#uber lyft rideshare

[dispatchesfromtheclasswar]

When you take an Uber/Lyft or other ride share service, you're exploiting the driver, who on-average is earning less than $6/hour once their costs as an "independent contractor" are factored in, according to an analysis of 84 million rideshare trips. Stop being an asshole.

[mostlysignssomeportents]

No, Uber's (still) not profitable

Going to Defcon this weekend? I'm giving a keynote, "An Audacious Plan to Halt the Internet's Enshittification and Throw it Into Reverse," on Saturday at 12:30pm, followed by a book signing at the No Starch Press booth at 2:30pm!

https://info.defcon.org/event/?id=50826

Bezzle (n): 1. "the magic interval when a confidence trickster knows he has the money he has appropriated but the victim does not yet understand that he has lost it" (JK Gabraith) 2. Uber.

Uber was, is, and always will be a bezzle. There are just intrinsic limitations to the profits available to operating a taxi fleet, even if you can misclassify your employees as contractors and steal their wages, even as you force them to bear the cost of buying and maintaining your taxis.

The magic of early Uber – when taxi rides were incredibly cheap, and there were always cars available, and drivers made generous livings behind the wheel – wasn't magic at all. It was just predatory pricing.

Uber lost $0.41 on every dollar they brought in, lighting $33b of its investors' cash on fire. Most of that money came from the Saudi royals, funneled through Softbank, who brought you such bezzles as WeWork – a boring real-estate company masquerading as a high-growth tech company, just as Uber was a boring taxi company masquerading as a tech company.

Predatory pricing used to be illegal, but Chicago School economists convinced judges to stop enforcing the law on the grounds that predatory pricing was impossible because no rational actor would choose to lose money. They (willfully) ignored the obvious possibility that a VC fund could invest in a money-losing business and use predatory pricing to convince retail investors that a pile of shit of sufficient size must have a pony under it somewhere.

This venture predation let investors – like Prince Bone Saw – cash out to suckers, leaving behind a money-losing business that had to invent ever-sweatier accounting tricks and implausible narratives to keep the suckers on the line while they blew town. A bezzle, in other words:

https://pluralistic.net/2023/05/19/fake-it-till-you-make-it/#millennial-lifestyle-subsidy

Uber is a true bezzle innovator, coming up with all kinds of fairy tales and sci-fi gimmicks to explain how they would convert their money-loser into a profitable business. They spent $2.5b on self-driving cars, producing a vehicle whose mean distance between fatal crashes was half a mile. Then they paid another company $400 million to take this self-licking ice-cream cone off their hands:

https://pluralistic.net/2022/10/09/herbies-revenge/#100-billion-here-100-billion-there-pretty-soon-youre-talking-real-money

Amazingly, self-driving cars were among the more plausible of Uber's plans. They pissed away hundreds of millions on California's Proposition 22 to institutionalize worker misclassification, only to have the rule struck down because they couldn't be bothered to draft it properly. Then they did it again in Massachusetts:

https://pluralistic.net/2022/06/15/simple-as-abc/#a-big-ask

Remember when Uber was going to plug the holes in its balance sheet with flying cars? Flying cars! Maybe they were just trying to soften us up for their IPO, where they advised investors that the only way they'd ever be profitable is if they could replace every train, bus and tram ride in the world:

https://48hills.org/2019/05/ubers-plans-include-attacking-public-transit/

Honestly, the only way that seems remotely plausible is when it's put next to flying cars for comparison. I guess we can be grateful that they never promised us jetpacks, or, you know, teleportation. Just imagine the market opportunity they could have ascribed to astral projection!

Narrative capitalism has its limits. Once Uber went public, it had to produce financial disclosures that showed the line going up, lest the bezzle come to an end. These balance-sheet tricks were as varied as they were transparent, but the financial press kept falling for them, serving as dutiful stenographers for a string of triumphant press-releases announcing Uber's long-delayed entry into the league of companies that don't lose more money every single day.

