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SF Yellow Cab to file for bankruptcy

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Re: SF Yellow Cab to file for bankruptcy

#21

Post by gkoberger »

kzhahou wrote: post #7
nodesocket wrote: post #3

This was bound to happen, just a matter of time. Uber and Lyft are able to operate at much lower costs, and additionally have basically an unlimited supply of capital (VC investment). Traditional businesses have no chance of being competitive in this market.

What makes U&L lower cost? Just the lack of driver health insurance and benefits?

There's a lot of snarky answers, but some things off the top of my head why Uber can be cheaper:

  * More efficient (less down-time driving around)
  * People use their own cars (no need to buy/maintain taxis)
  * Less overhead (no need for managers, dispatchers, etc)
  * No taxi medallions
  * More popular, so more rides
  * Subsidized by VC money (Okay, kinda snarky, but legitimate)
The last point about subsidization sounds bad, but their goal is (likely) to just get enough market share that they've already won by the time self-driving cars come out (and can cut costs significantly then).

Re: SF Yellow Cab to file for bankruptcy

#22

Post by santaclaus »

Grishnakh wrote: post #18
Grishnakh wrote: post #4

Too bad, so sad... If they hadn't allowed their service to get so horrible, with nasty old cars, drivers that don't speak English and drive around in circles to increase fares, drivers claiming their card readers are "broken" so you have to pay cash, taking an hour to show up when called, passing by black people, etc., then this wouldn't be happening. From the article: "Cab drivers, on the other hand, maintain that t…

Wow, this is weird, I'm being modded way up. I was expecting the reverse: on another, much older "tech news" site, any time the Uber/Lyft vs. cabs debate comes up, there's a very strong contingent of people there who absolutely hate Uber/Lyft and go on and on about how wonderful cabs are.

The Ars Technica readership seem to loathe Uber.

Re: SF Yellow Cab to file for bankruptcy

#23

Post by toomuchtodo »

mahouse wrote: post #19
toomuchtodo wrote: post #10

Earlier quoted context omitted.

So your business is workable because it evades taxes? What is this, Russia?

I'm not saying it's Uber's case, but yes, in many cases, some businesses only exist because they evade taxes. That's the reason lobbies exist.

My argument is that we shouldn't allow businesses to exist that flout the law, taxes or otherwise.

Re: SF Yellow Cab to file for bankruptcy

#24

Post by daeatenone »

Grishnakh wrote: post #4

Too bad, so sad... If they hadn't allowed their service to get so horrible, with nasty old cars, drivers that don't speak English and drive around in circles to increase fares, drivers claiming their card readers are "broken" so you have to pay cash, taking an hour to show up when called, passing by black people, etc., then this wouldn't be happening. From the article: "Cab drivers, on the other hand, maintain that t…

The one thing that cabs do have going for them is no surge pricing. During peak weekend hours where surge pricing is 2x+ on both Uber and Lyft, cab fares stay the same. That's the only time I find myself taking a cab.

Re: SF Yellow Cab to file for bankruptcy

#25

Post by marrone12 »

artursapek wrote: post #11
kw71 wrote: post #5

What's it like to ride in a SF taxi? I'm not a frequent taxi user, but last time I rode in an NYC cab, the partition made me feel like I was going to jail and the advertising screen made me feel like I was riding public transportation. No doubt the normal private cars are more comfortable.

The ad screen almost feels inhumane. There's no way to turn it off or even dim it. After a long flight, having that thing in your face can be really unpleasant. It's my biggest gripe with NYC cabs. It's just too 1984 for my taste.

You definitely can turn off half the ad screens, and the other half you can at least turn down the volume

Re: SF Yellow Cab to file for bankruptcy

#26

Post by Grishnakh »

bobby_9x wrote: post #17

Uber/Lyft are very interesting. The main reason cabs are so terrible is because the unions have a complete stranglehold on the industry, which means pretty much no advancement in technology and monopolistic pricing. They both are basically going against everything the unions stand for by not having regular wages or benefits. Edit: Admitting you're wrong is not something most people here on HN can do. Instead, they do…

Um, I thought the reason cabs are so terrible is not because of unionization, but because it's a cartel, and it's given that power by the government because of the issuance of licenses (called "medallions") which ensure a limited supply of cabs, artificially restricting competition.

Re: SF Yellow Cab to file for bankruptcy

#27

Post by mayank »

Grishnakh wrote: post #4

Too bad, so sad... If they hadn't allowed their service to get so horrible, with nasty old cars, drivers that don't speak English and drive around in circles to increase fares, drivers claiming their card readers are "broken" so you have to pay cash, taking an hour to show up when called, passing by black people, etc., then this wouldn't be happening. From the article: "Cab drivers, on the other hand, maintain that t…

> Who cares about knowledge of city streets?

Funny story: for a while in SF, the taxi union (?) was running ads that were thinly veiled attacks on Uber/Lyft. One of them showed a smiling taxi driver with the caption "would you rather have a driver who knows the city by heart or by GPS?" I found it particularly hilarious because the answer, for me at least, is GPS with live traffic information. Just another example of how out of touch the taxi companies are.

Re: SF Yellow Cab to file for bankruptcy

#28

Post by gergles »

artursapek wrote: post #11
kw71 wrote: post #5

What's it like to ride in a SF taxi? I'm not a frequent taxi user, but last time I rode in an NYC cab, the partition made me feel like I was going to jail and the advertising screen made me feel like I was riding public transportation. No doubt the normal private cars are more comfortable.

The ad screen almost feels inhumane. There's no way to turn it off or even dim it. After a long flight, having that thing in your face can be really unpleasant. It's my biggest gripe with NYC cabs. It's just too 1984 for my taste.

What, of course there is. There's a red button in the lower-right hand corner you can hit to turn it off in most cabs; granted, there are some where you cannot turn the screen 'off' but you can turn off the display of advertising on it (and it just then says "Touch here to resume").

Re: SF Yellow Cab to file for bankruptcy

#29

Post by Grishnakh »

daeatenone wrote: post #24
Grishnakh wrote: post #4

Too bad, so sad... If they hadn't allowed their service to get so horrible, with nasty old cars, drivers that don't speak English and drive around in circles to increase fares, drivers claiming their card readers are "broken" so you have to pay cash, taking an hour to show up when called, passing by black people, etc., then this wouldn't be happening. From the article: "Cab drivers, on the other hand, maintain that t…

The one thing that cabs do have going for them is no surge pricing. During peak weekend hours where surge pricing is 2x+ on both Uber and Lyft, cab fares stay the same. That's the only time I find myself taking a cab.

The downside to that, which I've read many people complain about, is that during those peak times, you simply can't get a cab. With a constrained supply and fixed pricing, demand outstrips supply and then you may or may not be lucky enough to get a ride. That's the whole reason they have surge pricing: to get more drivers out during those times to handle the load. Cab drivers have little incentive to bother driving during peak hours since they get paid the same.

Re: SF Yellow Cab to file for bankruptcy

#30

Post by Grishnakh »

santaclaus wrote: post #22
Grishnakh wrote: post #18

Earlier quoted context omitted.

Wow, this is weird, I'm being modded way up. I was expecting the reverse: on another, much older "tech news" site, any time the Uber/Lyft vs. cabs debate comes up, there's a very strong contingent of people there who absolutely hate Uber/Lyft and go on and on about how wonderful cabs are.

The Ars Technica readership seem to loathe Uber.

Actually, I was talking about Slashdot.
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