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1) I hate MLMs; 2) I signed up to drive for Tryp; and 3) I am not a hypocrite.

1) I hate MLMs; 2) I signed up to drive for Tryp; and 3) I am not a hypocrite.

If you are already familiar with the new rideshare company Tryp, then you know they use MLM (Multi-Level Marketing) to recruit drivers to their rideshare platform. So how can I state both #1 and #2 without being a hypocrite?

The reason I hate MLMs is not because they are MLMs. I hate them because of why people who become MLM sales reps fail. In fact, the reason I signed up to drive for Tryp is because Tryp avoids that same why that causes drivers to fail on Uber and Lyft.


Uber and Lyft drivers suffer from the same problem MLM sales reps do.


The biggest reason people who join up to sell for MLMs fail is because the market gets saturated with sales reps for the MLM. If you were the only sales rep in town for the MLM you joined, you’d have a pretty good chance at succeeding as a sales rep for the MLM (assuming it’s a decent product or service). But when your neighbor is also a sales rep for the same MLM, the woman across the street is too, five people on the next block also are, two dozen in the apartment complex around the corner are too, etc, etc…. then it’s close to impossible for any sales rep of the MLM to succeed, except for those at the top that recruited so well that they created the saturation now being experienced by those below them.

In a nutshell, when there’s another one just like you on every street corner, you are highly likely to fail as an MLM sales rep.

Let me say that again, as you can’t miss this point… when there’s another one just like you on every street corner, you are highly likely to fail as an MLM sales rep.

Does that sound familiar? It should. If you are an Uber/Lyft driver this should be hitting home with you, because unless you drive for Uber/Lyft in some remote area, you’ve experienced that exact same issue in the cities Uber and Lyft operates in. And if you haven’t…. just wait. The gig seems great for a while, and then all the sudden you can’t make half of what you were before, because there are drivers online everywhere. This is a big reason why Uber has as high as 96% of their drivers quit within a year of starting to drive (see CNBC.com: https://www.cnbc.com/2017/04/20/only-4-percent-of-uber-drivers-remain-after-a-year-says-report.html).


99% fail… 96% quit… Tomato…. ToMAHto….


Similarly speaking, FTC studies have shown that as many as 99% of people who join MLMs as sales reps fail (see FTC.gov: https://www.ftc.gov/sites/default/files/documents/public_comments/trade-regulation-rule-disclosure-requirements-and-prohibitions-concerning-business-opportunities-ftc.r511993-00010 /00010-57283.pdf). So…. MLM sales rep…. Uber driver…. one on every street corner…. 99% fail…. 96% quit…. Are you seeing the comparison here?

Forget that a driver is a completely different job than being a sales rep. Because It’s not the type of job that matters. Also forget that Uber and Lyft are not MLMs. Because it’s not the type of company that matters. It’s the over-saturated market conditions that matter.

If it looks like a duck, and quacks like a duck, it probably is a duck. Being a sales rep in an over-saturated market is a duck. Being an Uber/Lyft driver in an over-saturated market is a duck. They are both ducks, because over-saturation sucks. The model MLMs use naturally results in over-saturation of their sales reps, and the model Uber and Lyft use naturally result in over-saturation of their drivers. So, the reason I hate MLMs is the exact same reason I hate Uber and Lyft. Their business models both naturally result in over-saturation.


Doesn’t that make Tryp twice as bad?


So now, you might be thinking, wouldn’t that make Tryp twice as bad? Isn’t it just combining the Uber model with an MLM model?

For the driver, the answer is clearly no, for two reasons: 1) Tryp’s subscription-based service fee model avoids the problem that both Uber and Lyft’s models suffer from that results in the over-saturation of drivers on their platforms; and 2) Tryp drivers don’t have to be MLM sales reps… Tryp drivers can just be drivers.


How does Tryp avoid driver over-saturation?


Drivers have been asking Uber and Lyft for years to either put a limit on the number of drivers that can sign up, or a limit on the number of drivers that can be online at the same time. Such limits would be very similar to what cities have done for decades, where they limit the number of taxi licenses, sometimes called medallions. In New York city, one taxi medallion was worth nearly $1 million to the person that owned it. This is because limits create scarcity, which results in value. It’s a simple economic principle. Government created these limits because without them so many taxis became available, it reduced the value of their services so much that the taxi drivers couldn’t make a living (a situation very similar to why 96% of drivers Uber drivers quit within a year).


What the drivers are asking Uber and Lyft to do would also be like limitations some other driving gig apps have, like Doordash, where a Doordash delivery driver can’t logon to be available to accept deliveries unless the app is allowing more drivers to logon in an area.


However, Uber and Lyft benefit from the over-saturation of drivers on their platforms. When it’s occurring, riders get matched to a driver closer and quicker than they would if the market was not over-saturated with drivers, which reduces the chances of the potential rider using the other platform to get a ride. So, Uber and Lyft have absolutely zero reason to do anything about this. They would never add a feature to their platform that creates such a limit unless some serious market condition, or government regulation forced them to.


