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The Fiercest Rivalry In Tech: Uber vs. Lyft

onehitwonder (1118559) writes WSJ looks at the cantankerous rivalry between two popular ride-sharing companies, Uber and Lyft, and the dirty tactics each employs to weaken its opponent. Lyft, for example, alleges that representatives from Uber frequently order short rides from Lyft just to slow down Lyft's service and to try to poach its drivers. WSJ points out that the rivalry is more than just a made-for-TV competition: "It's a battle for a key role in the future of urban transportation." Lyft certainly isn't Uber's only rival, though, even setting aside conventional taxis and car services, even those two names are big in U.S. cities: its clash with Gett has reportedly involved tricks at least as dirty. Another way to look at the rivalry, too, is that the biggest clash is not between Uber and any other particular company, but rather between the various ride-calling / ride-sharing services taken together against the existing, regulated taxi and car-service companies they threaten.

37 of 125 comments (clear)

  1. Dirty tactics by Thanshin · · Score: 4, Interesting

    To be able to correctly understand this piece of news, I'd need a definition on the criteria to identify a corporation's action as "dirty tactic".

    1. Re:Dirty tactics by Richard_at_work · · Score: 4, Insightful

      Any action which directly interferes with your competitions business, done with that sole intention. So booking lifts and not taking them up, or booking lots of short trips which put competitors drivers out of position or otherwise unlikely to be able to pick up the more lucrative jobs (ie, have an employee travel to the middle of an industrial estate right when a major train or bus arrives, so your drivers get the more lucrative jobs).

      The link is very interesting, and if true it shows a concerted effort to disrupt Ubers competitors through anti-competitive behaviour.

    2. Re:Dirty tactics by sociocapitalist · · Score: 2

      To be able to correctly understand this piece of news, I'd need a definition on the criteria to identify a corporation's action as "dirty tactic".

      Then maybe you should take 30 seconds and RTFA.

      "...over the past few weeks, Uber employees have been posing as pedestrians, creating Gett accounts for the sole purpose of scheduling and then canceling Gett rides. The result is clear: wasted time for Gett drivers, fewer available rides for Gett users, and general disarray for the whole service."

      For example.

      --
      blindly antisocialist = antisocial
    3. Re:Dirty tactics by NotDrWho · · Score: 4, Interesting

      I even heard Uber was encouraging Lyft drivers to put stupid pink mustaches on their cars, ensuring that the service would be seen as a hopelessly hipster/metrosexual by mainstream riders and would be forever relegated to a small niche market of people not ashamed to be seen in said cars.

      Oh no, wait. Lyft did that to THEMSELVES.

      --
      SJW's don't eliminate discrimination. They just expropriate it for themselves.
    4. Re:Dirty tactics by NotDrWho · · Score: 2

      It's 2014 and you are "ashamed" to ride in a car with something pink on it?

      No, I'm ashamed to ride in a car with an incredibly gaudy giant pink mustache on it. And I'm even more ashamed for the poor driver who is forced to put that embarrassment on their car by a company that obviously hasn't grown up yet. I (and most other riders, I suspect) would prefer a professional company and a ride in a clean, discreet car that doesn't make me want to hide my face in embarrassment.

      --
      SJW's don't eliminate discrimination. They just expropriate it for themselves.
  2. Regulations by AlecDalek · · Score: 2

    This is the very reason we have regulations in the first place. Why is the government not stepping in and making them register like any other taxi service?

    1. Re:Regulations by jratcliffe · · Score: 2

      In NYC, they have. Both Uber and Lyft in NYC operate as standard "black car" service companies, using only Taxi & Limo Commission licensed vehicles and drivers. They don't operate the "ride sharing" part of the business here.

    2. Re:Regulations by Dishevel · · Score: 2
      I am actually a systems manager (Servers, Radios, Mobile Computers and Such) for a cab company.

      Regulation had some use long ago. With the internet regulation really only serves the entrenched big companies and the regulators at the expense of innovation and the customers.

      I see it all the time. My company does it. The agency that permits taxis in our area checks A/C, parking brake, paint job and window tint. You could tow the fucking thing in with no steering and it would pass.

