Showing posts with label price wars. Show all posts
Showing posts with label price wars. Show all posts

Friday, October 31, 2014

Ten Consequences of Driving for Uber and Lyft

After nine months of driving mostly fulltime for Lyft and Uber, these are the ten things that make me dread ridesharing:


1. Vehicle Depreciation




Besides passengers slamming my doors, which has caused a mysterious rattle, scuffing my interior, leaving behind trash and generally making the kinds of messes you’d expect from a two year old, there is also mechanical wear and tear. The more I drive, the more things go wrong with my car. I figure I have about two more months until I need new brakes and tires. And then my rideshare days are over. I just don’t make enough from driving for Uber and Lyft to afford to keep driving for Uber and Lyft.


2. Boot Malfunction




My right boot is more worn than the left. To be fair, this may have more to do with my bony heels, but it’s not something I ever noticed until I had to keep my foot on the gas and brake pedals for hours at a time.


3. Physical Discomfort




My neck is like an open wound. No doubt from glancing over my shoulder as I switch lanes in traffic all night long, always diligent to keep an eye on my blind spots, as well as the other cars on the road, speeding bicyclists, impatient cabbies and cavalier pedestrians. As a result, the muscles that run along my jaw are steel rods. I have very little radius when I turn my head left or right. The tension never goes away. There is a real possibility that I may have some dislocated vertebrae. My joints hurt. My right ankle has a creak in it. And I have a chronic case of hemorrhoids. No matter how much ointment I apply, they remain perpetually enflamed. I noticed once, when I was a Lyft passenger, that my driver had a hemorrhoid pillow on his seat. I may need to acquire one of those in the near future…


4. Spousal Neglect



Since I’m out late driving on the weekends, the Wife’s home alone. And she’s not happy about it. I’ve tried driving during the weekdays, but the gridlocked traffic makes getting anywhere in the city a chore. It’s not worth the frustration. I spend more time driving to the pinned locations than I do taking passengers where they need to go. And the only time you can get surge pricing is on weekend nights. And holidays. Or special events. So…


5. Fear of Deactivation



Nobody enjoys being judged. But constantly feeling threatened with “deactivation” is downright humiliating. The rating system employed by Lyft and Uber focuses on only one aspect of a driver’s performance: passenger satisfaction. And it’s not easy making people happy. Even when the ride has gone perfectly, there’s never a guarantee the passenger is satisfied. All it takes is one drunk passenger on a power trip and you’re deactivated.


6. Erratic Sleep



I work late and come home late. But I can’t sleep late because my head is filled with dreams about my Lyft summary, which is the only way to find out what I made the day before and what’s happened to my rating. Sometimes the summary is in my inbox before I wake up. Other days the email doesn’t arrive until the afternoon. With Uber you know, for the most part, what you’ve made at the end of each ride. And your rating is updated in the app as feedback is left. So at least you’re disappointed in real time.


7. Misanthropic Tendencies



After a while, you really start to hate people. I’ve met some really great folks in my car, but I’ve also encountered a lot of stinkers. People that I’d rather see under my front tire than in my front seat. But I have to maintain a sunny disposition and be accommodating to my passengers or risk a negative rating. Not an easy task when some passengers are just straight up assholes. They input the wrong location. They make you wait. They ignore you. They talk down to you. They say racist and sexist things in your car. Your only retaliation is to rate THEM low. Which doesn’t amount to much since it’s unlikely Uber or Lyft would ever deactivate a passenger’s account. I guess we should just be grateful our passengers act like self-entitled douchebags rather than punching us or holding guns to our heads.


8. Paranoia



Every time I go out to drive, I say a prayer that nothing bad happens. I can’t shake the nagging sensation that if something goes wrong, I’ll be fucked. Uber and Lyft tells us to use our personal insurance in the event of an accident. But our insurance won’t cover any damages since we’re engaged in commercial activity. So what’s the point of having personal insurance to do rideshare? Not that things would be better with the insurance companies Uber and Lyft use. I’ve read numerous reports from drivers who’ve been in accidents and had to crowd source funds to get their cars fixed. Or just being left in the lurch. We are hardly protected under normal circumstances, but what if we’re at fault? Oh, the horror… And with Uber, there’s no support number. We can only email them afterwards. On top of all that, both Uber and Lyft charge us a deductible. So if we are covered, we still pay out of pocket, even if we aren’t at fault.