One person Uber has never fooled is Hubert Horan, a transportation analyst with decades of experience who's had Uber's number since the very start, and who has done yeoman service puncturing every one of these financial "disclosures," methodically sifting through the pile of shit to prove that there is no pony hiding in it.

In 2021, Horan showed how Uber had burned through nearly all of its cash reserves, signaling an end to its subsidy for drivers and rides, which would also inevitably end the bezzle:

https://pluralistic.net/2021/08/10/unter/#bezzle-no-more

In mid, 2022, Horan showed how the "profit" Uber trumpeted came from selling off failed companies it had acquired to other dying rideshare companies, which paid in their own grossly inflated stock:

https://pluralistic.net/2022/08/05/a-lousy-taxi/#a-giant-asterisk

At the end of 2022, Horan showed how Uber invented a made-up, nonstandard metric, called "EBITDA profitability," which allowed them to lose billions and still declare themselves to be profitable, a lie that would have been obvious if they'd reported their earnings using Generally Accepted Accounting Principles (GAAP):

https://pluralistic.net/2022/02/11/bezzlers-gonna-bezzle/#gryft

Like clockwork, Uber has just announced – once again – that it is profitable, and once again, the press has credulously repeated the claim. So once again, Horan has published one of his magisterial debunkings on Naked Capitalism:

https://www.nakedcapitalism.com/2023/08/hubert-horan-can-uber-ever-deliver-part-thirty-three-uber-isnt-really-profitable-yet-but-is-getting-closer-the-antitrust-case-against-uber.html

Uber's $394m gains this quarter come from paper gains to untradable shares in its loss-making rivals – Didi, Grab, Aurora – who swapped stock with Uber in exchange for Uber's own loss-making overseas divisions. Yes, it's that stupid: Uber holds shares in dying companies that no one wants to buy. It declared those shares to have gained value, and on that basis, reported a profit.

Truly, any big number multiplied by an imaginary number can be turned into an even bigger number.

Now, Uber also reported "margin improvements" – that is, it says that it loses less on every journey. But it didn't explain how it made those improvements. But we know how the company did it: they made rides more expensive and cut the pay to their drivers. A 2.9m ride in Manhattan is now $50 – if you get a bargain! The base price is more like $70:

https://www.wired.com/story/uber-ceo-will-always-say-his-company-sucks/

The number of Uber drivers on the road has a direct relationship to the pay Uber offers those drivers. But that pay has been steeply declining, and with it, the availability of Ubers. A couple weeks ago, I found myself at the Burbank train station unable to get an Uber at all, with the app timing out repeatedly and announcing "no drivers available."

Normally, you can get a yellow taxi at the station, but years of Uber's predatory pricing has caused a drawdown of the local taxi-fleet, so there were no taxis available at the cab-rank or by dispatch. It took me an hour to get a cab home. Uber's bezzle destroyed local taxis and local transit – and replaced them with worse taxis that cost more.

Uber won't say why its margins are improving, but it can't be coming from scale. Before the pandemic, Uber had far more rides, and worse margins. Uber has diseconomies of scale: when you lose money on every ride, adding more rides increases your losses, not your profits.

Meanwhile, Lyft – Uber's also-ran competitor – saw its margins worsen over the same period. Lyft has always been worse at lying about it finances than Uber, but it is in essentially the exact same business (right down to the drivers and cars – many drivers have both apps on their phones). So Lyft's financials offer a good peek at Uber's true earnings picture.

Lyft is actually slightly better off than Uber overall. It spent less money on expensive props for its long con – flying cars, robotaxis, scooters, overseas clones – and abandoned them before Uber did. Lyft also fired 24% of its staff at the end of 2022, which should have improved its margins by cutting its costs.