Tryp on the other hand doesn’t even need to add such a feature. The subscription-based service fee model Tryp uses naturally results in limitation. According to Uber, around half of Uber drivers drive for Uber for less than 10 hours per week (see Fastcompany.com: https://www.fastcompany.com/90240917/driving-for-uber-and-lyft-full-time-is-getting-harder). That means that around half of Uber drivers would not sign up to drive for Tryp, because they don’t drive enough to benefit from Tryp’s once a month $199 service fee subscription model. The full time Uber drivers who are having $1000+ in service fees taken from their fares will love only having to only pay $199 in service fees instead of $1000+. But for most drivers who drive less than 10 hours per week, the $199 monthly Tryp service fee would cost them more than the total service fees Uber is currently taking from their fares every month. Thus, they won’t drive for Tryp.


A subscription fee is a barrier to entry… a limitation.


That is what is called a “barrier to entry”. The barrier limits the number of people who enter. Tryp doesn’t have to create a feature on the platform to limit the number of drivers, because their $199 barrier to entry does that naturally. So, if all existing rideshare riders are potential Tryp riders, but only half of existing rideshare drivers are potential Tryp drivers, Tryp is naturally going to have a healthier rider to driver ratio on their platform compared to Uber and Lyft, as Tryp establishes its presence in the rideshare market.


In fact, to the driver it doesn’t even matter what share of the rideshare market Tryp gets. In other words, the question “will Tryp get enough riders”, while being important to the owners of Tryp, is somewhat meaningless to the drivers. Uber could get a million ride requests in day, but if there are a million drivers online that day, every Uber driver is going to average 1 ride a day. That’s what over-saturation does. To the drivers, it’s not the volume of riders a platform gets. It’s the ratio of riders to drivers on the platform that matters. A healthier ratio is less saturated with drivers, which results in more ride requests getting assigned to drivers on the platform.


If Tryp gets as little as 2% of riders and 1% of drivers in the rideshare market to switch, Tryp drivers benefit from a rider to driver ratio that’s twice as healthy as they what they experience on Uber and Lyft. And if Tryp gets as much as 30% of riders and 15% of drivers to switch Tryp drivers still have a rider to driver ratio that’s twice as healthy. So regardless of what share of the rideshare market Tryp gets, Tryp drivers get the same ratio benefit. So, drivers in the first month of Tryp’s existence can expect the same ratio benefit produced by the $199/month barrier to entry as Tryp drivers in the 10th year of Tryp’s existence, despite how much smaller Tryp would be in their 1st month than they would be in year 10.


It's the subscription model, not the company, that is great.


I’ve said I hate a few things so far. I said I hate MLMs. I said I hate Uber and Lyft. I said I hate over-saturation, and the reasons that lead to over-saturation. All that hate leads me to love a subscription based rideshare model. That doesn’t mean I love Tryp. That means I love the subscription-based model they’re using. If some other new rideshare company started with this same subscription-based model, I’d love it too. It’s the model, not the company that uses it, that makes it great.


Why being an MLM has no impact on drivers.


But Tryp is still an MLM, so drivers will fail because of that right?


Wrong (doing my best Trump speaking into the mic impression).

trump2.gif



Tryp drivers are NOT MLM sales reps. When you are a Tryp driver and you logon to Tryp’s website, you will see an “upgrade” tab. When you view that tab, you will see them advertising to you to upgrade to what they call an “Influencer”, and how much it costs you to upgrade. An influencer is a sales rep. They receive compensation via commissions, residual income and bonuses for successfully selling the Tryp platform to drivers, none of which a non-Influencer Tryp driver qualifies for. And yes, it is an MLM model, making a Tryp influencer an MLM sales rep.


And everything I’ve said about the MLM model resulting in the market being saturated with sales reps holds 100% true here. The FTC study (linked above) that show that 99% of MLM sales reps fails is applicable here. 99% of Tryp influencers will probably fail (probably fewer than that in the beginning, but over time it will naturally climb that high because saturation in inevitable in the model). Even if Tryp influencers are ten times more successful than other MLM sales reps, that still means 90% will fail. So, unless you really, really, REALLY believe you can succeed, and are willing to take the effort to execute it, then don’t waste your time, money, and effort on upgrading to a Tryp Influencer. It’s just that simple. Just say no…. and just drive for Tryp.


Sometimes you just gotta commit in order to try


My dream would be a rideshare company that uses a subscription-based service fee model without also being an MLM. But I can’t earn a living in my dreams. So, in reality I do what’s best for me. And in reality, the rideshare company offering the best rideshare model for a driver that does 10+ hours per week is Tryp. So, I’m signed up to drive for Tryp, and can’t wait for them to launch in my city. That said, I still have concerns. After a month or two, I could learn to hate their app. It’s possible. I’m not ignoring the possibility of problems when they do finally launch. But Uber and Lyft are so bad at what they are right now that I am willing to give Tryp a try. I am hoping for something better. As the character Andy Dufresne said in the movie The Shawskank Redemption, “Remember Red, hope is a good thing, maybe the best of things, and no good thing ever dies.” To me that means that even if Tryp fails, I will still have hope that something better than Uber and Lyft comes along, and that hope is a good thing.


So, if Tryp needs drivers to commit before they launch, then part of my hope and willingness to try them includes me stepping up to make that commitment. Maybe I am unique in that way. Uber and Lyft have driven me (pun intended) to try many different things due to my hope (Doordash, Postmates, Grubhub, Amazon Flex, Field Agent, Mobee, Gigwalk, Easyshift, Stringr, Roadie, etc, etc..). My hope includes hoping that my market gets enough drivers like me willing to commit to Tryp so they launch, and we can then all get to see what they can do for us.


