Lyft to cut 1,072 employees, or 26% of its workforce
cnbc.com
cnbc.com
What happened was this: I requested a ride, and it was confirmed by the driver who was about 15 minutes away. After waiting 10 minutes, the driver would cancel (and presumably go pick up someone else who had a higher fare). This happened literally 3 times, and I sat outside at the curb waiting for 30+ minutes. I gave up, requested a ride with Uber instead which had a similar price (<$2 delta, I think). The Uber driver not only not cancel on me but also was significantly closer causing me to wait less from the moment I requested a ride.
The problem now is that you can't give your driver a rating until the ride actually starts. This allows the drivers to play all sorts of games before the ride starts. If I match with a driver, and he drives around aimlessly for 10 minutes, then calls me, asks where I'm going, and then demands I cancel the ride (and get charged), that should be one star, but currently it's impossible to rate this bad driver.
Drivers on the other hand, want to know mainly so they can decline up front to take someone 50 miles in the “wrong” direction from where they are trying to be next.
In the moment it was nice: I was running late and that got me on track. But it seems really really bad for the ecosystem in general. I'm not sure I can rely on being picked up at a reasonable time again without paying for it. And once everyone realizes that and starts paying more, then we're back to where we were before.
If Uber isn't doing that, maybe it's time to give them a try.
- App offers a 7 minute pickup time or a 3 minute "priority"
- Select priority, app pops up a "searching for drivers" screen with a loading bar
- as the loading bar gets closer to the end, it gets slower. The loading bar does not actually represent progress to completion in any meaningful way.
- the app begins throwing out bs "reticulating splines" explanations like "tidying up a few last minute details!" I hate that kind of teehee-cute fake message, there are no details to tidy up, you are just waiting for a driver close by enough to agree to my ride
- after a minute+ of this, tap "cancel" to call an uber instead, and get a popup pleading to wait just a few more seconds since this will happen any moment now
- after another minute or two, finally get a driver 3-5 minutes away.
Total elapsed time until lyft arrives: 6-7 minutes, for $5-10 more.
It's not just the unreliable functionality, but the way the energy invested into this part of the product appears to have gone into fooling you into thinking it is useful, not actually being useful. I'd rather just call an Uber that will actually arrive at the time the app predicts it will show up before I call it.
This sounds incorrect based on my experience on the driver’s side - I’m pretty sure it just puts your request at the front of the queue and doesn’t reassign drivers already en route to a pickup. Where did you see that’s how priority pickup works?
He said he'd only recently learned of the feature himself when a similar thing happened a couple of days prior. He was supposed to pick up person A, then was redirected to person B, but B was at the same place as A so he got an earful from her, because she thought he canceled on her.
Driver switching has been happening for years though, way before I saw priority pickup as a rider.
I'd still call Lyft over taking a traditional cab though.
It is so much more expensive that my company has stopped reimbursing ubers in most scenarios where taxis were otherwise available.
I've driven heavily in both and taxis are often nicer and safer than some of the craziness of UberX rides. If I take an uber I just pay the 10-15% premium for Comfort or Electric. I won't use UberX in the city anymore, it is so much worse than the taxis.
But the convenience depends on which terminal. I normally fly American--ez taxi from JFK.
Once I flew in on JetBlue. Nightmare taxi stand with a winding, immobile line. Had to call an Uber.
What most people like about Lyft or Uber: known price, known route, and backup drivers automatically located if there's an issue with the first driver.
That peace of mind seems worth paying for.
I was gleeful when Uber and Lyft came on the scene to have an alternative to cab BS, but the one place they still shine is when going from an airport into a major metro area.
I have taken a cab ones, but to Fauntleroy, and I was missing a ferry (which I missed anyway because the driver took a weird way). However, the transit options to West Seattle aren’t nearly as good as to downtown though.
I'll give an exception to certain cities that have superb transit options, but none of those cities are in the US.
Drivers are smart, they network, and they talk. I'm sure theres some idiosyncratic thing going on where Lyft is more gameable for drivers in some cities. Could be Uber-Lyft price spread plus cancel policy / penalty on drivers.
Most of these guys drive around with N apps running, so they switch to more lucrative ride / app / etc on the fly.
The thing is, your Uber driver was probably also working for Lyft at the same time. The one who canceled probably was too. So I don't know if one company is better for that than the other, or if you just happened to get a game theorist Lyft driver by luck of the draw, who decided to optimize his expected value.
Then the taxi driver tried to scam me multiple ways, including demanding cash because they "forgot to start the meter" and attempted to take the long way to my home (I live about 1 mile from the airport).
Won't make that mistake again.
- lots of luggage
- traveling with family/kids
- area was designed for cars and is not pedestrian friendly
- too tired after long travel
- late night arrival makes walking unsafe
As a result now, I'd rather wait 30 minutes for an Uber/Lyft than take the cab sitting right there.
