Uber and Lyft surge pricing drives SF customers back to taxis
sfexaminer.com
sfexaminer.com
Now I'm in NY and I use taxis almost as often as rideshares. The Curb app makes it easy to find a taxi and the prices are almost always lower. But half the time I can't get a taxi through the app at all and have to wander the streets or use Lyft/Uber.
My female roommate once had to walk from the marina to edge of outer mission to get home late at night because on weekends you could not get cabs and/or they wouldn't take you places that they didn't like. It was that or stay at some ultra sketch guys house or hang in a park till buses started again.
Just ridiculous - they wouldn't even do weekend only medallions to lighten load - so some commission was def. bought by the taxi cartel type folks.
Was so glad when uber came along. you could get rid of your car, no if (or if not) you'd be picked up etc.
And yes - the "broken" CC machine - the Taxi commission was busy making sure there were too few medallions and no gypsy cabs, but did diddly squat to enforce any other rules (ie, discrimination in pickups, CC machines working, lost property handling). The statistical chance that every other business seems to be able to operate CC machine, and these guys, in a regulated and licensed business could not, was just ridiculous.
Corrupt through and through.
Leaving the implementation aside (a number of different ideas come to mind), all that would be needed is for it to verify before you get in the car that it's the same type you ordered (e.g. UberX) and then detect and handle the fact that you've started a ride with that particular driver.
Ideally this would be something that could be opted in or out of on the rider's end, as well as on the driver's end.
Yellow cabs? They form a line. The passengers form a line. Passengers get into cabs, in order. Very simple and efficient.
Ride hailing? Everyone's playing some idiot game of matching-riders-to-cars, and it's totally unnecessary. At any busy airport, it's a complete shitshow.
Uber/Lyft drivers should have the option to accept rides from pickup stations, riders should be able to do the same (or it should be automatic based on GPS), there should be a convention for how it's organized, and, at a really busy place like an airport, there should even be a person who is paid to organize the process. It'd be worth it to everyone.
They're even asking for a PIN in some circumstances https://www.uber.com/blog/pin-verification-drivers/
What I'm suggesting is that they could potentially add a feature that enables hopping into any of a set of cars (probably whichever arrives first or is closest) and matches the rider with the driver after the fact.
Think it was UberCab.
https://thenextweb.com/news/ubers-first-ever-blog-posts-are-...
The drivers they had (initially) were used to talking rich execs around - so everything was leather and usually pretty dressed up.
Then SF started in on "rider / consumer protection" and weirdly the drivers became just random / unlicensed folks! Literally, uberCab was amazing, then San Francisco started fighting Uber and before you know it the cars were random / drivers random etc.
In the US that would mean allowing the same bureaucratic organization that manages Medicare/Medicaid to manage a transportation app. And then you'd deal with the Intuits of transportation that would legally hobble any meaningful development in favor of their bespoke (and expensive) ride-hailing service...
And so on. Maybe I'm just a cynic about these things.
We could instead regulate a distributed ride-sharing communications system that companies could build apps for and drivers could hook in to. Well regulated industries tend to thrive (look at internet/cellphone providers in Japan).
Why are you keeping your public companies in such a bad shape?
I'm hesistant to say this because I don't live in the USA and so it's not really my business but ....
You know you really don't have to live in this society where large organisations are allowed to maintain de-facto monopolies. Every other part of the developed world has laws which limit monopoly suppliers. The laws aren't perfect but they have an effect.
Oddly enough the only real exception to this is the digital advertising duopoly owned by two large US companies and which operates on a, pretty much, global scale. So far, the rest of the developed world hasn't worked out how to address that.
Every large organization is bureaucratic. The US federal government does pretty well, IME: Parks, highways, air travel, food safety, drug safety, medical and scientific research, public universities, NASA, military, etc etc. It's not perfect, but nothing is.
I won't use anything but rideshare apps because they seem to have higher standards for the cars and the drivers.
Taxi drivers in NYC have an informal network of places where they can use a proper bathroom. They're actually easy to spot if you know where to look. So there would be no reason to do what you claim. Also any taxi driver knows the TLC could revoke their hack license for a meter violation like what you mentioned so none of them are going to jeopardize their livelihood with such foolishness. Again this is very hard to believe and would indeed be very freak occurrences if they happened.