9. Monetary Deficiencies



Because of the price wars, as Uber and Lyft fight it out to determine who will be the preeminent rideshare platform, drivers are getting squeezed more and more. The rates just keep going down. As it is, I’m broke as hell. My credit cards are all maxed out, most of the time my bank account is overdrawn and I have a painful toothache I can’t afford to fix. Not to mention taxes… I don’t want to even think about what I’m going to do when it’s time to pay taxes.


10. Self-loathing


If you’ve made it this far on my list of rideshare consequences, you might be wondering why I don’t just quit. I know it’s stupid to complain about something you can’t control. And I know it’s my own damn fault. I bought into the promise of ridesharing as an alternative source of income with a good amount of freedom and it turned out to be a lie. I fell for the classic switcheroo. I’m an idiot. So why don’t I just get on with my life? Well, that day is coming. Without a doubt. For now, the hell I know is better than the one I don’t. And I like driving. I like meeting people. I like exploring the streets of San Francisco. But there’s no future in ridesharing for drivers. Hell, the way things are going, there won’t be a future for cabbies either.

Tuesday, October 14, 2014

Should We Really Kill Lyft?



A few weeks ago, when I posted the cockeyed, ad hominem attack piece How to Fix Ridesharing: Kill Lyft, I knew it was going to be an incendiary post. Lyft loyalists responded with their usual derision over anything they perceive as anti-Lyft. Commenters were quick to label me a disgruntled ex-driver and an idiot, calling my logic primitive, retarded and stupid. Others pointed out that I understood nothing about how to run a business and that I was missing “a key part of the equation.”

Now, I’m the first to admit I’m no businessman. I'm certainly not the sharpest crayon in the box. And I’ve never claimed to be an authority on the subject of ridesharing other than being a current driver for both platforms (with a 4.9 rating on each) who pathologically reads every article on the subject that crosses my Facebook dashboard and Twitter feed. I also pay close attention to the posts and comments on all the Facebook driver groups that I haven’t been kicked out of yet. I know how easily offended the Lyft faithful are. So I wasn’t surprised by the vitriol my post received.

But in their ardent support of the Lyft brand, my detractors failed to grasp that I was actually championing Lyft’s main tenets. I prefer driving for Lyft. I think they are a much better company than Uber. Which is a common refrain among drivers. Ride.Share.News recently did a survey and found that the majority of drivers prefer Lyft. Which makes sense. Unlike Uber, the Lyft app has many features designed with the driver in mind. The app automatically notifies the passenger when you’re getting close to their pinned location, as well as when you’ve arrived. It even starts the ride within a few minutes of waiting, which addresses one of the biggest frustrations of dealing with passengers: the wait.

Another frequent gripe about driving is being ignored and treated like a servant. Lyft’s “friend with a car” slogan is not only in the true spirit of ridesharing, and what most of us signed up for, it also makes for an enjoyable ride. But the greatest aspect of being a Lyft driver, of course, is the ability for passengers to leave a tip. As a regular Uber driver, I know that without this option in the app, 99.9% of passengers do not leave a tip. They signed up for a service so they wouldn’t have to worry about having cash on hand, so it’s understandable. Albeit unfortunate.

Of course, not knowing what you’ve made until the next day, the overall demanding attitude of Lyft passengers (no, I’m not your fucking DJ and no, I don’t have any candy for you), that stupid pink mustache and the forced homogeny make driving for Lyft less appealing to me, but for others that’s the main draw.

So… do I really think Lyft should be killed off?

