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Category: RideShareRevolution

RideSharingRevolution

  • Didi Free to Accept New Signups As China Ends Tech Crackdown

    Didi Free to Accept New Signups As China Ends Tech Crackdown

    In a sign that China’s war on tech is finally over, ride-sharing service Didi is once again free to accept new signups.

    China has been waging war on tech companies in an effort to reign them in. As part of the crackdown, Beijing banned Didi from app stores and investigated its handling of customer data, according to CNN. The investigation was launched just days after Didi went public, wiping out tens of billions from the company’s value.

    Roughly a week after a Chinese official declared the tech crackdown “basically” over, Didi is once again free to conduct its business.

    “For more than a year, our company has cooperated with the government’s cybersecurity review, seriously dealt with the security issues found in the review, and carried out a comprehensive rectification,” Didi said in a statement posted on its Weibo account, via CNN.

  • Lyft Prepares for ‘Probable Recession’ by Laying Off 13% of Staff

    Lyft Prepares for ‘Probable Recession’ by Laying Off 13% of Staff

    Lyft joins the long list of companies laying off employees in preparation for what it calls a “probable recession.”

    According to Fast Company, Lyft CEO Logan Green and President John Zimmer called employees to an all-hands meeting.

    “We’re facing a probable recession sometime in the next year and rideshare insurance costs are going up,” the executives wrote in an email announcing the meeting. “We worked hard to bring down costs this summer: we slowed, then froze hiring; cut spending; and paused less-critical initiatives. Still, Lyft has to become leaner, which requires us to part with incredible team members.”

    “We are not immune to the realities of inflation and a slowing economy. We need 2023 to be a period where we can better execute without having to change plans in response to external events — and the tough reality is that today’s actions set us up to do that,” Zimmer and Green added. “It’s our responsibility to take ownership of these decisions and, in the end, protect the future we’re building for the drivers and riders we serve.”

    The company says it will give workers 10 weeks of pay, assistance finding other jobs, and healthcare through April 2024.

  • Lyft Media Launches to Help Brands Engage With Travelers

    Lyft Media Launches to Help Brands Engage With Travelers

    Lyft — the popular ride-sharing service — has launched Lyft Media, a media and advertising platform.

    Lyft is one of the leading ride-sharing services and sees an opportunity to expand its own advertising business and help partner brands reach more consumers. As the pandemic wanes, people are traveling more, opening the door to increased opportunity.

    “Our vision is to build the world’s largest transportation media network, delivering value to advertisers while also elevating the platform experience for riders and drivers,” reads the company’s blog. “Over the past two years, we’ve been growing our media business and are excited to share more details about our products, new partnerships, and future plans.”

    The company’s plan revolve around four advertising channels: Lyft Halo, Lyft Tablet, Lyft Bikes, and Lyft Skins.

    Lyft Halo

    Lyft Halo consists of rooftop-mounted screens that can display digital advertising. The concept is built around Lyft’s 2019 acquisition of Halo Cars.

    Rather than generalized ads, Lyft Halo will display ads specifically tuned to the time of day and vehicle’s location, maximizing possible engagement. Brands will be able to track the performance of their ads, thanks to Lyfts attribution partners.

    Lyft Tablets

    Lyft Tablets are in-vehicle tablets that provide passengers with a way to monitor the progress of their journey, control the vehicle’s music, pay and tip the driver, and engage with partner branding.

    In the company’s pilot program, “1 in 4 engaged with the tablet during their ride, and 98% rated the experience as positive or neutral. And for drivers, tips increased by an average of 28% per ride while using the tablet in Q4 2021.”

    Lyft Bikes

    Lyft Bikes provide an easy way for customers to rent a bike rather than a traditional vehicle. Lyft is installing display panels at the bike stations, providing partners yet another way to engage with consumers.

    The company already has 3,000 stations, 45,000 bikes, and serves 36 million rides annually, providing a significant opportunity to advertisers.

    Lyft Skins

    Lyft Skins provides a way for brands to interact with consumers via the Lyft App itself. DoorDash, Starbucks, HBO Max, Marriott, and Google are just a few of the brands that have already benefited from this channel, and the company is bringing more companies and brands onboard.

    Lyft is clearly looking to capitalize on its position in the ride-sharing market to become a digital platform that provides value to consumers and brands alike.

  • Uber Built A Very Anti-Fragile Business, Says Jason Calacanis

    Uber Built A Very Anti-Fragile Business, Says Jason Calacanis

    “Uber built a very anti-fragile business in regards to having the Eats business and having the Rides business,” says early Uber investor Jason Calacanis. “When the Ride’s business went down that kind of indicates people are staying home. When they stay home they use Uber Eats and increasingly Drizly, Cornershop, and Postmates. Watching the Uber team take on this challenge of the pandemic year has been really impressive.”

