The Uber Drivers Network, a vocal group of Uber and Lyft drivers who have organized strikes and protests in New York City, will soon have a new tool to wield in their battle for better working terms. As early as this month, instead of petitioning Uber and Lyft, the group plans to launch its own ride-hailing app to compete with them.
A video posted on the Uber Drivers Network Facebook page over the weekend shows an app interface that looks much like that of Uber or Lyft. "A platform for drivers by drivers," reads an attached status update. "We, drivers, provide the cars and EVERY expense related to the business, the only thing ‘they’ provide is the app. Now we have our OWN!"
Many have argued that a co-op isn’t practical as a competitor to a goliath like Uber. But Janelle Orsi, an Oakland-based lawyer who specializes in sharing economy issues, still believes it could work.
"The companies themselves have very few assets," she told me in an interview last year. "They don’t own cars, and they don’t own infrastructure, they don’t own hotels. They just own a software platform and a lot of clout. And if that clout goes away, then they just have software. And lots of people can create software."
Uber, which refers to its drivers as "partners," argues that when fares go down, their drivers make more money because more customers use the app, decreasing the amount of time drivers spend idling between rides. An Uber spokesman says that drivers in New York are earning 17% more per hour than they were before the price cut, and that the amount of time they spend waiting for their next fare has been cut in half.
So the question is, can separate applications from disgruntled groups within Uber and Lyft lead to a better experience than the ones that already exist for Uber and Lyft?
Link:http://www.fastcompany.com/3057014/fed-up-with-uber-and-lyft-drivers-plan-to-launch-competing-app
It will be interesting to see if their app and business is more successful than Uber. If the drivers get to make their own prices, they will most likely drive them up. This could lead consumers back to Uber. Perhaps consumers will chose this new service over Uber and Lyft to show support for the drivers standing up to the giant companies. What is also interesting is that Uber doesn't have many assets. I hadn't thought about it in that way. All the company really has is ownership of the software.
ReplyDeleteYeah I wonder what will come of this. This can only help consumer ultimately by bringing more competition and hopefully lowering the price for consumers and making transportation more convenient. It will be interesting to see how driverless cars may impact this as whole. Of course driverless cars may not be around for a while, and who knows if that will actual be a viable option for businesses and consumers.
ReplyDeleteAS stated in the above comments, this new app will have to walk a fine line in order to be successful. More competition in the marketplace is always a plus for consumers as it drives down prices, however with the size that both Uber and Lyft are it will not be easy for them to be successful in this market. However, I could see this company doing business as does Uber and Lyft, but then expanding it to buying and delivering people's groceries as some other companies do. By doing so, this would allow them to decrease the price of a normal pick up and drop off, but then charge a higher price for buying and delivering groceries to consumers. In any event, this will be interesting to watch and see how this turns out for this new company.
ReplyDeletePersonally, I don't believe anything will come of this. The drivers are saying that they now have their own app, but realistically there is going to have to be a management team of this application to run the app successfully (like Uber). While this new app might increase the amount of revenues the Uber drivers receive by some margin, I don't think it will be significant enough for a massive switch in drivers (and therefore consumers) to this new application from such established applications like Uber and Lyft.
ReplyDeleteFirst of all, this new app would already be so far behind Uber and Lyft, that I doubt it would ever come close to being on the same level. Also, if these new disgruntled drivers are going to start their own app, they are going to have to find a way to treat their employees better. However, once they do that they will lose the competitive advantage that make Uber and Lyft so successful. For these reasons, I do not think this new app will ever work.
ReplyDeleteIt will be interesting to see the outcome of this app over time. Even though Uber and Lyft are popular sources of transportation by many people, it is still possible, although unlikely, for the new app to have a negative affect and take some of the market share from the existing companies. For example, the new app will have to have something special and different that it offers to the users in order to differentiate itself from the existing apps. Furthermore, they will have to create a reputable name for themselves so that consumers can trust the application. Although there are some difficulties, over all this might prove to be better for the customers since added competition will drive prices down.
ReplyDeleteYeah, I would be hard to see these people getting together and having as much success as Uber or Lyft. Having to provide more overhead and the complications that may be arising in these markets as far as laws, and requirements may make business entry not so easy.
ReplyDeleteTo be honest, it is tough to predict if something like this would work. I really don't see anything that would make this app any different from the others. As a consumer, I am looking for the cheapest, quickest and safest ride. This new idea is really for the drivers and I don't see how a new app can provide any new services that will make them more successful and allow them to pay their drivers more. I am not sure if Uber or Lyft already offer this, but I would not be surprised if they offered some sort of reward program for using their services.
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