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When I first saw Uber it seemed obvious to me that drivers would be squeezed. In the regulated hodge-podge of companies that Uber and Lyft are replacing, driver

When I first saw Uber it seemed obvious to me that drivers would be squeezed. In the regulated hodge-podge of companies that Uber and Lyft are replacing, drivers didn't make very much. Uber and Lyft drivers got a "raise" when they signed up, but that came from Uber and Lyft's cash-on-hand and their rally to sign up drivers. The fact is that there is no scarcity of people who can drive, so prices will be driven down to the point where a consumer can make a choice between a college student who is part-timing with a ten year old car and a full time driver with a brand new Prius. You might pay a small premium for the latter, but the former will be dirt cheap and they'll be paid next to nothing. AirBnb is a sharing company that won't have this squeeze because the supply of properties is more bounded than the supply of drivers.

swang 12y ago
To clarify, neither Uber nor Lyft would allow someone to drive a 10 year old car... And I would think a lot of people using those services wouldn't get into a 10 year old car. So even if there was a service that allowed old cars, there would probably be some segmentation.
- golemotron 12y ago
  That's my point. In this model it's a race to the bottom. If Uber or Lyft don't take advantage of the supply of drivers with 10 year old cars someone else will. So Uber and Lyft can either take that low-cost market under a different name and hope that they can maintain income at a quality point that doesn't pollute their brand, or someone else steps in and Uber/Lyft become merely services for people who would take limos.
- deleted 12y ago
  [deleted]
- laughtiger 12y ago
  Both Lyft and Uber vary their requirements by city, so they may have such allowances somewhere. When Lyft and Sidecar started in SF all they required was year 2000 or newer. Also, neither Lyft or Uber has much control over drivers signing up one car, then using a different one. It happens all the time. Finally, many limousines are actually this old or older.

swang 12y ago

To clarify, neither Uber nor Lyft would allow someone to drive a 10 year old car... And I would think a lot of people using those services wouldn't get into a 10 year old car. So even if there was a service that allowed old cars, there would probably be some segmentation.

golemotron 12y ago
That's my point. In this model it's a race to the bottom. If Uber or Lyft don't take advantage of the supply of drivers with 10 year old cars someone else will. So Uber and Lyft can either take that low-cost market under a different name and hope that they can maintain income at a quality point that doesn't pollute their brand, or someone else steps in and Uber/Lyft become merely services for people who would take limos.
deleted 12y ago
[deleted]
laughtiger 12y ago
Both Lyft and Uber vary their requirements by city, so they may have such allowances somewhere. When Lyft and Sidecar started in SF all they required was year 2000 or newer. Also, neither Lyft or Uber has much control over drivers signing up one car, then using a different one. It happens all the time. Finally, many limousines are actually this old or older.