    Early Uber investor Jason Calacanis says that unlike Lyft, Uber built a very anti-fragile business with the combination of Eats and Rides and has become relentlessly focused:

    Uber Built A Very Anti-Fragile Business

    What we’re really going to see here is that Uber built a very anti-fragile business in regards to having the Eats business and having the Rides business. When the Ride’s business went down that kind of indicates people are staying home. When they stay home they use Uber Eats and increasingly Drizly, Cornershop, and Postmates. People are ordering groceries. Watching the Uber team take on this challenge of the pandemic year has been really impressive.

    It reminds me a lot of Disney and how they got focused around Disney+ as the center of the organization. They looked at what was happening in the pandemic and said parks are great, merch is great, movies are great, let’s just put everything into Disney+ and accelerate that. Look what happened to that company. I’ve got to give Dara Khosrowshahi a lot of credit. He got rid of a lot of the noise like self-driving cars which are a multi-decade kind of vision. He sold off the places where they weren’t going to be in first, second, or even third place. He did JVs and sold off those businesses like Russia and China, etc. That’s well documented.

    The Space Can’t Have 50 Players Losing Money

    They found a new really inspiring footing which is if Amazon is two-day delivery going to one-day, Uber’s is one-hour delivery going to 10-minute delivery. That is Travis Kalanick’s original vision for Uber. When I met with him when he was building the company and I was the third or fourth investor his vision was this is a logistic company. We took atoms in the world made them bits on the internet. Now we’re going to take bits on your phone, an app, and we’re going to move atoms in the real world. That was his original pitch. Here we are in decade two where I’m still own the same shares I’ve had since I bought them for a penny or whatever back in 2008 or 2009. I remain super bullish. I have a huge position in Uber and I’m going to hold it for the next decade.

    It’s fairly obvious that there are acquisitions and consolidation that need to happen in the space in order for it to be profitable. The space can’t have 50 players losing money. We’ve watched Lyft, Postmates, Doordash, and everybody, say that we’re going to have to charge what this product is worth. We’re going to have to stop burning money. There’s no free VC money. The public markets are not down with lose money forever and grow. I think we found a happy medium here between what public market investors want, profits, and what private market investors want, growth.

    Uber Has Become Relentlessly Focused

    I think Dara has done an exceptional job. Some things will come from acquisitions but most of it has to be just relentless execution and focus. That is the inspiring part of what happened here. Uber has become relentlessly focused. Things that were coming in 10 or 20 years like self-driving in all likelihood will be a commodity business. In 10 or 20 years there’ll be five companies who have that technology. VTOLs are very fascinating and very interesting, but again that’s probably seven, eight, nine, or ten years off as a very niche product.

    Uber Built A Very Anti-Fragile Business, Says Jason Calacanis
  • There Is No Change Coming To Lyft, Says Co-Founder – Despite Ruling

    There Is No Change Coming To Lyft, Says Co-Founder – Despite Ruling

    Lyft co-founderJohn Zimmer is extremely confident the court ruling that found California Proposition 22 unconstitutional will be overturned on appeal.

    “If you look at California Constitution we feel very confident in the way the ballot initiative was written,” says Lyft co-founder and President, John Zimmer. “The Attorney General in California agrees with us and was on our side in this lawsuit. As this goes through higher courts, the appeals court in California, we are extremely confident that the proposition will be upheld.”

    “There is no change coming (to Lyft) out of that ruling,” adds Zimmer. “It will go on appeal and we’ll continue to work within the system of law and we are confident of the final outcome.”

    “It’s hard to predict the legal process fully but we’re optimistic that within that (6 months) timeframe we’ll get a more final resolution.”

  • SpaceX Successfully Launches 88 Satellites

    SpaceX Successfully Launches 88 Satellites

    SpaceX has deployed 88 satellites, 85 of them for customers, as the company ramps up its payload delivery service.

    SpaceX has previously focused largely on deploying its own satellites, specifically for its Starlink constellation. The company is now branching out into space ridesharing, launching satellites for customers.

    The first such launch, Transporter-1, carried 143 satellites. Tuesday’s launch, Transporter-2, only carried 88 satellites but, according to TechCrunch, contained more overall mass.

    The launch also marked the first time this year the company successfully landed its first stage onshore, as opposed to landing on a drone ship.

