Uber's playbook for sabotaging Lyft
theverge.com
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They likely have more cash-on-hand than the cumulative Taxi base they are 'disrupting', they've been caught multiple times sabotaging competitors, they've been outed for dishonest advertising, and have been repeatedly accused of hostile actions toward their drivers. They ignore sensible regulations like maximum hourly workweeks and insurance minimums (do you want your driver working 90hrs/week without liability insurance?) under the guise of fighting the taxi cartel.
It often takes a 'push' to get bad laws changed, and Uber's provided much of that push, but not all laws that restrain business are bad and not all companies that break bad laws are good.
I personally think most of the taxi regulations are stupid, especially the price controls. But they're not irrational, nor did these legal regimes arise out of nefarious lobbying on the part of taxi companies. Rate regulations, forbidding surge pricing, requiring cabs to serve the whole city, etc, arise from cities treating cabs as a part of the overall municipal transit infrastructure. The "last half mile" of transit, as it were. I don't think regulated monopolies are a good idea, but they're certainly a common solution when it comes to industries that resemble public infrastructure.
Given that the taxi companies were granted monopolies as part of a larger regulatory regime, why are they "evil" for trying to enforce that privilege in the face of companies like Uber taking the high value routes out from under them, using techniques like surge pricing they aren't allowed to use?
If the local administrators have the power to hand out monopolies, they should also have the responsibility to retract it when it no longer makes sense. A repeated and long-delayed failure to do so is harmful to society, whether or not it was had good intentions at the beginning doesn't absolve it of criticism now.
... for being woefully outdated and not inline with market economics
Why do regulations have to be in line with market economics in the first place?Most, if not all regulations should serve and protect the citizenship and not private interest.
That Uber so vehemently lobbies against sensible regulation, like an obligation for commercial insurance, speaks volumes.
That said, the narrative painted by the tech press has focused mostly on the efforts of cab companies to "stifle innovation" without acknowledging that they are defending legitimate rights. They paint Uber as a scrappy startup trying to compete with "fat" cab companies that have regulators in their pockets. The tech press narrative is simultaneously baseless and self-aggrandizing. The real narrative is less sexy: technology is enabling companies like Uber to eat up markets previous served, rather inefficiently, by modestly profitable small businesses. It's no different than what Wal-Mart did to mom and pop shops, or what Amazon did to small retailers, or what Starbucks did to local coffee shops. A national corporation can offer better service and lower prices, and can exercise quality control that obviates much of the need for regulation. This is both good and bad, but mostly, it's just the way the world works.
There's no reason, on top of all that, to demonize cab companies for trying to force municipalities to hold up their end of the bargain.
Regulation is often not about being inline with market economics - it is often used to enforce things that companies would not do (because of cost) that have significant impact on employee, customer, and public safety.
The regulations in place vary from city to city, but Uber and co are not just arguing against the out-of-date bits (knowing "the knowledge" which some argue is irrelevant with technological help, and so forth) but the whole lot including drivers having adequate insurance and relevant background checks.
I'm very much in support of new business models thriving, even if it eventually kills the old ones (progress is a good thing) so I'll back Uber wanting a piece of the pie, but I don't agree with the complete circumvention of the existing regulations so I wouldn't currently feel safe using them.
Instead, I summoned an Uber. It got there in fifteen minutes (and would have been sooner except for traffic), took us home, then continued on to drop off our friend. Minimal hassle, a comfortable ride, and impressed the fuck out of our friend. I was sold.
Then in Seattle earlier this year, we used Uber again. Our first trip was perfect (as we'd expected). Our second trip, the driver didn't even show up. We watched him on the app for 20 minutes; mostly not moving, and then driving around, never getting closer than ten blocks. My friend called him (another handy feature!) and he said that he'd already picked us up? Or someone up? He'd already done a fare, anyway, and apparently we weren't part of his plans. My friend got billed though, and had to contest the charge with Uber (which they quickly reversed).
Had we been excessively drunk (as I'm sure a lot of people were that weekend) we might not have even noticed. We would have flagged down a cab (which we eventually did) but forgotten about our uber ride entirely. The driver would have gotten paid, we'd have been out fifteen bucks, and no one would be the wiser.
Uber has gotten shady, for sure, but with their explosive growth it's hard to believe that the drivers aren't getting shady as well. Uber needs to be held to the regulations (which may need updating to support newer models of transportation), but they also need to start behaving like a real company and not an insecure frat boy trying to bully everyone into doing things his way. It's time for their investors to step up and start protecting their investment, and force Uber to stop exposing the company to lawsuits and horrible public image.
