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  • Progressive Tech Companies Want Trump to Protect Sharing Economy From Dem Attacks

    Progressive Tech Companies Want Trump to Protect Sharing Economy From Dem Attacks

    Michael Beckerman, President & CEO at Internet Association which represents big internet focused tech companies such as Google, Amazon, Facebook, Uber, Netflix, Twitter, Lyft, PayPal, Salesforce, Rackspace and many more, sent a congratulations letter to the Trump transition team today. In it they sought to inform Trump how important the internet is to the economy and gave their take on issues dear to them.

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    The entire letter is available here (PDF).

    One very interesting area the group focused on is the sharing economy, which has been under severe attack by progressives and liberal Democrats around the country. Perhaps Trump isn’t Silicon Valley’s worst nightmare after all, considering he is likely to agree with them on these planks:

    ON DEMAND OR SHARING ECONOMY
    By harnessing the power of the internet and internet-based commercial cloud technology, sharing economy platforms allow individuals to use their free time and resources to earn significant supplementary income under a flexible working arrangement that allows people to earn money how, when, and where they want. Although still in its nascent stage, the sharing economy is projected to account for $335 billion in global revenue in 2025, up from $15 billion in 2013.

    Offer Consistent, Smart Regulatory Approaches: The rapid rise of this new sector of the economy, however, has been met by piecemeal regulatory approaches at the local and state levels that often feature misguided or overly burdensome rules driving up costs for consumers and workers. By steering clear of burdensome regulations, policymakers at every level can ensure this rapidly growing sector of the economy sees its full potential.

    Protect the Flexibility and Economic Opportunities of the Sharing Economy: On demand and sharing economy companies are driving new economic growth and opportunities by providing individuals with unprecedented flexibility and control over the decision of when, and how, they earn income. By attempting to apply the same static workplace regulations of the 20th century to this new economic model, policymakers could threaten the very entrepreneurial spirit that drives these 21st century earning opportunities.

    One of their other key concerns is safeguarding platforms like Facebook from lawsuits because of things their users post which means not weakening current intermediary liability laws:

    “Weakening intermediary liability laws would not only chill innovation and free expression online, but would also threaten investment in the next generation of ideas fueling our digital economy. If digital content intermediaries were responsible for the content uploaded by users, over 80 percent of investors would be less likely to fund startups. In addition, 85 percent of investors are uncomfortable investing in digital content intermediaries open to unpredictable legal action.”

    Another major concern is copyright law safe harbors, such as fair use, exemptions, compulsory licenses and first sale doctrine:

    “Threats to the flexible framework, such as weakening limitations or exceptions to safe harbors, would create barriers to entry for internet startups and creators, which would deny users the ability to access content
    online.”

    They also want policies that promote pro data innovation rules:

    “However, new regulatory proposals on how data is used and collected threaten to reduce this value. U.S. policy must ensure businesses in every U.S. industry can keep a competitive edge by innovating with data. To do so, policies should champion data innovation by acknowledging the crucial role of data in the modern economy and promote pro-innovation rules. This includes taking a harms-based approach to consumer privacy, instead of a collection-based approach, and stopping data minimization efforts or other proposals that would inhibit innovation.”

  • How Grab Scales to Huge Demand While Staying Stable

    How Grab Scales to Huge Demand While Staying Stable

    Grab, a Singapore based Uber type service, is so popular that if their IT infrastructure didn’t remain stable during peak usage transportation would literally ground to a halt. Grab is the leading ride sharing service in Singapore, Malaysia, Indonesia, Thailand, Vietnam and the Philippines.

    In the US, the Grab app still works via a partnership with Lyft.

    “Grab is the leading ride sharing service in Southeast Asia,” says Ditesh Kumar, Director of Engineering at Grab. “We do 1.5 million bookings (a day). If we are not running basically transportation comes to a standstill.”

    Kumar says that Grab has the biggest land fleet in Southeast Asia and that they are very concerned about uptime both for their passengers and their drivers, who he says depend on them for their livelihoods.

    “With this comes two challenges, because of the tremendous amount of demand we need to scale, but because so many people depend on us, we need to stay stable.”

    Scale and Stability are Two Opposing Forces

    Kumar notes the difficulties of keeping your IT infrastructure stable while simultaneously scaling platform usage. “You can scale easily if you don’t have to be stable, and you can be very stable if you don’t have to scale.”

    He says that the answer to this huge problem, after a lot of reflection, is addressing their infrastructure fundamentals.

    “If we can make sure that our infrastructure is built not just for the needs of today, but also meets the needs of the future, it completely changes the types of conversations we have,” says Kumar.

    That’s why Grab decided on the AWS infrastructure from the start. All of the AWS components he says are built to allow infinite scaling and are also extremely reliable.

    Grab started out using a basic AWS setup but as they expanded they added the full gamut of AWS services in order to support their scaling needs. “We needed to start thinking about caching layers so we started using Amazon ElastiCache,” said Kumar.

    They also started using Amazon Redshift, which is s petabyte-scale data warehouse service based in the cloud.

    “It’s huge, it’s massive,” exclaimed Kumar. “Everybody in the company uses it. It’s not just the engineers, the product guys, the marketing team and the ATM team all use it.”

