Lyft Merger

Optimus Uber

Well-Known Member
http://www.lctmag.com/operations/ne...rey-lyft-merger-talks-surprises-limo-industry

Carey, Lyft Talking Possible Merger, Email Reveals


WASHINGTON, D.C. — Carey International is pursuing a partnership with Lyft that, if sealed, would become the first and largest such deal between a major chauffeured vehicle service and a transportation network company (TNC), sources confirmed to LCT Magazine.



The disclosure, relayed to LCT by a source who received an email from Carey CEO Gary Kessler, amounts to a stunning revelation for the limousine industry, which has been fighting Lyft and Uber in the regulatory arena over passenger safety, insurance and duty-of-care issues. Carey, considered to be among the largest and oldest elite chauffeured transportation services in the world, also had been working with leading companies Dav El / BostonCoach and Empire CLS to create a uniform technology platform for the limousine industry that would allow pooling of fleet vehicles with adherence to duty-of-care policies, as reported in the July issue of LCT.

The July 1 email from Kessler to Lyft's director of enterprise partnerships Amit Patel makes several references to the logistics of a pending partnership or merger between the two companies. Kessler sent the email to a member of the limousine industry or may have included that individual on the email address list, resulting in an apparent misfire and the disclosure. The individual who received the email shared it only on condition of anonymity.

In the text of the email, Kessler references a “Lyft/Carey Partnership summary” that addresses “how to handle the integration between the Carey and Lyft sales teams,” “messaging,” “referrals and lead-sharing,” “co-selling initiatives,” a section of the summary related to “discussing your current proposed merger-specific solutions,” and a plan of attack for selling to travel managers.

The email goes on to refer to “obvious places to start our exploration of ways for the Carey and Embark reservations [to] flow into Lyft.” The text also refers to a meeting to be held at 9 a.m. PT on July 6, devoted in part to “API and joint reporting solutions.”

“We will most likely have the strongest chance of meeting our deadlines if we can work through the other points as soon as possible,” the email states.

When contacted by LCT July 5, Kessler said the email reflected “exploratory conversations,” and said there is “nothing to discuss,” and nothing pending. He called any reference to a Lyft-Carey deal “a bit premature.” When asked further about the tone of certainty and level of detail conveyed in the email, Kessler declined further comment. The email did not include any legal advisories or disclaimers.

Leaders of two organizations representing ground transportation sectors hurt by the regulatory disparities between them and TNCs are still trying to fully assess the expected fallout if a Carey-Lyft partnership is announced.

NLA President Gary Buffo said he would make statements to the industry and the NLA membership on July 6.

Dwight Kines, President of the Taxi Limousine & Paratransit Association, said, “Carey is a legitimate, renowned carrier with a great reputation in the limousine business. The TLPA hopes that if this is true, it’s more a matter of Lyft coming into compliance with regulation, safety inspections, fingerprint background checks, and driver screening — things Lyft has all resisted. I hope it signals the start of compliance in those areas.”

The TLPA will continue to call on all TNCs to obey local regulations no matter what they are, Kines said. “Our thrust is that our members are all playing by the same rules as TNCs. In most states, we’ve ended up with a dual set of regulations, one for them and the other for the brick and mortar operator that has followed the same rules for years. We feel very strongly they are not a technology company and will continue to take that stand."

LCT left messages with the franchisees or managers of Carey operations in four big cities who have not yet returned requests for comment.

Lyft, which has been a distant No. 2 in revenue and activity to Uber, has attracted more venture capital in recent years as it courts the corporate and business travel sector with pre-reservation and managed travel options, while entering a $500 million self-driving vehicle venture with General Motors.

Lyft investors listed here

With 1,531 vehicles, Carey International ranks as the second largest chauffeured transportation company on LCT's just published 2016 50 Largest Fleets List. Carey Holdings Inc., the parent company of Carey International, is majority owned byHighland Capital Management LP, according to a 2012 bankruptcy filing by Carey's Southern California division.
 

Optimus Uber

Well-Known Member
  • Thread Starter Thread Starter
  • #3
This makes a lot of sense. Unlike the taxi industry that just yelled a lot, these guys are going to buy Uber's biggest US competitor. They will likely as a result give Select and Black a run for their money.
The one big asset this brings to lyft is Black Car / SUV which it is currently lacking. Lyft is putting together the premier line to take on UberSelect. But, I think, this merger is so Lyft can be like Uber and offer the upper end services. Get ready for Lyft to battle for drivers. Especially since Lyft has a tipping feature. Uber may have to reconsider the tipping feature if drivers give priority to Lyft rides.

At first I didn't think Lyft starting a premier line would be good. Thought it would be a race to the bottom for pricing. But if Lyft inks this deal for black / SUV, it could really turn Ubers world upside down. I'm going out to the highest bidder.
 
Last edited by a moderator:

mandreyka

Well-Known Member
Now Lyft just needs to tell drivers what the price is so we can accept a fare.

I let a big prime time fare ping through on the 4th because I didn't know it was a plus prime time ping. After I let it go I looked on the map and saw it was solid got pink in that area. Got an uber surge ping right after and left Lyft off the rest of the night.

Oh and they need to rebrand and shave the pink stache
 

Driverish

Well-Known Member
Now Lyft just needs to tell drivers what the price is so we can accept a fare.

I let a big prime time fare ping through on the 4th because I didn't know it was a plus prime time ping. After I let it go I looked on the map and saw it was solid got pink in that area. Got an uber surge ping right after and left Lyft off the rest of the night.

Oh and they need to rebrand and shave the pink stache
Chaplin Mustache will be
 

Lord Summerisle

Well-Known Member
Now Lyft just needs to tell drivers what the price is so we can accept a fare.