And it's time for people to stop using Uber until they straighten out their deal.
I think Uber is great. I just see no reason to aggrandize them or to demonize the cab industry.
Where I live in the midwest traditional taxi cabs are unreliable with their pickup times, they often advertise they accept credit cards when they do not, and they have a history of intentionally diverting through long routes.
Uber brings accountability and transparency to every step in the process of getting a taxi cab.
I'm not rooting for the good guy, I'm rooting for the more convenient and efficient customer experience.
This is not allowed in the UK and you have a variety of ways to tackle it.
> and they have a history of intentionally diverting through long routes.
This sounds straight up criminal. Carrying a GPS enabled phone and mapping the route driven should gather enough evidence to persuade regulators to take action.
Unfortunately, it's not enough to have a written law that says "oh yeah, taxis will totally take you anwhere, pick up anyone hailing them, and accommodate the disabled"; it needs to have actual observable implications.
When your entire defense is that "but we have to provide this public service", you might want to check that you're actually providing it.
Agree about the dangers of needing to make everyone a pure good or a pure bad guy though.
If I buy legislation that allows me to extort consumers then when I extort them afterwards it is legal, but it's also as evil as always. There is a reason why illegal and evil are two different words.
This to me, is the key of the problem. Yes, the taxi medallion system was broken in many cities and Uber is forcing to at least acknowledge that regulation in it's current form it's not longer useful. But I think that as a company Uber it's not a positive force on the public transportation market. Quite the opposite. I love tu use it when I'm in San Francisco but cannot shake the feeling that we are screwing ourselves long term by supporting it.
The medallion system was never "useful". It was simply a feudalistic setup designed with the help of regulatory capture to allow private investors to impose a private tax on riders and drivers.
Uber is simply modifying the feudal system, placing themselves at the top instead of the medallion owners.
Given the range of big investors and political support for the company (that stretches all the way up to Obama), I would guess that it's not even a change in who owns the taxi system - Goldman sachs are probably simply buying up uber stock and dumping medallions on easily duped investors - pension funds and the like, while lobbying their ass off to give Uber a free pass on all this lyft sabotage bullshit.
Owning a taxi medallion is like owning a McDonald's franchise. Doesn't exactly make you a Master of the Universe. A $1 million investment in an NYC medallion nets you a maximum of about $75,000 a year: http://blogs.reuters.com/felix-salmon/2011/10/21/why-taxi-me.... The average McDonald's franchise nets $200-250k/year, and costs about $750k-1.5 million to buy.
Have you considered not using it?
Think it won't happen? It happened to Aereo. Sure, they didn't have as much money and weren't in as many locations, but its a similar vibe: if they closed their doors tomorrow, nothing would change. They might be in the process of disrupting the market, but they haven't won yet. They could lose everything overnight.
This plays into their "Uber vs. The Taxi Cartel" trope perfectly. In reality, Taxi regulations vary by city, state, and country. Uber is now operating in over 90 cities in the US and in 44 other countries. They couldn't possibly be "forced to close at any moment" since their business is legal or at least 'not illegal' in the vast majority of those territories.
The "Taxi Cartel" is really several hundred independent locally granted monopolies that exist to attempt to ensure requirements that Uber is going to ignore. The highly profitable airport routes exist to subsidize the requirement that taxis are handicap-accessible and can't discriminate against customers. Medallions were created to ensure that cars were properly maintained, drivers could earn decent wages, and that there wouldn't be reoccurrences of the crime waves against taxis and customers that led to medallions in the first place.
Obviously the number of medallions has been restricted to an unreasonably small number in most places causing the terrible service that many are used to. Also fairly obviously, the advent of the smartphone with personal profiles has reduced the crime potential facing the typical cabbie as well as the issues hailing cabs in outer boroughs or less populated neighborhoods. All of that said, it's not like cab companies or taxi drivers are widely profitable. The only public Medallion company (NASDAQ: TAXI) only makes $35M in revenue/year and about 1/3 of that in net income. If the claims surrounding Uber are true, they're projecting close to $2 Billion in net revenue in the very near future.
If Uber does indeed take all of the profitable routes, Taxi companies will close their doors. Some might consider that a net win, but consider the Uber app and the demographics of Smartphone owners (http://i.imgur.com/T5JpmQE.png) and then try and estimate how many Ubers are handicap-accessible. This would only be a net win for the wealthy, young, and non-handicapped, which was the entire point of taxi regulation in the first place.