Yes you will have the occasional dirty car or bad driver but getting scammed is not something you ever really need to worry about with yellow cabs in NYC. Even if you're a tourist. Yellow cab drivers are some of the hardest working salt of the earth folks and you're making them out to be something they're not.
I'm Queens born, grew up in NJ and spent a lot of time in the city growing up and now I've lived here for the last decade or so and those experiences were enough to put me off of yellow cabs entirely.
You're right in that they're probably freak occurrences but I don't owe them benefit of the doubt as a consumer when I have what is in my opinion the superior solution of rideshares.
It's possible things have gotten worse, I haven't lived there in 6 years, and that was basically pre-uber there. But yeah, can't reconcile my (likely thousands of) rides with that.
edit: BTW, with the broken meter (the one time I recall this happening), I just told the guy I knew how much it cost every day - 7 bucks including tip - and that that's what I'd pay. He agreed, he took me where I was going, and I paid. Easy. I know some people will get out of the cab, I kinda remember that once when I was really young and my mother was like 'nah' and we got in another cab.
A couple months after Uber started, DC taxis started accepting credit cards.
If taxis can now offer lower prices than Uber, great! That's how competition is supposed to work.
If the price accurately represented the drivers' costs, they wouldn't refuse the rides.
We tried uber a few times then just said the black cabs were worth the extra. None of the cabs needed GPS and always knew where we needed to go and told us about areas.
I know, kinda touristy and not needed for people living their day to day, but after uber they made the rest of our trip better (is this a black cab ad?)
An experienced transiter would know that when the cabbie asks, “where are you going?” the correct answer is to get in the cab and say “I’m doing great. How are you my friend?”.
Only then would you inform them of your destination.
To be fair NYC system is maybe the best in the U.S. but they are all flawed enough I wouldn't praise any. My personal favorite that I have ridden is Tokyo's.
I'd bet that a given uber ride is 3-4x as expensive, easily, these days.
Not my experience. I used taxis in many cities for many years.
Now you get the joy of having an Uber show up then refuse to take you from SF to San Jose, and then they try to make YOU cancel so it actually costs you money, unlike a taxi.
I used to work at Curb years and years ago (and its predecessor TaxiMagic). It's always fun to still hear someone uses it and makes me wonder if any code I wrote could still be running somewhere for it.
My first programming job was at an insurance broker where 15-20 years ago I wrote a maybe 20 line VB exe to transfer a file to our systems that was invoked by a comparative rater.
It was still out there being distributed to client PCs for over a decade.
It's at least 15 years old and just keeps plugging alone. The author retired last year.
I never understood this line, but maybe it is local taxi regulations differences. Where I live the taxis cannot refuse credit payment, so if their machine is really out, they do an old school carbon copy. If they refuse that then they've basically given a free ride, so they didn't tend to put up a fight.
I’ve even had a taxi prefer to take the 20€ I had on me rather than take the 25€ bill by card. They don’t declare any of that income.
That’s why I always avoid taxis in France, as much as possible.
Yeah everybody remembers the worst situations and not the average, but Uber totally changed the game. Little electric scooters are also pretty amazing there, since it's so compact.
I have the exact same experience. It's to the point where I think SF literally hates anyone from outside the city. You have to live there to understand any of the public transit as it doesn't seem to work like that of anywhere else.
Despite being only an hour away I hate going there as driving and parking is a pain at best and downright dangerous at worst. Taking CalTrain or BART into the city isn't much better thanks to the inscrutable public transit.
After that mistake it seemed pretty easy, and this was before iPhones
Also when uber first implemented the uber-taxi option before uber-x, I tried it and would regularly have multiple cabs cancel en-route to me because they just picked up a closer fare.
But pre-Uber, calling a cab was a waste of time.
So it's a problem on both ends.
this is because of the legal bribes paid to the government... aka lobbying. The free market would have solved that. What Uber did was illegal in many places, yet the Gov. let them do it (maybe they were scared of repercussions).
I don't see how that applies to government. A corrupt person in DHS spoils all the other people there? And spoils people in the the Dept of the Interior, and in Congress?
That’s because New York is corrupt and artificially limits both ride shares and taxis. But they’re heavily biased towards taxis and their outrageous medallion system.