Yes. I think Lyft and Uber should both die. I think these two companies have ruined the entire concept, and the potential, of ridesharing with their rampant greed. I hate them both, but I hate Lyft more. Why? Because, as I pointed out in the original post, by taking on Uber, they’re making things worse for everybody. There’s really no way they are ever going to beat Uber at their own game. Not with a pink mustache. Not by creating a “community” of drivers. And not with a quirky, fun vibe.

Lyft wants to compete with Uber because they want to be worth billions of dollars like Uber. You can’t really blame them. We all love money. But how can Lyft expect to corner the national rideshare market and make billions of dollars without becoming a generic service like Uber?

Based on my observations over the past seven months as a fulltime driver for Lyft and Uber, the vast majority of passengers aren’t that interested in an unconventional experience. Just a safe one. They want to request a ride from their phones, have the car show up and not deal with cash. Sure, there are plenty of people who buy into the Lyft experience, but instead of cultivating those users, in their ignominious attempt to get a larger share of the rideshare market, Lyft is not the Lyft of old. They are diluting the one thing that distinguishes them from Uber.

This isn’t my crackpot theory. A friend of mine who began using Lyft three months after the app was first released in San Francisco told me recently how disappointed she’s become with Lyft. She’s uncomfortable sitting up front next to former cabbies and even had one driver harass her a few weeks ago. She says she no longer feels safe using Lyft and has moved on to UberX, where she can at least sit in the back. I told her she could easily sit in back with Lyft but she doesn’t see the point of using Lyft if she isn’t participating in the culture of Lyft.

Sound familiar?

Other bloggers and plenty of drivers have said the same thing.

And I’m not the only one who thinks that Lyft will lose the rideshare wars. We all know, once the dust settles in the rideshare wars, Uber will dominate the market. And no, I don’t think that’s a good thing at all. But it’s inevitable. If Lyft wants to be like Uber, then Lyft should die and let Uber do Uber. They don’t need Lyft’s help.

Killing Lyft off now would be an act of mercy. Let’s put them out of their misery so we can focus on protesting Uber, creating a TNC union, figuring out the insurance question, getting regulated and trying to increase fares. There are many people doing all these things right now. And current lawsuits against Uber may potentially change the game and take them to task for mislabeling drivers as independent contractors. There is legal precedence that by determining our rates and how we maintain our vehicles as well as limiting our ability to accept tips, they are actually our employers. Uber is fighting this classification tooth and nail because they won’t be able to shirk responsibilities for the assaults, sexual harassment and death caused by drivers. They also know the day is coming when they will be forced to assume the role of a transportation company. This can’t happen soon enough.

There is only one way to ensure the ability for anybody to make money in a car: regulation.

Of course regulation means the death of ridesharing. Because it will no longer be about individuals using their personal cars as vehicles-for-hire to make a few extra bucks on the side. If drivers are required to have permits for themselves and their cars, how many current rideshare drivers would go through that process to continue driving? Very little, I imagine.

Ridesharing is barely in its infancy. And yet it’s already doomed. Why? Because only two companies dominate the field. If Uber and Lyft continue to be the primary players and keep fighting each other for the national market, ridesharing will not advance. The only way to make ridesharing work is to create smaller companies based in individual cites. The technology is there, somebody just needs to build the apps. I think smaller companies could easily gain wide-acceptance in cities by advertising themselves as a local rideshare. Create a cool logo that’s unique to that city, pass out referral cards for free rides at all the bars and clubs, slap a magnet sign onto the side doors, place an emblem in the window and get noticed. It’s not hard to get attention these days. Look at a company like Black Crown Car Service in Seattle. Yeah, I know they're a black car service, but they've proven that starting a car company at a local level can be accomplished. Just don’t expect to become valued at a billion dollars. Or take on Uber.

And yeah, I know SideCar is still a formidable player in the rideshare game. It seems like they’re poised to step into Lyft's shoes once Uber finally crushes them, or take over entirely if Uber and Lyft do each other in. Their recent deal with SFO shows they are being strategic rather than blatantly fighting regulation and trying to destroy traditional taxi service.