Uber pays its drivers less. Like Lyft, Uber practices algorithmic wage discrimination, Veena Dubal's term describing the illegal practice of offering workers different payouts for the same work. Uber's algorithm seeks out "pickers" who are choosy about which rides they take, and converts them to "ants" (who take every ride offered) by paying them more for the same job, until they drop all their other gigs, whereupon the algorithm cuts their pay back to the rates paid to ants:

https://pluralistic.net/2023/04/12/algorithmic-wage-discrimination/#fishers-of-men

All told, wage theft and wage cuts by Uber transferred $1b/quarter from labor to Uber's shareholders. Historically, Uber linked fares to driver pay – think of surge pricing, where Uber charged riders more for peak times and passed some of that premium onto drivers. But now Uber trumpets a custom pricing algorithm that is the inverse of its driver payment system, calculating riders' willingness to pay and repricing every ride based on how desperate they think you are.

This pricing is a per se antitrust violation of Section 2 of the Sherman Act, America's original antitrust law. That's important because Sherman 2 is one of the few antitrust laws that we never stopped enforcing, unlike the laws banning predator pricing:

https://ilr.law.uiowa.edu/sites/ilr.law.uiowa.edu/files/2023-02/Woodcock.pdf

Uber claims an 11% margin improvement. 6-7% of that comes from algorithmic price discrimination and service cutbacks, letting it take 29% of every dollar the driver earns (up from 22%). Uber CEO Dara Khosrowshahi himself says that this is as high as the take can get – over 30%, and drivers will delete the app.

Uber's food delivery service – a baling wire-and-spit Frankenstein's monster of several food apps it bought and glued together – is a loser even by the standards of the sector, which is unprofitable as a whole and experiencing an unbroken slide of declining demand.

Put it all together and you get a picture of the kind of taxi company Uber really is: one that charges more than traditional cabs, pays drivers less, and has fewer cars on the road at times of peak demand, especially in the neighborhoods that traditional taxis had always underserved. In other words, Uber has broken every one of its promises.

We replaced the "evil taxi cartel" with an "evil taxi monopolist." And it's still losing money.

Even if Lyft goes under – as seems inevitable – Uber can't attain real profitability by scooping up its passengers and drivers. When you're losing money on every ride, you just can't make it up in volume.

Image: JERRYE AND ROY KLOTZ MD (modified) https://commons.wikimedia.org/wiki/File:LA_BREA_TAR_PITS,_LOS_ANGELES.jpg

CC BY-SA 3.0 https://creativecommons.org/licenses/by-sa/3.0/deed.en

I’m kickstarting the audiobook for “The Internet Con: How To Seize the Means of Computation,” a Big Tech disassembly manual to disenshittify the web and bring back the old, good internet. It’s a DRM-free book, which means Audible won’t carry it, so this crowdfunder is essential. Back now to get the audio, Verso hardcover and ebook:

http://seizethemeansofcomputation.org

If you'd like an essay-formatted version of this post to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:

https://pluralistic.net/2023/08/09/accounting-gimmicks/#unter

Image: JERRYE AND ROY KLOTZ MD (modified) https://commons.wikimedia.org/wiki/File:LA_BREA_TAR_PITS,_LOS_ANGELES.jpg

CC BY-SA 3.0 https://creativecommons.org/licenses/by-sa/3.0/deed.en

[fuckyeahmarxismleninism]

By Lev Koufax

Uber and Lyft’s attempts to defeat the minimum wage law aren’t about sustainable business, and they aren’t about protecting the consumer. The cynical decision to withdraw from Minneapolis is simply about keeping the Minneapolis drivers at poverty wages while maximizing profits for rideshare shareholders as much as possible.

[eternalistic]

'MINNEAPOLIS — A rideshare co-op is launching services in Minneapolis in the coming weeks."

"The Drivers Cooperative, founded in New York City in 2021, touts itself as the world's first driver-owned rideshare platform."

"More than 12,000 drivers have joined since then, providing more than 300,000 trips in both the Big Apple and Denver"

[mearcatsreturns]

It finally happened in my city…I saw what is 99% a fake cab. I was waiting for the bus, and a car honked at me and gestured to the vehicle. It had a white decal that said “Uber/Lyft phone #” and no lights or stickers that they usually have in the front window. A big old can of nope.

