Uber, Lyft: Ride-hailing Landscape (Mergers, Apps, Ridership, Revenue and other news)

guest · Sep 3, 2022

Lyft sued by drivers, passengers claiming company failing to protect users from assault
By Kirsten Korosec @kirstenkorosec - August 31, 2022

Lyft is facing a fresh batch of lawsuits from drivers and passengers who say they were sexually and physically assaulted during rides and accused the ride-hailing company of failing to protect its users.

Seventeen lawsuits were filed in Arizona, California, Connecticut, Illinois, Kentucky, Michigan, Ohio, Oregon, Texas, Virginia and Wisconsin, according to Peiffer Wolf Carr Kane Conway & Wise, the law firm representing many of the victims. These are separate lawsuits and not a class action. The lawsuits are requesting a jury trial and do not specify a specific financial award except that they’re seeking compensatory damages, including all expenses and wages owed, damages for future loss of earnings, reasonable attorneys’ fees, costs and expenses and punitive damages.
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The lawsuits, 13 of which were from drivers and passengers who were sexually assaulted, allege that Lyft didn’t have proper safety measures to prevent such attacks and failed to adequately respond once the assaults were reported.
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Tracey Cowan, partner at Peiffer Wolf, said during a press conference that they want “Lyft to take the steps it knows it needs to take to make everyone safe.” Those steps, Cowan said, includes comprehensive background screening on its drivers, ensuring information that applicants provide as well as background checks are accurate through biometric fingerprint monitoring and providing dashcams to drivers.

“The best possible outcome would be for Lyft to actually make these changes that people — both passengers and drivers alike — have been asking for for years and we hope that’s what Lyft does,” Cowan said.
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guest · Sep 8, 2022

Uber wants court to nullify Kenya’s new ride-hailing law that caps service fee at 18%
By Annie Njanja @annienjanja - September 8, 2022

Uber has appealed to Kenya’s apex court to annul the new digital taxi-hailing regulations claiming that some aspects are unconstitutional, discriminatory, discouraging to foreign investments and infringing on its rights and those of its riders and partners.

The regulations, set to come into effect in a few weeks, have been in development since 2016 when drivers protesting a 35% commuter price reduction by Uber caught the attention of lawmakers.
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In court files seen by TechCrunch, Uber is contesting Kenya’s decision to cap commission charged per ride at 18% and evaluate pricing structure, saying it would dent its earnings and discourage further investment in the country. Uber currently charges a 25% commission on earnings per trip, and the new rate will force it to lower its service fee by 28%.
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The company argues that Kenya is a free market, where ride-hailing companies have the right to negotiate commercial agreements without external influence. It also claims that the regulations were made and gazetted without following due process and public participation.

“The introduction of 18% as the ceiling for allowable commission has the potential to stifle innovation and reduce the petitioner’s economic feasibility of investing in the market,” said documents filed by Coulson Harney LLP, the law firm representing Uber, making reference to the new law by Ministry of Transport and Infrastructure, that gives the country’s National Transport and Safety Authority (NTSA) the mandate to enforce it.

“The Kenya Revenue Authority is presently in the process of finalizing digital service tax regulations as well as VAT regulations that would impose additional taxes of 1.5% and 14% on the petitioner’s (Uber) service fees. This coupled with the proposed cap in the commission, will have a major impact on the petitioner’s revenue from the Kenyan market which in turn will have an adverse impact on the Kenyan market prioritization for investments,” it added.
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guest · Sep 9, 2022

Uber and Lyft ditch their mask requirement in New York
By Kris Holt @krisholt - September 8, 2022

Uber and Lyft say riders and drivers in New York are no longer required to wear masks. "With NYC's updated mask guidance for transportation, masks are now optional in Lyft rides," a Lyft spokesperson told Engadget. "We're in the process of updating the app to reflect this." Uber informed users of the policy change by email.