    Real-Time Computation Requires Real-Time Data Streams

    “In addition to that, we are doing real-time computation, and in order to do real-time demand and supply matching we need to have real-time data streams,” says Kumar.

    “The end result is that our drivers will be told the demand is at this place right now, because with this high demand the drivers will be paid more.”

    Building Predictive Models

    Moving forward the company wants to build predictive models to make their service even more efficient for both passengers and drivers.

    “In two hours time this area will have high demand and if you want to take advantage of that move to this area,” explains Kumar. “The way we can do that is by taking into account multiple factors, building data models around it and using the infrastructure to compute those models and come up with an actionable item.”

    Why Grab is on AWS

    Their are many benefits to being on the cloud,” says Kumar. “Such as not having to deal with physical issues, going down to a data center at 3am to the change a failed hard disk or deal with a server that is overheating because a fan has stopped rotating.”

    He noted how companies of his size in the past had to have dedicated operational teams to deal with these sorts of issues. He sees little value in that for the organization and is not a great use for an engineering team. Grab gives every engineer an AWS account to run “full-blown experiments in their sub account” to look for potential problems.

    “They would find things that might be a problem 3 months from now or six months from now, and giving engineers that ability is unparalleled,” he says. “I estimate that we have saved 30-40% of our resourcing and manpower that then went to serving our core focus, and our core focus is about serving our customers.”

    He says this allowed our team to move significantly faster. “In the startup environment that is make-or-break!”

  • Lyft Adds Precision Pickup at Venues Nationwide

    Lyft Adds Precision Pickup at Venues Nationwide

    All of us that use Lyft or Uber have been frustrated with trying to awkwardly communicate to the driver which door you at when exiting an arena, only to have to walk a block to meet the car. Lyft is working to solve this and make their app even more convenient with an exact pickup option in their app. With this feature you can now be picked up or dropped off at specific spots within certain venues like an airport.

    As Lyft puts it, “When you’re rushing to catch a flight or a concert opener, every second counts. That’s why we’ve updated our app to make it easier than ever to get picked up and dropped off — down to the exact terminal door or arena entrance. Now you can set your exact drop-off location, in addition to pickups, at select venues nationwide. Instead of having to call your driver and tell them to meet you at Door 4 of Terminal 2, you can just specify that in the destination field when you request a ride.”

    The feature is live at more than 200 locations in the US with more being added daily. “Just last week at Outside Lands, passengers used this feature more than 3,000 times,” noted Lyft. “For the duration of the festival, riders could set precise pickup and drop-off points such as Main Gate, South Entrance, or the box office.”

    Lyft says that the annoying texting between drivers and riders decreased by 25% since they began testing this feature in March.

    Uber may also be testing precision pickup. “Uber in South Africa already does this,” commented Brandon van Reenen, Social Media Manager at iFix. “When you’re at the airport it says “Welcome to Cape Town”, with a dropdown of terminals and landmarks in the airport district, like hotels, car parkades etc.”

  • Liberal Austin Prompts Uber And Lyft To Suspend Service

    Liberal Austin Prompts Uber And Lyft To Suspend Service

    Where are the Libertarians when you need them? Austin voters failed to approve Proposition 1, a proposal supported by Uber and Lyft which would have let the companies self-regulate their contract drivers. Instead, voters let stand an ordinance passed by the Austin City Council requiring third party fingerprint background checks and additional restrictions on the services.

    Uber and Lyft pushed Proposition 1 and threatened to leave Austin if it wasn’t approved and both have now said they are suspending service in Austin as of Monday morning. At issue for the companies is not just more difficulty in getting part-time drivers which is the life blood of the services, but that in requiring drivers to get vigerous fingerprint background checks may move their IRS independent contractor classification closer to becoming an employee. This would substantially raise their costs and could eventually lead to dreaded unionization, which of course would kill both Uber and Lyft, making them more expensive than taxis.

    I suspect that if only people who use Uber and Lyft in Austin voted, Proposition 1 would have passed, because users can clearly see that those services are cleaner, more convenient and safer than taxis ever have been.

  • Facebook Messenger Gets Lyft Integration

    Facebook Messenger Gets Lyft Integration

    In December, Facebook announced a feature for Messenger that lets users request a ride fro Uber. Lyft announced today that it now provides Facebook Messenger integration.

    The company announced that it is expanding its reach with the launch of a public API with Facebook as the marquee partner. Lyft launched Slack integration in October.

    Lyft will roll out to Messenger users in 11 cities right now. These include San Francisco, New York, Miami, Atlanta, Nashville, Austin, Washington D.C., and Denver. Next week, it will be available to all Messenger users in the U.S.

    “Messenger (and Slack, too) help bridge the gap between online connections and real-world experiences,” Lyft says in a blog post. “Messaging with a friend to set up plans, or finally score a meeting with that key networking contact for your dream job? Request your Lyft without ever leaving the Messenger app, and get face-to-face even faster.”

