The Paradox of Ridesharing

Friends with Benefits

Uber must think Lyft drivers are all BFFs. It’s an understandable assumption, seeing as how Lyft promotes their brand of ridesharing as a community where drivers and passengers fistbump their way to everlasting friendship. Every day I get texts and emails from Uber telling me to bring my Lyft friends down to the office on Vermont street so they can sign up to drive for Uber. As always, it seems, they’re offering a $500 sign-up bonus and a $500 referral bonus. Plus lunch. And, as an added incentive, during the first month, new drivers are guaranteed to make either forty bucks an hour or $1000 a week, depending on the market.

If I had any Lyft friends, I’d tell them to take the money and run. $500 is a nice chunk of change. And I’ve seen the meals they give out at the Uber office. You get a sandwich, a bag of chips, some pasta salad and a soda. Not a bad spread. But alas, I have no friends in the Lyft “community.” I was removed from the Pacific Driver Lounge, Lyft’s official Facebook group for drivers, months ago for writing a blog post called The Cult of Lyft that poked fun of the jingoistic tendencies of the Lyft faithful. After that, I got kicked out of a group set up by Lyft drivers in the Bay Area. And then some Lyfters on a group for Uber Drivers had me kicked out of there. I guess what they say is true: I am the most hated person in the world of Lyft.

I’m actually surprised Lyft hasn’t deactivated me yet. I guess they’re afraid I’d make too much a stink if they sent me packing. Not that I’d be upset about it or anything. If you want to be part of the Lyft community, you need to drink a lot of Kool-Aid. Otherwise, you’re not welcome. And I’ve never felt welcome.

Still, it’s too bad I don’t know any Lyfters who aren’t already driving for Uber. I could definitely use the $500 referral bonus. After seven months of driving mostly fulltime for Lyft and Uber, I’m broke as hell. My credit cards are all maxed out, my bank account is overdrawn, I have a painful toothache I can’t afford to fix and the Wife’s always pissed cause I’m out driving late every weekend. As it is, I figure I have about two months until my car needs new brakes and tires. And when that day comes, my rideshare days are over. I just don’t make enough from driving for Uber and Lyft to afford to fix my car so I can keep driving for Uber and Lyft.

Now, I know it’s my own damn fault. I bought into the empty promise of ridesharing as an alternative source of income with a good amount of freedom. The ability to set your own hours can’t be overestimated for a creative type like myself. In fact, on Uber’s sign-up page, there are numerous quotes from drivers extolling the greatness of Uber because you can be your own boss. And who doesn’t want to be their own boss? I know I do. That’s one of the reasons I signed up in the first place. I was in between jobs and had an underutilized car. But as the harsh realities of being a rideshare driver became clearer, I should have moved on before the price wars went nuclear. Because all that freedom they talk about doesn’t come cheap.

Uber and Lyft have always been desperate for new drivers. But these days, they need them more than ever. As ridesharing becomes more popular, drivers will be quitting due to expensive car repairs or getting into accidents and not being able to afford the $2,500 deductible from the insurance companies that Uber and Lyft rely on to keep us safe. Or they’ll just bail after coming to the inevitable conclusion that ridesharing is not sustainable as anything more than a part-time gig.


The Long Con

In its current configuration, ridesharing, à la Uber and Lyft, is a conveyor belt to oblivion. Their goal is to take down “Big Taxi” with an endless stream of drivers using their personal cars as unregulated cabs. Uber and Lyft like to portray cab companies as monopolies that are bad for the public. They claim that government regulation will strangle innovation. But it’s all a smokescreen to disguise their true motives: replacing cab companies and their fleets of cars with tech start-ups who con regular folks into thinking they’re part of some “disruption” of a failed transportation system. And then rake in the cash.

Hey, it’s the American way!

You can’t blame Uber and Lyft for their eagerness to exploit the underemployed. It’s an effective business model that’s benefited countless fast-food joints and made the Walton family filthy rich. Low paid workers cycle through crap jobs all the time without much concern from the general public. But it’s one thing to have a stoned, pimply kid flip your burgers or ring up your discounted housewares. It’s quite another to trust them to transport you and your loved ones through city traffic in their own car for a few dollars. Chances are, they don’t even know how to get around the city without a navigation system. And even background checks can’t prevent bad seeds from easily finding their way onto the platform.

Not that it matters. Rideshare users, the very people who should be alarmed by these safety concerns, are absolutely clueless. They pay next to nothing for a ride and expect to be treated like royalty. Uber tells them they don’t need to tip and they accept that lie without hesitation. They just want the convenience and they want it for the lowest possible price. They blindly go along with the exploitative model of the gig economy without a second thought.