I don't mean to argue that Uber = Bad and Taxis = Good, and there are other options to solve these problems rather than local monopolies and route protection, but the simplistic "Uber vs. Taxis" analysis usually ignores all of the externalities that would accompany a taxi-less world.
This is interesting to me because none of the studies I have come across concerning taxi regulation emphasize these arguments; they mention them only in passing, if at all.
Take this paper from the November 2007 issue of Transport Policy, "Entry Controls in Taxi Regulation: Implications of US and Canadian experience for taxi regulation and deregulation": http://schallerconsult.com/taxi/entrycontrol.pdf
In its discussion of the rationale for taxi regulation (section 3), these reasons are given:
- economies of scale may disproportionately favor larger companies
- regulations guarantee availability of off-peak and low-density service
- many aspects of taxi service cannot be examined prior to consumption
- insufficient barrier to entry may lead to oversupply
Or take this OECD Policy Roundtable debating taxi regulation from 2007: http://www.oecd.org/regreform/sectors/41472612.pdfThe reasons given there (p.22) are:
- lack of regulation leads to "excess entry" into the market
- high taxi supply could take people away from more "economical" transport options
- arguments about pollution and congestion
- cyclical demand could lead to wage downturn when demand subsides
- cyclical demand could harm service quality, since long-term players can't become established.
So out of all of those arguments, maybe one has anything to do with these egalitarian concerns that Uber/Lyft critics invoke. And many of these arguments are very directly obsoleted by Uber/Lyft-like business models (particularly the ones concerning incomplete information prior to the hail).So why suddenly are taxis the champions of the underprivileged, and their competitors the tools of young rich person oppression? If protecting the underprivileged is "the entire point of taxi regulation in the first place," why are these social arguments missing from pre-2009 (when Uber was formed) literature?
Ha ha. In Sydney, at least, this is a joke.
In my city I thought Uber would be massively successful. I was so excited when they launched. But there are hardly any drivers around, because the police calls up Uber rides and then tickets the driver for operating an illegal cab. No one wants to drive with that persecution going on.
Which regulator?
There ya go, fixed it.
Well, in my market (San Diego), anyways, I am certain the number of drunk drivers would go up, and the bar industry would see a hit in their clientele. I rarely even drink myself, but I don't think twice about calling a Lyft to go out or come back after drinking.
>bar industry would see a hit in their clientele
Back to pre-Uber levels, presumably.
On the other hand, Uber is not illegal. It never really was. Taxi cartels are attempting to twist the law to make it sound illegal. But really, Uber is just a dispatching service for limo companies that already exist. If you're talking about UberX, that may be a different story. UberX is not available in all 90 cities that regular Uber operates in, but there are enough cities with just regular Uber service that it won't be a problem if they have to shutter UberX for some reason down the line.
It may be cold half the year in Minneapolis, but I think it makes people a little more reasonable.
http://blogs.citypages.com/blotter/2014/07/mpls_city_council...
Uber also has the advantage that they're generally not dealing with national governments, but local ones, who are much more easily swayed by big businesses. One locality might declare them illegal, but they can just drop that market and move on. Or more likely, as happened here in Virginia a few weeks ago, they'll come to some sort of arrangement with the local government and be back in business in a few days.
Companies intentionally market themselves to mislead in ways that are beneficial to them, in terms of image. One example is Hyundai, which walks the fine line of modeling its logo and style after Honda to draw off Honda's goodwill with customers (I think that this is quite smart).
I wonder how much Uber has invested in its PR status to keep this underdog image.
How can their investors, of which some are excellent startup investors, be fine with this. Is there no guidance at all??
I see them as the "underground." Granted they have gotten a lot of funding, their primary opposition -- taxis -- are firmly entrenched & cities all over the country have considered various legislation to ban/stop them.
In fact, I think it's somewhat silly they're fighting with Lyft. They should be working together to knock back the entrenched players.
Someone needs to make the craigslist of Uber or a Meta-Uber. The fact that many uber drivers are also taxi operators is very telling.
Don't we argue always for the last-mile to be a public utility? Same scenario. Whitelabel services can contract with locales, an API is provided that anyone can integrate with, and the city can manage capacity and utilization.