I let a big prime time fare ping through on the 4th because I didn't know it was a plus prime time ping. After I let it go I looked on the map and saw it was solid got pink in that area. Got an uber surge ping right after and left Lyft off the rest of the night.

Oh and they need to rebrand and shave the pink stache
Just because it's in the pink area doesn't necessarily mean it's a PT ride - something stupid like that?
 

yucklyftline

Well-Known Member
Competing with black/suv? This a definite race to the bottom.

This is exactly what happened when lyft first appeared, forcing uber to introduce X and cutting rates as they went. Now they merge with a premium provider, the one they lack as a company, and you have competition on all fronts. All they're missing now is Lyft Eats and the symmetry between the 2 companies will be complete.

I drive Lyft full time, the more I read and the more I understand, they aren't the friendly little company pax try to make them out to be. They are just as ruthless as Uber is, if not more. This race to the bottom will be inevitable if this deal goes through, really a brilliant move on lyft. They've patched up the one area they've had no play in and will bite into it's big brother once again.

When these merger talks started last week, one could only assume they were going to be swallowed by a much bigger company, take their billions, and move on. Not only are they saying they're here to stay, but they are hitting the bully right in the chin.

If the deal goes through, this will undoubtedly affect your rates as select/black/lux drivers. Sure, the battle for drivers will provide good incentives starting out, but the pax are what determine who win. Once they realize they can grab a Lyft Black ride for 20-50% less, that will only trigger uber to drop rates.
 

Optimus Uber

Well-Known Member
  • Thread Starter Thread Starter
  • #11
Competing with black/suv? This a definite race to the bottom.

This is exactly what happened when lyft first appeared, forcing uber to introduce X and cutting rates as they went. Now they merge with a premium provider, the one they lack as a company, and you have competition on all fronts. All they're missing now is Lyft Eats and the symmetry between the 2 companies will be complete.

I drive Lyft full time, the more I read and the more I understand, they aren't the friendly little company pax try to make them out to be. They are just as ruthless as Uber is, if not more. This race to the bottom will be inevitable if this deal goes through, really a brilliant move on lyft. They've patched up the one area they've had no play in and will bite into it's big brother once again.

When these merger talks started last week, one could only assume they were going to be swallowed by a much bigger company, take their billions, and move on. Not only are they saying they're here to stay, but they are hitting the bully right in the chin.

If the deal goes through, this will undoubtedly affect your rates as select/black/lux drivers. Sure, the battle for drivers will provide good incentives starting out, but the pax are what determine who win. Once they realize they can grab a Lyft Black ride for 20-50% less, that will only trigger uber to drop rates.
100% correct. Competition only good for consumer.

But it could make these companies incentivize drivers until one of them goes bankrupt
 

Adieu

Well-Known Member
Competing with black/suv? This a definite race to the bottom.

This is exactly what happened when lyft first appeared, forcing uber to introduce X and cutting rates as they went. Now they merge with a premium provider, the one they lack as a company, and you have competition on all fronts. All they're missing now is Lyft Eats and the symmetry between the 2 companies will be complete.

I drive Lyft full time, the more I read and the more I understand, they aren't the friendly little company pax try to make them out to be. They are just as ruthless as Uber is, if not more. This race to the bottom will be inevitable if this deal goes through, really a brilliant move on lyft. They've patched up the one area they've had no play in and will bite into it's big brother once again.

When these merger talks started last week, one could only assume they were going to be swallowed by a much bigger company, take their billions, and move on. Not only are they saying they're here to stay, but they are hitting the bully right in the chin.

If the deal goes through, this will undoubtedly affect your rates as select/black/lux drivers. Sure, the battle for drivers will provide good incentives starting out, but the pax are what determine who win. Once they realize they can grab a Lyft Black ride for 20-50% less, that will only trigger uber to drop rates.
Oy, y'all realize we in the OC & LA forum here?

Lyft pays AND charges MORE than Uber in OC and charges same / pays potentially more in LA....

and pax take then $7 OC minfares and tip their $2, regularly telling us that they'd rather pay the higher base rate than deal with Uber, and that they see us as a sorta product tier slotted between UberX and Select

Also, certain areas got no Ubers no more.
 

yucklyftline

Well-Known Member
Lyft pays AND charges MORE than Uber in OC and charges same / pays potentially more in LA....
That is true for some markets. In the city, Lyft's rate are a penny more per mile and a penny more per minute.

But countless times lyft pax have stepped into my car saying how much cheaper it was than uber. That is frustrating as a driver. But I'm full time and make it work. I'd rather make pdb for lyft and make my 20% back then get $500 for doing pdb+ for uber and have them take 25% of my paycheck. My tips range from 100-150 a week, so it's enough that I make more driving for lyft than uber. But if it's surging, I'd rather take a 4.6 surge from uber than a 200% from lyft, all the while not exactly knowing how much Lyfts primetime is.

Again, I have my methods and a photographic memory doesn't hurt, so I do an ok job of deciding to take primetime requests.
 

Beur

Well-Known Member
For the past 2 months or so I was making way more driving Lyft, last two weeks it's Uber buttering my bread. Can't figure out why the sudden change.
 

Adieu

Well-Known Member
For the past 2 months or so I was making way more driving Lyft, last two weeks it's Uber buttering my bread. Can't figure out why the sudden change.
Saturation.

Double-dipping pax keep saying ita not like they chose, really, just that nobody does Uber no more in huge swathes of CA

NO uberx available vs. Lyft 2-3 mins eta

You just popped the vaccuum bubble. And the more stubborn Uber loyalists' pings started rolling in like crazy
 

MrsUberJax

Well-Known Member
Very interesting, read this in the online issue... I may have to open up that lyft app more often...
 
Top