So that’s how I can state that I hate MLMs, that I am signed up to drive for Try, and not be a hypocrite.


In fact, I’m kind of looking forward to a time when Tryp’s influencers reach the over-saturation point. I’m sure I’ll pull up to a red light and look over to see a 5 hour per week Uber driver parked next to a Tryp influencer standing on the curb who was trying to get the driver to sign up for a model that would never work for them. Then the driver will say, “I wish you were cheaper, ‘cause I can’t seem to get any riders”. To which the influencer will say, “Yeah, I can’t find any new Tryp drivers either”. As the light turns green, I will say to them both, “Yeah, over-saturation sucks, don’t it”, as I pull away to drive to my next Tryp pickup as a Tryp driver. I might even buy a microphone so I can drop it on the road before I pull away.
 
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Comments

Solid 5

Well-Known Member
A few weeks ago I picked up someone here is Dallas who supposedly worked for the company and they were trying to sell it on my pretty hard. As soon as they mentioned the 200 bucks I would have to pay them every month my BS sensors went off. I am not going to pay 200 bucks a month for the privilege to work when they don't have an app or a customer base.
That is my whole issue. If the company was already out there, I would consider it.
 

UberHammer

Well-Known Member
Past Sponsor
That is my whole issue. If the company was already out there, I would consider it.
That's definitely a good reason to wait. In fact, that's pretty much what's happening everywhere.

We just crossed the 13000 mark of signups today. The vast majority of them are drivers, and the vast majority of them have NOT paid to upgrade their account to driver. When someone signs up, the default to a rider, which is free. They can then upgrade to driver at any time. And anyone you referred while being a rider is linked to you as long as they don't upgrade to driver before you do.

So they are signing up because they know other drivers and are signing them up. When the company launches, they'll all upgrade and by then most of them will have three referred drivers, and drive for free.

It's the ones that wait that won't be able to find three drivers.
 

goneubering

Well-Known Member
That's definitely a good reason to wait. In fact, that's pretty much what's happening everywhere.

We just crossed the 13000 mark of signups today. The vast majority of them are drivers, and the vast majority of them have NOT paid to upgrade their account to driver. When someone signs up, the default to a rider, which is free. They can then upgrade to driver at any time. And anyone you referred while being a rider is linked to you as long as they don't upgrade to driver before you do.

So they are signing up because they know other drivers and are signing them up. When the company launches, they'll all upgrade and by then most of them will have three referred drivers, and drive for free.

It's the ones that wait that won't be able to find three drivers.
How do you know 13,000 drivers have signed up?
 

Solid 5

Well-Known Member
That's definitely a good reason to wait. In fact, that's pretty much what's happening everywhere.

We just crossed the 13000 mark of signups today. The vast majority of them are drivers, and the vast majority of them have NOT paid to upgrade their account to driver. When someone signs up, the default to a rider, which is free. They can then upgrade to driver at any time. And anyone you referred while being a rider is linked to you as long as they don't upgrade to driver before you do.

So they are signing up because they know other drivers and are signing them up. When the company launches, they'll all upgrade and by then most of them will have three referred drivers, and drive for free.

It's the ones that wait that won't be able to find three drivers.
What is their philosophy or reply as to why they have no driver app (which I tried to access but it is not available in the App Store like the Tryp website says). See, I have a HUGE problem with mis-information from a new site. Bad enough we get it from Uber/Lyft, but you kind of expect it.
 

mbd

Well-Known Member
Let Tryp take first 250$out of the total $$$runs. They will make 25% more.
so no need to pay them 199$
 

UberHammer

Well-Known Member
Past Sponsor
How do you know 13,000 drivers have signed up?
Because the account user ID's increase by one as people sign up. And one I signed up today started with 13,XXX. There's no reason for riders to be signing up right now, but some of those sign ups could be riders.

What is their philosophy or reply as to why they have no driver app (which I tried to access but it is not available in the App Store like the Tryp website says). See, I have a HUGE problem with mis-information from a new site. Bad enough we get it from Uber/Lyft, but you kind of expect it.
They do have both rider and driver apps. They are planning to beta test in February. If 1) the test goes well; and 2) there is a market with enough drivers, then they submit the apps to the Apple and Google app stores. There's no reason to do that until at least one city has enough drivers.

I'm not sure why app not being downloadable yet bothers people. If they didn't have an app at all, they could just do a google search for "white label rideshare app" and get half a dozen companies who have rider/driver apps that just need a company logo added to them, and costs them as little as $15 per driver per month. These rideshare apps are for local cab companies to use so they can compete with Uber and Lyft.

The CEO of Tryp bought one of those companies this year and then used it to create Tryp. So Tryp now owns a rideshare app that had been developed and done a long time ago. All they are doing now is tweaking it to work specifically how they want it to, then taking it to beta test. They didn't start from scratch.
 

goneubering

Well-Known Member
Because the account user ID's increase by one as people sign up. And one I signed up today started with 13,XXX. There's no reason for riders to be signing up right now, but some of those sign ups could be riders.