The move follows Governor Kathy Hochul's decision to lift a mask mandate for public transportation on Wednesday. New York City's Taxi & Limousine Commission also announced that face coverings were no longer mandatory in vehicles that it oversees, though it still strongly recommends wearing masks. Face coverings are no longer required on the subway either.
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After a federal judge struck down a nationwide mask mandate for public transit in April, Uber and Lyft both dropped their mask requirements in the US. However, riders and drivers still needed to wear masks in some areas, including New York, depending on local regulations. (Engadget has also asked Lyft about its masking policy in New York.)
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guest · Nov 16, 2022

NYC will enforce Uber and Lyft driver pay increases by the end of the year
By Kris Holt @krisholt - November 15, 2022

New York City's Taxi and Limousine Commission (TLC) has voted to increase the minimum pay rates for Uber and Lyft drivers. Per-minute rates are going up by 7.4 percent and per-mile rates by 24 percent. In practical terms, that means a trip of 7.5 miles that takes 30 minutes will earn a driver at least $27.15 — an increase of more than $2.50 compared with current rates.

The commission also agreed to increase yellow and green cab fares (for the first time since 2012) by 23 percent. The new rates are scheduled to go into effect by the end of the year.
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The Uber and Lyft pay bump is in addition to a 5.3 percent increase drivers received earlier this year, the TLC confirmed to Engadget. Drivers sought higher pay amid higher inflation rates and increased operational costs.

"This is the first taxi fare increase in ten years, and these raises will help offset increased operating expenses and the cost of living for TLC-licensed drivers. We are confident that today’s unanimous commission vote will keep our taxi and [For-Hire Vehicle] fleets sustainable and ready to serve New Yorkers.”
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guest · Nov 19, 2022

Lyft's app now lets you request a tow truck and schedule maintenance
You can get your car fixed, not just hail a ride.
By Jon Fingas @jonfingas - November 17, 2022

Lyft's app is now more useful for taking care of your own car, not just hailing a ride in someone else's. You now have access to a trio of maintenance and parking features in the US through a dedicated app section. You can ask for 24/7 roadside assistance through Agero, including tow trucks. SpotHero now helps you reserve parking. And if you need a repair or tune-up, you can soon book car maintenance at Goodyear Auto centers.
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It's not hard to see the strategy behind these additions. On top of boosting Pink subscriptions, this could keep you in Lyft's ecosystem even if you have no need for ride hailing, bikes or scooters. The company can help you through "all phases" of your life, as fleet head Jody Kelman explains. Still, you might not mind if you're willing to trade flexibility in providers for the convenience of booking all your car services in a single app.

This might also represent slight competitive advantage over main rival Uber, whose app still revolves around on-demand rides. In theory, you might stick to Lyft simply because it addresses more of your transportation needs.
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Lyft: Lyft Launches New Services for Car Owners to Make Maintaining a Car as Easy as Requesting a Ride

November 17, 2022
Car owners can now request roadside assistance, find and reserve parking, and schedule car maintenance right from the Lyft app
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guest · Jan 7, 2023

NYC court blocks pay raise for Uber and Lyft drivers
By Kris Holt @krisholt - January 6, 2023

A court has blocked a rate hike that would have increased pay for New York City Uber and Lyft drivers. Uber sued the city's Taxi & Limousine Commission (TLC) in December, claiming it used a flawed methodology to determine the per-minute and per-mile rate increases. Manhattan state court Justice Arthur Engoron agreed. “It’s just not enough to say there’s inflation and 100 drivers said gas prices shot up,” Engoron, a former taxi driver in his college days, said, according to Bloomberg.
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Uber argued that the rate increases would result in higher fares for customers while harming its reputation. A judge granted a temporary restraining order to pause the rate hikes a few days after Uber filed suit and before they came into effect on December 19th.