  • Volocopter Demos Eletric Air Taxi at Paris Air Forum

    Volocopter Demos Eletric Air Taxi at Paris Air Forum

    Volocopter has demoed its electric air taxi at the Paris Air Forum, vowing to bring air taxi services to market in time for the 2024 Olympics.

    Companies around the world are racing to make air taxies a reality. The technology promises to help speed up commutes, reduce city congestion and revolutionize the transportation industry.

    Volocopter is one step closer to bringing its own taxi service to martlet, following a successful demonstration. The company is committed to bringing a full-fledged service to the region in time for the 2024 Olympics in Paris. The service will likely see major success with the influx of tourists and Olympic-goers looking to experience everything possible.

    “The first flight today in Paris highlights Volocopter’s commitment to bring air taxi services to this region in time for the 2024 Olympic Games,” said Florian Reuter, Volocopter CEO. “The alliance of the Paris region, Groupe ADP, and RATP Groupe and their intent to bring electric air taxis to France is a stellar example of the collaborative approach we see to be the most successful for adding this exciting category of mobility to cities globally.”

    “Today, we were as close as never before in France to experience electric aviation,” said Edward Arkwright, Deputy CEO, Groupe ADP. “Volocopter is a vivid example of what the futures of aviation could look like, both carbon-free and innovative, that Groupe ADP wants to accompany thanks to our infrastructure assets, expertise, and know-how. Along with the other partners of the RE.Invent Air Mobility initiative, Volocopter is now ready to enter a first test flight campaign by September on the Pontoise airfield sandbox we have been building up in the past months. And we are thrilled to be partnering with them, RATP Group and DGAC towards our objective of flight demonstrations in the Paris Region during the 2024 Olympic Games, to lay the foundation of a strong UAM industrial ecosystem in France.”

    “After having responded as the first player in the urban air mobility industry, in the context of the call for expressions of interest, we are very pleased that Volocopter has confirmed its development and its establishment in France,” Marie-Claude Dupois, Director of Strategy, Innovation and Development of RATP Group. “For RATP Group, this new mobility aims to complement our traditional transport modes.”

  • Congress Out To Kill Uber and the Entire Gig Economy Again

    Congress Out To Kill Uber and the Entire Gig Economy Again

    Congress, in a political payoff to unions, have again introduced legislation to effectively make gig economy jobs like Uber, Lyft, DoorDash, etc. illegal. The difference this time is that since they now control the House, Senate, and the Presidency it could very well pass. The legislation is modeled after the gig killing bill that was passed in California and that was later overturned via initiative by the people. Unfortunately, at the national level there is no initiative process to overturn Congress.

    Despite the job-killing nature of the bill the Democrat’s press release sings its praises:

    “Top Democrats Introduce Bill to Protect Workers’ Right to Organize and Make our Economy Work for Everyone. Legislation addresses growing income inequality by protecting workers’ right to join a union and negotiate for higher wages and better benefits.”

    The House bill was introduced by House Committee on Education and Labor Chairman Robert C. “Bobby” Scott (VA-03), Congresswoman Frederica Wilson (FL-24), Congressman Andy Levin (MI-09), Congresswoman Pramila Jayapal (WA-07), and Congressman Brendan Boyle (PA-02).

    The Senate bill was introduced by Senate Committee on Health, Education, Labor, and Pensions (HELP) Chair Patty Murray (D-WA) and Majority Leader Chuck Schumer (D-NY).

    The bill mimics the California bill which Uber CEO Dara Khosrowshahi said would effectively end Uber as we know it in California. The company is already losing money and it would be impossible for it to pay a minimum wage of $15 an hour plus benefits to all of its 1 million drivers. It also begs the question, does the Democrat party not realize that the very people who love Uber and who are independent contractors for Uber probably are also majority Democrat voters? After all, the gig economy was popularized by liberal San Francisco based Uber itself.

    Without an initiative process at the national level, the only way to keep the millions of gig jobs alive and to keep rideshare and food delivery readily available would be for their voters to vote the majority party out of office. There really is no middle ground here. In the meantime, if this bill passes Congress and is signed by Biden the gig economy will become illegal.

  • Motional Taps Hyundai’s IONIQ 5 For Next-Gen Robotaxi

    Motional Taps Hyundai’s IONIQ 5 For Next-Gen Robotaxi

    Driverless tech company Motional has announced it will use Hyundai’s IONIQ 5 for its robotaxi deal with Lyft.

    Motional and Lyft signed “the world’s largest robotaxi deployment partnership.” Beginning in 2023, Lyft customers will be able to book a Motional robotaxi, instead of a traditional Lyft.