The way I see it, Uber is trying to establish a global rent-seeking scheme. Or, to put it in slightly another way: they're trying to capture a large number of the existing, mostly local rent-seeking schemes.
Once that happens, they will no doubt fall into the same slouch that infests any lucrative monopoly.
For the time being the customers can at least enjoy the ride.
They may have more money than taxis, but taxis often have entire local agencies dedicated to their industry. It's extremely difficult to break that sort of captured regulatory structure. The ICC for example was chartered in 1887 to regulate railroads, and was not dissolved until 1995!
They now have a guy from the Obama campaign (David Plouffe) working on their PR.
"David Plouffe, the former campaign manager and White House adviser to President Barack Obama, is taking his political secret sauce to Uber late next month as senior vice president of policy and strategy"
http://www.politico.com/story/2014/08/david-plouffe-uber-cam...
Before now I'd considered them too small to be worth bothering with, but hey, if Uber is worried then maybe I should give it a try. After this, and Uber's attempts at doing the same with GoTaxi a few months ago, I'll be very happy to take my business elsewhere.
I'd also be interested to know if the VCs that invested in Uber were aware of these tactics. It's especially sad to think of good startup investment money being used to defraud a competing company rather than invest in good customer service.
Having never used a ride-sharing service before, I hesistantly installed Lyft and handed over my payment information.
After the first ride, I didn't look back. I used their services maybe 10 times in 3 days in order to get around the city. Waits were never very long (we got rides at many different times of day, morning, mid-day, late night) and all of the drivers I had were friendly.
My experiences were all pleasant and the fares were reasonable. I can't speak to the quality of the Uber experience, but it seems many of the Lyft drivers were not too keen on the company.
I wonder if action they took against my account was a result of them trying to mitigate these attacks from Uber. If so the damage is much worse than just the canceled rides.
Where I felt the app shortage hurt the most wasn't at the top - there are a few glaring omissions, and some of the apps took a long time to show up, but WP8 for the most part has apps for top services (facebook, twitter, instagram, spotify, uber, etc).
But then there's this second tier of apps where WP8's coverage is absolutely terrible.
I was talking with a coworker today about how his bank (small, local bank) just released an app allowing mobile check deposit - on android and iOS.
Your favorite pizza chain or sub shop has an app for ordering delivery or takeout? Android and iOS only.
Target has an app that allows you to search an item, and then see what aisle it's in in the store - android and iOS only.
There's this huge class of convenient but not necessary apps that you don't get on windows phone right now, and having spent a couple of months with them, I don't think I could go back. It's too bad really, I feel like Microsoft got a lot of things right with WP8. I definitely preferred the UI compared to android.
It really does seem a two-horse race between iOS and Android.
I'd be interested to know what, specifically, you disapprove of. The article sounds to me like one company trying very hard to recruit another's drivers.
What is the alternative? One or both companies refrain from recruiting each others' drivers? Google and Apple (and others) recently got in trouble for doing that sort of thing.
Uber does have an explicit SUV option (I don't recall Lyft having this), which has proven to be a boon upon occasion.
If you the type of person who closes a bar, though, I would strongly suggest additionally adding a photograph, since it will make you easy to identify in the crowds of the bar rush.
It's interesting, there are two totally different cultures when it comes to Lyft and Uber drivers. Lyft drivers are always happy to talk and love it when you sit in the front seat. Uber drivers are always pretty friendly but often encourage sitting in the back like a taxi. There are drivers that are both on Uber and Lyft and they are always great and seem to be more like a typical Lyft driver than an Uber driver.
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Don't do that -- it screws over the driver who has to burn gas.
It is NOT about Uber ordering fake Lyft rides to keep Lyft drivers off the street, as was alleged by Lyft last month.
It is about:
1. Uber using the Lyft service to get in touch with Lyft drivers, then trying to recruit them to be Uber drivers by presumably paying them more
2. Lyft trying to block Uber contractors from using Lyft, so that they cannot do (1)
3. Uber using burner phones and fake Lyft accounts to enable them to keep doing (1)
Also keep in mind the uproar here over the past year caused by Apple/Google/etc trying to increase profits by subverting the free market for tech worker salaries. Is the only difference that then it was collusion as opposed to an adversarial arms race? Or does the collective opinion depend on whether HN readers stand to benefit financially?
What it sounds like from the article is that the independent contractors Uber hires are canceling rides whenever they realize that the Lyft driver has already been approached. If they had a policy of never canceling rides I don't think people would be as upset.