Taxi’s have definitely been forced to improve thanks to competition from Uber/Lyft. But don’t be fooled into thinking scarcity and high price of ride share in NYC is a naturally occurring phenomena.
It is both desirable and definitely within the purview of government to control the number of vehicles on the road. Congestion/traffic is a perfect example of an externality. Go to a megacity in a developing country like Delhi and experience traffic that causes what would be a 20 minute trip with 0 traffic to become a 4 hour trip in traffic.
Given the traffic/congestion externality, taxing/charging vehicles to enter downtowns, creating a cap on the number of taxis via medallions, etc are all the economically optimal solutions according to economics.
We want to substitute individual vehicle transport to mass transit wherein there is a dramatically reduced externality (e.g. adding a person to a subway train or a bus only has an effect if that train hits capacity -- in contrast to adding an additional vehicle to the road).
Ideally, the pricing model for ridesharing and taxis should be dynamic but account for the congestion impacts (i.e. internalize the traffic externality). The fixed pricing of taxis doesn't do this (though medallions partly do from a more traditional cap and trade scheme) and the surge pricing of Uber and Lyft is only to clear their internal market and not to resolve the traffic impacts of all those additional vehicles on the road. As such, there have been numerous peer reviewed papers that have demonstrated that traffic is actually increased by ridesharing due to a substitution away from mass transit.
That's why I went to Uber/Lyft. Not just because of pricing (though that was a bonus).
NYC taxi service has always been great though. And there are enough that like 70% of the time (in Manhattan at least) I can just walk to the street, put my hand up, and have a ride in a minute or two. CC machine always works, etc.
The next morning the cab arrives on time – great – I get in and we drive to the airport, at which point the driver reveals that their credit card machine is conveniently "broken". The driver insists I leave my luggage in the cab as collateral while I go inside the airport to find a cash machine. This ends up taking about 15 minutes, I have to pay $5 in ATM fees, I'm anxious the entire time he's going to leave with my luggage, etc.
Yeah, I don't mind paying more.
"no" usually works here.
It's not on you to deal with the problem of a broken credit card machine.
Not being refused rides (after waiting the usual half hour for the taxi to show up) and not seeing the driver speed away when hailing from the curb was a great experience.
In Hanoi, Uber didn't work. We had a taxi with a fiddled meter. They tried to charge me $40 US for a 2km journey.
Coming off a bus/train, you get swamped by drivers and you absolutely must know exactly where you're going and how to get there or you will be taken wherever the driver is being paid to take you.
Cartagena is a close second.
Interestingly, outside of major ports of call, Hanoi was lovely, some of the best food I've eaten anywhere and $10/night for a beautiful room. You get a lot of ding for your dong as long as you know how to miss the scams.
Some parts of thailand are pretty much like that too. Being screwed by Taxis if you are a tourist is the norm.
That's some devaluing in the last decade.
The only solution I see for this kind of abuse would be meter + "strictly follow GPS" rule.
One time after I begrudgingly accepted the lump sum, our cab got stuck in bad traffic and the supposedly 20 minute ride turned into a one and a half hour ride. At some point the driver half-jokingly suggested that maybe we should go by the meter after all.
For those looking to travel to Vietnam, use Grab or Be. Grab is the most popular choice, while Be is a local competitor.
Also, I’m pretty sure the meter didn’t display the same number of zeros as the currency. That is, the last 2 zeros were omitted on the meter. But the driver said there were three omitted. Something like that. Oh well.
Otherwise, I had a wonderful stay. Beautiful country, nice people. I can’t wait to go back.
What I recall is that the meter didn't cut off the last three zeros but rather just two. Maybe it was a faulty meter (or maybe it was me). I was just off the plane, it was middle of the night and I was exhausted.
I should note that it was me who suggested the wrong amount, and he just accepted. I don't think he set out to swindle me.
Overall I found the country to be mostly free of people trying to take advantage of foreigners - Unlike Thailand and (especially) Cambodia. I also felt very safe there.
I've had a problem exactly once: I caught a taxi at the airport in Denver, CO, and like most airports, the pricing plan from the airport is different than to the airport (which is priced like a normal ride). Upon arrival at the destination, the cabbie didn't want to honor that agreement — "how would I make money if I charged that much?" — which, had I not been in shock from hearing about the stupidest remark I'd ever heard, I should have really told him exactly how he should make money.