They do have both rider and driver apps. They are planning to beta test in February. If 1) the test goes well; and 2) there is a market with enough drivers, then they submit the apps to the Apple and Google app stores. There's no reason to do that until at least one city has enough drivers.

I'm not sure why app not being downloadable yet bothers people. If they didn't have an app at all, they could just do a google search for "white label rideshare app" and get half a dozen companies who have rider/driver apps that just need a company logo added to them, and costs them as little as $15 per driver per month. These rideshare apps are for local cab companies to use so they can compete with Uber and Lyft.

The CEO of Tryp bought one of those companies this year and then used it to create Tryp. So Tryp now owns a rideshare app that had been developed and done a long time ago. All they are doing now is tweaking it to work specifically how they want it to, then taking it to beta test. They didn't start from scratch.
For comparison, what number are you?
 

Xeverrer

Active Member
I am 93xx. I signed up exactly two weeks ago tonight. So that's about 3,700 sign ups in two weeks.
You have no way of knowing if numbers go up by 1 for each person...

Many shopping cart sites online ad in arbitrary gaps so it’s not just “1001, 1002, 1003” etc

No way of knowing what they started at. No app.

This is a NOTHING burger asking for $200’s so they can get $200’s. That’s it
 

The Gift of Fish

Well-Known Member
I get why UberHammer is excited by this new company. He thinks it's what we've all been waiting for. We all want a rideshare company that actually is what Uberlyft lies and claims to be - just a broker that simply puts pax in contact with drivers: a drivers' agent that handles lead generation and invoicing. And... we want such a company to provide these basic services for a low price, not the 30/40/50% that Uberlyft now takes. $199 a month would stike many full time drivers as a great deal. I too will be very excited when such a company comes along.

Buuuuuuuut........ this ain't it. At least, I see no evidence that this is it. All I see is a MLM that is charging the usual entrance fee of a couple of hundred bucks to join at the bottom of the pyramid. I see lots of emphasis on the pyramid scheme and not a lot of mention of the driving side of it. What I would want to know is:

- Where is the driver app?
- What cities are going to launch, and when?
- How much per mile and per minute will pax be charged?
- What is the marketing strategy, or at least plan, to attract pax?
- Given that Uberlyft is a giant cash incineration machine (5 billion dollars lost by Uber alone last year), how will Tryp be profitable when the incumbents cannot? What financial backing does Tryp have? Uber has raised $15 billion dollars to date - how much money does Tryp have with which to go to war with Uber?

All I see is MLM promises of wealth, complicated rewards structures (with things like "dream vacations" and exotic cars heavily featured, as usual), "binary team" building and residual income. And not a lot else.
 
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Fargle

Well-Known Member
I get why UberHammer is excited by this new company. He thinks it's what we've all been waiting for. We all want a rideshare company that actually is what Uberlyft lies and claims to be - just a broker that simply puts pax in contact with drivers: a drivers' agent that handles lead generation and invoicing. And... we want such a company to provide these basic services for a low price, not the 30/40/50% that Uberlyft now takes. $199 a month would stike many full time drivers as a great deal. I too will be very excited when such a company comes along.

Buuuuuuuut........ this ain't it. At least, I see no evidence that this is it. All I see is a MLM that is charging the usual entrance fee of a couple of hundred bucks to join at the bottom of the pyramid. I see lots of emphasis on the pyramid scheme and not a lot of mention of the driving side of it. What I would want to know is:

- Where is the driver app?
- What cities are going to launch, and when?
- How much per mile and per minute will pax be charged?
- What is the marketing strategy, or at least plan, to attract pax?
- Given that Uberlyft is a giant cash incineration machine (5 billion dollars lost by Uber alone last year), how will Tryp be profitable when the incumbents cannot? What financial backing does Tryp have? Uber has raised $15 billion dollars to date - how much money does Tryp have with which to go to war with Uber?

All I see is MLM promises of wealth, complicated rewards structures (with things like "dream vacations" and exotic cars heavily featured, as usual), "binary team" building and residual income. And not a lot else.
I'm mildly interested in seeing where this goes. However, I think it would be much more practical to start a more localized rideshare company based on the more sensible principles laid out. See how well that works, then expand. I think that's how Uber first got its start -- serving only the SF Bay Area.
 

The Gift of Fish

Well-Known Member
I'm mildly interested in seeing where this goes. However, I think it would be much more practical to start a more localized rideshare company based on the more sensible principles laid out. See how well that works, then expand. I think that's how Uber first got its start -- serving only the SF Bay Area.
I think that Tryp will get quite a lot of traction on the MLM side. There must obviously be a healthy supply of naive individuals willing to put money into pyramids, otherwise they would not exist.

On the driving side, I can't see it going anywhere, for the reasons above. Uber has spent billions of dollars buying market share via subsidized rides for its pax. The only way to compete with Uber and get pax away from them is to offer even cheaper rides, and I find it very hard to believe that this new company has billions in the bank with which to underut Uber and take its customers. I just don't see it. If I'm wrong on this, UberHammer, feel free to correct me.

Tryp claims on its website that it is launching 10 days from now. Yet checking the CPUC website to see if they have a TNC license for California reveals:

upload_2019-1-24_5-49-45.png


Nada. Zilch. Bupkis.