And while the canceling of rides isn't a big plan by Uber to undermine Lyft, the recruiting of their drivers most certainly is. That I have no problem with, but canceling rides is (borderline) fraud.
This is like $10k in revenue.
Lyft isn't trying to block Uber from contacting Lyft drivers at home, on Facebook, on LinkedIn, etc. They are trying to block them from abusing the Lyft service to recruit. It would be like Apple trying to block Google from waltzing into their HQ and walking from desk to desk trying to recruit their employees.
I still agree that it's perfectly legitimate for them to put forth effort to block recruiters but I think the fact that the drivers aren't employees does make it not quite as bad as your analogy.
Just making sure it's all in there. I'm not a big fan of Uber either but the large-scale stuff (top post here) seems way more important than Uber trying to reach out to each Lyft driver one time and see if they're interested.
And, look, if they could hail specific drivers that they'd never talked to before, I'm sure they would. But they can't. They don't control who Lyft matches them with. It sounds like they make some attempts to avoid just hailing the same driver over and over again, but sometimes they do hail the same guy over and over again, and in that case, they cancel.
Either way, I'm at least glad I've never used Uber yet, and now never will.
A "free market" is an economics term meaning a marketplace free from anti-competitive forces such as government subsidies, government price floors or ceilings, monopolies, cartels, oligopolies, non-compete agreements, etc.
If Google and Apple make an agreement about smartphone pricing, then we might not have a free market for cell phones. The government could then use regulations against such anti-competitive agreements to end the price fixing and restore a free market. In that scenario it was private enterprise causing a non-free market and regulation that made it a free market.
Regulations can help a free market (breaking up monopolies, preventing cartels and anti-competitive practices) or regulations can harm a free market (subsidizing production, preventing new entrants from entering the market). This notion of "free market vs regulations" is completely misunderstanding what a free market is and how the systems involved work.
"Free market" has multiple, ill defined and often conflicting meanings, which is partly what makes it so useful for propaganda purposes.
Yours is just one of those meanings, and a particularly pernicious one at that, because a marketplace free from anti-competitive forces has NEVER existed and never will exist.
The neoclassical school economics actually uses the term 'perfect competition' to describe your particular meaning, and while it's a very common assumption, it's one that always breaks their models (making them a poor fit to reality).
--- A free market is a market system in which the prices for goods and services are set freely by consent between sellers and consumers, in which the laws and forces of supply and demand are free from any intervention by a government, price-setting monopoly, or other authority. http://en.wikipedia.org/wiki/Free_market ---
If people buy the phones voluntarily, knowing that the prices are set by agreement between Google and Apple, then that's a free market. The fact that you disapprove of sellers colluding to set prices does not mean collusion automatically stops the market from being free.
> The government could then use regulations against such anti-competitive agreements to end the price fixing and restore a free market.
Using regulations to force companies (or anyone) to do things they have not chosen to do voluntarily is not a free market. The fact that regulations might lead to an outcome you approve of does not make regulatory coercion a free market operation. The way a free market would "fix" price collusion between two sellers is by buyers voluntarily choosing not to buy from those sellers, causing those sellers to lose money and either go out of business or change their practices.
Monopoly is not free market in the original sense, even if it came out from unregulated competition.
But we already know these free markets are either not efficient or likely not efficient. Strong form efficiency is provably false.
Weak form efficiency is only possibly true if P = NP (http://arxiv.org/abs/1002.2284).
No, it isn't. A free market is a market in which all transactions are voluntary: nothing happens unless both parties agree to make it happen. So unless your competitor agrees to let you sabotage them, sabotaging a competitor is not a free market operation.
Which, of course, is you exercising your market decision to not use Uber.
@ about 4:40 in this video:
http://www.bloomberg.com/video/uber-s-kalanick-hires-former-...
Now this? Nice "pivot" guys.
A cheesy line from Batman comes to mind, they will live long enough to see themselves become the villain. The customers will end up asking for more regulation in a few years. Maybe Uber will start issuing a limited amount of medallions in every city. But a lot of money to be made along the way.
For service startups we benefit from the early adapter "eliteness." Early drivers as well as users of Uber were of a high social status and fairly sophisticated. Much like the early days of usenet, rules can be lax or non-existent. However when the mass market begins to arrive startups which previously flourished with an tight early adapter user base start to show their cracks.
No one wants to kill their own momentum but a way to see if your startup will start to stink as it grows is to recruit both service providers and users from online ad campaigns very early on. Track them as their own segment and see what sort of unique problems they bring.