But that was once, out of probably dozens of experiences. I've had far more trouble with, say, … airlines.
I've taken Lyft/Uber too, and honestly, it just isn't much different? The wait is about the same (relative to location, that is, less in crowded city centers). The difference is the ordering: with Lyft/Uber it is by app instead of by call. Slightly nicer, admittedly (can drop the pin, no need to understand often poor quality audio) but both apps absolutely murder cell batteries.
Last time I took a taxi, it was on the East coast and it took an hour for someone to show up. I called 3 times to the dispatch and each time they said 10min. Then the car showed up and they said the CC machine was broken and I had to pay in cash. I didn't have cash. Then suddenly the CC machine was fine and I finally was able to get my ride.
Had cab machines have “broken” electronic payment terminals more times than I can count.
There is on local taxi company that’s always excellent, Atlas Taxi. But other than them had real lousy experiences in the pre uber days. And very hard to get an invoice for tax purposes even if you paid by card.
I'm glad to hear it has improved. Almost as glad as I am that rideshare exists now.
Hell, 2003 was the first time the subway systems stopped taking coins.
as someone on twitter mentioned -- it depended on your skin color and where you were going.
However their pricing was never real. They took billions of VC dollars to make it seem like Uber could be better AND cheaper which drove every tradition cab company out of business. It also meant that all of the benefits of Uber accrued to the rider and the shareholders, the driver's didn't do so well.
Now they have to raise prices to a rate that's actually profitable. Meanwhile the taxi companies got their act together a bit. They have apps now, they take credit cards. So things will end up better across the board, just maybe not cheaper.
Consumer benefit aside. Ubers pricing strategy should probably have been illegal. You should not be able to flood a market like that. In international trade this is called dumping [0]. I wish we had a similar law for tech companies that want to destroy incumbents with VC money.
New startup, vc money, bankrupt others… run out of money
Then repeat
I am not sure Uber and Lyft work like you think they work. Drivers can take anyone they want. They often take the most profitable offers, because they want to make the time they spend in their car more worthwhile. The drivers can offer rides all day long and accept any proposal offered, if they choose to do that.
Drivers can also hold out within a metro, collectively, and drive the price up by artificially shortening supply. People need rides, so they will offer to pay more in order to entice a driver to pick them up. And, if prices get too high, taxis are usually an option where artificial supply limitation is happening.
VC money goes to kick-starting infrastructure and software and employees that run the business.
This is because of surge pricing and higher volume. Even when there is no surge profitability is quite good as long as it's busy enough for back to back rides.
If you're patient and ride during slower times you pay a similar amount to what the price was years ago.
The ubiquitous smartphone equipped with GPS did this. Once the technology existed it was an inevitability, just like it was for boarding passes and restaurant reservations and everything else.
The predatory anti-competitive lawless aspect of the transition to smartphone driven can hailing however was probably optional.
Someone still had to create a popular service to compete with taxis, which wasn't all that easy when it wasn't even clear how to do it legally. It's only with hindsight that it might seem obvious.
Yes, maybe some other company would have eventually figured out how to do it a different way, but "eventually" can be a long time and reasoning about counterfactual events isn't as easy as invisible hand arguments make it seem.
In Germany for example we can easily hail taxis (actual ones, not private cars) with at least two or three different apps, and this has been a thing for almost a decade now, even though Uber never really got its private-car-based service on track here due to legal problems. I've used Lyft in the US a few times, and the experience with those taxi apps in Germany is very much comparable.
Abstract, universal arguments only go so far.
This same argument comes up literally every time obvious anti-competitive practices are mentioned and it’s bullshit. It’s completely and totally reasonable to demand innovation AND ethical business practices coexist and anyone telling you otherwise has an agenda.
I frankly don't care what service takes me home. I just want it to be safe, reliable, clean, and reasonably priced, and I want the driver to be accountable for any issues. If a taxi now fits that bill, great. Competition and choice are good things.
So to put this in terms - the rich got much richer, and the middle class benefitted by exploiting the working class. That's doesn't seem like a good outcome to me (not least because the billionaires that benefit literally spunk their profits into outer space befroe thinking about paying tax).
I’d say the real problem with the outcomes here may be venture capital. That is what made the rich richer and allowed them to explode on a model that didn’t require them to be profitable. It’s possible this business model can’t succeed without that support, it’s also possible it could with higher prices, better wages and more time.