      --
      Why is it so hard to only have politicians for a few years, then have them go away?
    3. Re:Regulations by infinitelink · · Score: 2

      Like the authorities who made those "laws" don't have to follow the laws limiting their authority--or the Feds whose actual job is to ensure natural rights don't have to enforce them in the States, only civil ones when they're politically useful?

      Bullshit. The actual authors of this union's Constitution stated, repeatedly, frankly, any law that infringes or nullifies a right can, what? Be abrogated by the citizen with impugnity. It's only "radical" because dura lex sine jusiticia reigns once again.

      I'm all for "law" that is "prudentia", i.e. for prudence or good; false laws pretending to be for public protection and other nonsense but really serve to erect unlawful monopolies, guilds, business protections, etc., are deprivations of rights under the colors of law--and those who make and enforce them deserve to be federally arrested and thrown down a hole as the Federal Code requires.

      I live in Colorado, btw, notorious for this: the excuse here is that the cabs are a public utility. Strange that if I give a neighbor a lift for free it's legal but if he pays for gas it's technically and suddenly not. (Obviously they don't typically prosecute that, but selective enforcement to evade court scrutiny by ensuring the proofs the laws are not laws at all just invalidates the law in the first place.) That what millions do here daily, with insurance--including coverage of other occupants--is suddenly a public utility if any money or value, whatsoever, changes hands.

      Go learn to think before citing dura lex without context. Even the Romans didn't put-up (long) with that bullshit. We just happen to be drunk under the stupor of "order" by force rather than...actual order. And it's damn time the boomers start getting off'd by their dementia to start eliminating their pseudo-sophisticate influences in that regard.

      Moreover, you do realize the public figures who like to say "the laws the law" OPENLY MOCK THE IDEA THAT THERE IS ANY 'LAW' BESIDES FORCE--that is, in the law schools, don't you?

      I DO get to choose the laws that I have to follow: if a "law" says to murder you--not going to do it; help you do it to or aid someone else in that, not going to do it; take your rights? not going to do it; assist any government actor in it? not going to do it.

      Grow a pair.

      --
      Intelligent idiots are we. | Evil men do not understand justice.
    4. Re:Regulations by xevioso · · Score: 2

      Most people don't buy snake oil at all; it's rather difficult to find. Snakes don't produce much anyways.

    5. Re:Regulations by Entropius · · Score: 2

      I said "hurting their customers", not "breaking a law established for the benefit of a cartel".

  3. Makes both look bad by GlennC · · Score: 3, Insightful

    Between this nonsense and the fact that the ride sharing services don't have the proper licensing and proof of insurance, I wouldn't feel comfortable using any of them.

    --
    Go on, citizen, stamp the vote card. R or D, your choice.
    1. Re:Makes both look bad by sociocapitalist · · Score: 2

      Between this nonsense and the fact that the ride sharing services don't have the proper licensing and proof of insurance, I wouldn't feel comfortable using any of them.

      You'd feel more comfortable in a (licensed, etc) taxi with a driver that has obviously just fallen off the boat, doesn't speak the language doesn't know the roads (relying on GPS) and may or may not actually have earned their driver's license (easy to buy such in some countries, then exchanging them legally for a local license depeing on the agreements in place between states/countries)?

      I've used Uber a few times and so far the experience has been just fine.

      --
      blindly antisocialist = antisocial
    2. Re:Makes both look bad by Type44Q · · Score: 4, Interesting

      Between this nonsense and the fact that the ride sharing services don't have the proper licensing and proof of insurance, I wouldn't feel comfortable using any of them.

      Hold up. You're generalizing, as well as mixing inaccuraries with implications that are downright false, in a rather blatant attempt to create a strawman... but unfortunately there are people here who have paid careful-enough attention to this debate that it's become rather easy to sniff out the taxi industry's bullshit:

      It's true that Uber's "economy class" service (UberX) relies upon everyday folks* who possess their own [presumably non-commercial] insurance... but you've conveniently neglected to mention that Uber takes out a million dollars' worth of commercial auto liabilility for each of these drivers.

      Uber's "premium services" (UberBlack and UberSUV) rely upon existing limo-service providers who possess all the requisite permits, licenses and commercial insurance coverage required by their respective municipal authorities.

