I hope this takes off. Ride-hailing apps always seemed like a model that was extremely conducive to a cooperative, worker-owned model. I would gladly (and will try to next time I'm in NYC) use this service over Uber or Lyft. Power to the drivers!
>Ride-hailing apps always seemed like a model that was extremely conducive to a cooperative, worker-owned model. It's only the surface-level of an ride-hailing app that seems easy for worker-owned cooperatives to create. In reality, the extra expensive programming dollars required to tame the hidden complexity so that the app can present a seamless experience to the customers/passengers is a huge factor that works ag…
The Drivers Cooperative
221–230 of 333 posts
Re: The Drivers Cooperative
#222Earlier quoted context omitted.
This. I never got how Uber was still unprofitable for so long. Sure you have a bunch of Silicon Valley salaries to pay but realistically speaking, one could build an Uber/Lyft for under $1M and basically can operate with two or so devs fixing issues. Yet, they are blowing hundreds of millions of dollars yearly all over the place while shorting drivers who can’t make a living wage and are basically trading vehicle exp…
The Uber business model is: Undercut competition. Use borrowed money to sell rides under cost. Wait for all competitors to die. Jack up prices. AFAIK they’re still living on borrowed money. It reminds me of the airline deregulation of the 90s. New airlines would use borrowed money to sell seats at below cost to attract customers, driving established carriers out of business. The funny thing is that this smells a lot…
It's not like they're building railroads here. It's an app.
Re: The Drivers Cooperative
#223Earlier quoted context omitted.
> Well, market forces are at work: if Uber/Lyft provide no additional value over drivers' work (and treat drivers as disposable assets), they themselves will get "disrupted" and the drivers will get rid of them We shall see if that ends up being the case. It's an open question to me. I could see this being as effective as Uber. But I could also see an industry association implementing some anti-consumer policies that…
Just give it back to the taxi drivers to operate, but hold them to a higher standard of quality.
Re: The Drivers Cooperative
#224This is doubly ironic and amusing if you think about how Uber/Lyft were "disrupting" the existing markets. Well, market forces are at work: if Uber/Lyft provide no additional value over drivers' work (and treat drivers as disposable assets), they themselves will get "disrupted" and the drivers will get rid of them :-) Happy to see this happening, and I wonder how this will develop.
I applaud the effort, but the problem with a collective is that they are, legally speaking, a soft target. Uber can afford to break laws, run at a local loss, and generally throw its weight around a new market. Cooperatives don't have such deep pockets. They will leave town as soon as a some local interest resists. They aren't going to survive multi-year fights with cities or organizations like the London cabs.
Re: The Drivers Cooperative
#225Re: The Drivers Cooperative
#226I hope this works out but as all of us in the software industry know, making good software is time consuming and expensive. I'm not sure with low ride volume and not VC money they can afford building a good iPhone app.
Re: The Drivers Cooperative
#227Earlier quoted context omitted.
Compared to what? Cheap is not an absolute term. I agree with another comment here, it's absurdly cheap compared to almost anything else.
If the goal is to run infrastructure like Uber or Lyft (or any other big company), it's going to be in the tens or even hundreds of thousands USD per month at least.
That's probably less than the cost of setting up one restaurant.
Re: The Drivers Cooperative
#228I would rather be dead in a ditch than set foot in one of their cars. Because I expect it would be basically the same thing. Their website has thousands of words about how horrible Uber and Lyft are, but not one word about how they are going to approach trust and safety. I really hope there's an experienced labor marketplace executive in the room who knows anything about this business, rather than a bunch of drivers…
Re: The Drivers Cooperative
#229Earlier quoted context omitted.
Which of those two devs will be responsible for ensuring taxes are properly charged and keeping up to date with the tax code? Which will maintain parking and map zones? Who will work on routing and matching? Who's working on fraud? On safety? Who is working on payments, both from riders and paying drivers? Who is generating required tax reports for drivers? Who's doing driver onboarding? Which will ensure that driver…
My numbers were talking app expenses, obviously a company of Uber's scale would need 100+ employees. I broke down below that if they worked at their current scale and charged just a penny, they could pay their employees an average of $100K per year and still make millions in profit after spending millions on Infrastructure. Uber bills on average more than 100-200 times that and spends insane numbers on unprofitable p…
Re: The Drivers Cooperative
#230It's always surprised me that we haven't seem more attempts at co-op like models in spaces like this, and I'm happy to see it. Uber/Lyft strike me as thin businesses in the value that they actually provide both to riders and drivers. Yes, they were responsible for some initial innovation, but now the cat is out of the bag, and the concept could absolutely be applied in a business structure that is more profitable and…
The single benefit of Uber having a global presence likely already outweighs the value of these local coops. You can get off an airplane just about anywhere in the world and get an Uber. That’s huge value.
It's also not really very true. Its been a year since I traveled outside of the USA but on my last two international trips Uber was not available in those countries.