[adamshallperish]

me at the hotel front desk trying to soothe an indignant woman who wants me to explain why it's going to take 20 minutes for an uber:

[ubeerosophy]

"As You Are He"

[stevieweevie71]

Drive with @Uber #Uber Sign up! https://t.uber.com/referral/?invite_code=8h5gdvpwbr2e

Drive with @Lyft #Lyft Sign up! https://www.lyft.com/drivers/STEVE131573?utm_medium=d2da_iacc

Code: STEVE131573

@ubereats 💁🏽‍♂️🙋🏽‍♂️🤷🏽‍♂️🙆🏽‍♂️🤦🏽‍♂️ #ubereats #29000 #rideshare #ridesharedriver #ridesharelife #ridesharediaries #rideshareteatime #ridesharestories #uberdriver #lyftdriver #jayz #defjam #rocnation #encore #np #nowplaying #rapmusic #music #rap #hiphop #coversong #coversongs #jayzcover #baltimore #maryland #baltimoremaryland #21229 #edmondsonvillage

Uber (Parody of Jay Z "Encore") https://open.spotify.com/album/7dDO6psO8FQOzckG4rxE9z

Uber Uber Uber Uber Riding Everywhere (Parody of "Ms. New Booty") https://open.spotify.com/track/30EkcCoyCB3sq4DQ3M5J7V

[disasterhimbo]

[ID 1: a headline that says, “Uber, Lyft to pay Mass. drivers $32 minimum wage during rides under $175 million settlement.” Below that, it says “Updated June 27, 2024” and “By Chris Lisinski, State House News Service.”

ID 2: a tweet by More Perfect Union (@MorePerfectUS) that says, “Massachusetts Uber and Lyft drivers are about to get a minimum wage of $32.50/hr while driving. To settle a lawsuit brought by AG Andrea Campbell the companies will pay drivers $175m, implement this wage, and give some drivers money for health insurance, paid sick time, & more.” End ID.]

Source

Source

Let’s go

[fixmyrideshare]

Rideshare Mechanic Services in Orlando

Find a reliable rideshare mechanic in Orlando with Fix My Ride Share. Our expert team specializes in maintenance and repairs tailored for rideshare drivers, ensuring your vehicle is always ready for passengers. We understand the importance of safety and compliance, so we offer comprehensive inspections and services to keep your car in top shape. Drive confidently knowing your vehicle is cared for by professionals. Contact us today for your rideshare maintenance needs!

[770goodlaw]

Personal Injury Claims Involving Uber, Lyft, and Rideshare Accidents

(injury claims) With the rise of Uber, Lyft, and other rideshare services, millions of people rely on these platforms daily for convenient transportation. However, rideshare accidents are on the rise as well, and when injuries occur, they bring unique legal challenges. If you’re injured in a rideshare accident, here’s what you need to know about filing a personal injury claim and navigating the complexities of Uber, Lyft, and other rideshare-related accidents.

Determining Liability in Rideshare Accidents

In any car accident, determining liability is crucial. With rideshare accidents, the situation can become complex because there are multiple parties involved, such as:

The rideshare driver (if they were at fault)

Another driver (if they caused the accident)

The rideshare company (Uber, Lyft, etc.)

Rideshare companies categorize drivers as independent contractors, not employees, which often limits the companies’ direct liability. However, Uber and Lyft do provide insurance coverage for their drivers under certain conditions, which can benefit injured passengers or other affected parties.

Understanding Rideshare Insurance Coverage

Uber, Lyft, and other rideshare companies typically offer insurance coverage that varies depending on the driver’s status at the time of the accident. Here’s a breakdown of how coverage generally works:

If the driver is offline or not logged into the app: In this case, the driver’s personal auto insurance is the primary coverage.

If the driver is logged into the app but has not yet accepted a ride: The rideshare company usually provides limited liability coverage, which generally includes $50,000 per person for bodily injury, $100,000 per accident for bodily injury, and $25,000 for property damage.