    The company, which was founded by Hyundai Motor Group and Aptiv, plans to use Hyundai’s IONIQ 5 midsize electric crossover.

    The futuristic IONIQ 5 is an all-electric, midsize crossover utility vehicle designed for the passenger experience. With a unique and luxurious living space and a sleek, modern exterior, Motional and Lyft riders will experience their fully autonomous rides in comfort and style. Built on Hyundai’s dedicated battery electric vehicle (BEV) platform, the IONIQ 5 delivers innovation in both mobility and sustainability.

    Motional emphasizes the vehicles it will use are not the consumer version of the IONIQ 5, but ones with its Level 4 autonomous software integrated in. Autonomous driving software is graded from Level 0 to 5, with 5 being completely autonomous vehicles that never require human involvement.

  • Uber Will Treat UK Drivers As ‘Workers’ After Supreme Court Loss

    Uber Will Treat UK Drivers As ‘Workers’ After Supreme Court Loss

    In a world first, Uber will treat its UK drivers as “workers” after losing its case before the UK Supreme Court.

    In February, the UK Supreme Court ruled that Uber drivers were entitled to more protections than they enjoyed as contractors. “Worker” is a classification unique to the UK, providing more protections than a contractor, but not reaching the status of an employee. Uber has been fighting similar battles in multiple jurisdictions, but the UK case was the company’s first major loss.

    As a result, Uber has agreed to pay some 70,000 UK drivers minimum wage, as well as provide vacation pay and access to a pension plan.

    Writing an op-ed piece for The Evening Standard, CEO Dara Khosrowshahi outlined the company’s policy evolution:

    Our thinking on this issue has evolved over time, and I will be the first to admit that we’ve struggled to identify solutions that work for Uber and for those who earn on our platform.

    Following last month’s UK Supreme Court ruling, we could have continued to dispute drivers’ rights to any of these protections in court. Instead, we have decided to turn the page. Beginning today, Uber drivers in the UK will be treated as workers.

    It remains to be seen if the UK case will serve as a template for other countries and jurisdictions, but Uber’s willingness to make changes certainly will undermine its arguments in future cases.

  • Toyota Partners With Aurora and Denso to Develop Autonomous Vehicles

    Toyota Partners With Aurora and Denso to Develop Autonomous Vehicles

    Toyota is partnering with Aurora and Denso to develop autonomous vehicles, rather than going it alone.

    Autonomous vehicles are widely seen as the next big step for the automotive industry. Whether it be a personal vehicle, mass transportation or rides-sharing, autonomous driving promises to usher in an era of safer, less distracted driving.

    Automakers are taking different approaches to autonomous driving. Some, like Volkswagen, are developing their software in-house. Toyota, on the other hand, has decided to work with partners and industry leaders.

    Akio Toyoda, Toyota President, outlined the company’s goals:

    Rather than conduct development on our own―without friends and partners―we can partner and collaborate with others who share our aspirations. Rather than keep our patents to ourselves, we can open them up and create more new friends. Rather than sell only cars, we can provide various services in which vehicles are incorporated into a system and focus more broadly and openly on contributing to the improvement of society.

    The company is partnering with Aurora and Denso to begin developing autonomous ride-sharing vehicles, starting with the Sienna. The goal is to design, build and be testing a fleet of the minivans by the end of 2021. Once testing is complete, the vehicles will be built and supported for various ride-hailing companies.

    “Toyota has an unparalleled legacy, engineering expertise, leadership, and ability to deliver high-quality, affordable, and reliable vehicles,” said Chris Urmson, Aurora CEO. “They’re also the preferred vehicle brand for transporting riders on ride-hailing networks, so we’re excited and honored to work with them to unlock driverless mobility services with the Aurora Driver. Our development work on highway driving to support our first commercial product, a driverless truck, will also be critical for safely moving people, as a significant fraction of ride-share bookings today require the ability to drive over 50 mph.”

    “Toyota is dedicated to creating and realizing mobility for all by focusing on technology that will move people safely and responsibly, a vision Aurora shares with us,” said Keiji Yamamoto, Operating Officer of Toyota and President of Connected Company. “By combining our expertise and know-how in vehicle control systems, mass-production, Connected Car technology, and our advanced safety support systems with Aurora’s industry-leading approach to self-driving technology, we aim to commercialize and deliver safe, high-quality, and affordable autonomous ride-sharing vehicles and services.”

  • Companies Working to Make Bikes and Scooters Safe, Help Them ‘Talk’ to Cars

    Companies Working to Make Bikes and Scooters Safe, Help Them ‘Talk’ to Cars

    Riding a bike or scooter may become much safer, as a coalition of companies is working to help them “talk” to cars and make drivers aware of their presence.

