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SF Yellow Cab to file for bankruptcy

sfexaminer.com

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Re: SF Yellow Cab to file for bankruptcy

#61

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.

It is a bit concerning that Uber is hemorrhaging money right now, being able to cost themselves lower than conventional cabs because they have such a massive amount of capital. Outpricing your competition by making a loss/no profit is a nasty tactic, especially when your competition can't compete at a loss (for whatever reasons) and then goes out of business, only for the surviving business to then rise their prices…

> being able to cost themselves lower than conventional cabs because they have such a massive amount of capital

Is Uber less expensive than regular cabs?

My experience in Uber so far has been uniformly excellent and my experience in regular cabs has ranged between ok and dismal. I think I would probably be willing to pay around a 25% premium to use Uber over a regular cab.

The traditional taxi operators haven't needed to care about customer experience for so long, that I'm not sure they can change.

Re: SF Yellow Cab to file for bankruptcy

#63
post #44

Earlier quoted context omitted.

That "off button" doesn't turn it off, it makes it goes into a silent slideshow mode showing you more ads with an equally bright screen. Point is you can't win against the ad machine.

Take a brick with you.

I'd suggest some duct tape and a newspaper. Those are less conspicuous and you might get away with it without ending up in handcuffs.

Re: SF Yellow Cab to file for bankruptcy

#65

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…

>> And criminal background checks are useless if you haven't been in the country very long; how are they going to check your background in Pakistan?

Recent immigrants have been through the US boarder enforcement regime. It isn't perfect, but it is something more than the average american goes through. So it is incorrect to say that being a recent immigrant renders any background check pointless.

Remember that is the US with the reputation for difficulties re background checks. Getting a definitive answer as to someone's convictions in 50+ different jurisdictions that make up the US is far more complicated than from a unified justice system as found in Pakistan, Canada or India. And given some of the gibberish I've seen from US agents, their english is far more comprehensible.

Re: SF Yellow Cab to file for bankruptcy

#66
I will miss the transportation market taxi cabs provide. When the constraint is on supply-side (drivers) but the cost is constant (that is, given a sufficiently capable driver, your fare should be about the same) you're only limited by hailing a cab, which has become quite a bit easier now that everyone is using Lyft and Uber. Oh well. I get that the QoS is not as consistent with cabs, but I always found that part fun.

Re: SF Yellow Cab to file for bankruptcy

#67

Earlier quoted context omitted.

Lack of driver health insurance, lack of benefits, lack of liability from crashes, reduced compliance costs via skirting local regulations [e.g. Background checks for Uber/Lyft are cheaper than the more thorough checks in some municipalities] http://www.texastribune.org/2015/10/07/background-checks-cen... http://www.cnet.com/news/ubers-background-checks-dont-catch-...

Background checks are a canard. How do the cab companies check the background of someone from Uzbekistan? They can't, they can only go back as far as that person has been in the country, which isn't very long judging by their mastery of English. U/L do carry insurance for their drivers when they're driving a passenger, and it's probably more than the regular cab companies carry (which is why SF Yellow cab is going ba…

> Background checks are a canard. How do the cab companies check the background of someone from Uzbekistan?

In other words, "Hey, Uber hires known felons and its okay because I can think of a scenario where background checks fail."

By that logic, stop visiting the doctor, using seat belts, or any safety device known to man because it can fail for some non-0 fraction of the time.

> U/L do carry insurance for their drivers when they're driving a passenger, and it's probably more than the regular cab companies carry (which is why SF Yellow cab is going bankrupt: they weren't insured for enough for one of their incompetent drivers, according to the article)

http://www.propertycasualty360.com/2015/02/09/uh-ohuber-has-...

http://www.buzzfeed.com/kenbensinger/ubers-yawning-insurance...

http://www.forbes.com/sites/harrycampbell/2015/10/07/why-are...

> Drivers can answer no and effectively lie to their insurance company (while also committing insurance fraud) but still receive coverage, or they can say yes and they would be immediately denied coverage. Additionally, they could even be dropped from their policy for disclosing that they are a rideshare driver.

> Since it’s not really in Uber’s best interest to disclose the lack of collision coverage during Period 1, many drivers don’t discover that they’re not covered until it’s too late. I’ve been researching rideshare insurance options in Nevada since Uber went live and spoken with hundreds of Uber drivers yet we haven’t been able to find a single insurance carrier willing to insure rideshare drivers. Some carriers offer a commercial policy but the cost is prohibitive at $3,000-$5,000 a year.

> Meanwhile, risk-averse insurance companies have been excruciatingly slow to adapt to this new and innovative form of transportation. I maintain an up to date list of insurance options by state for Uber drivers on my site and you’ll notice that Nevada is not currently on that list. There literally isn’t a single option for drivers which unfortunately is somewhat typical. A majority of states in the US still don’t offer a rideshare friendly personal insurance or hybrid policy for Uber drivers which means a whole lot of drivers are forced to lie to their insurance carriers or find a different line of work.

There are some pretty significant gaps in that coverage that shift the burden to drivers, depending on the state.

In fact there is an entire business built around the fact there are massive holes in that policy:

https://www.metromile.com/uber/

> Traditional auto insurance policies may not provide clear coverage for drivers who participate in ridesharing programs. The partnership between Uber and Metromile means you’re insured 24/7, whether you’re using your car for personal use or driving with Uber. Now, Metromile offers complete clarity to Uber driver partners.

The difference with Uber is the driver gets fucked instead of the Taxi/Uber company.

> As for health insurance, from what I've read a lot of cab drivers aren't full-time employees either, so they also don't get health insurance, or benefits.

I'm not even going to bother with this one. I've pointed out enough holes already.

Re: SF Yellow Cab to file for bankruptcy

#68
post #7

Earlier quoted context omitted.

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

Lack of driver health insurance, lack of benefits, lack of liability from crashes, reduced compliance costs via skirting local regulations [e.g. Background checks for Uber/Lyft are cheaper than the more thorough checks in some municipalities] http://www.texastribune.org/2015/10/07/background-checks-cen... http://www.cnet.com/news/ubers-background-checks-dont-catch-...

The traditional taxi business in the US hasn't exactly been the model of regulatory compliance. Regulatory capture on the other hand...

Re: SF Yellow Cab to file for bankruptcy

#69
post #44

Earlier quoted context omitted.

That "off button" doesn't turn it off, it makes it goes into a silent slideshow mode showing you more ads with an equally bright screen. Point is you can't win against the ad machine.

Take a brick with you.

I like you.

Re: SF Yellow Cab to file for bankruptcy

#70

Earlier quoted context omitted.

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

So you think we should shut down the oil companies and agriculture companies and all the large banks?

> oil companies

Yes. They've known about their products causing climate change for decades. They should be liquidated.

> agriculture companies

Some, not all.

> and all the large banks

Only the ones that are "too big to fail" or those engaged in illegal activities.

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