Now that Uber and Lyft are public, their inevitable financial collapse is much clearer

Veteran transportation economics Hubert Horan has consistently published the best-informed, deepest critiques of Uber and Lyft, explaining how the companies can never, ever be profitable, and warning investors away from becoming the "greater fools" that allow Uber/Lyft's early investors to cash out at their expenses, while cataloging the many ways that Uber and Lyft's legislative strategy, coupled with predatory pricing, is destroying the cities they operate in. Read the rest

The empirical impact of Lyft and Uber on cities: congestion (especially downtown, especially during "surges"), overworked drivers

Mike Moffitt sums up the empirical work on the impact of rideshare companies like Uber and Lyft for cities: an increase in congestion, especially downtown, especially during "surges" (Uber and Lyft insist that they reduce congestion, especially in downtowns, and especially during surges!); lower wages, longer hours and more precarious work for drivers (accompanied by the slow death of the taxi/limo businesses); huge losses for car-rental companies; and less walking, cycling and use of public transit (awithnd accompanying cuts to transit). Read the rest

Uber drivers across America are going on strike -- UPDATED

Update: Shona from Gig Workers Rising clarifies: "Gig Workers Rising isn't organizing the national day of action. Drivers in each of the 6 cities taking action are coordinating the day of action together. Drivers in LA with Rideshare Drivers United Los Angeles called a strike and asked other cities to take action on the same day. Gig Workers Rising supports and educates drivers who are organizing across the state. We are not organizing drivers."

On May 8, Uber drivers are organizing a nationwide shutdown of Uber, with drivers turning off their apps in protest over low pay: so far, seven cities' drivers are signed up: Philadelphia, Chicago, San Francisco, San Diego, Minneapolis, LA and DC. Uber and Lyft have both slashed pay for drivers and raised prices as they try to assuage the capital markets. Read the rest

IPOs have sent Uber and Lyft fares skyrocketing, while driver pay plummets

The public markets are hungry: as Uber and Lyft look to IPOs to let their investors -- who have been subsidizing 40-50% of every ride -- redeem their shares through sales to the public capital markets, the companies are desperate for ways to reduce their unprofitability and increase those share prices. Read the rest

New York City's new rideshare regs put Big Brother in backseat, give GPS tracking a whole new meaning

Whether you love them or hate them, rideshares like Uber and Lyft have become a daily part of life for millions of New Yorkers. These app-based services make it easy to pay for your ride, but while the privacy cost isn’t always as clear, it’s about to get a lot larger. These apps have tracked our movements since they launched, but as of this month, the Taxi and Limousine Commission (TLC) started tracking us too. Read the rest

A short list of "all the bad things" about Uber and Lyft

Angie Schmitt's list of "all the bad things" about Uber and Lyft only touches on transportation, leaving aside the companies' labor, taxation, regulatory and other issues, but it's still quite a damning document. Read the rest

Big Tech loves disruption, when they're doing the disruption

My latest Locus Magazine column is "Disruption for Thee, But Not for Me," and it analyzes how Big Tech has been able to "disrupt" incumbent industries, but has repurposed obscure technology regulations to prevent anyone from meting out the same treatment to their new digital monopolies. Read the rest

New York City taxi and rideshare drivers to receive a living wage

We've talked before about how hard it is for folks driving for Lyft and Uber to break even. Things aren't so hot for cab drivers, either: as ridesharing becomes more prevalent by the day, those who own their own taxi or drive for someone else are finding it harder to make a living. The drop in revenue going into the pockets of New York City Taxi medallion owners has been so extreme that drivers have been forced to work 100-hour weeks just to stay out of the red. Others, feeling that their lives were ruined by mounting debt, out of desperation committed suicide. Today, New York City's Taxi and Limousine Commission decided that they'd do something about it.

From Gizmodo:

Today, New York’s City’s Taxi and Limousine Commission approved measures to enact minimum pay requirements for app-based for-hire vehicles (FHV) like Uber, Lyft, and Juno. The new pay structure is set to take effect early in the new year.

