more details.
I'd hate to be proven wrong about that, but grateful if I was.