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  • Uber Is Playing Dirty, According to Lyft

    Uber Is Playing Dirty, According to Lyft

    According to Lyft, rival on-demand car service Uber isn’t playing fair.

    CNNMoney is reporting that data obtained from Lyft suggests that Uber is strategically throwing wrenches into Lyft operations – mainly by requesting and then canceling rides. Obviously, this tactic would not only indispose Lyft drivers, making it harder keep up with customer demand, but it would also cost Lyft drivers untold amounts in job-related expenses, like gas cost for one.

    Lyft claims 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 October of last year. Apparently, these requests have come from 177 different Uber employees.

    Apparently, even if the Uber employees take the rides, they “take short, low-profit rides largely devoted to luring them to work for Uber,” according to CNNMoney.

    Now those are some rather unsavory practices that Uber’s been accused of. Uber has flatly denied the canceling rides scheme in a statement that focuses on recruitment:

    That is patently false.

    Both riders and drivers help recruit new drivers to the Uber platform, where the economic opportunity is unmatched in the industry. We recently ran a program where thousands of riders recruited drivers from other platforms, earning hundreds of dollars in Uber credits for each driver who tries Uber. Even Lyft drivers have participated in a successful campaign recruiting thousands of other Lyft drivers to Uber, where drivers make a better living than on any other platform.Taking the ride and meeting the driver is essential to driver recruitment.

    Uber is still the big boy on the block, but Lyft is also very popular and making big moves (like New York, despite the challenges). Both companies recently revealed their own versions of carpooling programs, which will allow users to share rides with strangers who happen to need a pickup along the original route. Both Lyft and Uber claim that this will lower costs for riders and make the whole on-demand model more efficient.

    Image via Uber, Facebook

  • Lyft Is Doing That Whole Carpooling Thing Too

    On Tuesday, on-demand ride company Uber unveiled UberPool, a new service that allows users to split fares with strangers who are planning on traveling on a similar path. With UberPool, one single Uber ride can stop numerous times in one “trip” and carry multiple people to their destinations.

    Not to be outdone, rival Lyft is also unveiling a new carpooling service. It’s called Lyft Line, and it does pretty much the same thing as UberPool.

    “Today, we’re excited to announce the launch of Lyft Line — shared rides along shared routes, priced for daily use. Simply set your destination, and we’ll connect you with a ride already going the same way for up to 60% less than an original Lyft ride. Lyft Line will roll out first in San Francisco on iOS, with Android and other cities to follow,” says Lyft.

    That 60 percent is quite an eye-popping number. Chances are, it’ll be a bit to a lot less of a discount than that – considering Lyft will calculate the discounted rates based on the likelihood of any given route finding a match for someone who wants to hop on.

    Still, the discounted and split fares could make for some cheap rides. Lyft says they’re pioneering what they call “personal transit” – which I assume align the benefits of on-demand rides with the added bonuses of cheaper rates and that sense community you feel when riding the bus with strangers.

    “Lyft Line is a system that is flexible, lightweight, and constructs itself in real-time. This is a transit system with infinite routes — and it becomes stronger, more affordable, and more efficient the more it’s used. It will grow as we grow, and change as our cities change,” says Lyft.

    I guess at this point we just have to start debating names – UberPool vs. Lyft Line. UberPool kind of sounds like UberCool, but Lyft Line sounds like a “lifeline” and has that sweet alliteration. Plus, UberPool is too heavy-handed on the whole carpool aspect of the service. The winner is Lyft Line.* That’s it – game over. We’re done here.

    *The author of this post users Lyft more than Uber, he thinks.

    Image via Lyft, YouTube screenshot

  • Whysk Is Here to Redefine On-Demand Transportation

    Clickhole, The Onion’s self-described “latest and greatest online social experience filled with the most clickable, irresistibly shareable content anywhere on the internet,” is fun. It really is. It’s a self-aware Buzzfeed. It’s a self-loathing Upworthy. It’s also a smart move.

    And dammit, this is funny.

    Clickhole presents, Whysk. It’s ready to challenge Uber and Lyft in the ridesharing field by offering something absolutely revolutionary – rides that aren’t actually rides. Well, they are rides, kind of.

    Whysk allows you to be whisked away to your location by on-demand monks. Just watch.

    Just perfect.

    Image via Clickhole, screenshot

  • Lyft Had a Rocky Start in NYC Over the Weekend

    Fresh off its kinda victory on Friday in New York City, Lyft launched in all five boroughs to much fanfare. Unfortunately, high demands coupled with an underwhelming workforce and newly-imposed regulations made getting a Lyft driver a real headache in the Big Apple.

