Lyft is collapsing--how will it affect your city?

If Lyft goes out of business, how will it affect you?

  • Not at all, or barely.

  • Lyft is still in business?

  • What is "Lyft?"

  • Oh No! Lyft was my favorite platform!

  • Finally! Tell Mr. Zimmer where he can stick that fistbump.


Results are only viewable after voting.

Krishna

Well-Known Member
Many stories in the last few days indicate that Lyft is in the process of doing a "Sidecar"-style exit.

If Lyft sinks, how will that affect driving in your city?

Here in Tucson, it used to be nice to have an alternative to Uber, but since Lyft lowered its rates to match Uber, there has been no further need for them from a driver's perspective.
 

Greguzzi

Well-Known Member
I see little reason to turn on their stupid app these days. I used to drive for them almost exclusively, but then they eliminated my car from PDB. Also, they keep up with stupid shit like not showing surge, so to hell with them.
 

Another Uber Driver

Well-Known Member
Moderator
It is an alternative to Uber, so I liked it for that. These days, given the Uber subsidies, I have not done too many Lyft trips. I suspect that if Lyft goes under, Uber will drop its subsidies.

What will be telling will be what Lyft does when a customer has a bad credit card. As it is, Lyft tells you that the customer "has twenty-four hours to pay". I have heard that Lyft will pay you, if the card is bad, after seventy-two hours. Sidecar was similar. Suddenly, Sidecar put out the news that no longer would it cover for customers who had a bad card. Shortly thereafter, Sidecar went under.

One thing that I do like about Uber is that it will pay you, anyhow, if the customer's card is bad.
 

Krishna

Well-Known Member
  • Thread Starter Thread Starter
  • #5
You're right, a lot of Uber's subsidies are targeted at keeping drivers off of Lyft.

But without subsidies, a lot of drivers would be left driving at base rates, which are not realistic.

Could Lyft's demise lead to a raise in Uber prices?
 

I_Like_Spam

Well-Known Member
Could Lyft's demise lead to a raise in Uber prices?
Probably not, for two reasons.

1.Since new entrants into the market don't need to buy fleets or garages, there really isn't a big barrier to entry

2.There will still be the same number of people out there driving, and the same number of passengers looking for rides. Lyft may be leaving, but the people doing the lyfting will still be around.


Prices may well rise in the future, maybe even the near future, but the end of Lyft won't be the catalyst.
 

Krishna

Well-Known Member
  • Thread Starter Thread Starter
  • #7
There will still be the same number of people out there driving, and the same number of passengers looking for rides.
We all know that Uber burns through drivers faster than Kalanick with a wad of venture capital. For many reasons, but first and foremost because you can actually lose money driving at these rates.

The question is, how long can Uber keep up the artificially low prices? And why bother, if their main competitor goes under?

Finally, if part of what is causing Lyft to lose money is the price war, aren't the low prices hurting Uber as well? Of course they are.
 

I_Like_Spam

Well-Known Member
We all know that Uber burns through drivers faster than Kalanick with a wad of venture capital.


But just because someone gets uberdeactivated, or just gives up on the idea of Uber, doesn't mean they aren't still available to ride people around , using a different method to hook up with riders.

The drivers über burns through don't drop off the edge of the earth, and many will still be in competition.


Ride sharing is different than other forms of public transportation. Jet Blue's pilots are not expected to provide their own jets, so if the company were to withdraw from the market, it actually means less planes in the air.
 

Krishna

Well-Known Member
  • Thread Starter Thread Starter
  • #9
That seems like a silly objection. Uber's ex-drivers don't have to be off the street, they just have to be off the platform. They are either giving rides, or they aren't. And Uber can't lure drivers back at these rates.
 

SomeDrivingGuy

Active Member
There goes plan B for rideshare. Lyft pays 20% while uber pays 25%. The guarantees from uber have been great, but without any competition, I doubt they will send incentives, unless their best drivers drive less often.
 

Another Uber Driver

Well-Known Member
Moderator
if part of what is causing Lyft to lose money is the price war, aren't the low prices hurting Uber as well?
They are, but Uber seems to have access to more funding than anyone else. Lyft has (or had, perhaps this is the source of Lyft's problem) access to GM's money. Perhaps GM is unwilling to put up what is necessary to keep Lyft competitive, which is why Lyft is looking for a buyer. Whoever buys it will have to put some money onto the altar to keep it competitive with Uber.
 

stemor

Member
I tried to find a human being at Uber, and failed. I then reached out to Lyft, for whom I also drive, and tried to give them some helpful insight into my small local (Memphis, TN) market. Again, I failed to reach anybody that seemed to give a rat's fuzzy patoot about the actual logistics in a small market ... between the two platforms, we don't have one single person responsible for pretending to give a whoop, let alone anybody actually physically located here. Nope, we are oh-fer-Memphis.