At the end of the day, it doesn’t matter who wins the rideshare wars. If either one becomes victorious, we’ll be right back where we started. In their efforts to destroy “Big Taxi,” Uber or Lyft will eventually become the very thing they aimed to disrupt: taxis. But with a twist: less regulation. So why not open up the market and start more rideshare companies to keep the disruption going?

Lyft and Uber have turned ridesharing into a racket. We use our own cars and assume all the risks and responsibilities to make these companies rich, all the while making less and less each month. And when we fuck up, or when our cars give out, we are cast aside. Neither Lyft nor Uber have any loyalty to us drivers. We are part of a social experiment that will fail. And when it does, the bigwigs at these companies will just walk away with golden payouts and form other companies. Or invest in somebody else’s start-up.

And the drivers? Some will get their TCP permits and go pro. The rest will move onto another side gig. Maybe they’ll have positive memories of their rideshare experiences. But I’m sure plenty will look back with regret.

The ones I really feel sorry for are the Lyft faithful. It’s going to really hurt when they have nothing left from their rideshare experience except a beat-to-shit car, a faded pink mustache and the harsh realization that a corporation they worshiped had just used them up and spit them out.


(photo courtesy of Gabriel Zamora)

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Thursday, September 25, 2014

Uber is Walking for Lazy People: On The Five-Dollar Ride

The Six-Dollar Five-Dollar Ride

For an Uber driver, few 
things are worse than the five-dollar ride. Pukers definitely take the top spot, but they are nowhere near as common as the dreaded short rides.

In San Francisco, Uber charges a base fare of $2.20, twenty-six cents a minute and a buck-thirty each mile. (When I first drafted this post a week ago, the rate was three dollars base, thirty cents each minute and a $1.50 a mile—that’s how quickly the rates are going down). The minimum fare is five dollars (previously six dollars). So anything under a mile is a five-dollar ride.


Of course, we only see 80 percent of that five-dollar fare. And it
s not like we get any tips to make up for the short ride. (Though maybe one day that will change.)

Five-dollar rides are hardly worth the effort. When you factor in gas, the time and effort spent driving to the passenger’s location, waiting for them to saunter outside, get into the car, give you directions and then drive them to their destination, that minimum fare ends up costing the driver more than the passenger.

People who take short rides know they are wasting our time. They often apologize when they get in the car.

“I’m only going a few blocks. Sorry.”

Technology is all about creating convenience. It makes us lazy. Uber is capitalizing on this culture of laziness by making rides so cheap. Why walk a few blocks when you can take an Uber for five bucks? Forget driver-less cars. Uber is now competing with the bus. The SF Muni costs $2.25. And unless you live on a bus line, you’ll still have a little walking 
to do. The horror! For most new San Franciscans, five dollars is a drop in the bucket. In a town where rent for a one-bedroom is over three thousand dollars, thats pocket change. Most people make decent money. They can afford a few extra dollars. So why the hell not take an Uber?

Of course, passengers don’t think about the consequences these five-dollar rides have on drivers. We do the short rides and keep our mouths shut, giving off the impression that we’re happy to do it. But convenience comes with a price and the person providing the convenience usually pays that price.

Rideshares are great for the companies and users. But the drivers are fucked!

The whole concept of Uber as some sort of “disruptor” is a farce. All Uber has done is become the very system they were trying to replace, except at a cheaper price and at the expense of drivers.

Low Fares Are Not Fair!

As Uber drivers, we are doing the jobs of cabbies. Plain and simple. But we are paid less, we use our own cars, we are judged by an unfair rating system, we take almost all the risks, and we’re even denied a gratuity, one of the cornerstones of the service industry.

I recently read a post on an Uber Facebook group from a disgruntled driver who suggested we call passengers before we pick them up to find out where they’re going. That way we can decide whether to take the ride or cancel it. Since drivers can face deactivation if they reject or cancel too many rides, the poster even implied that he had a trick for getting passengers to cancel themselves, so it wouldn’t affect our ride acceptance rate.