For that reason, I don't use UberX at all anymore. I always upgrade to UberLux or Uber Comfort or Uber Electric if its available. Even the Uber Comfort's are not that great most of the time. If I have to use UberX, I will just take a taxi. Taxis in my part of Chicago at least are pretty good and predictable (but other cities might not be so lucky).
I think this is market specific. Because when I go back to Oregon to visit family, the UberX there are super nice. I had a brand new Tahoe on my last ride there.
People have the impression that Taxis are more expensive than Ubers, but that's actually rarely the case. I've found they are pretty close most of the time. I find that Uber/Lyft is cheaper for short trips (< $10) and Taxis are cheaper for longer trips ($10-50).
Also, LPT for everyone. Many/Most airports actually have flat taxi rates between the airport and the city. Be sure to ask about this. A lot of big cities will have a flat price for taxies of like $20 or $30 between the airport and city. I really like this. Also, all taxis nowadays take cards and most take ApplePay too.
And i've been turned down once or twice. I use cabs a lot, so I could call those experiences extreme outliars.
From SFO I once went to South Bay, Uber would've been $50, taxi was $150 because of some esoterically worded rule that tripled the mileage cost outside of SF proper. I wasn't even in SF to start! What a joke
Also if you need an SUV or larger vehicle for more passengers, it's much easier to just use Uber.
- I can hail an Uber of my choice before stepping off the plane
- I get free Uber rides via AMEX
- I don't carry cash
- Taxis are hit and miss when it comes to cleanliness
So are ubers lol. Especially mid-day when the only ubers that seem to be out are old tiny cars.
if they get punished $5 but Uber fare is gonna be $10 more, switch.
Remember on the driver side they run on different phones generally, but on the client side the customer is running all these apps on their single phone. A lot of these apps have privacy issues and snoop a lot on the client side. So they can basically detect frequency/recency of Lyft app being open on your phone, and then offer Uber drivers better rates for pickups at your GPS location.
Remember that Uber has had 2 rounds of layoffs already I think. One was for 16% of their workforce and another was for 5-6%. So it isn't a whole lot different. I wouldn't expect anything to change. Facebook has had 4-5 rounds of layoffs and Instagram and Facebook aren't going anywhere.
It's true that Uber has laid off people, but, according to layoffs.fyi, all of their post-covid layoffs have occurred either outside of the U.S. or applied to Uber Freight. Uber had two rounds of layoffs in SF during 2020 for 14% and 13% of their workforce. Nothing since. (source: https://i.imgur.com/MqNYdhT.png)
In contrast, SF Lyft has gone through four rounds of layoffs: 17% in 2020, 2% + 13% in 2022, and 26% in 2023.
If Uber cuts their SF workforce by 25% in the next month or so then I'll feel better about the mutual competition. Otherwise, my stance remains that they're entering into the winner-take-all phase of their strategy.
I'm not sure it's as nefarious as you present it. The "raise prices" portion is more like "raise prices to what it actually costs to provide the ride". They'd been pricing rides at a loss for years to get traction and customers.
Anecdotally, though, I haven't found Lyft to be much better. Even with Lyft Pink (and no Uber One or whatever it's called), Uber is usually fairly competitive with Lyft, at least where I live.
The issue I have with this is that there are many "no go" areas downtown, like the pedestrian mall, and the scooter will simply stop working if you go into those areas. You have to manually push the scooter back out of the area before it will start working again. Great, perfect, fine, good, so then why did you let me drive it outside of the valid downtown area to begin with?
So frustrating they even would let you unlock these in the first place. I'll never use it again.
I found this out while trying to ride a scooter through the park. Google Maps directed me to take the road, which I was not thrilled about but seemed like a better idea than carrying the scooter through the prohibited zone. But then the fuzzy geofencing on the scooter thought I was in the park anyway and kept intermittently cutting off the scooter.
drivers will accept the ride, and then just never show up. I watched them on the map---I think they are driving Uber routes for other customers while simultaneously "accepting" my ride
I used to switch between the apps based on price of rides. Now I have AMEX rewards for Uber plus I get Marriott points when I ride, so that is why I have moved exclusively to Uber.
But the drivers are the same. It's the same pool of drivers, using both apps.
I think drivers are preferring riding for Uber over Lyft. It used to be that every driver had both apps in their cars and now I am seeing fewer drivers running both apps. So I think many are settling down with Uber.
In the end, this is actually kind of exciting. It means that the two companies can compete on treating drivers better and the drivers will move towards that app and the riders are noticing (based on this thread). Competition that treats the drivers better I think is ultimately a good thing. The market was so crazy for a while it didn't matter, but now this might be an important factor between the two.
Doesn't have to be a startup, a worker-owned co-op doing consulting or a business products company can bring home the proverbial bacon and the profits can be shared fairly amongst workers.
For perspective, Microsoft has ~200,000 employees. Lyft never had 2,000,000.
You might be thinking 2,000,000 drivers. But I checked that fact and apparently they have 20M registered drivers. Maybe 2M of those are active. I don't know. But Lyft never had anywhere near 2M employees. It looks like at their peak they had around 4,500.