If Lyft had 5 times the funding, Uber recruiting their drivers would look like a bold move. It would mean Uber believes drivers will stick with them long-term because life for drivers with them is clearly better, and the initial investment pays off in the long run, despite them having a smaller war chest to begin with.
Now that Uber has 5 times the funding, the same move looks like Uber is afraid of Lyft beating them in the market, and is trying to kill them early by buying off their drivers and crippling them. They can afford this even if driving for Uber is a shittier experience long-term than driving for Lyft, since they have so much more money it doesn't really matter. Lyft will be dead or badly injured before drivers figure it out, so Uber doesn't need to worry about being the best in the market.
What their actual motives are is anyone's guess, but it doesn't look good for them to do this.
Everyone knows reddit admins used to game the system by faking submissions to solve the chicken and egg problem and nobody really cares, but there would be an uproar if they were found to be manipulating story placements behind the scenes today because the scale of the site is so different.
People are pretty willing to overlook borderline underhanded things if you are really an underdog trying to get a leg up, but far less so when you're the industry leader trying to crush upstarts.
Consumers hardly ever ask for regulation.
To me that is clearly a consequence of consumers wanting more regulation. Same as with perishable products having to be clearly marked with its due date in stores, and practically every consumer protection law/regulation out there.
Not saying that these laws can't be abused, but that doesn't mean the consumers aren't the main reason behind their existence.
I think some businesses are against it (they tend to be the smaller ones), but other businesses (these tend to be the larger ones) like it because, while it imposes a burden on them, it imposes more burden on their competitors. Also, businesses can often get into a position where they basically write the regulations that they will have to abide by (i.e., regulatory capture). In that situation, regulation can be an asset for a business.
{rolls eyes}
Underhanded tactics like this is just more ammunition for anyone who wants to make the argument that the industry needs to be regulated. Uber might be shooting Lyft in the foot but they're also putting holes in the floor they're standing on themselves.
But why aren't they succeeding?
I don't think it will get much further than that in many European cities. Most of the regulations are in place for a reason.
Uber X: $3 base fare, $0.30 per minute, $1.50 per mile
Lyft: $2.25 base fare, $0.27 per minute, $1.35 per mile
Both have a $1 trust and safety fee, and Lyft has a lower minimum.
I’ve personally had better experiences with Lyft overall, and I’ve taken at least 100 rides with each service.
Where I was, Uber was constantly jacking up the price with surge pricing, between 1.25x to 1.75x the normal price. Meanwhile, Lyft not only wasn't jacking up the price during those same hours but was running a 25% special. On top of that, the Lyft drivers were typically friendlier. No brainer which one I recommend to others.
And at the end the good care belongs to the driver not to the services behind them.
I don't understand why Silicon Valley and Startups think acting like this is not only acceptable, but should be applauded.
If you were to A/B test for user satisfaction instead (much harder to measure) you'd get a totally different result.
A/B testing is a tool, you can use it for good or bad.
I think you would pretty much get Amazon.
Strictly from a customer point of view they are the company that would get the highest user satisfaction I would give any company.
They do worry me though, that much power in some verticals is far too open to abuse.
The hangup calls were the side-effect of their extremely aggressive recruitment efforts for Lyft drivers - where it seems they'd hang up and call back later to try and get a different driver that they hadn't already pitched.
While not great, it also doesn't strike me as particularly underhanded or evil (this is a scenario where the "best" outcome for Uber is paying Lyft for a ride where they try and give the Lyft driver a phone and presumably a better paying job).
I think it would be hilarious if lyft didn't ban the uber guys but hellbanned the uber guys (hellbanned in the hn sense). Which would make the number of cancelled rides make much, much more sense.
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The fact that there are so many cancellations is a direct result of the Uber recruiters using a CRM to avoid pitching to the same driver more than once.
Would the VCs like Google Ventures and other VCs self-police and influence Uber from this tactics. Uber already has first entrant advantage, this is not childish, this is sinister. Some driver somewhere burned lot of gas and rubber only to be disappointed that there is no fare there.
I will not use Uber until they make mends, I know I am a small hummingbird but anything with in my means to discourage this practice.
It could be even worse.
Imagine a Lyft driver going to a Uber initiated non-existent fare. Now imagine him or her getting into an accident and dying on the way there.
Uber's behaviour is already bad, we don't need to add hyperbole.