    As climate change becomes a greater concern, there is growing momentum for individuals, especially in cities, to use bikes and scooters instead of cars. The two-wheeled vehicles are also much less expensive, making them an appealing alternative for many people. Unfortunately, the very circumstances where bikes and scooters shine are also some of the most dangerous places to ride due to streets crowded with cars.

    Tome Software, Ford, Trek Bicycle and Bosch are looking to tackle this problem by helping bikes, scooters and cars to communicate, alerting drivers to the presence of the smaller vehicles. According to The Washington Post, the companies made the announcement at CES2021.

    The bicycle-to-vehicle (B2V) technology will use Bluetooth 5. Given the early stages of the initiative, however, an established methodology has not yet been decided upon.

    “We have completed a critical milestone in cross-industry collaboration while we continue the research and development process through 2021 testing and on-road data collection pilots,” Jake Sigal, founder and chief executive of Tome Software, said in a statement.

    This initiative is good news for cyclists and scooter riders, and will hopefully help make the roads much safer.

  • Social AI? Uber Researchers Propose New Language Model

    Social AI? Uber Researchers Propose New Language Model

    Researchers at Uber are proposing a new artificial intelligence (AI) language model that emphasizes positive, social interaction.

    AI is one of the most important developments in the tech industry. Increasingly, is is being used in a wide array of fields, often with the goal to assist individuals in mundane tasks. Chat bots, support agents and conversational AIs are just a few examples. One challenge, however, is making AIs that people will engage with.

    Researchers at Uber believe they have the solution, and have written a paper emphasizing the importance of developing an AI language model around positive, social interaction.

    Goal-oriented conversational agents are becoming prevalent in our daily lives. For these systems to engage users and achieve their goals, they need to exhibit appropriate social behavior as well as provide informative replies that guide users through tasks.

    The researchers hypothesized that an AI using positive interaction would encourage more engagement.

    We, therefore, hypothesize that users would prefer a conversaional agent with more polite or more positive language and be more willing to engage with, respond to and persist in the interaction when conversing with an agent using polite and positive language.

    Uber’s researchers tested their hypothesis in a ride-sharing environment, where new drivers’ on-boarding was guided by text messages from customer support representatives (CSR).

    In this Study 1 we investigated whether and how social language is related to user engagement in task-oriented conversations. We used existing machine learning models to measure politeness and positivity in our analyses. The results show that the politeness level in CSR messages was positively correlated with driver’s responsiveness and completion of their first trip. We also found that positivity positively predicts driver’s first trip, but it has a negative relationship to driver responsiveness even after removing congratulatory milestone messages or messages that do not have any question mark, which usually have positive sentiment and/or do not require responses from drivers.

    Uber’s research could be an important stepping stone in the ongoing development of AI, ensuring it best supports human needs.

  • Hyundai Acquiring Boston Dynamics Robotics Firm

    Hyundai Acquiring Boston Dynamics Robotics Firm

    Hyundai is acquiring a majority stake in Boston Dynamics, the maker of robotic dog Spot.

    Hyundai will take an 80% stake Boston Dynamics, while existing owner SoftBank will maintain a 20% stake. Hyundai sees the acquisition as an important step toward its transformation into a Smart Mobility Solution Provider.

    Boston Dynamics Spot
    Boston Dynamics Spot

    Hyundai has increasingly been innovating beyond the traditional concept of the automobile. The company is investing heavily in its Urban Air Mobility platform, in an effort to make aerial transport and ride-sharing a reality. Similarly, Hyundai and Autodesk are working to create the Ultimate Mobility Vehicle(UMV), a vehicle with legs that can walk to reach areas a traditional vehicle cannot. The latter, in particular, is a concept that bears a striking resemblance to Boston Dynamics’ work.

    Elevate
    Elevate

    We are delighted to have Boston Dynamics, a world leader in mobile robots, join the Hyundai team. This transaction will unite capabilities of Hyundai Motor Group and Boston Dynamics to spearhead innovation in future mobility. The synergies created by our union offer exciting new pathways for our companies to realize our goal – providing free and safe movement and higher plane of life experiences for humanity. We will also contribute to the society by enhancing its safety, security, public health amid global trends of aging society and digital transformation. — Euisun Chung Chairman of Hyundai Motor Group

    Hyundai’s stake in Boston Dynamics should help the company continue innovating as automobile makers look beyond traditional transportation.

  • Uber Looking to Sell Uber Elevate Air Taxi Business

    Uber Looking to Sell Uber Elevate Air Taxi Business

    Uber is in talks to sell its air taxi business, Uber Elevate, to Joby Aviation.