    “With Messenger, our two companies share a unique brand alignment,” it says. “Lyft’s mission is to unite humanity and technology – and Messenger’s goal is to be the best way to communicate with the people and businesses that matter to you most. In the coming weeks, as Messenger x Lyft rolls out across the country, we’ll celebrate our shared priorities and dedication to delighting users with unique surprise promotions. To get a Lyft while using Messenger, tap ‘Transportation,’ select Lyft, and ride.”

    More than 800 million people use Messenger monthly according to Facebook’s latest figures.

    Image via Lyft

  • Danica Patrick Pretends To Be A Lyft Driver For A Day, Surprises Fans

    Danica Patrick Pretends To Be A Lyft Driver For A Day, Surprises Fans

    NASCAR star Danica Patrick became an ordinary Lyft car driver for a day and surprised her riders with her mad driving sills.

    Wearing a grey knitted cap, black leather jacket and a pair of shades, Danica Patrick was able to conceal her real identity. Those passengers she picked up in Charlotte, North Carolina experienced an exciting ride with the pro racer.

    Danica Patrick entertained her passengers with a few moves on the street and even tried to get other drivers to race her, but of course she was still very careful considering she was driving on the streets of North Carolina and not on the circuit.

    “I try and get in, like, 500 miles on Sundays, and I try and do it in, like, under four hours,” Patrick said to one unsuspecting passenger when she tried to give clues as to her real identity. In the video, she repeatedly said she loved making “left turns.”

    However, her passengers were totally unaware that they got a ride from a NASCAR star. One guy described Danica Patrick as “awesome” when the she asked of his opinion about “the girl who races.” Another rider said his favorite race car driver was Danica Patrick and he had no idea he was with the very person.

    When she revealed her identity, the passengers were all surprised. They all took selfies with the star before parting. Everybody seemed to have enjoyed their once-in-lifetime joy ride.

    Watch Danica Patrick Take These Unsuspecting Passengers for a Joy Ride

    On Sunday, Danica Patrick will be driving for Stewart-Haas Racing, her new team, with new crew chief, Billy Scott and sponsor, Nature’s Bakery. The racer is keeping her hopes up that the changes will bring her first Sprint Cup victory in five years on the track this year.

    Lyft had previously enlisted Chicago Cubs third baseman Kris Bryant and NFL star Jerry Rice as Lyft drivers.

  • Facebook Messenger Continues Evolution To Assistant

    Facebook Messenger Continues Evolution To Assistant

    Facebook announced a new feature for Messenger that lets you request a ride from a car service like Uber.

    In fact, Uber is a partner on the feature, though Facebook says it’s just the first partner. Lyft is reportedly coming soon.

    Introducing Transportation on Messenger from Facebook on Vimeo.

    “To get started, download the latest version of Messenger,” explains product manager Seth Rosenberg. “Then, from within a conversation, tap the more menu and choose Transportation. You can also search directly for Uber – our first partner – and tap the car icon to request a ride. From there, you’ll receive updates on your driver’s status and notify your friends that you’ve called a ride. With the ability to request, track and pay for a ride in Messenger, we’re making transportation as simple as sending a message.”

    For now, users can get a ride for free the first time they use the feature (up to $20 value).

    “All you have to do to claim your free ride is link your existing Uber account or set up a new account within Messenger and request a ride,” says Rosenberg. “Driver status updates and payment receipts will get delivered to a private conversation between you and Uber. With everything in one place, you can seamlessly keep track of your ride and payment history.”

    Over the past year, Facebook has been adding a lot of functionality to Messenger to make it more useful for a variety of situations – way beyond simple messaging. Facebook may have closed down some of its standalone apps recently, but this one is definitely a keeper.

    Images via Facebook

  • Uber, Lyft Finally Launch in Las Vegas

    Uber, Lyft Finally Launch in Las Vegas

    After obtaining the proper state permits from the Nevada Transportation Authority earlier this week, both Uber and Lyft have announced they are finally available in Las Vegas.

    “Yesterday, we were officially permitted to operate by the state of Nevada by the Nevada Transportation Authority and now we are live,” said Eva Behrend, a spokeswoman for Uber. “We are excited to be a part of the Nevada community and to offer another option for people from Henderson to North Las Vegas to Reno to connect with a safe, reliable, convenient ride at the touch of a button.”

    “We’ve had our eye on Las Vegas for a long time, and we’re so excited to finally be a part of the city. There’s no shortage of incredible things to see in Vegas, like famous pop divas, title fights, the Neon Museum…The list goes on. And now, Lyft is ready to make sure you can get to every last one, easily and affordably,” says Lyft.

    Las Vegas was one of the last major US cities without an Uber or Lyft presence.

    Though both on-demand ride companies are now operating in the city, neither will be able to transport passenger to and from McCarran International Airport.

    This is the first time Lyft has ever operated in the state, but it’s a reintroduction for Uber. The company first launched there in 2014 but was banned in November.

    The Las Vegas Review-Journal says Clark County still had some questions for the companies and asked them to wait until late October to begin operations – a request that was obviously denied.

  • Starbucks Offers Rewards Points to Lyft Riders and Drivers

    Starbucks Offers Rewards Points to Lyft Riders and Drivers

    Starbucks and Lyft have just announced a partnership that will see both riders and drivers earning rewards points for using Lyft.