How many Uber/Lyft drivers were taxi drivers before you think? I’d say not a hugely large percentage. In other words, the “exploited” here are also apparently compelled to flock to such a job in previously untold numbers. This in turn drives down prices, and the reverse trend since the pandemic is the reason they’re back on the rise. The convenience provided here is not just for riders but for drivers.
All this to say your perspective reeks of political oversimplification that forces you to ignore various factors at play, many of them good, to churn out rhetoric. This ironically prevents seeing actual solutions to the problem you claim to care about.
The group that I assume got screwed were owners of local taxi companies and they were just corrupt cronies of the local government and screw them.
What was weird is that all of the "taxis" were regular cars with magnetic "taxi" labels on them, and at the end of the ride, my driver charged me on a square terminal, with no option / chance to tip. I honestly don't know if it was just some enterprising person that showed up at the airport, or what the heck happened.
As a consumer I get push notifications and emails from them every week if I haven't ordered food in a while with new deals, etc. I would strongly suspect they're doing the same thing for drivers these past couple months and maybe they just don't have a way to reach you. If they aren't even doing that it would be truly bizarre, there are billions of dollars on the line and it's their entire business.
Edit: I logged into my Uber driver app. Nothing beyond the usual promos (bonuses for driving in San Francisco.) Nothing like, "Hey, we noticed you haven't been driving. We want you back! How can we help you get started again?"
Seems all these efforts have failed, and I'd be curious how many short positions are out there against them.
I've been at the receiving end of these Uber & Lyft shortages. Can't get a ridershare below $80 at SFO after 9pm even if you've pre-scheduled one. The drivers also keep cancelling in an attempt to pump rates higher. Its incredibly frustrating.
I've pretty much given up and now rent a car when I would have taken an Uber when I'm out of town.
As of 6/15, about 5% of the UBER float was sold short, and the put/call ratio is .439 according to thinkorswim. Short interest will be reported again on 7/15. For comparison, 10% of ABNB and LYFT are sold short, with a similar p/c ratio.
But keep in mind, this doesn't mean they work anywhere else in the country or world. What will happen to them in bad weather or some damage to the vehicle or a flat tire or navigating a scene cordoned off by police, or a parade? What happens when they do not have the meticulously groomed information? Likely, Cruise will manually tell the vehicle to avoid the area, shut the vehicle down, or take over control remotely.
Self-Driving cars are designated into technology levels 0 through 5[0], from no capabilities, to "simple" lane-keeping and/or cruise control, to autonomous with caveats
I don't know exactly which technologies Cruise is using to achieve their mostly autonomous taxi, as that information is worth the billions invested in the company, however from what I have been able to gather, they still use a remote safety operator in some instances. The safety operator can take control of the car if a safety problem presents.
The cruise cars in SF are essentially bespoke for their market. If you take it to Wichita or Maryland, these things will likely not be able to manage the environment. The self-driving capabilities are still unable to reach SAE level 5, fully autonomous driving in all conditions.
Its easy to look at Cruise and conclude, "We've arrived!" but I would still caution restraint, as it has been possible to operate autonomous vehicles with extensive constraints for many years, such as autonomous rail.
[0] - https://www.sae.org/news/press-room/2018/12/sae-internationa...
[0] https://arstechnica.com/cars/2020/12/uber-sells-self-driving...
As for selling off their self-driving division, I don't get how that's a failure or giving up, given that the article lists an explicit 400M investment. The article (rightly) points out that Uber doesn't need to own self driving to benefit from it, and given that it's a hard problem, they spun it out into its own company that can receive independent funding.
If it's "people expected this to already be done and it isn't" yeah sure, of course.
Otherwise you're beating a dead horse.
Anyway, my point is that self driving is clearly not in a "well, it didn't work" state - it's ongoing, and seems to be making good progress. I have no timeline for you.
What? It's still actively advancing every year. This is like saying manned missions to Mars have failed. We're not there yet but the steps we're taking aren't "failure"
Since the drivers are just contractors, as Uber insists, it stands to reason that they should be able to subcontract. :)
Anyone fancy starting a delivery startup? I would absolutely pay a premium to anyone that can deliver groceries while alleviating the feeling of being complicit in the abuse of employees that I currently get from Instacart.