    While Uber is best known for its ride sharing business, the company has also been working toward deploying an air taxi service. Most recently, at CES 2020 in January, Hyundai and Uber announced a partnership to help make aerial ride sharing a reality.

    It now appears that Uber wants out, as it is in talks to sell its Uber Elevate division, according to Axios. The talks are in the advanced stages, and have been confirmed by multiple Axios sources. Joby was already an Elevate partner, making it an ideal option to buy the division.

    It remains to be seen how a possible sale could impact other partnerships, such as with Hyundai.

  • Uber CEO Says ‘Eats’ Growing At Unprecedented Rate

    Uber CEO Says ‘Eats’ Growing At Unprecedented Rate

    “The Uber Eats business continues to grow at unprecedented rates,” says Uber CEO Dara Khosrowshahi. “Revenue has almost tripled year on year. That business continues to accelerate. It looks like the Eats business is sticky. I wouldn’t count on the growth rates we are having now post-pandemic. However, I do think that you are going to have big growth rates off of a much larger base as a result of everything that has happened.”

    Uber CEO Dara Khosrowshahi says that Uber Eats is growing at unprecedented rates during the pandemic and he expects the business to do well post-pandemic as well:

    Uber Eats Growing At Unprecedented Rate

    On the Uber Eats side, it is an entirely different story where the business continues to grow at unprecedented rates. Revenue has almost tripled year on year. That business continues to accelerate. When we look at Eats we are seeing some great trends. The monthly actives on Eats are up 70% on a year on year basis. The trips are up 110% on a year on year basis. New orders, orders per eater, or basket sizes, all of these trends are up double-digit.

    We’ve taken a look at Eats’ performance in markets that are opening up such as New York City and we haven’t seen any kind of performance degradation in Eats. What that suggests to us is that there is a whole new class of consumer that’s experiencing the delight of being able to pick anything and have it delivered within 30 minutes and eat what you want how you want it. It looks like the Eats business is sticky. I wouldn’t count on the growth rates we are having now post-pandemic. However, I do think that you are going to have big growth rates off of a much larger base as a result of everything that has happened.

    As Cities Open Up Uber Opens Up

    It really is impossible to tell when the mobility business can come back. It depends entirely on the health situation on the ground. With markets that are opening up faster because of the health situation or the society, things are coming back. For example, we looked in New York City where the counts have been down relative to the rest of the country and in just October our volumes were 63% of pre-pandemic levels. This is materially higher than they were in the rest of the nation.

    You have week-day use cases of the service outside of commute that is now at pre-pandemic levels or higher. As cities open up Uber opens up as well. We actually think that we can be a beneficiary of certain trends that we’re seeing.

    We have invested in safety such as digital mask verification. We also have the No Mask No Rides advertising campaigns. People are feeling safer using Uber. Our reliability and predictability are absolutely unrivaled. While we look at share and we always want to make sure that we are competitive really what we focus on is the reliability of the service and safety of our drivers and hopefully coming back as the health situation improves.

    Vaccine Could Radically Improve Bookings

    There is a pretty consistent improvement in the mobility business as you go month to month to month. This is one of the benefits of having a truly global business. Within that steady improvement, there are all sorts of ups and downs. Hong Kong has had some openings and closings. Obviously, Europe is now going through another shutdown. US case counts are moving up. The individual curves are not smooth. But when you look at our global portfolio it smooths out.

    We are seeing a month to month improvement. For example, if you look at our last quarter overall gross bookings were down 50%. In September, the last month of the quarter, they were down only 44%. You just see this kind of consistent improvement. We think that the consistent improvement will continue into next year. We think a vaccine could radically improve the slope of that improvement.

    Uber CEO Dara Khosrowshahi Says ‘Eats’ Growing At Unprecedented Rate
  • Lyft Hopes To Finally End ‘Living Under a Cloud’

    Lyft Hopes To Finally End ‘Living Under a Cloud’

    “What we’re expecting is that other states might have otherwise been teed up to try to replicate AB5,” says Lyft’s Chief Policy Officer Anthony Foxx. “What we want to do is engage in discussions with leaders of states who maybe had considered that and to try to talk about a different model, a different way to pursue what we all want. We want to make sure that the drivers are well taken care of, not only when they’re driving but before and after. Also, we want to make sure there’s clarity and certainty in this industry so that it’s not living under a cloud.”