    There are basically four major aspects of the partnership. First, My Starbucks Rewards members will earn stars (reward points) for taking Lyft rides. Second, Lyft drivers will be given the option to become My Starbucks Rewards loyalty program gold status members, and then earn reward points as well.

    Third, the Lyft app is going to add a custom option to gift your driver a cup of coffee (via a Starbucks eGift card). And last, “Starbucks and Lyft will explore the possibilities of bringing a convenient and cost effective transportation benefit to Starbucks partners in one test market to understand partners’ interest and determine its long-term viability.”

    There aren’t too many specifics to add on for that last point. Lyft says it will “provide Starbucks Baristas with free Lyft rides to and from work, when they need it most.”

    “With Lyft’s presence in 65 cities across the U.S., where we also have Starbucks serving the same communities, we knew this relationship would benefit our partners, Lyft’s drivers as well as our mutual customers who are already coming to Starbucks and using Lyft services,” said Adam Brotman, chief digital officer, Starbucks. “This is a great win win. Our digital loyalty ecosystem will strengthen Lyft’s ability to attract and retain customers in a highly profitable way, while at the same time accelerating the incrementality of redemption of rewards.”

    Starbucks doesn’t just like Lyft, and this isn’t an Uber slight. Starbucks and Uber have partnered before.

  • Lyft Pays $300K to Settle New York Lawsuit

    Lyft and the New York Attorney General’s office have settled a year-long beef, and Lyft has agreed to pay $300,000 in penalties.

    The settlement resolves a dispute born in July, 2014, when New York Attorney General Eric T. Schneiderman and the New York State Department of Financial Services filed a lawsuit against Lyft claiming the on-demand ride company let its drivers carry folks in Buffalo and Rochester around without proper insurance.

    Around that time, Lyft also faced criticism for its quick launches in Brooklyn and Queens.

    Lyft has agreed to pay $300K in fines, without admitting wrongdoing.

    “I have always been committed to fostering an innovative and competitive environment in which both new and existing companies can flourish in our great state,” Attorney General Schneiderman said. “However, it’s critical that the laws put in place to protect consumers and ensure fair competition are not violated in the process. Today’s agreement enables Lyft to grow and prosper within the bounds of state and local regulations, while the penalties imposed send the message that companies that attempt to skirt the law will be held accountable. I want to thank former Superintendent Lawsky and the Department of Financial Services for their continued partnership in making New York’s marketplace one where all entrepreneurs can thrive under the same set of rules.”

    Here are the other stipulations of the deal, according to the AG’s office:

    As part of the consent order, Lyft drivers will be required to have auto insurance issued by New York-authorized insurers. The insurance must cover drivers while they have the Lyft app turned on to receive requests to pick up passengers through the end of any rides they provide. Additionally, the consent order prohibits Lyft from offering, selling or providing insurance policies that do not comply with the New York Insurance Law.

     

    The consent order also requires Lyft to comply with all other state as well as municipal laws applicable to vehicles-for-hire. Lyft must also inform the Superintendent, the Attorney General, and the counsel of any municipality or other jurisdiction in the state where it intends to launch its service at least three weeks before such a launch.

    “Today’s mutually agreed upon settlement does not require any changes to existing Lyft service in New York. The settlement is part of our continued efforts to return true, peer to peer ride sharing to New York State at large, an effort supported by leaders and consumers across the state,” Lyft said in a statement.

    In other ridesharing news, Uber had a rough week as well.

    Image via Lyft, Facebook

  • Lyft Wants You to Get All Chummy with Your Driver

    Lyft Wants You to Get All Chummy with Your Driver

    Lyft wants you to get to know your driver, and vice versa.

    If you’re the type of person who wants to have a conversation with the person who picks you up from the bar (and there are plenty of you out there), you’ll likely dive right in to a new Lyft feature called Lyft Profiles. The on-demand ride service and Uber competitor plans to roll it out soon on iOS, with Android support coming later.

    So, what are Lyft Profiles?

    Exactly what they sound like, really. Both passengers and drivers will be able to create their own profile – the depth of which is rather shallow. If you’re a driver, your profile will include the date you joined, how many rides you’ve given, your star rating, your hometown, and your favorite music. The user profiles will show most of that, minus the ride count. Both profiles will have an open-ended “About Me” section which can be populated however you like. So, if you don’t really want to talk, you can let drivers know that in your About Me section.

    Or you could just not fill out a Lyft profile. They’re going to be completely optional.

    Of course, Lyft’s goal here is to get everyone in the car friendly with each other in the hopes that it will facilitate a better travel environment. And that could work, given both driver and passenger have a genuine interest in striking up conversations about shared interests.

    “In cities with Lyft Line, we’ve heard countless stories of Line passengers connecting over shared interests or acquaintances. Profiles makes unearthing these small-world connections even easier, and is a big step toward our vision of reconnecting people and communities through better transportation,” says Lyft.

    There’s one more interesting thing about Lyft profiles. They’ll allow you to connect to Facebook so that Lyft can tell you if you and your driver have any mutual friends.

