Night of the Living Taxi: The Epic Rideshare Fail of NYE 2015

In San Francisco, New Year’s Eve was the night of the taxi.

FlyWheel, the taxi-hailing app, was offering $10 rides (up to $50) from 8PM to 3AM. Luxor Cab was giving away free rides (up to $35) from bars and restaurants to residences during 10PM and 4AM. For once, passengers had plenty of options. The muni was free all night. And the Bart ran until 3AM. So riders who normally take Uber and Lyft would have to be seriously committed to rideshare not to take advantage of those deals.

From everything I saw on the road and read about on Facebook groups and Twitter (I had plenty of time to kill online), FlyWheel’s gambit paid off. As I cruised all over town, mostly alone in my car, wasting over a quarter tank of gas in the process, I rarely saw an empty cab. From the Marina to Hayes Valley, from the Mission to the Richmond, I laughed and cried at all those taxis jam-packed with fresh young faces. The kind of folks you usually see in Ubers and Lyfts. I may have even recognized a few. They certainly weren’t getting in my car. I had the worst Wednesday night ever! $60 for over five hours of driving. That is was New Year’s Eve seemed incidental.

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Gouge Away: Uber's Surge Pricing from a Driver's Perspective

During the recent hostage crisis in Sydney, due to increased demand, Uber’s surge pricing took effect. Understandably, people wanted to get the hell out of dodge. Fast! Since then, there have been a slew of articles lambasting Uber’s “dynamic pricing” model. Surge pricing, especially during a terrorist threat, always rubs the public the wrong way. And yet, various writers have come to Uber’s defense, arguing that surge pricing is simply an example of supply and demand.

Olivia Nuzzi, with the Daily Beast, wrote:

“Uber does not have a responsibility to care about you. Uber is not a government entity, and it is not beholden to the general carless public during an unwelcome drizzle of rain or even a time of great distress.”

Matthew Feeney, with the Cato Institute, the Koch-founded libertarian think tank, wrote on their blog:

“What is great about a pricing system like Uber’s surge pricing is that it allows users who want an Uber ride the most to have it. Prices are a great way of communicating customer preferences.”

Fair enough. In Econ 101, you learn all about supply and demand. On paper, surge pricing makes total sense. But corporate boosters like Feeney are missing some major factors that obviously aren’t apparent from the exalted view of an ivory tower. Namely, Uber isn’t a $40 billion company because it’s the Grey Poupon of urban transportation. Not only do they hope to take the place of traditional taxi service, Uber wants to replace car ownership altogether. How can they do that with part-time drivers whose only incentive to drive is the opportunity to gouge people desperate enough to pay whatever it takes to get home?

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Trick or Treat: Lyft Wants ME to Be a Mentor?

I have to say, I’m somewhat flattered that Lyft took the time to email me the morning after Halloween with an invitation to be a Mentor. On what was supposed to be the busiest night of the year for ridesharing, Lyft had to deal with a server outage that caused snafus for drivers and passengers alike. Then there was the Sacramento passenger who died in a wreck on the freeway. This is Lyft’s first fatality. And the first rideshare passenger killed during a ride.

It was a hell of a night for Uber too. Their servers also went down worldwide. And they had to fend off the usual criticism for surge pricing.

On top of all that, both Lyft and Uber were offering drivers an hourly guarantee. In San Francisco, it was forty bucks.

Despite the guarantee, I stayed home and watched slasher flicks with the Wife. We did Halloween, Halloween 2, Scream and Scream 2.

The next morning, the Facebook groups were inundated with screenshots of extremely high fares. Once the server issues were sorted out, prices surged 5x in San Francisco and LA. In other cities, they went as high as 9x. Drivers who powered through the glitches took home some serious treats. While several passengers were just tricked.