    California Assembly Bill 5 (AB5), was overturned by the people in regards to ridesharing with the passage of Proposition 22 Tuesday. AB5 was passed by the Democrat-controlled state legislature and signed by California Governor Gavin Newsom in September 2019 as a favor to both the taxi industry and unions who heavily finance Democrat campaigns. AB5 required companies that hire independent contractors to reclassify them as employees. The bill would have made it financially impossible according to Uber and Lyft for them to operate in California. Unfortunately, Proposition 22 did not change AB5’s ban on independent contractors in other industries.

    Lyft’s Chief Policy Officer Anthony Foxx Hopes To Finally End ‘Living Under a Cloud’

    “This was massive in terms of almost an existential business risk to these models in terms of the gig economy,” says Dan Ives of Wedbush Securities. “It could have been a $500 million incremental expense to Uber a $150 million for Lyft. In my opinion, they’re really popping the champagne today because this was really a best-case outcome. It was a dark cloud over the gig economy in these stocks and I think worth potentially 15 to 20 percent to ultimately where I see the valuations.”

    “What was really the crux of the issue is the worry of the street that this was going to be a pandora’s box situation, a ripple effect across cities and states,” added Ives. “The fact that the voters in California approved this was really a seminal moment. From the beginning, really the last year and a half, it’s been a head-scratcher in terms of what this could have done not just to the gig economy. Of the hundreds of drivers that we’ve talked to, 95 percent of them were against the AB5. This is definitely a sigh of relief early this morning for investors as well as for the drivers themselves.”

    Dan Ives: This was an existential business risk to these models in terms of the gig economy.
  • Uber and Lyft Prevail In California Proposition 22 Fight

    Uber and Lyft Prevail In California Proposition 22 Fight

    California’s Proposition 22 is poised to pass, securing the current business model for gig economy companies.

    California has tried to reclassify gig economy companies, such as Uber, Lyft and Doordash. The state previously passed legislation requiring the companies to classify their workers as employees, rather than independent contracts. Changing how their employees are classified would have a profound impact on the companies’ and their bottom line, as they would have be required to withhold taxes and provide benefits.

    The companies tried fighting the legislation in court, but were unsuccessful. This left Proposition 22 as their best chance to continue operating in the state under their current business model.

    The ballot, which had the most expensive campaign of any ballot measure in California history, is poised to pass by a comfortable margin. The fight over gig workers has been closely watched across the country, and will likely help set a precedent for how these companies will continue to operate.

  • Uber Eats To Essentially Power World Commerce, Says CEO

    Uber Eats To Essentially Power World Commerce, Says CEO

    If there was a time to lean into delivery, this is the time. We’re going to be the global leader in that business. We’re going to expand beyond food into other categories such as groceries and pharmacy, essentially powering world commerce.

    Uber CEO Dara Khosrowshahi discusses how Uber Eats is going to ‘essentially power world commerce’ in a Zoom call with the Wall Street Journal:

    If there was a time to lean into delivery, this is the time,” We’re going to be the global leader in that business. We’re going to expand beyond food into other categories such as groceries and pharmacy, essentially powering world commerce.

    The food delivery business is profitable in certain countries. For example, two of our top five international markets are profitable today and were profitable last quarter. The profitability really depends on how hard we are leaning in toward expanding supply and acquiring customers. The perspective that we have on this business is that even though it’s growing it’s actually very early in its development.

    For example, Japan is a huge market potential for us and one of our leading growth markets. Less than ten percent of restaurants in Japan are signed up to use Uber Eats as a delivery service. When you have a situation where your penetration is ten percent of the ultimate market size you lean in as a company.

    We are fortunate in that we’ve got very strong balance sheets, over $7 billion in cash and available capital. That allows us to lean into certain businesses. If there was a time to lean into delivery, this is the time. We’re going to be the global leader in that business. We’re going to expand beyond food into other categories such as groceries and pharmacy, essentially powering world commerce.

  • Lyft Co-Founder Says Rides Are Still Down 50%

    Lyft Co-Founder Says Rides Are Still Down 50%

    “The impact of the pandemic to us in the broader market is rides being down about 50% now,” says Lyft co-founder and President John Zimmer. “They were down 75%. So we are halfway recovered across the board. That impacts individual drivers as well. If you look at how some drivers have shifted, we actually have higher driver earnings now per hour than even pre-pandemic.”

    John Zimmer, co-founder and President of Lyft, discusses the impact of the pandemic on Lyft, noting that daily rides are still down by half since March 2020:

    Lyft Rides Still Down 50%

    Drivers 4 to 1 want to remain independent contractors and want to retain flexibility. Depending on the market, 80 to 90% drive less than 20 hours a week. We think there is a much better way forward than saying (in California) that everyone should become employees. That way forward is to say let’s retain the flexibility and let’s add more protections and benefits like we are pushing for in California.