    Oh, you know my ex Tina? How do you know Tina?

    Uh…

    That feature is also optional.

    Ride service companies are constantly on the defensive over concerns about their safety. Uber gets all the press attention when it comes to horrible incidents like rape and assault. There have been incidents involving Lyft drivers in the past, but you see much less of that than you do of Uber driver malfeasance. For Uber’s part, the company continues to say that it’s committed to safety, number one, numero uno, before all else, at all costs, seriously.

    But Lyft hasn’t faced the same criticism and scrutiny as Uber. Of course, Lyft’s not worth $40 billion. It appears that until forced to do otherwise, Lyft will continue to play the we’re all buddies card. It’s working.

    Image via Lyft

  • Lyft Ditches Pink, Furry Mustache for Pink, Glowing Mustache

    Lyft is ditching the giant, pink mustache that has adorned all some of its fleet since the company’s launch.

    Don’t worry – the pink mustache is still going to be there. Except now it’s going to be smaller, dash-mounted, and not furry.

    “It was this big giant fuzzy thing. If you were going to an important business meeting, it might not be the best way to roll up … the reality is, people were using it less and less,” Lyft President John Zimmer told Wired in a interview.

    And for the new glowstache?

    It’s “more modern, more fresh, and also more acceptable for everyone,” says Zimmer.

    Cool.

    Image via Lyft, Twitter

  • Yelp Filter Not Catching Biased Reviews

    Yelp Filter Not Catching Biased Reviews

    It may be a new year, but there are still problems with Yelp’s review filter. We’ve been tipped to some research finding reviews featuring promo codes, which would seem to violate Yelp’s guidelines, showing up for Uber and Lyft, as well as a competing taxi service. Yelp’s filter has long been the subject of controversy with small business owners, and these findings highlight yet another issue with it.

    Are you happy with Yelp’s review filter? Do you think it does a good job of eliminating spam? Let us know what you think.

    “We conducted some research that found many customers of Uber are spamming Yelp’s review in order to promote their promo code. These codes work as an affiliate program so whenever a new customer uses the code, then the person gets $5 in Uber credit,” Strategy Response tells WebProNews in an email. “In smaller markets, most of the 5-star reviews for Uber are clearly biases as they are promoting a code. These codes allow the person to receive credit when someone else uses their code.”

    These promo codes got some attention last year when celebrities like Lindsay Lohan, Snoop Dogg, and Neil Patrick Harris were promoting their codes on social media.

    As Strategy Response notes, such a conflict of interest on the part of reviewers is a clear violation of Yelp’s guidelines. This is what Yelp actually says under the “Conflicts of interest” section:

    Your contributions should be unbiased and objective. For example, you shouldn’t write reviews of your own business or employer, your friends’ or relatives’ business, your peers or competitors in your industry, or businesses in your networking group. Business owners should not ask customers to write reviews. Emphasis added.

    While this sort of thing might be fine on a platform like Twitter, Yelp is a different animal. It has direct influence on whether or not people use a business. That’s the whole point. It’s easy to see why reviews with these promos would be a violation of Yelp’s guidelines. They’re obviously biased. The problem is that the filter isn’t doing its job in eliminating them.

    Strategy response found examples in a variety of cities across the U.S. In Louisville, there’s only a single review for Uber, and that review gives the company a five-star review and includes a promo code.

    The same goes for Kalamazoo. In Charleston, 3 of the 4 reviews include a promo code. In Des Moinses, 2 out of the 3 reviews promotes a code.

    You can see an example for Lyft in Raleigh-Durham here.

    Yellow Cab in Austin, which has a one-and-a-half star review, displays this review promoting an Uber user’s code:

    So this is also something that could potentially have an impact on competition.

    “We believe that this is a serious issue as it brings into question Yelp’s filter,” Strategy Response tells WebProNews, noting that in many of our previous articles about Yelp, readers mentioned their frustration and anger with Yelp’s ‘recommended reviews’ section. “Also, Uber is gaining an unfair competitive advantage from an artificially higher Yelp review based on these biased reviews. A Harvard study found that restaurants are able to get a 5 to 9 percent increase in business based on an increase of one-star on Yelp. With some markets only have a single 5 star review for Uber based on a reviewer promoting their own code, this gives them an unfair advantage that Yelp has been unable to address.”

    In its report, Strategy Response says:

    What we do want to highlight is that Yelp’s filter system is not perfect. These reviews got through the filter, and once they were posted, it appears as if there were no further quality control investigation by Yelp. There has been many articles written about Yelp’s filter. If you have a small business, you have probably express anger, frustration, and fear when the filter prevents customers from leaving a glowing review. However, in addition to worrying over your own profile, it is also very important to check your competitors profile to see what has gotten through. In these examples, the competing taxi companies and ride-sharing apps in these markets should have flagged these reviews to get them removed. Regardless of the true intentions of the reviewers, the fact that it included a promo code should have prevented them from being displayed.

    Last month, Yelp launched a new app for business owners aimed at enabling them to better manage their Yelp reputations and respond to consumers more quickly. Based on our reader response, businesses aren’t very impressed.

