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Uber Drivers “Strike” and Switch to Lyft Over Fares and Conditions

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Re: Uber Drivers “Strike” and Switch to Lyft Over Fares and Conditions

#92

What would it take for somebody to just build a free, open-source matchmaking service for drivers and riders? It doesn't seem like what Lyft or Uber offer is very technically demanding (perhaps doing it at scale is), and presumably you could attract a lot more drivers by offering them the chance to keep ~99% of the fare. The existence of Lyft demonstrates that Uber's first-mover advantage isn't insurmountable, so who…

Taxi rides are basically futures contracts. Not exactly fungible due to location but you might be able to price that in, somehow. Bring on a generic taxi ride commodities exchange.

Re: Uber Drivers “Strike” and Switch to Lyft Over Fares and Conditions

#94

The really interesting story here is that if drivers are so willing to switch networks for better opportunities, there isn't a compelling reason for Uber to have the valuation that they do. The value of Uber isn't really in the tech or the app - it's in the networks of riders and drivers in each city. If each of those can be aggregated into some other kind of service, where Uber, Lyft, etc. are just providers of paym…

If these taxi cab drivers are "contractors" they should be able to just take on whatever business they want.

Carry one phone for Uber and one phone for Lyft, and swap out the branding when representing one or the other.

Re: Uber Drivers “Strike” and Switch to Lyft Over Fares and Conditions

#95

The really interesting story here is that if drivers are so willing to switch networks for better opportunities, there isn't a compelling reason for Uber to have the valuation that they do. The value of Uber isn't really in the tech or the app - it's in the networks of riders and drivers in each city. If each of those can be aggregated into some other kind of service, where Uber, Lyft, etc. are just providers of paym…

If these taxi cab drivers are "contractors" they should be able to just take on whatever business they want. Carry one phone for Uber and one phone for Lyft, and swap out the branding when representing one or the other.

There was a photo going around Twitter recently of a driver with five or so dash-mounted phones/devices doing more or less what you suggest.

Re: Uber Drivers “Strike” and Switch to Lyft Over Fares and Conditions

#96
post #30

The really interesting story here is that if drivers are so willing to switch networks for better opportunities, there isn't a compelling reason for Uber to have the valuation that they do. The value of Uber isn't really in the tech or the app - it's in the networks of riders and drivers in each city. If each of those can be aggregated into some other kind of service, where Uber, Lyft, etc. are just providers of paym…

This. Basically while there are network effects in the sense that any provider (Uber, Lyft etc.) will need to have some critical mass before there are enough drivers and enough riders, both can subscribe to multiple providers and there is no long-term stickiness at the moment. In other words, this is not a winner take all market with FB/LinkedIn/Twitter type network stickiness and the overall market is still fair gam…

Consequently, the cost of a ride will approach the level of direct costs like fuel and maintenance. There won't be much left for driver compensation or vehicle depreciation, much less a durable surplus for the network operator.

Paradoxically for the disruptors, the way out of this trap is for Uber and Lyft to lobby for greater regulation, stringent requirements for insurance and liability, background checks, safety inspections and government licenses. They need higher barriers to entry.

They need to carve out a space safe from competition, or it will rapidly devolve into a lowest-common-denominator market.

Not that there's anything wrong with that.

Re: Uber Drivers “Strike” and Switch to Lyft Over Fares and Conditions

#97
post #89

Earlier quoted context omitted.

"Regular use" is defined as you being able to hail one to take you at least 30 miles for ~$50, from either a mobile or webapp. If anyone can buy a self-driving vehicle, Uber and Lyft are aberrations, as anyone (even FedEx and UPS) could provide self-driving vehicle livery services. Its no longer a marketplace business; its a fleet management business (and both UPS and FedEx are extremely capable at managing capital e…

In how many metro areas, though? Surely also a huge factor in "regular use".

Excellent question. Let me noodle on that over a beer after work. I want to say 5 (SF, LA, CHI, NY, ATL), but its a very subjective metric.

Re: Uber Drivers “Strike” and Switch to Lyft Over Fares and Conditions

#98
post #80

Earlier quoted context omitted.

It's clearly Uber's plan to replace all their drivers with self-driving cars in the future - I think they've even said so themselves. But even six years is a long time for a VC-funded business. And what does "regular use" mean? That seems like the critical component of a bet like this.

"Regular use" is defined as you being able to hail one to take you at least 30 miles for ~$50, from either a mobile or webapp. If anyone can buy a self-driving vehicle, Uber and Lyft are aberrations, as anyone (even FedEx and UPS) could provide self-driving vehicle livery services. Its no longer a marketplace business; its a fleet management business (and both UPS and FedEx are extremely capable at managing capital e…

I think we'll see at least two main car providers in major cities plus some niche operators, then one major network that allows you to buy your own car to be committed to a pool as an investment.

Re: Uber Drivers “Strike” and Switch to Lyft Over Fares and Conditions

#99

Earlier quoted context omitted.

Uber is going to be a logistics company. But I agree they are grossly overvalued.

This is an oft-repeated meme but I don't see it ever substantiated. Disregarding the fact that the "driver in a car" model is never going to be the most efficient means of transporting things (as opposed to people), we're ignoring the fact that the "Uber for X" formula already has many players. Instacart, Seamless, GrubHub, Google Shopping Express, Postmates, every product category already has an "Uber". In fact ever…

You might be right but to me there is a big difference.

Uber seems to be collecting much more interesting data accross greater distances than those you mention which I why I think about them as a logistics company.

But again I think they are grossly overvalued and I think they will find themselves having to change to something else as competition will heat up and pushes prices down.

Re: Uber Drivers “Strike” and Switch to Lyft Over Fares and Conditions

#100
post #98

Earlier quoted context omitted.

"Regular use" is defined as you being able to hail one to take you at least 30 miles for ~$50, from either a mobile or webapp. If anyone can buy a self-driving vehicle, Uber and Lyft are aberrations, as anyone (even FedEx and UPS) could provide self-driving vehicle livery services. Its no longer a marketplace business; its a fleet management business (and both UPS and FedEx are extremely capable at managing capital e…

I think we'll see at least two main car providers in major cities plus some niche operators, then one major network that allows you to buy your own car to be committed to a pool as an investment.

Do you think we'll see public transit orgs (for example, PACE/CTA in Chicago and its suburbs) purchase their own self-driving vehicles to provide transit services?
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