If I had "invested" $200 hoping to drive in California, I'd be quite concerned. As the website says, the search results include pending carriers, implying that Tryp hasn't even applied for a TNC permit in California.
 
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UberHammer

Well-Known Member
Past Sponsor
Tryp claims on its website that it is launching 10 days from now.
No it doesn't.

That is some Tryp Influencer's personal site, that is in violation of their agreement with Tryp because they use the Tryp name in the domain. They will be deactivated from Tryp soon.... if they already haven't been.

Tryp has applied and been approved for some states already. Here are a couple: https://www.puco.ohio.gov/industry-information/industry-topics/transportation-network-company-list/, https://www.azdot.gov/docs/default-source/motor-vehicle-services/vehicle-for-hire/vfh-valid-permits-tnc.pdf?sfvrsn=266.

Took a couple weeks after Tryp announced that they had been approved for Arizona before they showed up on Arizona's website list. I don't think governments update their website lists immediately. Probably outsourced to some contractor who has a month to update it.

They've announced they have approval in six states so far. They are supposed to announce more approval's on tonight's corporate call.

- Where is the driver app?
They said they are going to show the app on tonight's corporate webinar.

It's planned to go into beta testing in February.

- What cities are going to launch, and when?
Each city will launch when they meet 2 criteria:

1) Tryp has received permit from the government to operate rideshare there
2) at least 2000 to 3000 drivers have signed up for that city. Larger cities like LA will require at least 5,000 before they launch there.

- How much per mile and per minute will pax be charged?
Tryp's rates will be 1 to 2% lower than the Uber rates in each city.

Uber drivers receive 75% of Uber's rates, so Tryp drivers will received 98% of Uber's rates.

Basically, every Tryp ride will pay the Tryp driver like a 1.3x surged Uber ride would pay an Uber driver in the same city.


- What is the marketing strategy, or at least plan, to attract pax?
As a city approaches the minimum number of drivers to launch, Tryp will open up a TrypGo center in the city. Not only will this be where drivers go to get support, it will also be the office where local marketing for Tryp is managed. Tryp already has celebrities signed up for media campaigns, and they discussed the possibilities of billboards. But in my opinion those things won't have nearly the impact that the social sharing of the app will have. Tryp will be cheaper for pax. Not only because the rates are 1 to 2% lower, but because the booking fees are also lower. They will only be $1.99. That's $0.50 to $2.00 cheaper than Uber and Lyft booking fees. Riders are then motivated to share the app because they get $0.40 for every ride a rider they referred take for the rest of their life. There will be a lot of "here... try Tryp.... it's cheaper... use my code" going on, until the rider market is saturated and everyone has it. Drivers don't have to do a thing here for this to happen. But they can participate as well in referring riders. I think a lot of them are going to get out of their cars on that first busy bar night and just flood the bar scene with cards with their Tryp code, because the rider referral is the cheapest and longest lasting way to make money from Tryp.

- Given that Uberlyft is a giant cash incineration machine (5 billion dollars lost by Uber alone last year), how will Tryp be profitable when the incumbents cannot?
1) Uber and Lyft are spending a ton of money in autonomous vehicle research (self driving cars). Both of them have the goal of eventually not having drivers in rides on their service. They are both spending billions to make that happen as as soon as possible, and their riders and drivers are financing that by paying high amounts in booking fees, rates, and service fees.

Tryp has no intention of doing such research, and as such does not have those costs on their books. There are no research costs that Tryp needs to pass on to the riders and drivers.

2) Over the years Uber and Lyft spent a ton of money in legal fees due to existing laws that got them in trouble, as well as spent a ton of money on lobbyists to get those laws changed in nearly every state in the US. These costs have resulted in a lot of debt on their books with interest, and their riders and drivers are financing that by paying high amounts in booking fees, rates, and service fees.

Tryp can now enter the rideshare market without having to break any laws like Uber and Lyft did, nor get laws changed. There is no debt and interest costs for those kinds of expenses that Tryp needs to pass on to the riders and drivers.

3) The rideshare market has grown to what it is because not only did Uber and Lyft market to promote their brands, but they convinced a lot of people to change their lifestyle, resulting in those people needing rideshare more. This was not easy, nor cheap. It took a lot of subsidized rides (free to the rider, but driver still got paid), but now today people even decide where to live based on the availability of rideshare. The costs of creating this market of rideshare riders have resulted in a lot of debt on their books with interest, and their riders and drivers are financing that by paying high amounts in booking fees, rates, and service fees.

Tryp has no need to invest in creating a rideshare market like Uber and Lyft did. It already exists (thanks to them). Tryp simply needs to advertise to that existing rideshare market. There is no debt and interest costs for the expenses of creating a rideshare market that Tryp needs to pass on to the riders and drivers.

Uber and Lyft are big, but they are financially bloated. Tryp can operate as a far more financially fit rideshare company, and that saves riders more, and pays drivers better.

What financial backing does Tryp have?
The CEO of Tryp is a billionaire. https://wallmine.com/otc/byoc/officer/1128925/robert-mcnulty

Uber has raised $15 billion dollars to date - how much money does Tryp have with which to go to war with Uber?
Uber is also in the food delivery market, the freight delivery market, scooters, bicycles, etc, etc.... They also lost a ####load of cash trying to win the China market, and eventually losing it. Vanity Fair claimed Uber lost $3 billion in their failed China operation.