If the driver is en route to pick up a passenger or is actively transporting a passenger: During this period, rideshare companies typically offer more substantial insurance coverage, often up to $1 million in liability coverage.

Filing a Personal Injury Claim in a Rideshare Accident

If you are injured in a rideshare accident, filing a claim will depend on the circumstances of the crash:

If the rideshare driver is at fault: You may be able to file a claim against the rideshare company’s insurance policy, provided the driver was actively engaged on the app at the time of the accident.

If another driver is at fault: You may need to file a claim with the at-fault driver’s insurance company. In some cases, Uber and Lyft’s uninsured/underinsured motorist coverage may apply if the at-fault driver’s insurance is insufficient to cover your damages.

What to Do Immediately After a Rideshare Accident

After any car accident, taking the right steps can strengthen your personal injury case. If you’re involved in a rideshare accident, consider the following actions:

Call 911 and seek medical help: Ensure everyone’s safety and have injuries documented by medical professionals.

Gather information: Obtain details from all involved parties, including names, contact information, insurance details, and rideshare driver information.

Document the scene: Take photos and videos of the accident scene, vehicle damage, and any visible injuries.

Report the accident: Report the incident to the rideshare company (via their app or customer service) to establish a record of the accident.

How an Attorney Can Help in Rideshare Accident Cases

Personal injury claims involving rideshare companies often require a unique approach. An experienced personal injury attorney can help by:

Determining liability and coverage: An attorney can identify the responsible parties and ensure you seek compensation from the appropriate insurance policy.

Handling negotiations: Rideshare companies often have complex claims processes, and an attorney can negotiate with the company’s insurance representatives on your behalf.

Maximizing compensation: An attorney can assess the full scope of your damages, including medical expenses, lost wages, and pain and suffering, to help you pursue a fair settlement.

Types of Compensation You May Be Entitled To

If you’re injured in a rideshare accident, you may be eligible for various forms of compensation, including:

Medical expenses: This includes both current and future medical bills resulting from your injury.

Lost wages: If your injury has impacted your ability to work, you may be compensated for lost income.

Pain and suffering: Non-economic damages, such as emotional distress, can also be part of your claim.

Property damage: If your property (such as your vehicle or personal items) was damaged in the accident, you may be eligible for reimbursement.

Conclusion

Rideshare accidents can be confusing and stressful, especially when it comes to filing a personal injury claim. At 770GoodLaw, our experienced personal injury attorneys are well-versed in rideshare accident claims and know how to navigate the complex landscape of rideshare insurance. If you’ve been injured in an Uber, Lyft, or other rideshare accident, contact us today for a free consultation. We’re here to help you understand your options and fight for the compensation you deserve.

[nationallawreview]

The Gig Continues: California Supreme Court Upholds Proposition 22

On July 25, 2024, the California Supreme Court issued its long-awaited ruling in Castellanos et al., v. State of California and Protect App-Based Drivers and Services, et al., upholding the 2020 voter initiative known as Proposition 22 the allows certain gig economy companies to classify drivers as independent contractors. In 2019, California Assembly Bill 5, also known as AB5, expanded the…

[catsbreadbikes]

Question for uber/lyft drivers: what reasons do you have for canceling rides? I have a 5 star rating, but 3 drivers have canceled on me. The first one, finished the ride they were on and then made it halfway to me when they canceled. Why does this happen?

[crazyvideos]

Drunk In The Uber

[amslaw]

Our experienced Uber and Lyft accident attorney serving California is here to provide guidance and advocacy to those who have been injured in rideshare accidents. 

[blognerdzone]

5 Crucial Steps to Navigate a Lyft Accident in New York City

In the bustling streets of New York City, a Lyft ride may offer a welcomed respite from a crowded subway or hectic day. However, in the unfortunate event of a Lyft accident, the sanctuary of your ride may turn into a source of stress and confusion. As a passenger, knowing what to do post-accident can protect your rights and ensure you aren't left footing the bill for someone else's mistake. To guide you through these turbulent waters, we've called upon the expertise of a seasoned Lyft attorney NY to distill the essential steps you need to take after a collision.

