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Lyft, with a valuation of around 5% that of Uber, is clearly losing this battle. However, its mere existence is causing something that is rarely seen: the tran

Lyft, with a valuation of around 5% that of Uber, is clearly losing this battle. However, its mere existence is causing something that is rarely seen: the transfer of billions of dollars out of the bank accounts of absurdly wealthy investors, almost directly into the hands of people at the lower end of the economy. After all, the vast majority of this money is going into incentivizing drivers to sign up/stay, and subsidizing rides. As long as this battle goes on and investors are willing to fund it, I'll be a fan of both companies. Sadly, it won't last forever.

rhizome 12y ago
One thing Lyft has going for them is that the entrenched interests see them as the same as Uber. Signaling and all that. Case in point: http://imgur.com/jbfcLpV.jpg http://imgur.com/jbfcLpV.jpg
cubano 12y ago
> the transfer of billions of dollars out of the bank accounts of absurdly wealthy investors, almost directly into the hands of people at the lower end of the economy. Aren't those AKA paychecks?
- downandout 12y ago
  Yes, but no tech startup has ever employed this many non-Stanford/MIT grads at relatively high wages. Most Lyft/Uber drivers would be laughed at if they tried to apply for a job at Google or Facebook. Yet some drivers are earning more than entry-level engineers at these companies. Normal, everyday people with or without degrees are the recipients of most of this VC money at the moment. The fight for both drivers and riders is so fierce that drivers are being overcompensated and riders are being undercharged at the expense of investors hoping that these businesses will one day be profitable.
  - mbesto 12y ago
    I don't disagree with your premise, but it's a slight exaggeration and isn't factually correct. > Yes, but no tech startup has ever employed this many non-Stanford/MIT grads at relatively high wages. They are contractors.[0] There is a big difference here, as a Stanford/MIT grad contracting would easily make 2x that of an Uber driver. > Yet some drivers are earning more than entry-level engineers at these companies. Proof? My understanding is that the rough maximum you can make driving is $25/hr. Most junior web developers contracting make $40+/hr in SV. [0] - http://www.reuters.com/article/2015/03/12/us-lyft-drivers-idUSKBN0M72JM20150312 http://www.reuters.com/article/2015/03/12/us-lyft-drivers-id...
    - downandout 12y ago
      I said that some drivers are making that much. This is anecdotal, but here is an interview with a Lyft driver (in front of Lyft's CEO) saying that she was surprised that she was making $300/day ($90K/yr....relatively close to the $40/hr you claim a junior web developer makes in SV when they have work): http://www.bloomberg.com/news/videos/2015-03-06/heard-lyft-was-a-great-way-to-make-money-hockaday http://www.bloomberg.com/news/videos/2015-03-06/heard-lyft-w...
      - zaroth 12y ago
        A) $300/day is not 90k/yr unless you are working 6 days/week and 2 weeks off the whole year. B) There are significant direct costs that come out of that $300, it is not even $300 before taxes, it's $300 at the top of a Schedule C. I think many of these drivers simply have not done the math.

rhizome 12y ago

One thing Lyft has going for them is that the entrenched interests see them as the same as Uber. Signaling and all that. Case in point: http://imgur.com/jbfcLpV.jpg http://imgur.com/jbfcLpV.jpg

cubano 12y ago

> the transfer of billions of dollars out of the bank accounts of absurdly wealthy investors, almost directly into the hands of people at the lower end of the economy. Aren't those AKA paychecks?

downandout 12y ago
Yes, but no tech startup has ever employed this many non-Stanford/MIT grads at relatively high wages. Most Lyft/Uber drivers would be laughed at if they tried to apply for a job at Google or Facebook. Yet some drivers are earning more than entry-level engineers at these companies. Normal, everyday people with or without degrees are the recipients of most of this VC money at the moment. The fight for both drivers and riders is so fierce that drivers are being overcompensated and riders are being undercharged at the expense of investors hoping that these businesses will one day be profitable.
- mbesto 12y ago
  I don't disagree with your premise, but it's a slight exaggeration and isn't factually correct. > Yes, but no tech startup has ever employed this many non-Stanford/MIT grads at relatively high wages. They are contractors.[0] There is a big difference here, as a Stanford/MIT grad contracting would easily make 2x that of an Uber driver. > Yet some drivers are earning more than entry-level engineers at these companies. Proof? My understanding is that the rough maximum you can make driving is $25/hr. Most junior web developers contracting make $40+/hr in SV. [0] - http://www.reuters.com/article/2015/03/12/us-lyft-drivers-idUSKBN0M72JM20150312 http://www.reuters.com/article/2015/03/12/us-lyft-drivers-id...
  - downandout 12y ago
    I said that some drivers are making that much. This is anecdotal, but here is an interview with a Lyft driver (in front of Lyft's CEO) saying that she was surprised that she was making $300/day ($90K/yr....relatively close to the $40/hr you claim a junior web developer makes in SV when they have work): http://www.bloomberg.com/news/videos/2015-03-06/heard-lyft-was-a-great-way-to-make-money-hockaday http://www.bloomberg.com/news/videos/2015-03-06/heard-lyft-w...
    - zaroth 12y ago
      A) $300/day is not 90k/yr unless you are working 6 days/week and 2 weeks off the whole year. B) There are significant direct costs that come out of that $300, it is not even $300 before taxes, it's $300 at the top of a Schedule C. I think many of these drivers simply have not done the math.