      *I've seen the way taxi drivers in New York, LA, Chicago, Dallas and elsewhere tend to drive... so you can shut the fuck up with your suggestion that these so-called "professionals" are somehow any safer than the Average Joe would be behind the wheel.

    3. Re:Makes both look bad by GlennC · · Score: 2

      I'm just giving my opinion, and I've been in plenty of taxis in Chicago, Dallas, Atlanta and elsewhere.

      If you don't agree with my opinion, I have no problem with that.

      Since the Uber premium services rely on existing limo services, why wouldn't I just go directly to those service providers? Although if I were in a position where I couldn't find one, Uber could potentially be useful in that situation.

      Also, it's nice that Uber provides additional insurance, but the point is that in most locations, Uber, Lyft and the rest are still in a legal grey area in which I'd personally rather not find myself.

      Again, if you want to avail yourself of the service, feel free.

      We may not agree, but I see no reason for the angry invective.

      --
      Go on, citizen, stamp the vote card. R or D, your choice.
    4. Re:Makes both look bad by drew870mitchell · · Score: 2

      Agree, and expand the scope to try to get a taxi anywhere in the US outside of NYC/Chicago/LA. There is a reason these companies have been able to spring up nationally almost overnight when their business model is "convince people to get into the passenger seat of a stranger with inadequate licensing and insurance."

    5. Re:Makes both look bad by Entropius · · Score: 2

      I live in one. It's 2/3 of a mile walk to the nearest mainline bus stop (and if you've used DC city buses, you know how inefficient they are). It's about 2.5 miles to the nearest Metro station. Try again.

  4. Re:In London, Lyft/Uber are intelligence tests. by Travis+Mansbridge · · Score: 2, Insightful

    Do you really think the man who opened all of Tesla's patents to the public has wealth as his highest aspiration?

  5. Re:In London, Lyft/Uber are intelligence tests. by mwvdlee · · Score: 2

    No. How about the man who opened a strategically selected subset of Tesla's patents in order to improve the network of charging points Tesla's cars depend on?

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  6. Re:In London, Lyft/Uber are intelligence tests. by donscarletti · · Score: 2

    Really good post.

    Until you got to the Beeching Axe and you started sounding like a nostalgic train anorak.

    Then you got to Boeing and SpaceX of all topics and it just went worse from there on.

    The Beeching Axe almost got British Rail back to profitability. SpaceX is just a competitor for Boeing Defense, Space & Security, which Boeing damn well needs, after acquiring all of its previous competitors like Rocketdyne, McDonnell Douglas and Hughes.

    --
    When Argumentum ad Hominem falls short, try Argumentum ad Matrem
  7. Re:good by gstoddart · · Score: 5, Insightful

    In a normal free market environment I would simply say let the market sort them out

    There are not 'normal free markets', they simply don't exist.

    Sooner or later they devolve into this, or people selling outright fradulent/dangerous products, or they form cartels to screw over the consumer.

    Left to its own devices, a free market becomes anything but. It's a complete myth that it will arrive at perfect outcomes, and it always has been.

    Adam Smith knew this when he wrote Wealth of Nations.

    --
    Lost at C:>. Found at C.
  8. Regulations are even worse by Anonymous Coward · · Score: 2, Insightful

    Your regulations (especially limited medallions) have caused more waste than these "dirty tactics" do. If your claim is "I don't support medallions, but instead some better regulation than the status quo", then at this point you really need to explain why you think the government is listening to your opinion at all (as opposed to special interests and economic elites). They've had decades to eliminate medallions, and now people are suggesting changes only because Lyft and Uber have forced the issue.

    How about you guys fix your taxi regulations first, then I'll consider the wisdom of trusting the same politicians to regulate ride-sharing.