Step 1: Prioritize Your Safety and Well-Being

The moments immediately following an accident are critical. Your primary focus should be on ensuring your safety and that of those around you. If you or anyone else is injured, request emergency services for immediate medical attention. It's always best to err on the side of caution. Even if you feel unharmed, some injuries may not manifest symptoms until later, so a medical evaluation is essential.

Beyond injury care, it's imperative to document the accident scene if you are able to do so safely. Take photos and videos of the vehicles involved, damages, scene layout, and any visible injuries. If you can't do this yourself, request assistance. This documentation serves as crucial evidence in any potential case. Remember, your first instinct should be to ensure everyone's well-being, and detailed evidence-gathering should only be pursued if it does not put you at risk of further harm.

Step 2: Contact the Relevant Authorities

Once everyone’s immediate safety is assured, your next action should be to contact the police. In New York City, having the authorities at the scene to file a report is invaluable. The official police report serves as a neutral third-party account of the accident, detailing each party's information, any citations issued, and their preliminary assessment of fault.

Do not overlook this step, no matter the severity of the accident. The report provides a foundational document for any insurance claim or legal action. It's also a legal requirement that you report the accident to the police if anyone is injured or if property damage exceeds $1,000. Adhering to these regulations ensures you're acting in compliance with the law and can expedite any claims process.

Step 3: Exchange Information with Parties Involved

Gathering information from all parties involved is critical for a comprehensive record of the accident. Approach the driver, or drivers, involved in the collision and exchange the following details:

Full name and contact information

Insurance company and policy number

Vehicle registration information

Driver's license details

Additionally, obtain the names and contact information of any witnesses, as their testimony could be significant in substantiating your claim. New York is a no-fault state for car accidents, which means you'll generally file a claim under your own policy regardless of who's at fault. However, there are exceptions to this rule, particularly in cases of serious injury.

Step 4: Report the Accident to Lyft

Lyft requires that you report any accident immediately, regardless of fault. Do so through the app or by calling their helpline. Upon filing the report, a Lyft safety team member will guide you through the next steps. Be honest and provide the same details you shared with the police and others involved. Remember to keep your explanation factual and refrain from admitting fault.

Lyft’s insurance coverage kicks in once the driver accepts a ride request and ends when the ride is completed in the app. The extent of coverage varies with the ride stage and can be complex, so involving Lyft from the outset ensures you receive the compensation and assistance you're entitled to.

Step 5: Seek Legal Guidance

After addressing immediate concerns and alerting the necessary parties, consulting with an experienced Lyft accident attorney NY is wise. They can offer insight into the legal aspects of your accident, evaluate the strength of your potential claim, and guide you on next steps.

An attorney can help decipher New York state's specific laws and regulations pertaining to ride-sharing accidents, which may differ from standard auto accident claims. They will be your advocate in dealings with insurance companies and any litigation that may arise. Most importantly, they'll work to secure the compensation you deserve for medical bills, lost wages, and pain and suffering.

Safety and Preparation Are Key

Unexpected incidents can disrupt our daily lives, and a Lyft accident is no exception. By following these steps, you empower yourself with a plan of action, should such an event occur. Remember to prioritize safety and well-being, document the accident scene, contact the authorities, exchange information, report the incident to Lyft, and consider legal representation. These proactive measures not only protect you in the short term but also increase the likelihood of a smooth and just resolution.

It's important to stay informed on the best practices for handling accidents specific to New York City's ride-sharing landscape. Keeping this guide at hand or saving it for reference could prove invaluable, should you find yourself in a Lyft accident. Lastly, familiarize yourself with the emergency contact numbers in your area, and program them into your phone, so you can quickly take action with the tap of a screen.

Your safety and legal rights are non-negotiable, and understanding the proper course of action takes you one step closer to securing your peace of mind. Whether through preparation, documentation, or legal representation, each step contributes to your well-being and ensures you're on solid footing when navigating the challenges that come with a Lyft accident in New York City.