Uber and Lyft say they're ending services in Minneapolis over a city-mandated driver pay increase. The city council pushed through the measure to bring driver pay closer to the local minimum wage of $15.57 an hour.
The shitty gig companies decimated the taxi industry, and I wouldn’t be surprised to see things like drunk driving tick up, especially come winter.
I hope the city can incentivize something new to fill the void. And hopefully they can also put guardrails around it so drivers and passengers don’t get screwed.
The industry got decimated due to being worse than the apps. The apps 100% exploit drivers, but let's not act like calling a cab was such a good experience 20 years ago.
American cabs fucked passengers. Gig companies fucked drivers.
I recently said “fuck it, I’ll take a cab from the airport cab pool.” It was like immediately time traveling to a differently shitty moment in history. The cab smelled like it was made out of Newport filters and ass, and when we got to my home, the guy refused to take a credit or debit card.
Dude was picking up people from the international terminal, where they were often landing without local currency, then he would tack on a trip to the bank, with the meter running.
The apps weren't profitable. They sold rides for less than it cost them, which killed the industry. That's what all disruptive companies do, sell for an unprofitable price and have investor money make up the difference.
Taxi companies could not compete. How could they? It didn't matter if they were good or bad. There was no chance to compete because they all went out of business.
Again, the apps didn't win because they were better, it's because they didn't allow competition. In a sane world they would have had to have made a profit, and the taxi companies would have made their own app, and things would be pretty much equal across the board. But that never happened.
The taxi industry let themselves get decimated because they fucking sucked and refused to improve their services. Not defending uber or Lyft, but taxis really fucking sucked and they got decimated because people were more than happy to ditch them for something better.
The whole gig economy needs to be stamped out. In a capitalist society the role of government should be to protect people from corporations and they're not doing it.
It's such an obvious scam as well. "Oh it's not down to us what our contractors pay their employees!" as if they don't know exactly how much it takes for them to hire people to do it at minimum wage and then paying somebody else substantially less.
Is that why they spent millions to defeat a law in CA that would have clarified that their employees are in fact employees and should be covered by minimum wage laws?
I have to wonder how hard it would be to build some kind of open source platform to compete with these companies. Then the drivers will be free to set their own rates and this rent-seeking behavior can be undermined.
I have to wonder how hard it would be to build some kind of open source platform to compete with these companies.
I'd have to imagine that the answer to that is "really damn hard". Look at any Lemmy instance and see how hard it is just to create and maintain an open source "comment section for the internet" platform; now imagine managing thousands of financial transactions on that platform, processing background checks, establishing some sort of trust and security team, and people's livelihoods depending on that all working reliably all the time.
There's a reason why only VC-backed companies have managed to get off the ground in this space; it's hella expensive for a bunch of volunteers to manage.
I've always thought that a smart contract system on a blockchain like Ethereum could make for a really good ride share app that's focused on the drivers running their own independent business.
It would solve the payments problem. It could also automate the requesting and accepting a ride.
The drivers could post their own rates
The contract could take a small fee out of the ride fare to help fund the devs.
And with the latest Ethereum upgrade this week, you could transact for pennies.
I'm still not sure how decentralized trust would work though, and how you'd get licensed.
Real time map updates might be a problem too, but maybe the driver app and rider app could find each other and open a websocket and stream GPS locations peer to peer instead of via any centralized server? This part might be more janky at first vs a central service.
Edit: and the service could run on a stable coin so people aren't subject to volatility
Edit: just thinking on the GPS... if the driver publicly posts a web socket/api address you can connect to peer to peer, what if it only accepts connections by the current active ride. So the riders wallet signs the app request to open the socket and then the two parties can start sharing their location? That way it only gets shared to the appropriate people. But if a driver wants to know where before accepting, the rider would need to publicly post the where, so maybe you only post to 2mile radius or something, and the actual address gets done peer to peer if accepted?
Edit: also the contracts are open source, it's the front ends that would be the developers business, and technically anyone could copy the smart contracts and write their own front end to them, and if it took off, I imagine people would eventually write an open source front end as well. It'd help keep costs down as if you were too uncompetitive someone else could enter.
Edit: and if it was just an open source front end, no city would be able to stop it. It'd be forever accessible where someone could post they are available to pick up, and anyone could post they need a ride. Trust wouldn't even need to be solved by this specifically, trust is a problem other people/business can solve and it just hooks into this.
Fuck Lyft. I stopped using them after I dropped my phone in a ride and it took the idiot customer service agent FORTY FIVE MINUTES to reach out to the driver. They kept asking me to login to my account to verify it was me, but I couldn't because it kept sending the 2FA code to my phone... Which I didn't have. The agent wasn't able to comprehend this.
What about Uber Eats and Doordash and the others? Do they have to comply with the new minimum wage or shut down too? Hoping they can make a decent wage.
Uber was forbidden from setting up where I live but Uber Eats is a thing here.
I guess there is going to be a split on this in terms of what people think. Obviously ride share drivers would love this, and since the only time I’m in Minneapolis is when I’m on business, it’s my company footing the bill, not me.
However - if it was me footing the bill, I’m sure I’d be much less inclined to take a Lyft/Uber. However, ending ops over this is stupid, because there will be people that will pay for it, business or personal. Let the market decide what’s palatable.
Everyone’s wallet is shrinking due to the rampant inflation over the past several years, and if you’re a full time ride share driver, it’s hard to cut even with the rising costs all around. Even before the inflation was hard. Vehicles don’t run on hopes and dreams and need maintenance.
This is the beauty of self employment. As I said in a previous comment, I'm a driver and one of the apps I work along with my own service give me the ability and freedom to raise my own rates when I feel the need. Truth is though, as it stands, most uber and lyft drivers could make more than enough if the companies were forced to pass on a percentage instead of low balling offers. Very rough math says they could pass on a fixed 80% and charge the rider whatever they feel like at any point in time. This would give them more enough profit along with covering all costs. They won't do this because they are greedy and states/cities won't make them do it because they are stuck in the hourly mindset when most IC work is not hourly. This job is all about miles. Watch dead and wasted time of course but it's not all about the hourly.
But it's a tactic, right? They could still make money, if a bit less, by operating in Minneapolis. But they can put pressure on residents to try and get it repealed by stopping, and try to send a message to other cities.
I'm a driver in another state/city but if I lived in Minneapolis I'd be loving this.
Why?
I drive uber, empower (a service launched in my market) and I'm building my own service. Getting uber and lyft kicked out of town will do amazing things for the industry and the drivers and riders. Regional services will pop up and this will help filter out the drivers who know how to run a business and act professionally and those who shouldn't be self employed and customer facing.
I'm on track to pull 6 figures in the next year or two. I'm currently in the process of upgrading to an EV, later this year we will be buying my wife a phev mini van for her to main and I'll use it for business if needed as well as for road trips.