    1. Re:Regulations are even worse by HeckRuler · · Score: 2

      HAHAHAHAHA! That's cute son. But no, let me spell it out for you. This is the way things are going to go:

      1) New way of doing something makes a buck.
      2) Uber or Lyft or whoever pop up and lambast regulation that keeps them from making a buck. They promote competition.
      3) The competition gets ugly,
      4) Uber or Lyft will sue one another for blatantly malicious acts meant to destroy the competition. Everyone* agrees things got out of hand. Everyone* agrees that you really shouldn't... say... profile your clients for homicidal tendencies and then call a competitors cab with false information and pass the irrate and dangerous client off to the unsuspecting murder victim. Clearly anti-competitive, and while a criminal verdict is pending, everyone* agrees that NEW regulation will put a stop to that terrible practice.

      If everyone* agrees that the old regulation is pretty busted, but everyone* agrees that things need to change, then sadly the typical course of action is to slap on new regulation. Then we'd have official non-taxi ride-sharing regulation. Just in time to get in the door before the automated taxi companies pop up and lambast these stupid regulations.

      *Everyone: The CEOs at Uber and Lyft, the politicians, the judges, and enough of the customers. All of whom really don't give a shit about what wisdom you trust.

  9. Tech Rivalry? by Khyber · · Score: 3, Insightful

    This is just low-down mafia-level diversion bullshit. This isn't rivalry, and Uber/Lyft aren't fucking tech, they're taxi services that HAPPEN to be tied to using a smartphone - guess what Taxi drivers are tied to all day? A smartphone AND a CB radio AND a bunch of other shit that makes them actually worthy of the tech title.

    Submitter should be stopped from posting any more stories until he figures out exactly what is tech worthy. Of course, given the 7 digit UID, not likely.

    --
    Still waiting on Serviscope_minor to wake up to fucking reality and realize that Jessica Price isn't going to fuck him.
    1. Re:Tech Rivalry? by Trepidity · · Score: 2

      Yes, thinking of Uber and Lyft as taxi businesses rather than tech businesses makes it a lot clearer what's going on. The taxi business has long been shady, and it still is even when the taxi company has an app.

  10. re: uncomfortable using either one? by King_TJ · · Score: 3, Interesting

    I agree that underhanded tactics make them both look bad, but personal experience using Uber, at least, tells me the service is typically quite good.

    In Virginia, both Lyft and Uber were allowed to start legally operating again, under a specific set of rules:

    - They must meet a set of regulations to promote passenger safety, have appropriate insurance and comply with Virginia laws.
    - The companies agreed to run background checks of drivers, including criminal and driving histories
    - Drivers must have a valid driver’s license and must be 21 or older. Their vehicles must be four-door, carry no more than seven passengers at time and must have a valid registration and inspection.
    - The companies and the state also agreed on checks on rate transparency and documentation. And drivers are not allowed to accept street hails.

    I think all of this sounds pretty reasonable, and IMO, it's fair to consider them a new way of doing business, vs. the traditional taxi cab services.

  11. Re:good by organgtool · · Score: 2

    Many people do not understand the nature of a "free market". To help them put it into perspective, a "free market" means that the players in the market are free to screw over each other and their customers as much as they want. If you don't like it, your only option is to start your own company assuming that the established players haven't already cornered the market or the infrastructure required to bring the product or service to market. However, healthy and fair competition is rarely ever the result of a free market - that only exists with a moderate amount of regulation to prevent the established players from stomping or buying out the competition.

  12. Re:Why not Lift? by sribe · · Score: 2

    Why? "Windows" got trademarked. True, the trademark is only applicable with regards to naming of software, but it's still arguably extremely descriptive of its functionality.

    That trademark application was initially rejected--in fact, I think it was rejected more than once. Microsoft threw lawyers and appeals at the USPTO until they wore down the system. IIRC they used the argument that through use the term "Windows" had come to be accepted as identifying specific software (which, really, was true by then).

    How would "Lift" be any different?

    My personal opinion is that it is extremely similar. So it would get rejected, and to get beyond that, the brand would both have to become ubiquitous and the company would have to spend years and millions on appeals.

  13. Re:good by gstoddart · · Score: 2

    To help them put it into perspective, a "free market" means that the players in the market are free to screw over each other and their customers as much as they want.

    And while many politicians apparently seem to think that's an ideal outcome, it's a terrible situation for everybody else.

    Case in point: poisoned baby formula from China with melamine in it.

    The free market people say "you are free to not buy toxic products for your children". The rest of the world says "no, you're an idiot, it needs to be illegal to do this".