Uber; for people suffering from morality.
This seems a symptom of the massive drop in demand causing a lot of drivers to leave the system. Hopefully this will self-adjust over a period of time, because I admit right now its pretty ridiculous the prices in Seattle. It is 1.5-2x more for essentially any ride, and surges are even more ridiculous.
This was in Vegas last weekend, for reference.
I don't see how Uber's going to survive if they can't match cab prices...
But SF public transit is totally shit. I recall the only reason we'd ever use it is that a bunch of us were going there together and we get to hang out.
My time is way too precious to wait for the 38 or the 44 to stop 15 times a mile. I can beat them in my car, even with transit lanes.
When I first moved to NYC Uber wasn't really a thing so had to take cabs at times. Even in Manhattan it sucked in so many ways. Examples include:
- The stupid in-car advertising you had to turn off
- Cab card readers seemed to be a common method of skimming
- Getting a cab around shift changes
- Tricks to get a cab to go to somewhere they didn't want to go (ie anywhere that isn't Manhattan below 96th).
- Language barrier. The number of times I've had 14th mistaken for 40th was unbelievable.
- Just the general friction of the interaction and payment.
- Cab cleanliness.
- Inability to call for a cab or schedule one. I came from Australia and was honestly perplexed by this at first.
Years ago I took a few cabs in SF and used to joke with people that the interaction went something like:
"Take me to the end of the street"
"That'll be $30"
I once caught a cab from SFO to Mountain View, which is outside their normal range so there was a 50% surcharge. The guy made many mistakes in just getting off 101 onto 85. Missing exits, going around, that sort of thing. I had to give directions from my phone. The thing turned into $130 since he was running the meter the whole time. I ended up giving him no tip for this on principle even though it was being expensed and he yelled at me. As a cab drive if you can't handle "101 South to 85 South to El Camino North" then you have a problem.
I'm still skeptical about surge pricing in general. I'm not convinced it has much if anything to do with demand vs supply or that drivers see any of it.
But a more interesting story might be how surge pricing has changed in SF over time. For example: does it occur more often? Why? Are less drivers driving? Why?
Recently I tried to use Uber Eats in Miami and it was literally impossible. Why? "No drivers available". Basically no one drove for Uber Eats. They all drove for DoorDash, Seamless/Grubhub or Postmates instead.
So perhaps it's not just competition, and we should give some credit to the regulation too.
Or we could accept that "competition" doesn't just have to occur within a free market, and that a regulated market can be efficient while also accounting for externalities that a free market cannot.
EDIT: to clarify, I am agreeing with you overall. I didn't mean my tone to come across as agressive, which re-reading it, I feel it does.
I think the bigger issues are that most drivers found new jobs given demand was so low for so long.
And unemployment payments are still pretty high in many states. You probably lose money driving an Uber if you qualify for unemployment insurance right.
GoJek and Grab (SEA Ridesharing alternatives and "super-apps") both have a "Taxi" option when selecting the type of car you want. I'm assuming it's similar to just merging this "FlyWheel" app that the US has into their own.
The good thing uber brought, was that taxi companies finally created an app / apps!
Nonetheless, you pay through the app.. Sooo why would you need the card?
[0] - https://globalnews.ca/news/1780260/toronto-taxi-licence-pric...
The number quoted in the article said there are only 500 taxi's in SF right now? That seems super low and not significant - since all the estimates I can find for SF ubers in the area are in the tens of thousands.
I'm sure once more people will become drivers if surge continues - and people will be looking for work again
"overhauling how taxis worked" is doing a lot of work in that sentence. I have a hard time seeing how that would've ever happened in the absence of something like a Lyft or Uber. That's an extraordinarily difficult task.
OTOH Kuala Lumpur is so much more accessible with Grab than before
Why would taxi services invest if there is no competition which makes them provide a better service?
Not everything is price. It would be interesting to see the outcome if ridesharing apps would exactly match the price of taxis.
There is a parallel universe where some tech worker came along and created apps and sold them to the taxi companies. That would have led to much better taxi service -- though still a monopolist keeping the number of cabs small to protect their own profits.
The couldn't have tried to be Uber either because the law didn't allow non medallion drivers
Uber and Lyft have been operating for 10ish years.
Cherry picking.