    Do you think Yelp’s filter is adequate, or is it detrimental to businesses? Share your thoughts in the comments.

  • Uber Sued in Hometown, Accused of Misleading Users over Background Checks

    Uber Sued in Hometown, Accused of Misleading Users over Background Checks

    Uber is under fire from more cities – now including the one in which it is headquartered.

    San Francisco District Attorney George Gascon says that Uber has made “false or misleading statements to consumers and for engaging in a variety of business practices which violate California law.” He specifically addresses Uber’s driver background checks.

    Though the very first thing you find on Uber’s ‘Safety’ page is a blurb about “Background check you can trust”, the company has come under fire recently for the bad actions of some drivers. The latest story involved an accused rape in New Delhi, which led to many Indian officials calling for a countrywide ban. Here in the states we’ve also heard plenty of Uber driver horror stories – including a brutal hammer attack, stories of sexual assault, and one instance of a driver taking passengers on a high-speed police chase.

    “Uber has refused to comply with straightforward California laws that protect consumers from fraud and harm,” said Gascon. “These companies can be innovative in the way they deliver services without ignoring the laws that protect the public.”

    Los Angeles County D.A. Jackie Lacey has joined Gascon is his suit.

    From SiliconValley News:

    The two officials claim that Uber makes misleading statements about the background checks it performs on drivers and falsely charged a $1 “Safe Rides Fee,” among other accusations. The officials had threatened such action in September, warning the car-sharing companies — which connect passengers with drivers through a mobile app – were operating illegally.

    According to a report from the New York Times, Uber has consistently lobbied legislatures across the country against imposing background check requirements that are as strict as those required of traditional taxi services. Uber’s not alone in this, as other on-demand ride companies like Lyft and Sidecar have also done the same thing.

    Uber, a company now valued at over $40 billion, is also facing a lawsuit from the city of Portland, Oregon. The city has accused Uber of operating illegally.

    “There’s nothing sharing about this so-called ‘sharing economy’ company: They want to profit in Portland without playing by the same rules as existing cab companies,” said Portland City Commissioner Steve Novick.

    Image via Uber

  • Lyft Has Best Week Ever After Uber’s Run of Bad PR

    Uber hasn’t had a good few months, PR wise – and the past couple of weeks have been brutal. When one of your executives says that the company should start digging up dirt on journalists who criticize the company, well, it’s bound to generate some bad press.

    And then when one of your execs actually does breach privacy and access a journo’s history, well, things are bound to get worse.

    Big-mouthed investors don’t really help, either.

    You would imagine that if anyone would benefit from Uber’s bad PR, it would be rival on-demand car service Lyft. And you would be right, according to the company.

    A rep recently confirmed to Mashable that the past week was the company’s best yet.

    “A rep for the company says last week was the biggest week yet for the company. The rep declined to go into specifics, but said ‘percentage-wise’ it was the ride-share company’s biggest boost yet,” reports Mashable.

    Lyft has also just introduced an initiative called “Driver Destination’, which is pretty much a shoot-off of Lyft Line (the carpooling service), but with a focus on the driver’s side of the equation.

    Here’s how it works, according to Lyft:

    Nearly 80% of commuters currently drive to work alone. With the latest evolution of Lyft Line, now these drivers can easily turn their daily solo drives into shared rides. Here’s how it works: when drivers enter a destination into the Lyft app, they will only receive ride requests from Lyft Line passengers going the same way, with minimal detours. Drivers can earn even more every week by starting to pick up rides while heading to and from work – some of the busiest times of day. By enabling Lyft Line with Driver Destination to and from work every day, you could earn up to $400 per month – enough to cover a car payment – and connect with interesting people who live and work nearby.

    As long as Uber continues to receive bad press, Lyft only stands to benefit. That is, of course, until Lyft drivers start attacking people with hammers.

  • Lyft Now Lets Your Boss Pick Up the Cost

    Uber has Uber for Business, and now Lyft has Lyft for Work.

    The pink-mustachioed company has just introduced a new way for companies to pay for their employees’ rides – when appropriate of course.

    Lyft for Work allows companies to issue Lyft credit to employees that carry certain restrictions. For instance, a credit can come with the caveat that it must be used on rides to and from the office or a particular work event. Credits are further customizable, allowing employers to set time and place parameters like only good from 8pm to 2am or only good on rides in a certain area.

    Lyft is also promoting its new Lyft Line carpooling service by offering credits that only apply if riders use this ridesharing format.

    “Not only can Lyft commuter benefits improve morale and productivity in the short term, but insights on commute lengths and schedules can also help inform future HR decisions to keep employees happy long-term,” says Lyft. “By encouraging their employees to share the ride, companies nationwide are pioneering a movement toward more efficient, affordable commutes and ultimately, a happier workforce.”

    Lyft for Work is initially launching with 29 corporate partners, including Adobe and Stripe.

    “The average American has a daily commute of 50 minutes, and studies show that the commute is one of our least favorite parts of the day. And across the country, nearly 80% of workers drive to work alone. Imagine if that 80% of people filled the seats in their cars through Lyft — we could eliminate rush hour congestion, drastically reduce travel time and make the commute more enjoyable,” says the company.