    The assumptions about people making rational choices based on perfect information are complete garbage, because people provably are not rational, and someone will always decide his profits are worth killing a few people for.

    that only exists with a moderate amount of regulation to prevent the established players from stomping or buying out the competition

    No, over time, the terrible behavior of the actors involved demonstrates more and more places in which you need regulation.

    The notion you can come up with a skeleton set of regulations only designed to ensure competition, and have that in the long term come up with good outcomes -- well, that's the lie perpetuated by people who say the free market solves problems.

    The free market solves one problem: maximizing selfish behavior of some players to the severe detriment of others.

    --
    Lost at C:>. Found at C.
  14. Re:In London, Lyft/Uber are intelligence tests. by u38cg · · Score: 3, Informative

    Speaking as a Londoner, I can live without a detailed knowledge of what's running in the West End and just make do with being taken to my destination for half the cost.

    --
    [FUCK BETA]
  15. Re:good by rockmuelle · · Score: 2

    Markets are defined by their rules, plain and simple.

    The rules for an ideal free market are pretty straight forward: everyone is free to do whatever they want. There's also another term for this approach in the political sphere: anarchy.

    What most people really mean when they say free market (in America, at least) is a market defined by the rules of property law (the foundation of most western legal systems). As soon as you have some basic rules, you no longer have a free market.

    A real free market is a theoretical extreme, like an ideal gas. It's useful for reasoning about things, but doesn't actually exist in any practical form in real life.

    -Chris

  16. Re:I don't get it by Noah+Haders · · Score: 3, Interesting

    So why does nobody think they'll get kidnapped by random strangers who
    drive cabs ?

    ftfy. ive taken a lot of uber and lyft rides, and every ride has been better than the typical sketchy smelly rude cab driver.

  17. Re:In London, Lyft/Uber are intelligence tests. by gnupun · · Score: 2

    He opened only those patents related to charging. The intent behind this is not charity, rather he wants synergy with other electric car manufacturers.

    Without standardization, you'll have a charger T for teslas, charger F for Fords, charger N for Nissans etc. This is not feasible for even a handful of electric car manufacturers.

  18. Re:In London, Lyft/Uber are intelligence tests. by AndrewBuck · · Score: 2

    Seems like he might have been referring to this, moron.

    http://en.wikipedia.org/wiki/T...

    Here are the relevant bits...

    The taxicab driver is required to be able to decide routes immediately in response to a passenger's request or traffic conditions, rather than stopping to look at a map, relying on satellite navigation or asking a controller by radio. ...

    It is the world's most demanding training course for taxicab drivers, and applicants will usually need at least twelve 'appearances' (attempts at the final test), after preparation averaging 34 months, to pass the examination.

    Next time you feel like being a pretentious twat, why don't you just keep it to yourself.

    -AndrewBuck

  19. an easy choice by supernova87a · · Score: 2

    One very simple reason I never use Lyft over UberX: Lyft refuses to put in a fare estimation tool.

    So even if they could be possibly cheaper than Uber or a taxi, I'm not going to get in a Lyft not knowing even roughly how much it's going to cost.

    I have no idea why they choose not to be transparent about even a rough estimate of my ride cost. Saying that the per-city rate table on their website satisfies that function is a joke.

  20. Re:In London, Lyft/Uber are intelligence tests. by Noah+Haders · · Score: 2

    loooool in US there are no requirements other than being a dickass.

    btw, I know london is a socialist state, but have you ever heard of the free market? If uber drivers are shit and get lost, then nobody will use them duh. why would you need to know everywhere by heart when you could just use GPS?

  21. It's the reason why taxi licenses happened by MisterBlue · · Score: 3, Interesting

    This is why taxi licenses were created originally: there were taxi wars. People were getting shot for picking someone up in someone else's 'turf'. Taxi companies fought over turf and drivers and with guns and billy clubs. Add to that a few passengers getting cheated and robbed and eventually a city would step in and bring it under control with licensing and regulations. That the licenses eventually became a valuable item and an industry in themselves is a different story.

    Uber and Lyft are re-doing what the original drive-for-hire people did that got them regulated in the first place.