    Folks took to Twitter to vent.

    There was also the issue of Lyft’s “Prime Time pricing”:

    Lyft has been fielding tweets like this since their Friday launch.

    According to an admittedly unscientific experiment by DNAinfo New York, there were “no more than two cars on the road at a time in the five boroughs — and most times, no car could be found at all.”

    NY Mag confirmed this shortage, saying that “no drivers were available” in all of Manhattan on multiple app checks.

    “We are working hard to grow our community of drivers as quickly as possible to meet this overwhelming demand,” said Lyft in a statement. “Tens of thousands of New York residents across all five boroughs opened the Lyft app to request a ride over the weekend, and we look forward to adding more drivers and giving all New Yorkers access to safe, friendly and reliable rides.”

    It could, in fact, be some pretty hard work ahead for Lyft. In order to be able to launch last Friday, Lyft had to make a major concession to the city’s Taxi and Limo Commission. Lyft had to give up a major aspect of what makes Lyft (and Uber and others like it) true peer-to-peer ride-sharing services – Lyft drivers in New York City will have to be licensed by the TLC.

    That clearly makes it harder to quickly populate the drivers pool.

    And a thin workforce is obviously not what you want in a city the size of New York.

    If you can get a ride in NYC, it’s going to be free for a while. All new users have received 50(!) free rides for the first two weeks. And you could have a fun experience…

    Image via @ashishsingal1, Twitter

  • Lyft Launching in NYC After Making Concessions

    The battle of Lyft vs. New York City – mainly its Taxi and Limo Commission – has finally produced a resolution. Lyft will launch in all five boroughs of NYC tonight, but only after making some pretty big concessions.

    “Tonight, after making positive progress with local and state leaders, Lyft will launch in all five boroughs of New York City. We’ve finalized an agreement to offer immediate access to our friendly, affordable rides through a TLC-licensed model beginning at 7 p.m.,” says Lyft.

    TLC-licensed model? Recode reports that Lyft had to give up a major aspect of what make Lyft (and Uber and others like it) true peer-to-peer ride-sharing services. Apparently, Lyft drivers in New York City will have to be licensed by the TLC.

    Lyft has also agreed to suspend their current operations in Buffalo and Rochester, while they “work with the Attorney General’s Office and Department of Financial Services to align New York State’s insurance laws and regulations with emerging technologies of the 21st century.”

    Lyft had planned to launch earlier this month, despite regulatory pushback. The TLC’s official rationale for opposing Lyft’s business was that the company had “not complied with TLC’s safety requirements and other licensing criteria to verify the integrity and qualifications of the drivers or vehicles used in their service, and Lyft does not hold a license to dispatch cars to pick up passengers.”

    Lyft’s response was that they didn’t think the TLC’s licensing and base station rules apply to their ridesharing model.

    Then, hours before Lyft’s scheduled launch, they were slapped with multiple restraining orders – from both the TLC and state Attorney General Eric T. Schneiderman. That’s where we stood before today.

    Here’s what Schneiderman had to say about today’s ‘truce’:

    “We are pleased that our offices have reached an agreement today with Lyft. We are firmly committed to the notion that regulators can work constructively with companies so that new ideas can come to the market — and that smart regulation should create an environment where innovators can compete. Lyft’s launch in New York City — in full compliance with laws and regulations — is proof positive of this principle. We will continue to work with Lyft so that any future business it undertakes meets that standard and protects consumer safety. We look forward to exploring solutions that enable companies in the sharing economy to operate and thrive throughout New York State.”

    “This agreement is the first big step in finding a home for Lyft’s peer-to-peer model in New York,” says Lyft.

    Something tells me this isn’t the end of the battle.

    Image via Lyft, Facebook

  • Lyft Slapped with Restraining Orders Hours Before NYC Launch

    According to a report, both the New York City Taxi and Limo Commission and the state Attorney General have filed temporary restraining orders against on-demand car service Lyft, who is planning on launching in Brooklyn and Queens Friday evening.

    Earlier this week, Lyft announced their intentions to begin operations in NYC. That was immediately met with pushback from the city’s Taxi Commission, who said that the company “has not complied with TLC’s safety requirements and other licensing criteria to verify the integrity and qualifications of the drivers or vehicles used in their service, and Lyft does not hold a license to dispatch cars to pick up passengers” and that “unsuspecting drivers who sign-up with Lyft are at risk of losing their vehicles to TLC enforcement action, as well as being subject to fines of up to $2,000 upon conviction for unlicensed activity.”

