Uber and Lyft - alternatives to taxis. Do you use it? Good od not?

[Garandman]

Do you think Uber/Lyft are taking unfair advantage in their competition with Taxis? Are they 'winning' through this unfair competition?

It seems that some people feel the Taxis need 'protection' from competition with Uber/Lyft. Do you agree?

Here's the rub, at least in many big cities, Boston being one. In order to have a taxi, you must purchase a medallion. The number of medallions (and thus, taxis) is limited by the city. Because of their scarcity (and effectively, a government-created monopoly) the price of medallions has increased: in Boston they are worth well over $100,000, down from almost $400,000 (Buy and sell liceses and medallions all over America - DriverZoo.com) Most drivers can't afford them, so they are bought up by big companies and then they essentially rent the cab to the driver.

Because the cost is so high, the cabs are kept on the street every second possible. And because they were a scarce resource, there was little incentive to keep the cars in good shape.

Uber, Lyft and to some extent Limos threaten the value of those medallions. If the cities get away from the medallions, they've now lost that power, and that income. And Uber and Lyft are also non-union. So they are bad news for a lot of big-city politicians, most of whom are big-government Democrats.

They can complain about safety, security, insurance, and whatever else they can think of, but it's really about protecting the value of those medallions and control by those politicians. Outside those cities, there are fewer vested interests - and maybe not even a cab service at all. There's no question that Boston cab service has improved because of this competition. The last three times I've had to get to the airport in the early morning (4:00 to 5:00), Independent taxi was much faster to respond than Uber or Lyft.

The Orlando shooter passed a DHS background check. There may be some dodgy characters driving anything you get into. The ride-service folks are more likely to speak English than the cabbies in Boston, at least.

Here are some examples: Comprehensive List of Uber Incidents and Assaults | Who’s Driving You?

 

[aczlan]

As long as the Uber drivers have commercial insurance I agree 100%. If a guy/gal wants to give people rides in thier personal car to make some extra $ more power to them. The feedback system gives people the ability to earn a reputation and build trust with excellent service which is really better for everyone.

You do understand that Uber carries commercial insurance (probably self insured up to $XXX,XXX, then another policy on top of that) to cover the liability for the driver if a passenger gets hurt right?

Aaron Z

 

[Omega Woods]

In my business I use Uber weekly. I will avoid a Taxi at all cost now if possible.

Anyone who doesn't like them has obviously not used them.

Chris

Amen. I would rather walk that take a taxi. My son uses Uber all the time and swears by it.

 

[STx]

I drove for Uber for a few months last year just to see what all the fuss was about and to have a new experience. I think Uber is great for riders but think you should spring for Select if it's available in your market. Uber is a bad deal for drivers, especially UberX drivers. The rates they get paid are typically well below minimum wage. As an example, in Houston, UberX is .87 per mile. Uber keeps 28% of that so the driver gets about .63 per mile. Out of this, they need to cover fuel, insurance (Uber insurance is only active when a ride is in progress and although they'll say otherwise, experiences have shown that it's liability only so you've still got to have comprehensive, UIM and collision), maintenance, etc. and hopefully make some money. The IRS says that it cost .57 per mile to operate a car, I track my actual expense with my business vehicles and find that to be a little low but, for the sake of argument we'll say it's accurate, so after expenses, the driver is clearing .05 per mile. If they could average 60MPH (not going to happen, reality is more like 30MPH), that would come out to $3/hr in "profit." This truth has caused the quality of UberX to really degrade over the last year or so, now the only people doing it are those that are desperate, really bad at math or that just want to experience something different. This is why I suggest using Select, it'll cost you about 2x as much but, that's still going to be less than a cab and you'll be in a very nice car with a driver who is making enough to be turning a small profit.

Whichever level of Uber you take, don't fall for the line about the tip being included or not needed. You can see from the basic breakdown I've given that there is nothing even akin to a tip in the rates that Uber charges or pays, look at your receipt and you'll see nothing about a tip there either. I recommend tipping your driver, just like you would a cab, if they've provided good service. With the rates as abysmally low as they are, those tips mean a lot. I gave riders that tipped my my cell number and told them to call me in advance when they were planning a night out, they always got much better service than the douche bag millennials that disrespected me and my vehicle. I was driving a Mercedes ML SUV when I did it.