    The impact of the pandemic to us in the broader market is rides being down about 50% now. They were down 75%. So we are halfway recovered across the board. That impacts individual drivers as well. If you look at how some drivers have shifted, we actually have higher driver earnings now per hour than even pre-pandemic. There’s equilibrium between demand and supply, between riders and drivers.

    Impact Of Lockdowns And The Virus Is Real

    The impact to the broader economy and the impact with lockdowns and the virus is real for our business. Transportation is directly tied to people’s movement and the broader economy. That said, we’ve continually week over week seen incremental improvements going from negative 75% to now above 50%.

    We see markets like Toronto back to 80% of where we were before. As countries get better and as states get better at living with the conditions we have because of the virus I see continued improvement. Driver earnings per hour are higher today than they were pre-pandemic. We are looking right now for more drivers.

    Regulation Has Been Part Of Our History From Day One

    Regulation has been a part of our history from day one. We are as much in the transportation business as we are in the technology business and transportation historically has been a regulated industry. Within our first year of operation, we worked with California regulators to create a new category for regulation.

    It’s been part of our business and will always be part of our business. It’s part of how we think about the path to profitability but we are just moving forward on that path despite anything that is going to change around us in terms of regulation.

    Largest Bike-Share Program In North America

    We also have a diversified set of transportation that we offer. We have the largest bike-share program in North America with City Bikes in New York City and Bay Wheels in the Bay and Divvy in Chicago. Our bike systems are in many cases above where they were pre-COVID. They are a great way to get around and get some fresh air and not be next to someone else.

    Lyft Co-Founder John Zimmer Says Rides Are Still Down 50%
  • Autonomous Driving for Trucks Will Happen First, Says Full Truck Alliance CFO

    Autonomous Driving for Trucks Will Happen First, Says Full Truck Alliance CFO

    “Our view is that the commercialization of autonomous driving for passenger vehicles will probably take a bit longer than people would think,” says Richard Zhang, CFO of Full Truck Alliance. “We think the commercialization of autonomous driving for trucks will probably take place a lot sooner than it will take place in the passenger car vehicle sector.”

    Full Truck Alliance is a multi-billion dollar valued company that is becoming the Uber of trucks throughout China. The fragmentation of the trucking industry in China between independent truckers and shippers has resulted in an empty load rate of over 40 percent, about four times higher than in the United States. The Full Truck Alliance app and online platform connects shippers to truckers in real-time enabling huge reductions in empty loads.

    Richard Zhang, CFO of Full Truck Alliance based in China, discussed the company’s future in an interview on CNBC International TV this morning:

    Full Truck Alliance in China is the Uber for Trucks

    The problem we’re trying to solve is very simple because there are high inefficiencies between matching with the truck drivers and also matching with the shippers. The empty load rate in the US is only ten percent while the empty load rate in China is 40 percent. The empty load rate is very similar to the vacancy rate in the hotel business. The reason is that the market here is highly fragmented. You have highly fragmented truck drivers and highly fragmented shippers, lots of SMEs.

    Before we came into existence the matching between the truck drivers and shippers were taking place across a thousand offline marketplaces in China. What we have been trying to do is bring that offline marketplace online and use our algorithms in the back office to match automatically the truck drivers and the shippers. We are trying to reduce that empty load rate to well below 40 percent.

    Monetization Via Membership and Uber-Like Fees

    Our monetization strategy for Full Truck Alliance is as a product of a merger between two companies, Truck Alliance and also Yunmanman a little over a year ago. Post-merger we started monetization and the monetization takes place in two ways. Number one is we are charging a membership fee for the shippers and also very similar to Uber or DiDi we’re charging a take rate on the transactions themselves.

    We were very close to achieving our 2018 profit objective. We are actually very marginally close to break-even at the current moment and we have no doubt that we’re going be making earnings in 2019.

    Autonomous Driving for Trucks Will Happen First

    Our view is that the commercialization of autonomous driving for passenger vehicles will probably take a bit longer than people would think. We think the commercialization of autonomous driving for trucks will probably take place a lot sooner than it will take place in the passenger car vehicle sector. Therefore we are deploying a certain amount of resources into that sector in the form of investment.

    We have decided to be a strategic investor in an autonomous driving truck company for them to actually develop that technology and for us to actually use. The mandate for the partner is to actually put a fleet on the road in China to start working with our shippers in the next 12 to 24 months. That’s our mandate and so it depends on how successful they’re going to be at executing our strategy.