    WNYC reporter Kate Hinds just tweeted this:

    Lyft confirmed the legal proceedings to The Verge, saying,

    “We are in a legal process with local regulators today and will proceed accordingly. We always seek to work collaboratively with leaders in the interests of public safety and the community, as we’ve done successfully in cities and states across the country, and hope to find a path forward for ridesharing in New York.”

    And the Taxi and Limo Commission had this to say to Business Insider:

    “We are in state supreme court seeking a TRO, as is the AG.”

    Lyft responded to the Commission’s protests by saying that they “differ with the TLC is that [they] do not believe its licensing and base station rules apply to the Lyft ridesharing model.”

    Lyft is scheduled to throw a launch party in Brooklyn this evening to celebrate their two-borough launch.

    WNYC’s Kate Hinds via The Verge
    Image via Lyft, Facebook

  • Lyft Launches Friday in NYC Despite Regulatory Pushback

    Lyft is not backing down in its quest to bring its on-demand car service to the Big Apple, despite warnings from the city’s Taxi and Limo Commission that they will not hesitate to take legal action.

    Earlier this week, Lyft announced that it was finally launching in New York City – not all of NYC, but in two boroughs to start. On Friday at 7pm EST, Lyft will begin operation in Brooklyn and Queens. Lyft has offered all new passengers in the city two free weeks worth of rides, saying that “the people of New York deserve more transportation options.”

    Lyft, no stranger to regulatory backlash, is now facing a formidable opponent in New York’s Taxi and Limo Commission.

    “Lyft has not complied with TLC’s safety requirements and other licensing criteria to verify the integrity and qualifications of the drivers or vehicles used in their service, and Lyft does not hold a license to dispatch cars to pick up passengers,” said the TLC in a statement. “Unsuspecting drivers who sign-up with Lyft are at risk of losing their vehicles to TLC enforcement action, as well as being subject to fines of up to $2,000 upon conviction for unlicensed activity.”

    TLC head Meera Joshi expounded on that statement, warning Lyft and its drivers that the commission will take any and all actions necessary to thwart its efforts.

    “Every rider deserves the safety and consumer protections our rules provide, and we have a long track record of working successfully with innovative companies to help them start out the right way,” she said. “We’re still hopeful that Lyft will accept our offer to help them do the right thing for New York City passengers as they should, but New Yorkers can rest assured that the TLC will do its job and take the actions necessary to protect them,” she said.

    Lyft, of course, scoffs at any suggestion that safety is an issue.

    “As always, safety is our top priority and every driver has undergone a screening process that is more stringent than what’s required for NYC taxis, including a strict background check, vehicle inspection and $1,000,000 insurance that provides more than three times the $300,000 minimum for taxis,” says Lyft.

    It isn’t safety, but a simple difference of opinion between it and the TLC, says Lyft. In a statement, Lyft suggested that it will launch as planned, as it doesn’t believe the TLC’s licensing and base station rules apply to the Lyft ride-sharing model:

    Lyft will offer a new and much needed transportation option for New Yorkers in the areas of the city where existing options are lacking. This improvement in transportation will provide important opportunities that New Yorkers want and deserve. We’ll continue to work with all stakeholders to create a path forward. Our focus remains on the community, who will be the ultimate beneficiaries.

    Where we differ with the TLC is that we do not believe its licensing and base station rules apply to the Lyft ridesharing model. It’s important to clarify that our differences of opinion are not about safety standards, and that’s because we put safety first. In new markets when we begin conversation with local regulators, we always find a way to ensure that communities have Lyft. We’re certainly different from the status quo, but that is our strength.

    Today we’re releasing our Safety Commitment. We will never waver in keeping our drivers and passengers safe. This is Lyft’s commitment to our community and yours.

    Here’s that Safety commitment Lyft mentions:

    Lyft NYC Safety Commitment

    Though it’s not Lyft, stories like this about similar service Uber fail to help the company’s cause. Lyft has fought with regulators in cities all across the country, but it’s likely never seen an entity as massive as the New York Taxi commission.

    Image via Lyft, Facebook

  • Uber Is Now a $17B Company After Latest Funding

    On-demand car service Uber has just announced a massive $1.2 billion injection from “some of the leading investors in the world,” which values the company at $17 billion (not counting what they already have in the war chest).

    With that announcement, Uber now operates in 128 cities in 37 countries around the world and says that they are directly responsible for creating 20,000 new jobs every month.

    “With our growth and expansion, the company has evolved from being a scrappy Silicon Valley tech startup to being a way of life for millions of people in cities around the world. This ‘Uber’ way of life is really a reflection of our mission to turn ground transportation into a seamless service and to enable a transportation alternative in cities that makes car ownership a thing of the past,” says Uber CEO Travis Kalanick in a blog post.