I felt a mild pang of disappointment that I missed out on the shit show, but the email from Lyft certainly raised my spirits. In fact, I laughed my ass off. I have to assume it was another server error. I mean, really… They want ME to be a Mentor? Me? The person who continuously trashes their brand? Who made fun of the Pacific Driver Lounge? And who wrote a scathing post that sent all the Lyft loyalists into such a tizzy? Me?

Are they completely out of their fucking minds?

I’m tempted to accept the invitation just to see if they would actually approve me. And if they did… Well, that would only validate my theory that Lyft and Uber don’t give two shits what you say about them online. Regardless of what many think, we work for a computer. All that matters is how well you drive. And as far as Lyft’s algorithm is concerned, I’m good enough to be a Lyft Mentor.

Me!

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.

How to Fix Ridesharing: Kill Lyft

Photo by James Klevin from the Vanishing SF Facebook page

A Modest Proposal

Last night, I had dinner with a friend and her sister, whom I’d never met before. The topic of Uber came up when I mentioned I drive for Lyft and Uber. My friend’s sister said she really likes taking Uber. She’s a performance artist and often needs to get around the city at night. Before Uber, she was regularly stranded by cabs, which would invariably pick up a street hail on the way to her location, leaving her in the lurch and forced to seek other options. With Uber, she’s never had this problem. She just requests a ride and the car shows up.

Awesome. The only problem is, well… Uber. And the way they’re treating drivers. As I mentioned to her the struggles drivers face when dealing with the lowered fares, the lack of tips and the general unpleasantness of Uber as a company, I began to feel like a dick. There I was, shitting on something that fulfilled a need in her life both personally and professionally. Without Uber, she, like a lot of people in the city, would once again be at a disadvantage. It seems the only thing everybody can agree on when it comes to this new trend in transportation is that cabs suck.

This got me thinking… If I owned a business that made a product people loved—one they loved so much they would be disappointed not to have anymore—why would I lower the price? I’m not business-minded in the least, but it just stands to reason that if somebody really wants your product, you could charge whatever price you wanted for it. So why is Uber continuously lowering fares?

Then it hit me. Fucking Lyft. Lyft is the problem. They keep picking fights with Uber. And Travis Kalanick, Uber’s founder and CEO, isn’t somebody you want to trifle with. But Lyft, the quirky kid with bad acne, thick glasses and a pepertual cowlick, does just that: day after day, they walk across the playground and challeng the biggest bully in school.

It’s not much a shock that Lyft is getting pummeled in the rideshare wars. It’s almost embarrassing how badly Lyft is losing this David and Goliath showdown. But you can’t feel too bad for Lyft. They asked for this. Unfortunately, the drivers on both platforms are suffering because of Lyft’s hubris.

The price wars have been going on for a while. It's hard to imagine a time when the minimum fare for an UberX ride was $10. But back in 2013, that what the going rate for a ride. Nowadays, in San Francisco, it's $5. In LA, it's $4. That's highway robbery at its very essence. Not to mention how drivers face serious risks with insurance gaps, troublesome passengers, potential health problems, damage to our vehicles, the financial hardships of constant repair and maintenance and we are denied tips. On top of all that, with the rating system, we don’t even have job security. Any passenger on a power trip could easily have us deactivated.

I started driving for Lyft in March of 2014. I made decent money. A few months later, to combat Uber's growing domination of the rideshare market with UberX, Lyft lowered their fares and stopped taking a commission. The price cut was supposed to be a test. Around the time they planned to return to the original rates, Uber lowered their rates, forcing Lyft to make their temporary price cut permanent and start collecting commission again, pissing off all but their most loyal drivers.

The Rideshare Wars

Uber is definitely winning the rideshare wars. In their calculated, underhanded assault on Lyft, Uber shows no restraint. They even announced UberPool, a carpooling feature that wasn’t active, the day before Lyft announced their own carpooling service, LyftLine, which was ready to launch, effectively stealing their thunder.