A better comparison would be Lyft, who has raised $2.9 million and like Tryp is focused on rideshare and only rideshare. But again, as I wrote above, Tryp will not have all the autonomous car research, legal fees, lobbying fees, and marketing needed to create a rideshare market that Lyft has had, and still has. Uber and Lyft have already paved the legal path and created the rideshare market. Tryp just needs enough capital to tap into what Uber and Lyft created, and not get into autonomous vehicle research.

All I see is MLM promises of wealth, complicated rewards structures (with things like "dream vacations" and exotic cars heavily featured, as usual), "binary team" building and residual income. And not a lot else.
I agree in that I see a TON of that too. But you wont find that crap in my OP. In fact, I advise that drivers should avoid it.

Again, as a Tryp driver, you are not part of the Tryp MLM. Only Tryp Influencers are.

Tryp drivers are customers of Tryp. So are riders.

Riders pay a booking fee to Tryp for use of the Tryp rider app to request a ride.

Drivers pay a service fee to Tryp for use of the Tryp driver app to receive ride requests.

This is how Uber and Lyft work too. There is only two differences:

1) How often and how much drivers pay for service fees
2) Uber and Lyft treat drivers like such crap that it's hard to believe they get away with treating customers that way. Tryp would not be able to treat drivers that way because they would quickly stop paying the $199... and unlike Uber and Lyft, when a driver quits, Tryp actually loses revenue from the driver quiting.

That said, the Tryp MLM is one of the least risky I've ever seen. Unlike most MLMs that require the MLM sales reps to buy inventory every month (which sometimes accounts for 90% of the MLMs overall retail sales), Tryp Influences do not have to buy any Tryp retail products or services (be a rider or a driver). And also unlike most MLMs that are trying to compete for customers who already have a ton of satisfaction in the retail marketspace, Tryp influencers are selling to rideshare drivers, where there is a TON of dissatisfaction. This is why despite me hating MLMs, I actually joined this one. If it was as bad as most other MLMs are, I never would have never even considered it.

However, here is why I advise drivers to avoid becoming Influencers. The history of the CEO of founding companies and then selling them after a few years, plus his current age, tells me Tryp would be sold soon after it proves itself and gets the interest of Fortune 100 companies. He will sell. And what is likely to end when that happens is the Influencer program. Influencers simply won't be allowed to renew for another year... and all the residual income they've built up to is gone in one Wall Street transaction. This is why the influencer opp is only a temporary way to make some money on the side. It's not a way to retire at all, like it's being sold as.
 
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mrpjfresh

Well-Known Member
As I've posted before, a healthy skepticism is smart until more details are announced and the app is unveiled. Things like rates, licensing, insurance details, advertising and plans to grow the user base and best the 800lb gorilla all need to be clarified. Will the driver fee and per ride booking fees cover all their expenses and turn a profit?

That said, I am pulling for them. People balk at the $200/mo but looking at my 1099 from last year, I grossed $45k and Uber took 40% for $17k. F*ing $17k for a buggy app, 3rd world support, crappy insurance, etc! $2400 per year versus $17000 is an absolute no brainer for anyone except the very limited part-timers. Even if you had to buy your own commercial insurance, you'd still come out way ahead if this takes off. I am assuming drivers would be getting comparable upfront Uber rates (not the miserable 1980 sub $1 current driver rates), but we will have to wait and see.

Outside of Karen, I don't think anyone here has drank the Uber Koolaid and these companies have fostered zero loyalty. They are extremely vulnerable to the right challenge; many just don't think this will be it and that is fair. My city is too small and not in any of the top 5 tiers (Atlantic City?? Lol), so I'll just be watching from the sidelines anyway with the popcorn. The true test is will riders actually switch and if this thing truly gets going, just how will U&L react to this threat. Here's hoping.
 

Tweetyyy

Member
1) I hate MLMs; 2) I signed up to drive for Tryp; and 3) I am not a hypocrite.

If you are already familiar with the new rideshare company Tryp, then you know they use MLM (Multi-Level Marketing) to recruit drivers to their rideshare platform. So how can I state both #1 and #2 without being a hypocrite?

The reason I hate MLMs is not because they are MLMs. I hate them because of why people who become MLM sales reps fail. In fact, the reason I signed up to drive for Tryp is because Tryp avoids that same why that causes drivers to fail on Uber and Lyft.


Uber and Lyft drivers suffer from the same problem MLM sales reps do.


The biggest reason people who join up to sell for MLMs fail is because the market gets saturated with sales reps for the MLM. If you were the only sales rep in town for the MLM you joined, you’d have a pretty good chance at succeeding as a sales rep for the MLM (assuming it’s a decent product or service). But when your neighbor is also a sales rep for the same MLM, the woman across the street is too, five people on the next block also are, two dozen in the apartment complex around the corner are too, etc, etc…. then it’s close to impossible for any sales rep of the MLM to succeed, except for those at the top that recruited so well that they created the saturation now being experienced by those below them.

In a nutshell, when there’s another one just like you on every street corner, you are highly likely to fail as an MLM sales rep.