    Uber says that their car service is “improving the environment, reducing DUI rates and fueling urban economic development.”

    With this new round of funding, Uber is now planted firmly in the big leagues – but it isn’t exactly smooth sailing for the company. For one, Uber (and other similar services like Lyft) are facing stiff resistance from the old guard – taxi companies. And that influence has trickled down into state-by-state politics, where they are facing probable fines in some areas for “illegal operations.”

    Just today, we learned the the Virginia Department of Motor Vehicles sent Uber a cease and desist letter, demanding that Uber stop all operations in the state or face fines.

    Not only that, but Uber has also faced questions about the safety of its service – mainly a question of “just who the hell is driving me around?” An off-the-clock Uber driver has been accused of kidnapping a drunk woman, taking her to a hotel, and sexually assaulting her. The company is also currently embroiled in a wrongful death suit after the tragic accident that took the life of a six-year-old girl on New Year’s Eve.

    Still, Uber has confidence moving forward – and a whole lot of cash to boot.

    “We appreciate the confidence that investors, riders and partner drivers have shown in us and we intend to deliver,” says Kalanick.

    Image via Uber, Facebook

  • Virginia DMV Tells Uber, Lyft to Cease ‘Illegal Operations’, Suggests They Focus on Lobbying

    The state of Virginia is none too happy at on-demand car services Uber and Lyft operating, in its mind, outside the framework of its passenger carrier laws.

    The state’s Department of Motor Vehicles has sent out two cease and desist letters, one to Uber and one to Lyft, demanding that both companies stop operating in the commonwealth of Virginia until they “obtain proper authority.”

    The DMV is threatening to fine Uber and Lyft drivers. It wouldn’t be the first fines the Virginia DMV has handed Uber or Lyft, as they assessed civil penalties earlier this year. Uber and Lyft, naturally, contend that they are not taxi services, but ride-sharing companies.

    “Virginia law requires for-hire passenger carriers to have proper operating authority. Although certain types of passenger carrier arrangements are excluded from this requirement, none of those exclusions applies to Lyft’s operations. For example, Va. Code 46.2-2000.1 contains an exclusion for ride-sharing arrangements; however, a separate statute sets out the requirements for ride-sharing arrangements. This statute defines ride-sharing arrangements as those which do not involve transporting passengers for profit. See Va. Code 46.2-1400, et seq. Lyft’s operations are not ridesharing arrangements as defined in Virginia law because Lyft receives compensation for its services.

    The letter sent to Uber says the exact same thing.

    A spokesperson for Uber calls the Virginia DMV’s actions “shocking and unexpected.”

    “The DMV’s actions today are shocking and unexpected. Uber has been providing Virginians with safe, affordable and reliable transportation options for months and has continued to work in good faith with the DMV to create a regulatory framework for ridesharing. The DMV decision today hurts thousands of small business entrepreneurs who rely on the Uber platform to make a living, create new jobs and contribute to the economy – and it hurts the countless residents who rely on Uber to connect them with affordable, safe and reliable transportation alternatives. We look forward to continuing to work with the Virginia DMV to find a permanent home for ridesharing in the Commonwealth,” says Uber’s Natalia Montalvo.

    A Lyft spokesperson echoed Uber’s sentiments on safety.

    “The current regulations surrounding taxis and limos were created before something like Lyft was even imagined,” a Lyft spokesperson told WVEC. “Lyft’s peer-to-peer business model does not easily fit into the current framework, but we have made safety a top priority from the beginning by putting forth strict safety measures that go beyond what is required for existing transportation providers.”

    At the end of the letters to both Uber and Lyft, the Virginia DMV makes a suggestion to the companies:

    “As you know, DMV is actively studying Virginia’s passenger carrier laws and business models such as Uber/Lyft. DMV has invited Uber/Lyft and other stakeholders to participate in this study and will produce a final report before the next legislative session. I strongly suggest that Uber/Lyft focus its resources on participation in this study rather than continue illegal operations in the meantime.

    In other words, get your lobbying pants on boys, and head to Richmond.

    Here’s the most telling aspect of this story, via Watchdog.org:

    Sunni Blevins Brown, spokeswoman for the Virginia DMV, confirmed that a “number of transportation companies, including taxis, have contacted DMV regarding this matter.

    Of course they have.

    Lord knows ride-sharing companies, especially Uber, have a lot of ‘splainin to do in other areas of their business model, but it’s hard to look at the DMV’s action as anything but a transparent move to protect the old guard.

    Image via Lyft, Twitter