If not, I can see how the combination of Uber's policies can lead to a lot of cancelled rides even without Uber explicitly telling their recruiters to do so. To wit:
- You're an Uber recruiter, and you call up a Lyft driver to pick you up from somewhere.
- At some point, I assume you get to see the driver's profile through Lyft, at which point you flip through your messaging app and realize that he's already been pitched.
- Since Uber discourages you from pitching to the same driver more than once, you cancel the ride.
This leads to a lot of cancelled rides coming from Uber's recruiters, while letting them keep their company line of, "We don't ask our employees to deliberately cancel rides". Because, technically, they haven't.
I believe that the hail / cancel tactic is unethical, but this article only describes direct recruitment.
"Earlier this month, CNN reported that Uber employees around the country ordered and then canceled 5,560 Lyft rides, according to an analysis by Lyft. (Lyft arrived at this figure by cross-referencing the phone numbers of users who tried to recruit Lyft drivers to Uber with users who had previously canceled rides.) "
"Take the higher ground, man. Let the runner-ups do the runner-up shit. You're sitting on a throne but acting the peasant."
Make up your minds.
This sort of poaching is good for the drivers, and this sort of ruthless competition is a good indication of a market that is good for riders.
This would be an accurate analogy, and I think if either google or facebook were doing this we (the tech community) would complain about it.
"After Uber became aware that The Verge was asking questions, Target CW sent out multiple emails warning contractors that talking to the press violated a non-disclosure agreement they signed when they joined."
My problem isn't using these agreements to protect trade secrets, or when they are simply a contract between a company and an employee or contractor (you agree to treat certain types of things as "our property" rather than going off and selling them to a competitor).
My problem with non-disclosure is when they are used to hush up embarrassing details or otherwise keep the public in the dark about shady business practices.
As an end-user, we must avoid Uber. We can't let them win.
Start off as a darling outdoing the establishment and taking all their business. After you've made it, the very next day, start acting just like the establishment you disrupted.
While I can't confirm whether the cancelled fare was Uber initiated, it did occur to me that both Lyft and the driver were getting screwed by the cancellation. If it happens enough times, I can definitely understand why my driver would jump ship and drive for Uber instead.
Since most of the risk to these services comes from the regulation side, I wouldn't be surprised that someone's greasing the wheels in Sacramento or Washington. There's enough money at stake here for those involved to do whatever is necessary. When I heard a few days ago that a lawmaker who voted in favor of rideshare restrictions was caught drunk driving the night after the vote, my first thought was that maybe it was a set up. Hire some people to buy this guy a few drinks, encourage him to get on the road, call the police to report a driver driving dangerously. Would you be surprised? I wouldn't.
Anyways, regarding the product - I use Lyft a lot more than Uber since I know a few folks there but most of my friends use both and Sidecar interchangeably. Every time I catch a Lyft, I tend to talk to the driver to figure out how much they're making, what are the pain points, and what can these services do better and there seems to be an opportunity to differentiate. Here were some ideas I had:
- Drivers tell me they can't find a place to relieve themselves since parking is hard to come by around SF. I think they would appreciate some designated "refuel" stations where they can pull up, park, pee, get coffee/red bull, and maybe vacuum or clean their cars up.
- I would love to be able to pick a fuel efficient car and see Lyft do a green mustache to indicate I'm making a choice for a hybrid. Maybe hybrids can get bonus payments since they can stay on the road longer per tank.
- Several friends have complained recently about how random the route-finding applications were that these drivers used. Some used Apple Maps, the built-in nav on the apps, or Google Maps but it wasn't always consistent and some of the routes were TERRIBLE. Seems like an opportunity for either Lyft or Uber to build better path-finding in their largest markets via maybe highly localized traffic information or by paying off the city for access to bus/taxi lanes.
Personally I’d call them out for being unethical scumbags regardless of market position.
I'm not so sure about that. This is playing dirty no matter who is doing it.
the driver did complain however that they were forced to pay $10 for this ability and had no way to opt out.
this was in sf
Hint to all entrepreneurs and managers out there: if your job includes building an online form so that your team can generate any number of fake credit cards numbers as well as throw-away cell phone numbers, maybe you should take that ethics 101 class again.
Along the same lines as the AirBnB spamming controversy, when it was reveled they violated Craigslist's ToS on a large scale to grow their business in the early days.
I don't see why Lyft being "a fellow startup" should affect any of Uber's business tactics.
Startups don't have any intrinsic motivation to play nice with each other.