Let me say that again, as you can’t miss this point… when there’s another one just like you on every street corner, you are highly likely to fail as an MLM sales rep.

Does that sound familiar? It should. If you are an Uber/Lyft driver this should be hitting home with you, because unless you drive for Uber/Lyft in some remote area, you’ve experienced that exact same issue in the cities Uber and Lyft operates in. And if you haven’t…. just wait. The gig seems great for a while, and then all the sudden you can’t make half of what you were before, because there are drivers online everywhere. This is a big reason why Uber has as high as 96% of their drivers quit within a year of starting to drive (see CNBC.com: https://www.cnbc.com/2017/04/20/only-4-percent-of-uber-drivers-remain-after-a-year-says-report.html).


99% fail… 96% quit… Tomato…. ToMAHto….


Similarly speaking, FTC studies have shown that as many as 99% of people who join MLMs as sales reps fail (see FTC.gov: https://www.ftc.gov/sites/default/files/documents/public_comments/trade-regulation-rule-disclosure-requirements-and-prohibitions-concerning-business-opportunities-ftc.r511993-00010 /00010-57283.pdf). So…. MLM sales rep…. Uber driver…. one on every street corner…. 99% fail…. 96% quit…. Are you seeing the comparison here?

Forget that a driver is a completely different job than being a sales rep. Because It’s not the type of job that matters. Also forget that Uber and Lyft are not MLMs. Because it’s not the type of company that matters. It’s the over-saturated market conditions that matter.

If it looks like a duck, and quacks like a duck, it probably is a duck. Being a sales rep in an over-saturated market is a duck. Being an Uber/Lyft driver in an over-saturated market is a duck. They are both ducks, because over-saturation sucks. The model MLMs use naturally results in over-saturation of their sales reps, and the model Uber and Lyft use naturally result in over-saturation of their drivers. So, the reason I hate MLMs is the exact same reason I hate Uber and Lyft. Their business models both naturally result in over-saturation.


Doesn’t that make Tryp twice as bad?


So now, you might be thinking, wouldn’t that make Tryp twice as bad? Isn’t it just combining the Uber model with an MLM model?

For the driver, the answer is clearly no, for two reasons: 1) Tryp’s subscription-based service fee model avoids the problem that both Uber and Lyft’s models suffer from that results in the over-saturation of drivers on their platforms; and 2) Tryp drivers don’t have to be MLM sales reps… Tryp drivers can just be drivers.


How does Tryp avoid driver over-saturation?


Drivers have been asking Uber and Lyft for years to either put a limit on the number of drivers that can sign up, or a limit on the number of drivers that can be online at the same time. Such limits would be very similar to what cities have done for decades, where they limit the number of taxi licenses, sometimes called medallions. In New York city, one taxi medallion was worth nearly $1 million to the person that owned it. This is because limits create scarcity, which results in value. It’s a simple economic principle. Government created these limits because without them so many taxis became available, it reduced the value of their services so much that the taxi drivers couldn’t make a living (a situation very similar to why 96% of drivers Uber drivers quit within a year).


What the drivers are asking Uber and Lyft to do would also be like limitations some other driving gig apps have, like Doordash, where a Doordash delivery driver can’t logon to be available to accept deliveries unless the app is allowing more drivers to logon in an area.


However, Uber and Lyft benefit from the over-saturation of drivers on their platforms. When it’s occurring, riders get matched to a driver closer and quicker than they would if the market was not over-saturated with drivers, which reduces the chances of the potential rider using the other platform to get a ride. So, Uber and Lyft have absolutely zero reason to do anything about this. They would never add a feature to their platform that creates such a limit unless some serious market condition, or government regulation forced them to.


Tryp on the other hand doesn’t even need to add such a feature. The subscription-based service fee model Tryp uses naturally results in limitation. According to Uber, around half of Uber drivers drive for Uber for less than 10 hours per week (see Fastcompany.com: https://www.fastcompany.com/90240917/driving-for-uber-and-lyft-full-time-is-getting-harder). That means that around half of Uber drivers would not sign up to drive for Tryp, because they don’t drive enough to benefit from Tryp’s once a month $199 service fee subscription model. The full time Uber drivers who are having $1000+ in service fees taken from their fares will love only having to only pay $199 in service fees instead of $1000+. But for most drivers who drive less than 10 hours per week, the $199 monthly Tryp service fee would cost them more than the total service fees Uber is currently taking from their fares every month. Thus, they won’t drive for Tryp.


A subscription fee is a barrier to entry… a limitation.


That is what is called a “barrier to entry”. The barrier limits the number of people who enter. Tryp doesn’t have to create a feature on the platform to limit the number of drivers, because their $199 barrier to entry does that naturally. So, if all existing rideshare riders are potential Tryp riders, but only half of existing rideshare drivers are potential Tryp drivers, Tryp is naturally going to have a healthier rider to driver ratio on their platform compared to Uber and Lyft, as Tryp establishes its presence in the rideshare market.


In fact, to the driver it doesn’t even matter what share of the rideshare market Tryp gets. In other words, the question “will Tryp get enough riders”, while being important to the owners of Tryp, is somewhat meaningless to the drivers. Uber could get a million ride requests in day, but if there are a million drivers online that day, every Uber driver is going to average 1 ride a day. That’s what over-saturation does. To the drivers, it’s not the volume of riders a platform gets. It’s the ratio of riders to drivers on the platform that matters. A healthier ratio is less saturated with drivers, which results in more ride requests getting assigned to drivers on the platform.