It was a fun experience and I met some cool people but at the end of the day, I barely broke even and the rates were $1.10 per mile when I was driving. When we're in town and my wife and I go out, we'll use it but, we always use Select now because, as I mentioned, the quality of X has gotten really bad with these stupid low rates.

 

[wawajake]

Well fortunately we have one person on TBN that is "well travelled" and "educated" ...........:duh: (and thinks everything relates to union or non union) :talktothehand:
I do want to thank STx however for a more realistic view of the company. And you will note that the "insurance aspect" is the hidden aspect of your customer service that you may think is better, (and on surface maybe it is) but meanwhile you may be risking more than you think, because if a driver is barely making a living he is going to scrimp on the insurance that Uber hopes they maintain.

But the original poster wanted opinions and as we can see we have some that will do anything to save a nickel and some who prefer that the economies be a more level playing field and fairer for all concerned with no hidden aspects customer does not realize. Ironically it was this same attitude (pushing down to lowest common denominator ) that has big business making their products in China and Thailand and India etc etc, instead of in North America , (and don't claim it was the unions because even the non union manufacturing went overseas where 25 cent wages and no enviro laws made for more money for the one percenters. Soon Uber will not even need their extremely low paid drivers , they are already in news as being at fore front of wanting to get driverless cars , so even less North Americans working.

 

[wawajake]

Did some research on Uber and found a Uber driver website where they state what is really happening in their world . Here are some sample emails in their "insurance forum section"

Uber and Lyft Car Insurance | Page 2 | Uber Drivers Forum

sample post 1) 99% of us are lying to our INS. provider to save $$$ & flout rules. until there's a state by state legislative mandate on this or insurers ask you to sign an affidavit confirming "you're NOT a rideshare driver",

sample post 2 ) I have two vehicles, a commercially insured livery suv and a honda accord.
My suv, fully insured costs $770 per month to insure. 1 million coverage + and collision. 24/7
My Honda costs $39 dollars a month for liability. No collision.
Since Uber has brilliantly bypassed legitimate insurance, they can offer lower costs of goods, Ie lower prices.
I on occasion do Uber, mornings during surges in Miami , it's the only money making time, I'm no idiot my costs are the non surge rate.
Problem here is Uber is putting everything and everyone out of business with their cheating of legitimate laws requiring insurance.

Sample post 3) Just as important to know is that if you do not have collision and comp on your personal policy, Uber provides no collision or comp coverage for the driver/car. In that circumstance, wreck your car on the way to a pick-up (or while on a ride) and you are on the hook for 100% of the damage to your car and your medical expenses unless you can go after someone else (like the driver of a car that hit you).

Sample post 4)
Proper legal insurance is a must. If there is one thing that will kill this entire industry it is the lack of insurance that allows you to drive legally. Right now almost everyone is driving without legal coverage because they are using a noncommercial policy to drive commercially. You very simply have no coverage on your personal vehicle when you do this. The rideshare industry has many enemies and it will not be long before legal action is taken by them to stop all drivers because they do not meet state insurance requirements. There are some states that offer Gap Insurance but only a few. This is the most urgent issue and if Lyft and Uber are smart and want to survive they must find a way to encourage the insurance industry to provide gap insurance. I am more than willing to pay for it but right now it does not exist. The industry and everyone that drives is at extreme risk of having their lives destroyed without it.

Sample post 5) Yep I am all but done after talking to my insurance agent. There is no way to drive ride-share and be safely insured. I cannot believe the risk I have been taking. Don't believe what they tell you at Uber central, YOU take the risk, YOU are responsible, because YOUR name will be on the lawsuit. They may also sue Uber, but they will only protect their interest. Now, if there were a hybrid policy available (non in MN currently) I would have to weigh the additional cost before justifying the purchase, and right now ANY additional cost puts me out of business, as the money just isn't there. I also found I CAN be covered to deliver things but not people, for little additional cost to my current insurance, AND I can get an additional umbrella policy at a reasonable price. It's a no brainer, there is money in pizza. Pizzas don't slam doors or puke either.

