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The Drivers Cooperative

drivers.coop

311–320 of 333 posts

Re: The Drivers Cooperative

#311
post #176

It'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…

I've been considering unconventional business models for software development teams, and something like this has crossed my mind a few times. What I ultimately dream of doing is assembling something like what seal team 6 is to the US armed forces. How do you build an organization around that model? It takes many layers to filter the talent appropriately and protect the most capable players throughout. How do you achi…

wow, you really are up your own ass

Re: The Drivers Cooperative

#312
post #213

Earlier quoted context omitted.

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.

Why not both? When I shop for groceries at home I can use the hippy dippy organic bodega. When I’m in an unfamiliar city, I can go to Kroger’s or Aldi. Space on my phone is free!

Exactly! I already keep Uber as a backup, while I use a competitor (Bolt) for most rides. It's not like it's complex software that one has to master.

Re: The Drivers Cooperative

#313
post #257

Earlier quoted context omitted.

> You can get off an airplane just about anywhere in the world and get an Uber. That’s huge value. You can get off an airplane just about anywhere and get a taxi at the taxi stand, but that never enabled a global company. Airports with local unlicensed taxi services generally have advertising in the airport for arrivals. Installing a new app in each city, and putting in payment information is more hassle (especially…

With a local taxi stand, you don't know if that would be over-priced, if they accept your card, etc. I've been in a situation where card should accepted in theory, but driver insists on cash, and I'm a kind of a person who doesn't like arguing. Using a global brand which handles shit smoothly is valuable to consumers.

Yes, I've encountered so many "broken" credit card readers...

Re: The Drivers Cooperative

#314
post #92

Earlier quoted context omitted.

App provides value, global brand has some value. There is absolutely no reason for ride hailing app to get 10-20% markup per ride. I suspect that after the competition really kicks in, Uber/Lyft must settle for 1-3% per ride or less.

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…

This is my analysis too. The app should be open sourced and then subsequent new market entrants enjoy the benefit, lowering costs. I don't think running servers to handle a few transactions per minute per zip code is too expensive

Re: The Drivers Cooperative

#315

Earlier quoted context omitted.

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…

Nope, your words were clear - you were flat out wrong, and are now trying to save face. I don't have a tendency to call people out, but blindly applying the "two devs in a garage" axiom is not only wrong when it comes to labor marketplaces, but it also unnecessarily spreads discontent to the point that we have to stop this silliness. I don't care one bit about your recalculated math from now on - for me, you're just…

No you are wrong. The coop and Uber have different structures. The coop is built from the bottom up and does not need to scale. So a per-msa analysis of costs is an appropriate starting point.

Re: The Drivers Cooperative

#316
post #282
post #204

Earlier quoted context omitted.

I've noticed credit unions in the US are like this. They are generally locally operated, but they have formed networks so that you can e.g. go into a branch in Maryland and perform transactions on your account held in Georgia. They have also banded together to develop credit union apps, since banking apps are essentially universal in function. Reaching critical mass for these ride hailing apps would be a challenge, b…

We don't really see coop payment networks in wide use although, and Uber is more like a Visa or Ebay than they are a bank.

Which suggests non-coop payment networks are more successful in the market. It does not tell us anything about whether they are actually better for anyone.

Re: The Drivers Cooperative

#317
post #72
post #58

Earlier quoted context omitted.

> What keeps Uber competitive is access to a relatively cheap reservoir of labor force. Cheap labor force means someone is underpaid. If the coop cuts the middlemen out and transfer the extra to drivers then it's a win-win: drivers get more and customers pay the same for a better service because well-paid driver => good service.

Underpaid compared to what? If people are willing to do the work to a high professional standard for a certain wage, than that is the right compensation for that job. When you setup arbitrary fair wages above market, you must also somehow protect them from intruders from other fields willing to change jobs and benefit from the higher wages in your field. This is exactly what a co-op ends up doing most of the time - i…

> Underpaid compared to what?

You said: "relatively cheap". Relative to what?

Re: The Drivers Cooperative

#318
post #282
post #204

Earlier quoted context omitted.

I've noticed credit unions in the US are like this. They are generally locally operated, but they have formed networks so that you can e.g. go into a branch in Maryland and perform transactions on your account held in Georgia. They have also banded together to develop credit union apps, since banking apps are essentially universal in function. Reaching critical mass for these ride hailing apps would be a challenge, b…

We don't really see coop payment networks in wide use although, and Uber is more like a Visa or Ebay than they are a bank.

The entire US payments system is a co-op payment network[1]. The Federal Reserve is owned by its member banks and they handle clearing for some absurdly large number of transactions. They use a slightly different nomenclature, but pragmatically it's a member owned co-op.

[1] https://www.federalreserve.gov/faqs/about_14986.htm

Re: The Drivers Cooperative

#319

Earlier quoted context omitted.

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.

A local coop doesn't have to go worldwide to be meaningful. Not all businesses shall grow indefinitely. If they can get a core customer base and hold it steady, it'd be much more valuable and impressive over time. They try to make a living, not to dominate the world for money.

I still can't quite grasp why local governments haven't taken the hint and reworked their local bus systems. Uber&Lyft have shown how much better app and on demand service is. But we're still circulating buses and spending billions on heavy rail.

Re: The Drivers Cooperative

#320
post #176

It'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…

I agree with you. Another reason this really couldn't have started with co-ops in the first place is co-ops wouldn't have been able to muscle their way into local markets like Uber did when they first launched.
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