If Tryp gets as little as 2% of riders and 1% of drivers in the rideshare market to switch, Tryp drivers benefit from a rider to driver ratio that’s twice as healthy as they what they experience on Uber and Lyft. And if Tryp gets as much as 30% of riders and 15% of drivers to switch Tryp drivers still have a rider to driver ratio that’s twice as healthy. So regardless of what share of the rideshare market Tryp gets, Tryp drivers get the same ratio benefit. So, drivers in the first month of Tryp’s existence can expect the same ratio benefit produced by the $199/month barrier to entry as Tryp drivers in the 10th year of Tryp’s existence, despite how much smaller Tryp would be in their 1st month than they would be in year 10.


It's the subscription model, not the company, that is great.


I’ve said I hate a few things so far. I said I hate MLMs. I said I hate Uber and Lyft. I said I hate over-saturation, and the reasons that lead to over-saturation. All that hate leads me to love a subscription based rideshare model. That doesn’t mean I love Tryp. That means I love the subscription-based model they’re using. If some other new rideshare company started with this same subscription-based model, I’d love it too. It’s the model, not the company that uses it, that makes it great.


Why being an MLM has no impact on drivers.


But Tryp is still an MLM, so drivers will fail because of that right?


Wrong (doing my best Trump speaking into the mic impression).

View attachment 290781


Tryp drivers are NOT MLM sales reps. When you are a Tryp driver and you logon to Tryp’s website, you will see an “upgrade” tab. When you view that tab, you will see them advertising to you to upgrade to what they call an “Influencer”, and how much it costs you to upgrade. An influencer is a sales rep. They receive compensation via commissions, residual income and bonuses for successfully selling the Tryp platform to drivers, none of which a non-Influencer Tryp driver qualifies for. And yes, it is an MLM model, making a Tryp influencer an MLM sales rep.


And everything I’ve said about the MLM model resulting in the market being saturated with sales reps holds 100% true here. The FTC study (linked above) that show that 99% of MLM sales reps fails is applicable here. 99% of Tryp influencers will probably fail (probably fewer than that in the beginning, but over time it will naturally climb that high because saturation in inevitable in the model). Even if Tryp influencers are ten times more successful than other MLM sales reps, that still means 90% will fail. So, unless you really, really, REALLY believe you can succeed, and are willing to take the effort to execute it, then don’t waste your time, money, and effort on upgrading to a Tryp Influencer. It’s just that simple. Just say no…. and just drive for Tryp.


Sometimes you just gotta commit in order to try


My dream would be a rideshare company that uses a subscription-based service fee model without also being an MLM. But I can’t earn a living in my dreams. So, in reality I do what’s best for me. And in reality, the rideshare company offering the best rideshare model for a driver that does 10+ hours per week is Tryp. So, I’m signed up to drive for Tryp, and can’t wait for them to launch in my city. That said, I still have concerns. After a month or two, I could learn to hate their app. It’s possible. I’m not ignoring the possibility of problems when they do finally launch. But Uber and Lyft are so bad at what they are right now that I am willing to give Tryp a try. I am hoping for something better. As the character Andy Dufresne said in the movie The Shawskank Redemption, “Remember Red, hope is a good thing, maybe the best of things, and no good thing ever dies.” To me that means that even if Tryp fails, I will still have hope that something better than Uber and Lyft comes along, and that hope is a good thing.


So, if Tryp needs drivers to commit before they launch, then part of my hope and willingness to try them includes me stepping up to make that commitment. Maybe I am unique in that way. Uber and Lyft have driven me (pun intended) to try many different things due to my hope (Doordash, Postmates, Grubhub, Amazon Flex, Field Agent, Mobee, Gigwalk, Easyshift, Stringr, Roadie, etc, etc..). My hope includes hoping that my market gets enough drivers like me willing to commit to Tryp so they launch, and we can then all get to see what they can do for us.


So that’s how I can state that I hate MLMs, that I am signed up to drive for Try, and not be a hypocrite.


In fact, I’m kind of looking forward to a time when Tryp’s influencers reach the over-saturation point. I’m sure I’ll pull up to a red light and look over to see a 5 hour per week Uber driver parked next to a Tryp influencer standing on the curb who was trying to get the driver to sign up for a model that would never work for them. Then the driver will say, “I wish you were cheaper, ‘cause I can’t seem to get any riders”. To which the influencer will say, “Yeah, I can’t find any new Tryp drivers either”. As the light turns green, I will say to them both, “Yeah, over-saturation sucks, don’t it”, as I pull away to drive to my next Tryp pickup as a Tryp driver. I might even buy a microphone so I can drop it on the road before I pull away.


To sign up for your free Tryp account and learn more about becoming a Tryp driver, visit https://tryprides.net/?re=tryprober8746 and use the referral code "tryprober8746".

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This article is sponsored by UberHammer . UberPeople.NET is not affiliated with nor endorsing TRYP.
if sound like a duck and and quack like a duck then its a duck. Paying out if pocket first is MLM.......no if and buts about it.....don't get caught up in this game......
 
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