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> Zimmer likes to compare the dynamic between Uber and Lyft to AT&T and Verizon. When both cell networks hit three bars of coverage, people start to see them as
by habosa 11y ago
> Zimmer likes to compare the dynamic between Uber and Lyft to AT&T and Verizon. When both cell networks hit three bars of coverage, people start to see them as equivalent, and base their spending decisions on other factors, such as brand values and customer experience.
That's the key quote in the article. In San Francisco, Lyft and Uber have both long passed the "good enough" bar. They both get to you in ~5 minutes and take you where you want to go very reliably. They have parallel product lines, identical pricing, and similar surging tendencies.
This leaves room for brand preference. I know I am not the only one of my friends to choose Lyft whenever possible because I believe they are friendlier. Uber has a reputation for being profit-driven sharks. They're very professional, but don't get in the way of their money. Lyft has the feeling of taking a ride in a friend's car. I personally like the latter, and I think there are enough people who agree with that to keep two players in the market.
- enjo 11y agoI always ask drivers which one they prefer to drive for. The answer is always Lyft.
- cyan_atrus 11y agoIn my experience (SF) it's the opposite -- drivers like that Uber gives them more dispatches
- win_ini 11y agoMy findings are the same. Lyft made a switch to giving them the money for rides immediately too....Uber makes them wait.
- nostromo 11y agoAnd Lyft lets you tip your driver.
- BinaryIdiot 11y agoArguably that's a bad thing for the customer though.
- coldtea 11y agoNot if by that way they ensure better behavior from the driver.
- BinaryIdiot 11y agoBut now you're paying more than the competition just to have a better driver. Also the driver can rate the person who took the car lower if they don't tip. So the tip essentially becomes a way to extort one another.
- coldtea 11y ago>But now you're paying more than the competition just to have a better driver. Why use the word "just"? I'm paying more than the competition TO get a better driver. In fact I don't even have to pay (the tip) if I don't want to. I still get a better driver, because they try to get me to tip. >Also the driver can rate the person who took the car lower if they don't tip. So the tip essentially becomes a way to extort one another. Well, that's easy to solve: don't allow drivers to rate passengers.
- BinaryIdiot 11y ago> In fact I don't even have to pay (the tip) if I don't want to. I still get a better driver, because they try to get me to tip. You'll begin to get the reputation that you don't tip. Why would anyone pick you up then? You're essentially forced to tip if you want continued, good service. > Well, that's easy to solve: don't allow drivers to rate passengers. That's not a solution though; that's a hack to remove an undesirable affect from another feature (tipping). Just like drivers can be rated by passengers the inverse is also very important. These are still people's private cars after all; do you really want no way to rate the guy who trashes someone's car or is just an asshat?
- yo-code-sucks 11y agoI prefer UBER, better software stack, better apps. They pay isn't as good but when using the Lyft app it shows your totals for payout without showing their cut, the Uber app shows your totals after Uber takes their cut. At least when driving with Uber you have an honest number to track for meeting your income goals. Plus left hires all the non-english drivers who can't seem to understand shit.
- enjo 11y agoI always ask drivers which one they prefer to drive for. The answer is always Lyft.
- empressplay 11y agoIsn't Uber's entire business model (and its ridiculous valuation) based on the idea that they were going to become a monopoly? (and thus recoup the huge investment costs by raising fares?) I can't see them accepting a competitor in the long term. A competitor will keep margins slim and the VCs invested in Uber won't be very happy with that. I wouldn't be surprised if Uber ups the ante and cuts fares to absurd levels in order to try to drive Lyft into the ground.
- SeoxyS 11y agoThey can still become an absolutely massive business even with slim margins if the market is big enough. Look at Walmart.
- baddox 11y agoBut isn't Walmart's success just the classic example of economies of scale? While there are obviously some economies of scale in Uber's business, I would expect them to be far less significant than in Walmart's business.
- fscherer 11y agoI feel like the bet with uber is more a future reduction in cost by autonomously driven cars which will also increase the market size
- marcoperaza 11y agoThey lose millions of dollars a quarter still. I don't see how Uber can dominate the market in the long run, when they'll have to raise prices to a profitable level and thus make it easier for competition to undercut them. Drivers can work with multiple services at the same time, and the barrier for consumers to install another app or navigate to a web app is pretty small. edit: If the regulatory environment doesn't clear up, though, I could see that making it easier for Uber to dominate the market. They have the wherewithal to challenge regulators in courts of law and public opinion, and to comply with whatever red-tape is imposed on them. New entrants would have a much harder time.
- SN76477 11y agoI dont really like Uber as a company. They seem like the bank of america of transportation.
- deleted 11y ago[deleted]