Not a bad idea. We already see the passengers’ ratings, so we can reject rides based on that. Or the pickup location. Having the freedom to choose rides based on final destination would be a godsend!

Uber could easily install a feature that required passengers to input their destination. Right now it’s only voluntary and when passengers do add the address, the driver can’t see the location until the ride has started. Of course, Uber obviously knows that if drivers were able to see where a passenger is going we’d be more likely to cancel the short rides and wait for the longer, more lucrative ones. This activity dismantles the entire rideshare system. The whole point of Uber and Lyft is the ability to request a car and for it to actually show up.

Before rideshares, cabbies were free to pick and chose a ride based on a passenger’s appearance, their level of sobriety and yes, destination. If they didn’t want to drive to a particular area of the city, they just didn’t let you into the cab. That’s the system these rideshare start-ups are trying to disrupt. Now Uber drivers are figuring out how to beat them at their own game by getting back to the way things were before. Because maybe, just maybe, that system wasn’t so flawed to begin with.

Cabbies know that most people suck. They have to be particular. Uber drivers are beginning to realize the same thing. But we don’t have that luxury.

A passenger once asked me, when I was complaining about short rides, whether rideshare users would take cabs if Uber and Lyft weren’t around. Some would, sure, I said, but most people would probably take public transportation. They’d walk. Or they’d ride a bike.

I pointed out the example of surge pricing. When the prices are low, passengers are happy to request an Uber without a second thought. And the ride requests come in one after another. But anytime the prices are surging, the requests slow down to a trickle. Suddenly taking a stroll through the beautiful streets of San Francisco doesn’t seem like such a bad idea after all.



screenshot of Uber phone in driver mode during surge pricing... I drove through all that red for half an hour and never got a single request

It's time to face facts, by continuing to lower their fares, Uber is perpetuating a culture of laziness. And they are benefiting from it with a seventeen billion dollar valuation. Uber is the darling of Silicon Valley. But drivers are paying an even greater price. So... what’s the going rate for self-worth these days?



Monday, September 22, 2014

WHY I UBER ON: The Reality of Ridesharing

screenshot of a fare summary on my cracked Uber issued iPhone

Ridesharing is a racket. There’s nothing disruptive about taking an idea that already exists, like taxies, and figuring out how to become a cab company without owning a single car. In their current configurations, Uber and Lyft are entirely dependent on their drivers, who are currently in open revolt and quitting in disgust over the latest price cuts as Uber and Lyft fight it out to see who will win the rideshare wars. Despite constantly recruiting new drivers and offering incentives like wage guarantees and bonuses during the first month, after that initial trial run, the cold, hard reality of driving for hire in your own vehicle becomes painfully apparent.

Just like a traditional taxi company, ridesharing is built on the backs of drivers. But for full time drivers, ridesharing is becoming less and less viable. The money just doesn’t add up anymore. And the associated risks with ridesharing only make things worse.

Drivers all across the country are coming to this realization. They’re pissed beyond belief. They’ve taken to Facebook to voice their anger and organize protests, strikes, class action lawsuits and to form a union. They’ve even joined forces with the Teamsters.

The rideshare wars are getting ugly. 




Not all drivers are unhappy though. There are still plenty of folks who tell the complainers to stop whining and get another job if they don’t like the way things are with Lyft and Uber. These drivers, who mostly work part time, like to point out that ridesharing is a great second job that offers them flexibility and a decent source of extra income.

I’m always amazed at this attitude, not because of its insensitivity, which is repulsive in and of itself, but it shows a complete ignorance of what ridesharing really is.

These companies are trying to destroy traditional taxi services and the only way they’re going to do that is with full time drivers who are out there twenty-four hours a day accepting requests and keeping the system online. The CEOs of Lyft and Uber know that if people request a ride and there are no cars available, they will move on to another service, i.e., a taxi or the bus, and probably won’t try ridesharing again. Consumers are fickle as hell.