The $26.51 per hour gross pay floor (estimated to amount to $17.22 per hour, less expenses) comes after “growing evidence of declining driver pay” was confirmed by a labor study, commissioned by the TLC, which concluded that 85 percent of drivers in NYC were earning less than the local minimum wage of $15 an hour. The new requirements will increase the average driver’s take-home pay by an estimated $9,600 per year.

Advocacy groups like the Independent Driver’s Guild and Amalgamated Transit Union have celebrated the change. “All workers deserve the protection of a fair, livable wage and we are proud to be setting the new bar for contractor workers’ rights in America,” Conigliaro, Jr., founder of IDG, wrote in a press statement.

Read the rest

Lyft will give free and half-price rides to the polls on election day

Lyft has teamed up with the Urban League, Voto Latino, the Urban League and the National Federation of the Blind to offer free and half-price rides to the polls for voters on November 6. "Transportation issues" were cited as reasons for not voting by 28% of Americans earning less than $20,000 who did not vote in the 2012 presidential election. Read the rest

For most people, driving for Uber or Lyft just ain't worth it

After a long day of driving for Uber and Lyft, this fella decided to work out exactly how much money he'd be taking home after paying taxes and expenses on his income as an independent contractor. While there's certainly a number of tax loopholes and write-offs that he could be taking advantage of, it looks like, for most people, driving for Uber or Lyft isn't worth the time. Read the rest

Realtor claims Uber and Lyft erode the premium homebuyers pay for good public transit links

Leonard Steinberg, a longstanding New York City luxury property broker, claims that the existence of Uber and Lyft has blunted the premium that buyers were willing to pay to live in neighborhoods with good transit links, because they can afford rideshare cars and use the commute time to work, meaning that commutes are less of a factor in calculating the quality of life (because your day starts when you get into the car, not when you get to your desk). Read the rest

Watch 'The Lyft Rapper' co-create music with his passengers

Shakespeare wrote that "All the world's a stage." But for Oakland, California-based Ashel Eldridge, he's made his car his stage. Dubbed "The Lyft Rapper," he invites his passengers to choose a topic and style of song and he'll make up a song about it on the spot.

KQED Arts writes:

Elridge, who also goes by the emcee name Seasunz, says his mission is to elevate the consciousness of his community by helping people understand the forces that may be manipulating them.

His passengers say they’re startled at first when their Lyft driver begins rapping to them. But after the song, they admit the Lyft Rapper has turned a typically mundane trip into an unforgettable experience.

Here's his most recent video:

Yes, he has his passengers sign releases. And no, I don't believe he's sponsored in any way by Lyft. Read the rest

The Financial Times: Uber is doomed

On FT's Alphaville, Izabella Kaminska takes note of the excellent, deep series on Uber's Ponzi-economics that Hubert Horan published last year on Naked Capitalism and calls out some juicy highlights. Read the rest

Libretaxi: a free, open, cash-only alternative to Uber, for the rest of the world

Libretaxi is an open source project that lets anyone become a rideshare driver in less than a minute; it has more than 20,000 users worldwide, and is maintained by Roman Pushkin, who started the project in December 2016 and is now planning to quit his job and work on it full time. Read the rest

Dashcam vid of a driver hitting 240 consecutive green lights

What's a driver to do to kill time between rideshare gigs? For Noah Forman, the answer was trying to set a record for most consecutive green lights. He hits about 240 green lights in a row in this video.

This seems much safer and more fun than the knucklehead who set the fastest lap around Manhattan, an honor that landed him in jail:

Noah hits 240 green lights. (Vimeo / Shawn Swetsky) Read the rest

EcoHelmet: this collapsible paper helmet just won a huge award

Isis Shiffer just won a Dyson design award for the EcoHelmet, an ingenious paper helmet that folds down to the size of a banana but offers significant noggin protection. Read the rest

Uber is running scared of Juno, a NYC competitor that's kicking its ass

Juno is a "driver-friendly" rideshare service that competes with Uber by paying its drivers more and giving drivers the ability to pick up a fare, get them to install the Juno app, and give them a discount. Read the rest

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