Even without public support, Uber is racking up victories. A month ago, when Uber’s Operation Slog was exposed, everybody felt bad for Lyft. But then Lyft lowered prices again and drivers started burning their mustaches.

Before this happened, Uber had started poaching Lyft drivers. I was one. I joined Uber during their $500 sign-up bonus. $500 to take one ride? Where do I sign?! The gimmick was that newly recruited drivers would see how much better Uber was compared to Lyft and switch sides. And it worked. As a regular Lyft driver, I was blown away by how much more business I got from driving for Uber. (Lyft tried to get Uber drivers to switch sides, or double down, by making a counteroffer of $500 plus a taco, but just came off looking silly, as usual.) 

These are the kinds of tactics that show who is really in charge when it comes to ridesharing: Uber.

Now don’t get me wrong, I think Uber, with Kalanick at the helm, is an evil, unscrupulous company along the lines of Wal-Mart. Kalanick comes across as an antisocial, libertarian scumbag who’d stab his own mother in the back to get ahead. He probably has a cum-stained paperback of The Fountainhead under his pillow that he strokes gently as he falls asleep at night. But he’s not stupid. He knows how to run a business, even if it is at the expense of workers. Lyft, on the other hand, has yet to display any business acumen. Their entire platform lends itself to mockery.

Look at their signature branding: the pink mustache. While it’s proven to be an effective symbol to get attention, it’s so ugly and goofy and alienating and … shit, the list goes on and on. Most people don’t like the stupid thing and very few drivers have them on their cars anymore. Lyft, realizing this, developed what they call a “cuddlestache,” a smaller version that goes on the dash instead of the grill. But from a distance, it just looks like a pink turd. Another Lyft fail! [UPDATE: Lyft is ditching the 'stache.]

Where Lyft supposedly excels is through creating a sense of community. I prefer the social aspect of driving for Lyft. It makes for better stories. Driving is more fun when you are free to chat with the passengers. The time goes by so much faster. And Lyft encourages tipping, which is awesome. Uber tells their users the tip is included in the fare. (It’s not.) But the whole “Cult of Lyft” mindset is a niche market at best. In order to fall for it, you have to drink the Kool-Aid. Lyft fanatics are a brutal lot of mustache-waving zealots who will try to stifle any dissent in order to protect the brand. Still, there’s no way they can corner the entire rideshare market based on jingoism alone. In fact, I’m willing to venture that the community aspect hurts Lyft more that it helps. Some people just want to get from point A to point B without making a friend along the way.

There are folks to whom Lyft’s transportation model is appealing and Lyft needs to cultivate those users. Not the market as a whole. They will never be able to compete with Uber, financially or logistically.

As cutthroat as they are, it’s not surprising Uber is resisting Lyft’s attempts to corner the market. Lyft is fighting with a ruthless bully. Their only move at this point is to beg for mercy. Even their cries of “that’s not fair” have fallen on deaf ears. If this were a schoolyard fight, we’d all be standing there with out arms folded going, “Dude, you asked for it.”

The question of who started the price wars doesn't even matter anymore. Even if Lyft were out of the picture, it's not likely the prices go back to what they were at the beginning of the year. It doesn't even matter that, except for surge pricing, passengers weren’t complaining about the prices before the price war started. What's done is done. At this point, Uber could charge as much as cabs and still be profitable and control the market. 

The Writing on the Wall

Oh sure, there are plenty of problems with ridesharing. Killing Lyft might not fix them all, but the only way to end the price wars is for Lyft to be better than Uber. Or die.

I’m not the only rideshare blogger who’s come to the conclusion that Lyft isn’t going to win. They are perpetuating the price wars in a futile attempt to compete with Uber and yet they’ve lost each battle.