At this point Uber essentially is the #1 established company of car services, so them resorting to dirty tactics to fight Lyft leaves a very sour taste in the mouth.
Riding Narita into Tokyo in a taxi just seems so inefficient anyway (for <4 people). One Google Maps printout saves you tens of thousands of yens.
Do you get upset when people buy an M-Class Mercedes? Would I ever buy one? No. Do I think it's extravagant? Yes. Do I care how other people spend their money? No
As developers, we get recruited all the time, even while employed. The horror! This is a good problem for drivers to have. No one is forcing them to switch (or even stopping them from driving for multiple services concurrently). They will drive for a company as long as the offer is good.
These are competitors offering an essentially identical service, and apparently fighting over an important resource -- drivers -- so the moral outrage is absurd. This is the free market in action.
I'll say it: from everything I've seen over the years of Uber, I like their playbook. Call it whatever you want -- underhanded, blatant, political, amoral, spotlight-stealing, $linkbait_adjective. Most importantly, it is damn effective.
When an Uber Rep goes into Lyft Driver's car, the Rep is technically a "customer" and the Driver can't exactly hang up on the Rep, ignore the Rep, nor drive away from the Rep. They are essentially forced to listen to a spiel about Uber that they may or may not want to hear. Yes the Driver is getting "paid" for the time spent but the Driver no longer has control over being recruited.
Recruiters sending me emails? Kinda annoying and takes a bit to click "delete" if I don't care for it. But at least I can choose not to read the email. When one of these Uber Reps gets into the car, the Lyft Driver has no choice.
SLOG is now Uber's reputation. And Lyft becomes an even more lovable underdog.
That said, I always take Lyft -- simply because Uber doesn't work for my phone.
I had never thought of that before then.
Regardless of whether you agree w/ tactics, the attitude and behavior leaves a bad taste.
Because they have an app? Seriously?
To some extent Uber and Lyft are being driven by customer dissatisfaction with the expensive price-fixed "cab mafia," but in reading about these companies it seems like the sliminess has just shifted to other domains.
Any company that engages in underhanded attacks at their competition rather than in the marketplace by offering a better service and possibly lower prices is not going to be nice to their customers in the longer run either.
Its ethically not good but I think it would be wrong to say that we penalized many other companies that make similar plays or resort to tactics that are just as ruthless. It doesn't seem illegal just mean and aggressive.
Honestly, it kinda seems like something they would do.
Here's the gist: Uber and Lyft each try to recruit from each other. Canceling rides does not seem to be about disrupting their service. Disruption may happen as a side effect to their recruiting efforts, but that's not the point. And if you ask Uber, they tell you Lyft is doing this all right back to them.
Sure, it's an unsavory practice. But sabotage? C'mon....
As a matter of principle, I will never use Uber.
From the driver's perspective, it seems like this is a fare, and a job offer. What is so wrong about this?
Also, losing as much as a quarter per transaction doesn't scale. At this point, Square seems like they really need an exit and it needs to be big.
Uber might be slimy, but Lyft is no better.
Aren't there other differentiating factors? Quality of service, etc.?
"Operation SLOG (Supplying Long-term Operations Growth)"
Backronym if ever there was one..
It's disgusting.
Aggressively poaching drivers from Lyft seems all right to me. That's just healthy competition.
And this stuff about wasting Lyft's money by booking and canceling rides -- it's a bunch of nonsense. By Lyft's own estimate, Uber employees booked and canceled 5000 rides since last October. That's like $100k/yr in lost revenue. It's nothing. Certainly not a systematic attempt to undermine Lyft.
Am I missing something here?
Disclaimer: of the two services I only use Lyft. I've had bad experiences with Uber's customer service.
But when a trip is canceled it hurts the driver who uses gas to drive in their direction and causes them to miss out on other available rides, reduces the amount of available cars on the street for legitimate users, and more negative effects im sure you can imagine.
This still sounds ethical to you?
It sounds like some Uber employees are just being assholes for no reason. That's unfortunate, but it's no reason to malign Uber itself. Every company has some assholes.
It is a very jerk thing to do, and I think consumers should express their displeasure with those tactics through the power of the market.
I don't see anything wrong with trying to lure your competitor's employees away, but fucking up their business as a knock-on effect isn't okay.
Seems like this could get fun, fast.
By this point, it's an excellent job interview question. "What do you think of Uber?" Anyone says they love Uber is a no-hire.