In summary IT Seems to me that Insurance is still major issue and Uber etc is pushing off the responsibility and both the driver and the riders are potentially screwed. It is this aspect that is one of many that shows that bypassing regulations and redefining it to be "ride sharing" needs to be re thought by cities and countries for the safety of the riders and the drivers and a level playing field for all.

 

[STx]

Insurance isn't as big a deal as it once was. The problem initially was that livery policies are stupid expensive and most Uber/Lyft drivers were doing it part time so couldn't justify it. Personal insurance didn't cover commercial use, especially not carrying passengers. In the last year, many carriers have created "Ride Share" policies that do now allow using your car for Uber/Lyft without needing commercial insurance. This was always a problem for drivers, not passengers. As a driver, without an appropriate policy, there was a period during which you were online waiting for a ride or traveling to pick up a ride that you were not technically covered by either your personal insurance (because you were using your vehicle commercially) or Uber's policy (because you had no rider in the car). This was the gap that the newer policies have closed.

Uber/Lyft have always carried insurance for the non-Black services while the rider was in the car. Their insurance is liability only though, they say that if the driver carries comprehensive, collision and UIM that they will also extend that coverage during a trip but, they'll make you file with your own insurance before they'll get involved in the claim at all and the deductible is $1,000.

Regulation of this is largely up to local government. NYC has made Uber drivers jump through all the same hoops as cab drivers, even requiring commercial insurance. They've also set the rates at a reasonable rate that competes with the cab industry and let's the driver earn a decent living. Houston required that drivers get a city limo license and inspected the vehicle. The license required a background check and drug test, all of which cost about $150 to get legal. They have no commercial insurance requirements though, instead relying on the Uber coverage. Uber has a habit of fighting regulation tooth and nail though. They went along with it in Houston but last year, San Antonio passed a similar ordinance and Uber pulled out of San Antonio.

I can tell you this, Uber as a company, is garbage. They could care less about their drivers and will push them as far as they can simply because they can. At one time, they were only keeping 10% of the ride charges, when I was driving it was 20%, now it's 28% and they'll continue to creep that up and lower rates until they can't get drivers anymore. They count on a constant flow of new drivers signing up as nobody stays for long once they start to figure their expenses. Those of you that use the service, start asking your driver how long they've been doing Uber and I bet you'll not find one that's been driving for more than 6 months anyplace other than NYC or some other heavily regulated market.

Again, as a rider, I love the service but, as a driver it was a horrible deal. I always tip my drivers $10 - $20, more for longer rides because I know what the reality of their financial agreement is. I can tell you that when I drove, after calculating the dead miles (driven to pick up a ride or otherwise between rides), fuel, etc., the one $10 tip I might have gotten was the only thing that put me in the black, and even then it was only by about $5. It's a shame, too. Uber started off as a great deal for both the rider and the driver but they've dropped prices and raised fees at every opportunity so that now riders can take an Uber for less than the cost of a bus and the drivers are losing money. Ultimately, that becomes a bad deal for the rider as well, if you're not making money you can't afford maintenance to keep the car safe and reliable.

 

[Btown]

Well in Massachusetts if you are a Uber or Lyft driver you need Livery license plates and the proper insurance. My insurance company sent out a letter to everyone of their clients and said if you are driving people around for money you need the proper license plates and insurance.

 

[3930dave]

Yeah, taxi owners are pissed, and I don't totally disagree with them..... the guys who stand to lose are the ones that paid all sorts of money for licenses, medallions, etc... Govts will always come up with other ways to generate taxes, other than taxis.

Uber et al are breaking old business models, and consumers seem to be benefiting.

Until I thought about it briefly, this one surprised me:

When Uber drivers replace ambulances - BBC News

Rgds, D;

 

[Btown]

Not the norm, but here is a problem with them. Seems to be happening all over the country. They need to be properly vetted. Uber and Lyft are not doing a proper job.

Uber driver living illegally in US charged with four rapes in California | US news | The Guardian