Somebody needs to put a stop to the price wars. Despite what the their computers tell them, raising prices would benefit the company and improve the rideshare experience for passengers. Of course, if Uber and Lyft did raise the prices, the users who take advantage of the five-dollar rides would drop off. And while those short rides are fine for a computer to just add to the ultimate tally, earning those five-dollar rides as a driver is no easy task. The five-dollar rides need to end anyway. The minimum fare for an on-demand ride should be ten dollars. If you can’t afford ten bucks to get from one neighborhood to another, you really shouldn’t be using an on-demand car service. Why waste an Uber driver’s time by having them spend several minutes driving to you just to take you a few blocks? That’s plain lazy and a waste of everybody’s time.

It’s time for passengers who want quality transportation options provided by drivers paid a fair wage to expect more than a race to the bottom. 

As a driver, the end of Lyft cannot come soon enough. There are very few drivers who are even loyal to Lyft anymore. Lyft is the losing team. All roads lead to Uber. Whether we like it or not, they are going to win the rideshare wars. Anybody who can’t see that is obviously drinking too much Lyft Kool-Aid.

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FOLLOW UP POST: Should We Really Kill Lyft?

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, that’s 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?

Chasing the Surge; Or, Tip Your Uber Driver, You Cheap Bastards!

Most rideshare drivers chase the surge. There are Lyft and Uber driver groups on Facebook seemingly devoted to posting screengrabs of high-ticket fares during price surges. Drivers click “like” and make comments like, “Lucky you!” or “I wish I weren’t already in bed or I’d get in my car right now!”
I’ve always been ambivalent about Uber’s surge pricing and Lyft’s “prime time.” I get the concept of supply and demand, but I’d much rather let the passenger decide how much my service is worth with an actual tip.

Surge pricing forces generosity from people who would otherwise not give you a penny more than what is required. And since Uber discourages tipping, the only amount required is whatever comes up on the app. Surge pricing is the only time drivers get more than what the app determines. So it’s no wonder drivers revel in it and respond to high fares like they just won the lottery.

While Lyft at least has the option to tip in the app, Uber is sticking to the no-tip rule. They even discourage drivers from accepting cash tips when passengers offer them. There are even some drivers who follow that rule.

Regardless of what Travis Kalanick thinks is a better model for transportation, driving is a service-based task. Only assholes stiff service workers on tips.

So, you may be wondering, who cares if passengers have to pay more — or a LOT more — when demand is high? Doesn’t the extra money make up for all the times they didn’t have to pay extra for the luxury of being driven around town, oftentimes receiving water and snacks along the way?

Perhaps, but telling riders they don’t have to tip and then forcing them to tip when it’s busy is ass backwards.

Why did Uber take tipping out of the equation anyway? It’s not like we’re getting paid more than taxi drivers. You wouldn’t stiff a cabbie on a tip, so why do it to rideshare drivers?

The no-tip rule is an absurd aspect of Uber’s business model. It may seem like a good idea to the consumer during normal times, but when they’re looking at a $400 dollar fare, like the unfortunate festival-goers at Outside Lands this year, all of a sudden, tossing a few extra bucks to your driver doesn’t seem like that big of a deal anymore.

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Outside Lands & The Rideshare Feeding Frenzy

Before the Outside Lands festival was even over, numerous articles started popping up on sites like ValleyWag, SF Weekly and SFist about ridiculously high fares due to Uber’s surge pricing. Each night after the event let out surge pricing got up to 5 times the normal rate. Online, everybody freaked out over a couple pics of some pretty high fares. Uber was portrayed as the bad guy, ripping off decent festivalgoers that just wanted to get home.

Yeah, it’s easy to hate on Uber. And plenty of commenters lambasted the spoiled passengers who couldn’t be bothered to take public transportation. Or walk. Or ride a bike. Though if they’d seen the mobs around the bus stops on Geary, they might have held back on some of that criticism. Those poor saps weren’t going anywhere anytime soon. Still, is it better to be a sucker? No. But another factor that’s being overlooked in all this brouhaha is that these high fares were not just the direct result of surge pricing. They are also a consequence of drivers coming into the city to work event and not knowing how to navigate the streets.