Ridesharing is not sustainable with part time drivers looking for something fun to do on a Saturday night. 







However, at the current prices, ridesharing doesn’t really make sense for full time drivers. If you’re really going to survive as a full time rideshare driver, you’re looking at driving your car sixty hours a week. Which is no cakewalk. Not just anybody can do that. After an eight hour shift, I’m usually dead to the world and struggle to get back out there the next day. 

But there are drivers who do sixty hours a week. Or more. And that’s what makes ridesharing sustainable: the drivers who bust their ass and run their cars into the ground.

Of course, the media only ever seems to focus on the retirees and students looking to make some extra bucks and get out of the house. Because it looks good. It puts a positive spin on ridesharing. But full time drivers and anybody who’s trying to make a decent wage driving a car know what the real cost of ridesharing is. We face serious risks with insurance gaps, troublesome passengers, potential health problems, damage to our vehicles and the financial hardships of constant repair and maintenance, we are denied tips and, with the rating system, we don’t even have job security.

So why keep driving for Uber?


If I’m making less and less money each month while I continue to rack up miles and wear and tear on my car, which isn’t even paid for yet, why do I continue?

Well, I like driving. And I enjoy dealing with people. Sure, there are a lot of stinkers who get in my car and treat me like a servant. The drunks are particularly annoying. But I’ve had some amazing interactions with folks and, after awhile, it gets addictive. You never know who’s going to get into your car.

Still, that’s not going to pay my bills. I can satisfy this need for human interaction in many different ways.

No, the real reason that I keep driving for Uber is because I feel stuck. I’m broke as shit and I’m not sure yet how to get out of the financial hole I’ve gotten myself into. I have an enormous amount of debt. Yes, I could quit driving and get a job at Trader Joe’s. But I can't wait two to three weeks for a paycheck. I’ll be homeless by then.

Plus, I have an entrepreneurial spirit. I bought into the promise of ridesharing. It’s my own damn fault I didnt get while the getting was good. 

I started driving for Lyft and Uber in March 2014, after I lost my job working in print media. Since nobody really needs editors and layout designers anymore, it’s been difficult to find gainful employment. Especially in San Francisco, where everything evolves around apps and the development, marketing and selling of apps.

So I’ve been doing whatever I can to make a buck: selling stuff on eBay, looking for freelance work, hawking my self-published zines and using my car to drive for Lyft and Uber.

At first, I made decent money with ridesharing. I could drive thirty hours a week and make enough to survive. But then Lyft lowered their rates. Then Uber lowered their rates. Then they both lowered the rates some more. And then some more. They are literally nickel-and-diming their drivers in their attempt to dominate the ridesharing market. Because at the end of the day, these arrogant assholes have to be the top dog. Like evil scientists overcompensating for being such nerds, their ambitions seem to know no bounds.

It’s a goddamn shame. Passengers weren’t even complaining about the prices. They were happy to have a better service.

Now it seems like Lyft and Uber are not just competing with each other but with the bus as well. It costs $2.25 to ride the Muni. A minimum fare for take a car is five dollars. So why not request an Uber for a few bucks more when you don’t feel like walking a couple blocks?

It’s dehumanizing to pick somebody up and be told, “Oh, I’m not going far.” Like that’s a good thing. Occasionally, a passenger will apologize for requesting a car to go a short distance, but saying sorry doesn’t ameliorate the crushing blow of ending the ride at their destination and seeing that $5.21 on the screen of my cracked iPhone. Of which I only see eighty percent, obviously, before factoring in gas and taxes, at the very least.

This has become the reality of ridesharing: slave wages.

And the problem with slave wages is that you can easily wind up in a vicious cycle of poverty.

Each week it gets more and more difficult to climb out of that hole.

So yeah… I keep driving for Uber because I’m hoping eventually I’ll make enough money to take a breath and figure out how to get myself out of this mess. But that day has yet to come. And as the prices keep going down, it may never come and I’ll just continue sinking deeper into poverty.

I should probably start playing the lottery. I’d certainly have better odds.