Unlike flipping burgers or running a register, though, rideshare drivers are supposed to perform a luxury service that’s superior to cabs. Despite getting paid less than cabbies. Rideshare companies are able to keep lowing the rates, of course, because they don’t have to own or maintain a single vehicle. They pass that discount onto to the drivers by forcing us to work for less and less each month.

I would much rather drive a cab. At least cabbies who lease their cars from a company don’t have to pay to fix them. If something goes wrong with their vehicle, they get a new one. A rideshare driver, on the other hand, shoulders all the risk and responsibility for their cars, as well as insurance and their health. We are subsidizing the entire industry so people can have an alternative to cabs. And what do we get in return? A few lousy bucks and a four-star rating at best.

As more drivers eventually realize they’re being exploited, Uber and Lyft will have to recruit new drivers to replace the ones who wise up. And these new drivers might make it a month or two before wandering off to another dead-end job. Some post comments in Facebook groups as they leave. But very few drivers will ever make a stink about how unfair the rideshare system is for drivers. Because the underemployed are used to being exploited.


Meet the new boss (and no, he’s not the same as the old boss)

I’ve had countless shitty jobs in my life. And each one came with a shitty boss. If I had ever had a boss that hired me at, say, $25 an hour and then a month later told me they were now going to pay me $15 an hour, I would tell that boss to fuck the fucking fuck off. Who wouldn’t, right? And yet, as a rideshare driver, I went along with a thirty percent pay cut. It happened so suddenly, I didn’t know how to react. And I didn’t feel like I had much a choice. Jobs don’t grow on job trees anymore. Those drivers who did have options dropped off like flies. The rest of us plodded along at the reduced wage. And then Uber and Lyft lowered the rates again. Sure, they claim that the new rates increase rides. But I was plenty busy before the price cuts. And I can only do so many rides an hour. Especially when passengers make me wait ten minutes to come outside or input the wrong location and I have to drive around looking for them. Then there’s traffic, unforeseen circumstances, driving to far off locations where you’re not likely to get a ride… the list goes on and on. It’s another lie. But we go along with it because we’re desperate. Or stupid. I don’t know which. Maybe both? (Of course, there are still Lyfters loyal to the brand. God bless them.)

So how is not having a boss working out for us? Personally, I’d rather have the old boss. I don’t like the new boss. It’s like having a girlfriend or boyfriend who doesn’t want to put a “label” on things. You kind of suspect they’re two-timing you, but they’re just so cute. You can’t meet their friends. They always come to your house. Eat your food. Hog the comforter at night. And you can’t call them anytime you want. Oh, no. You have to wait for them to call you. And if you ever say, Hey, I need a commitment, they give you a million reasons why this relationship works best for YOU. And it sounds so convincing and you begin to think that maybe they do have your best interests at heart. They’re trying to protect you. So you go along with it because every once in a while, they’re just so fantastic. And you feel so loved. But deep down, you know the desperation has turned you blind to your own best interests. And one day, you’ll wake up and realize they don’t actually give two shits about you. You’re just one fool in a long line of fools who fall for their crap. You’re just somebody to keep them from being lonely on a Saturday night.

The day will come when all rideshare drivers have a similar revelation. And like that guy with the thick black book, Uber and Lyft need to keep enough irons in the fire so they never have to spend a Saturday night alone.

That’s the new boss.

I miss the old boss.

I’ve said it before and I’ll say it again: ridesharing is a racket. There’s no way to win. Unless you want to join a cult or run your car into the ground. Then it’s a great way to make a few extra bucks a week. Just don’t think about what might happen if you get in an accident or need new brakes or what you’re going to do when it comes time to pay Uncle Sam. Whatever you do, do not think about that.

Lyft Loses the Fluff

So Lyft is finally ditching the ‘stache. Got the email yesterday:

Sure took them long enough. I’ve been ragging on that god-awful monstrosity since day one. Back when I drove for Lyft exclusively, I've always said, I don't use the mustache because I am the mustache. 

Of course, as always, Lyft can’t catch a break. Last weekend, there was a good old-fashioned ‘stache burning down in LA. Vice Magazine posted a write up on the event. That kind of attention can’t be good for morale.

Oh, Lyft. At least you have your plush offices to cheer you up.

photo by Gabriel Zamora

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.

---- 

FOLLOW UP POST: Should We Really Kill Lyft?

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 didn’t 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.