5 ms·

Especially with Lyft as an alternative for both workers and customers, the gig workers have more-than-usual power in this context. If drivers are willing to ac

by ISL 8y ago

Especially with Lyft as an alternative for both workers and customers, the gig workers have more-than-usual power in this context. If drivers are willing to accept Lyft's regular wages for a day, and refuse the temptation of surge pricing on Uber, price-sensitive consumers will see surge pricing on Uber and turn on the Lyft app. If the goal is to threaten Uber's brand/customer-loyalty, this play might work?

jquery 8y ago
If they all drive for Lyft, they won’t get Lyft’s regular wages for a day, supply and demand dictates there won’t be enough demand and they’ll get lower wages.
- Tyrek 8y ago
  If you assume rideshare demand remains consistent and that riders just switch over to Lyft (which doesn't seem entirely unreasonable), then presumably the overall supply/demand curve remains fairly consistent. Obviously some fuzzing around the edges will remain, but otherwise the broader conclusion holds?
- ISL 8y ago
  True, unless enough Uber customers jump ship to Lyft to support Lyft's demand.
- AimForTheBushes 8y ago
  Not necessarily. I use both apps. I'm sure a lot of other people do too. More people would use Lyft if it's the cheaper option (and not surging like Uber would be in this scenario).
- DINKDINK 8y ago
  >supply and demand dictates there won’t be enough demand and they’ll get lower wages. Reductive. Your model assumes demand for Lyft remains constant while supply increases. This ignores the fact that supply is dropping at Uber, which causes a price increase, which causes demand to shift else where...to Lyft which increases demand.
  - jquery 8y ago
    Unlikely. While you and I may comparison shop, most people aren't going to download a new app, enter their CC information, etc., just to skip a short surge period. I don't check Taxi prices when Uber has a high surge during a storm. Additionally, many drivers who use both apps will simply stop driving, so Lyft is likely to see a surge as well.
    - xref 8y ago
      “most people aren't going to download a new app” That assertion needs some data to back it up. In fact I’d put my money on “most people” having both Uber/Lyft installed.
    - DINKDINK 8y ago
      >most people aren't going to download a new app Fair counter. There will be some lock in. Given that both platforms have similar pricing means that there are strong arbitrage forces at play that keep them in check.
loceng 8y ago
Uber will likely do whatever they believe will be best to not disrupt their IPO - which won't be agreeing to any significant changes to change Uber's projections. After the IPO, who knows. They ultimately want to get rid of drivers altogether and aiming for the Tesla play, Tesla Network with driverless vehicles - another $1B just invested in that technology, however Tesla is probably 3-7+ years ahead of Uber. How will other Uber drivers know if you're driving around and not part of the protest? I suppose they could each book Uber's for pickup and then harass any driver that comes to them - however they'd have to use unrelated-unassociated phones numbers, as Uber likely would block or prevent Uber drivers from booking during days they know there are protests. I'd certainly not buy Uber or Lyft; out of the two I would have bought Lyft at the IPO over Uber, however certainly not hold it very long-term.
- atomical 8y ago
  Driverless cars will take at least another 20 years.
  - loceng 8y ago
    Not sure why someone downvoted you - I assume you haven't seen Tesla's most recent self-driving vehicle video - https://www.youtube.com/watch?v=WSCb_O4AGwc https://www.youtube.com/watch?v=WSCb_O4AGwc ? If you don't think that's self-driving, what would you consider what's in that video?
    - pjc50 8y ago
      I see a human behind the wheel of the car. "Self-driving 99.9% of the time" sounds very close to full self driving, but in order to have fully driverless Uber cars where you don't have to pay the driver, they'd have to not have a "safety" driver. That's the thing that's further away than people want to admit.
      - ben_w 8y ago
        Indeed, the difference between sounding good and being good means that although I’m an optimist on the timescales and benefits, I wouldn’t want to be in or near a vehicle which was only self-driving 99.9% of the time, as that’s not self driving for roughly one second every 20 minutes. I’d consider occasional use of taxis with two more nines, but I’d really want three or four more nines.

by ISL 8y ago

jquery 8y ago

If they all drive for Lyft, they won’t get Lyft’s regular wages for a day, supply and demand dictates there won’t be enough demand and they’ll get lower wages.

Tyrek 8y ago
If you assume rideshare demand remains consistent and that riders just switch over to Lyft (which doesn't seem entirely unreasonable), then presumably the overall supply/demand curve remains fairly consistent. Obviously some fuzzing around the edges will remain, but otherwise the broader conclusion holds?
ISL 8y ago
True, unless enough Uber customers jump ship to Lyft to support Lyft's demand.
AimForTheBushes 8y ago
Not necessarily. I use both apps. I'm sure a lot of other people do too. More people would use Lyft if it's the cheaper option (and not surging like Uber would be in this scenario).
DINKDINK 8y ago
>supply and demand dictates there won’t be enough demand and they’ll get lower wages. Reductive. Your model assumes demand for Lyft remains constant while supply increases. This ignores the fact that supply is dropping at Uber, which causes a price increase, which causes demand to shift else where...to Lyft which increases demand.
- jquery 8y ago
  Unlikely. While you and I may comparison shop, most people aren't going to download a new app, enter their CC information, etc., just to skip a short surge period. I don't check Taxi prices when Uber has a high surge during a storm. Additionally, many drivers who use both apps will simply stop driving, so Lyft is likely to see a surge as well.
  - xref 8y ago
    “most people aren't going to download a new app” That assertion needs some data to back it up. In fact I’d put my money on “most people” having both Uber/Lyft installed.
  - DINKDINK 8y ago
    >most people aren't going to download a new app Fair counter. There will be some lock in. Given that both platforms have similar pricing means that there are strong arbitrage forces at play that keep them in check.

loceng 8y ago

Uber will likely do whatever they believe will be best to not disrupt their IPO - which won't be agreeing to any significant changes to change Uber's projections. After the IPO, who knows. They ultimately want to get rid of drivers altogether and aiming for the Tesla play, Tesla Network with driverless vehicles - another $1B just invested in that technology, however Tesla is probably 3-7+ years ahead of Uber. How will other Uber drivers know if you're driving around and not part of the protest? I suppose they could each book Uber's for pickup and then harass any driver that comes to them - however they'd have to use unrelated-unassociated phones numbers, as Uber likely would block or prevent Uber drivers from booking during days they know there are protests. I'd certainly not buy Uber or Lyft; out of the two I would have bought Lyft at the IPO over Uber, however certainly not hold it very long-term.

atomical 8y ago
Driverless cars will take at least another 20 years.
- loceng 8y ago
  Not sure why someone downvoted you - I assume you haven't seen Tesla's most recent self-driving vehicle video - https://www.youtube.com/watch?v=WSCb_O4AGwc https://www.youtube.com/watch?v=WSCb_O4AGwc ? If you don't think that's self-driving, what would you consider what's in that video?
  - pjc50 8y ago
    I see a human behind the wheel of the car. "Self-driving 99.9% of the time" sounds very close to full self driving, but in order to have fully driverless Uber cars where you don't have to pay the driver, they'd have to not have a "safety" driver. That's the thing that's further away than people want to admit.
    - ben_w 8y ago
      Indeed, the difference between sounding good and being good means that although I’m an optimist on the timescales and benefits, I wouldn’t want to be in or near a vehicle which was only self-driving 99.9% of the time, as that’s not self driving for roughly one second every 20 minutes. I’d consider occasional use of taxis with two more nines, but I’d really want three or four more nines.