  • Uber Driver Reportedly Smashed a Passenger’s Head with a Hammer

    It’s Monday, and on-demand car service Uber is facing another PR nightmare after a driver in San Francisco allegedly smashed a passenger in the side of the head with a hammer.

    The incident happened last week, and the San Francisco Chronicle first reported it on Friday. According to police, 26-year-old Patrick Karajah has been charged with assault with a deadly weapon and battery with serious bodily injury. There may also be an attempted murder charge forthcoming.

    Here’s what went down, according to the Chronicle:

    Karajah allegedly picked up the victim and his two friends from a bar at about 2 a.m. Tuesday. While driving the two men and one woman to their destination, he got into a dispute with the victim over the route he was taking, according to court documents.

    Karajah, who was driving for the basic UberX service, stopped near the intersection of Ellsworth Street and Alemany Boulevard and forced the victim and his friends to get out, according to documents.

    Once the victim was out of the vehicle, Karajah struck him on the side of his head with a hammer, and then drove away, authorities said.

    The victim was found “slipping in and out of consciousness on the sidewalk, suffering from severe fractures and trauma to the head.”

    “We stand ready to assist authorities in any investigation,” said Uber in a statement. Uber confirms it has terminated the driver’s account.

    As Uber, as well as other competing companies like Lyft, face challenges from state regulators over the legality of their business models, safety issues have also arisen at an alarming rate. You may remember earlier this year when an Uber driver was accused of sexual assault in D.C. That wasn’t the first instance of an Uber driver reportedly attacking a passenger. In July, an Uber driver took riders on a high-speed chase, again in DC. Then in June, an Uber driver reportedly kidnapped a drunk woman and took her to a motel, where he slept with her in the room and “fondled her over her clothes and suggested he wanted to have sex, but didn’t force it.”

    As I’ve said before, attacks aren’t just an Uber problem – regular old taxis have their share of incidents on the record. But Uber, and companies like it, rely on the schtick that they a cut above taking a taxi – an easier and safer option. So when an Uber driver beats someone in the skull with a hammer it’s a pretty big blow to its credibility.

    But stories like this don’t seem to be hampering Uber’s growth too much. According to reports from the city itself, ridesharing services like Uber and Lyft are killing the taxi business in San Francisco.

    Image via Uber, Facebook

  • Lyft Acquires Hitch to Help with Carpooling Service

    On-demand car service Lyft has announced that it is acquiring Hitch, another on-demand car service focused on carpooling.

    “John and Logan met the Hitch team over a year ago and as both teams talked, they realized they shared the same vision of connecting people through more affordable and efficient transportation options. Similar to Lyft, Hitch has always believed the shared rides experience is inherently social, and we’re excited that they’re joining the team to accelerate this movement together.”

    With this acquisition, Hitch will be closing down. Hitch users will now have to sign up with Lyft.

    “The Lyft team deeply shares our vision for collaborative transportation. They also value the impact and significance of community in making this dream a reality. Lyft is a perfect complement and together, we look forward to continuing to innovate in the transportation field. We’re only at the cusp of this movement with ridesharing, and we can’t wait to keep pushing the frontier,” says Hitch co-founders Snir Kodesh and Noam Szpiro. Lyft says that they will join the Lyft team.

    Lyft makes no attempt to conceal the reasons for the buy – the company readily admits it’s to help bolster Lyft Line. You may remember that Lyft unveiled Lyft Line last month. It’s a carpooling service that allows users to share a single ride with people traveling on a similar path. Lyft says that this service can save riders up to 60 percent. Lyft launched Lyft Line on the exact same day that competitor Uber announced its own carpooling service, UberPool.

    “Lyft Line is in its early stages, and we’re only beginning to see what we can do with shared rides. We have seen incredible growth and demand for Lyft Line in San Francisco, and the Hitch team and technology will help us move even faster to bring shared rides to more people,” says Lyft.

    Image via Hitch, Facebook

  • Uber, Lyft Reportedly Killing Taxi Business in San Francisco

    One narrative for the influx of on-demand car services hitting cities across the country follows as such: plucky startups like Lyft and Uber are constantly fighting a battle with taxi companies, the old guard, who seek to unfairly regulate these new ridesharing platforms, thus stifling innovation. We’ve seen battles set against this narrative play out recently – most notably the saga between Lyft and the New York City Taxi and Limo Commission.

    But here’s another way to look at it: apparently, Lyft, Uber, and the like are really putting the squeeze on taxis.

    A new report in the San Francisco Examiner paints a dire picture for traditional taxi services in the city. According to the city’s interim Taxis and Accessible Services director for the San Francisco Municipal Transportation Agency, the “health” of the taxi industry “overall is being impacted clearly” by on-demand ride companies like Uber and Lyft.

    But how much? According to Kate Toran, average trips per cab fell from 1,424 in March of 2012 to 504 in July of this year – a roughly 65 percent decline.

    Though business is business and all’s fair in love and capitalism, the encroachment of Uber on what was traditionally taxi territory may be having an unintended effect – on the city’s disabled population. From the SFExaminer:

    Transportation network companies, unlike cabs, are not required to accommodate wheelchairs. Total wheelchair pickups by wheelchair-accessible taxis dropped from 1,378 per month in March 2013 to 768 per month this past July because it was difficult to get drivers to commit to the program that takes more time and money.