So, when Lyft goes "splat", what we lose is a rideshare platform that does nothing about actually encouraging drivers to pick up passengers at our airport, though it's easy and legal to do so. Many times, I will see that there are ZERO Lyft drivers at MEM, and the closest driver is 12+ minutes away. My home is 25 minutes from the airport, and I can drive straight there by highway and still be the first driver to show up during any one of our relative busy periods throughout the day.

And, by losing Lyft, I lose a platform that is so ridiculously unresponsive to market dynamics that I might lose the ability to get pinged ... as the ONLY available driver in the entire metro area ... from 30 minutes away, with absolutely ZERO prime time premium. Yep, whether it's the AM commute or the late night bar scene, I've been the only available driver in the entire Memphis metro area (which spans some 25 miles from the Mississippi river eastward), getting unreasonable pickup requests from the far other side of town, with not one iota of encouragement or additional compensation. So, if I want to get my PDB, I'll accept it ... or, more realistically, I'll turn off my app to avoid getting that unprofitable request, and that's exactly what I do.

Goodbye, Lyft. You were a good idea, poorly executed.
 

saucy05

Well-Known Member
You're right, a lot of Uber's subsidies are targeted at keeping drivers off of Lyft.

But without subsidies, a lot of drivers would be left driving at base rates, which are not realistic.

Could Lyft's demise lead to a raise in Uber prices?
I can see that since uber takes a share of the fare. But they could also increase the uber fee and if we don't have another option then we would be forced to accept it.

At the end of the day competition is good for us drivers and pax. Monopoly is a recipe for disaster i.e. Comcast. So let's hope lyft somehow survives.
 

saucy05

Well-Known Member
And, by losing Lyft, I lose a platform that is so ridiculously unresponsive to market dynamics that I might lose the ability to get pinged ... as the ONLY Yep, whether it's the AM commute or the late night bar scene, I've been the only available driver in the entire Memphis metro area (which spans some 25 miles from the Mississippi river eastward), getting unreasonable pickup requests from the far other side of town, with not one iota of encouragement or additional compensation. So, if I want to get my PDB, I'll accept it ... or, more realistically, I'll turn off my app to avoid getting that unprofitable request, and that's exactly what I do.

Goodbye, Lyft. You were a good idea, poorly executed.
That's amazing to see the stark differences between regions. In busy days, there are probably thousands of cars just on uberx in Los Angeles. Why is there such a low demand and supply in your town? Does lyft not care about small markets like yours?
 

stemor

Member
"Why is there such a low demand and supply in your town? Does lyft not care about small markets like yours?"

It's not low demand, it's unreliable supply. And the one area whose driver base doesn't seem to get replenished is the airport. I've had numerous customers tell me that they "prefer Lyft, but had to take Uber into their hotel because there were no drivers available at the airport". And yes, I believe this is because neither Lyft nor Uber care about these smaller. under-the-radar markets -- why else would they not even bother to place even one single employee here?
 

Krishna

Well-Known Member
  • Thread Starter Thread Starter
  • #16
It's the same in Tucson, the closest actual Uber or Lyft personnel are in Phoenix.
 

Tidballa

Well-Known Member
Lyft's last ditch effort should be to raise rates if they drive exclusively for Lyft. No surge, no line... Just fair rates half the price of cabs. Try it in one city for a week and see what happens. If they sent out that email, I would never turn on uber.
 

Oscar Levant

Well-Known Member
We all know that Uber burns through drivers faster than Kalanick with a wad of venture capital. For many reasons, but first and foremost because you can actually lose money driving at these rates.

The question is, how long can Uber keep up the artificially low prices? And why bother, if their main competitor goes under?

Finally, if part of what is causing Lyft to lose money is the price war, aren't the low prices hurting Uber as well? Of course they are.

They are, but Uber keeps getting new investment capital, and I heard they are seeking a two billion loan. When they start borrowing money,
that's when they will start going downhill ( interest trap will kill Uber, eventually if they go down that path ). But, what do I know about big biz? ( zilch, to be honest :smiles: ).
 

RamzFanz

Well-Known Member
Many stories in the last few days indicate that Lyft is in the process of doing a "Sidecar"-style exit.
Na, GM just dropped $500,000,000 on them. They wouldn't do that if their financials weren't in order. My guess is they are just trying to sell out while the demand for a company like theirs is big. There are hundreds of major corporations racing to become SDC TNCs.
 

uber strike

Well-Known Member
Many stories in the last few days indicate that Lyft is in the process of doing a "Sidecar"-style exit.

If Lyft sinks, how will that affect driving in your city?

Here in Tucson, it used to be nice to have an alternative to Uber, but since Lyft lowered its rates to match Uber, there has been no further need for them from a driver's perspective.
where are these stories? but actually there is a need for lyft. lyft means that riders will get service. so you will always have riders that want friendly service and are loyal to lyft. as for the driver's perspective... the fact that uber tells riders not to tip you should always cause you to choose lyft when there is no surge or incentives.
 
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