    “The ramp taxi program is just a vulnerable program in the taxi program overall because it costs more to operate, maintain and it costs more in gas for the drivers,” Toran said. “It takes more time to do wheelchair securement, so it’s kind of the first to go.”

    Of course, Uber and Lyft don’t require their drivers to equip their cars with accessibility features.

    Some may say good riddance to the old school taxi industry – and that’s completely fair. But it’s important to know that the plucky startup vs. the big bad taxi narrative isn’t entirely accurate, at least not anymore.

    Image via SFMTA, Facebook

  • Women’s-Only Uber-Like Car Service Readies Launch, Could Face Tricky Legal Issues

    If you asked a handful of women whether or not they feel 100 percent safe in taxis, Uber, or Lyft cars – I’m willing to bet the the predominant answer would be not really. Sure, the majority of the time taxi rides go off without incident, but there are those stories – incidents of attempted sexual assault and the like – that set many women on edge.

    It’s this uncertainty that led one woman to create her own, Uber-like on-demand car service. It’s called SheTaxis, and it will be launching in New York City later this month (as SheRides in NYC, per Taxi regulations).

    The gimmick, if you will? SheRides is a car service run by women, employing women, driving women. According to The New York Times, SheRides will only give rides to women and will only dispatch women drivers. Apparently, this model will make women feel more comfortable with calling a stranger for a ride.

    Unless you’re one of the people calling misandry, this sounds like a decent idea. It’s terrible that many women feel unsafe with services like Uber, but it’s hard to blame them. Bad things have happened. People have reported some scary stuff. If some women feel more comfortable using a women’s-only service, have at it.

    Vice suggests a major problem with this model, however. Mainly the fact that it’s pretty much illegal.

    New York City’s Taxi and Limousine Commission (the ones who’ve been fighting Uber and Lyft so vehemently) runs the world of ride services in the nation’s biggest city. Everything goes through them – including ridesharing startups. Apparently, the TLC guidelines prohibit drivers from refusing service to most people (except in very limited scenarios). A company that systematically disallowed 50 percent of the population would most certainly run afoul of this regulation.

    “Regardless of their marketing plan, they will be subjected to the same requirements as yellow cabs prohibiting service refusal,” a spokesperson for the TLC told Vice.

    But the TLC didn’t suggest that SheRides would run into any trouble during launch. What will determine the company’s success or failure, however is whether or not they ban men from riding or simply suggest that they don’t. Vice gives the example of women-only gyms that don’t specifically outlaw men from joining – but everyone just knows and accepts that they are for girls.

    The service is slated to launch on September 16th. It’ll be interesting to see if the model is successful, and if so, who takes the baton and carries it to other cities.

    Image via Wikimedia Commons

  • Uber and Lyft Have Reached the Shenanigan-Calling Stage of Their Rivalry

    Rival on-demand car service companies Uber and lyft are in a real pissing match right now, as they continue to accuse each other of employing some under-the-table techniques to get ahead.

    On Tuesday Lyft took a shot at Uber, claiming that the company was engaging in a ride cancellation scheme. Lyft claimed to have cross-referenced phone numbers of known Uber recruiters to those of canceled rides and spotted no fewer than 5,560 hoax ride requests since last fall. Lyft said that the requests and subsequent cancellations have come from 177 different Uber employees.

    Lyft also accused Uber recruiters of taking short rides with the sole purpose of pulling Lyft drivers over to their side. Uber issued a brief statement, patently denying the first accusation and not so much denying the latter.

    But it’s this statement from Uber, adding to its initial response, that’s the most shade-throwin’ thing you’ll see this week:

    Lyft’s claims against Uber are baseless and simply untrue. Furthermore, Lyft’s own drivers and employees, including one of Lyft’s founders, have canceled 12,900 trips on Uber. But instead of providing the long list of questionable tactics that Lyft has used over the years, we are focusing on building and maintaining the best platform for both consumers and drivers.

    These attacks from Lyft are unfortunate but somewhat expected. A number of Lyft investors have recently been pushing Uber to acquire Lyft. One of their largest shareholders recently warned that Lyft would “go nuclear” if we do not acquire them. We can only assume that the recent Lyft attacks are part of that strategy.

    Ah, yes. The ol’ I’m not the type of guy to say it, but if I were, I’d say… bit. Here, Uber accused Lyft of the very same ride cancellation strategy, on a larger scale, without providing any backing details.

    Uber also says the Lyft’s investors are so unsatisfied that they’re begging Uber to acquire it. As they’d say about two years ago on the internet, shots fired.

    Of course, Lyft has already shot back, saying that Uber is simply trying to distract everyone from its own shitty tactics (not in those exact words – although it wouldn’t surprise me at this point). Lyft said that the whole unhappy investors thing is poppycock, saying its investors are ““extremely excited that Lyft is approaching IPO-level revenue.”

    Tune in next week when we find out which company has the bigger dick.

    Image via Lyft, Facebook