“Drivers do critical work and deserve to be paid fairly, but rates should be calculated in a way that is transparent, consistent and predictable,” Uber spokesperson Josh Gold told Bloomberg. “Existing TLC rules continue to provide for an annual review tied to the rate of inflation, which will take place in March.”
The company said implementing the pay raise would cost it between $21 million and $23 million per month. For the July to September quarter, Uber reported a net loss of $1.2 billion.
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guest · Jan 18, 2023

Uber, Bolt drivers hope for increased earnings foiled as Tanzania reinstates 25% commission
By Annie Njanja @annienjanja - January 18, 2023

Barely a year after Tanzania capped the commissions that e-hailing firms like Uber and Bolt charge their partners at 15%, the authority in charge has backtracked on the order, taking away drivers’ prospects of increased earnings.
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The fee was increased to 25% effective last Sunday after the Land and Transport Regulatory Authority (Latra) issued a notice on December 30, which superseded the initial direction of March last year. Latra sets and approves fares for all operators, including those in the ride-hailing sector.

Uber and its main rival in Europe and Africa, Bolt, halted some of their services in April last year claiming that reducing the commission on partners would dent their earnings. However, the reduced fee meant increased incomes for drivers, who have in the past, like their counterparts in Kenya, protested poor earnings from the apps.
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Uber resumes full operations in Tanzania
Uber, which halted UberX, UberXL and UberSave services in April, kicked off efforts to resume full operations Monday, TechCrunch has learned, joining Bolt, whose services were restored in October. Uber charged a 25% commission, while Bolt charged 20%. Their withdrawal left the market to homegrown brands like Little, which charges a 15% commission, and Ping.

“We welcome the new pricing order issued by the Land and Transport Regulatory Authority, which we believe will significantly contribute to the growth and development of the ride-hailing industry in Tanzania,” said Onduru.
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The resumption of the e-hailing services comes after stakeholders, including representatives of Uber and Bolt, lobbied for the rates to be reviewed, leading Tanzania to announce last September that a middle ground had been found and the firms would resume operations.

Bolt said that following the decision by LATRA, it will soon introduce some changes on passenger fare pricing.
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guest · Jan 24, 2023

Lyft starts charging wait time fees to late passengers
Uber has had a wait time fee policy since 2016.
By Igor Bonifacic @igorbonifacic - January 24, 2023

Lyft has quietly started charging late fees to customers who make their drivers wait for them. In a recently published support document, the company outlines a policy that will see it add wait time fees to trips where drivers arrive at a pickup location and wait for more than two minutes for a passenger to get into their car.
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The fees won’t apply to Shared, Access, Assisted and Car Seat rides, and if a driver cancels on you due to a no-show, you won’t need to pay a wait time penalty on top of a cancellation fee. Additionally, Lyft offers a five-minute grace period for Lux Black and Lux Black XL rides. And if a driver arrives early, the clock won’t start ticking until after the original estimated pickup time.

“Wait time fees help keep our platform running smoothly – try to be on time and ready to meet your driver when they arrive at the pickup location,” the company says. “Additional wait time charges may apply to your trip depending on how busy it is. Wait time fees vary by location.”
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The change aligns Lyft with Uber’s wait time policy, which the latter has had in place since 2016. Notably, those include the terms designed to accommodate riders with disabilities.
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guest · Jan 26, 2023

New York City will require Uber and Lyft to go 100 percent electric by 2030
By Andrew J. Hawkins @andyjayhawk - January 26, 2023

In his State of the City speech Thursday, New York City Mayor Eric Adams announced that Uber and Lyft will be required to be zero emission by 2030. The decision by one of the world’s largest markets for app-based ridehailing has the potential to affect an estimated 100,000 for-hire vehicles.
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Adams said the move will build on efforts his administration has made to electrify the city’s fleet of vehicles while installing charging infrastructure to power those vehicles throughout the five boroughs. The mayor will likely implement his plan through the city’s Taxi and Limousine Commission, which regulates the for-hire vehicle industry, including Uber and Lyft.

Uber and Lyft, which normally chafe at new requirements and have been known to sue to block rules they don’t like, sound largely positive toward the new development in New York.

“We are excited to partner with New York City on our journey,” Paul Augustine, Lyft’s director of sustainability, said in a statement.
“New York’s commitment will accelerate an equitable city-wide transition to electric, and we’re eager to collaborate with the TLC on an ambitious plan for a rideshare clean mile standard.”
“We applaud the Mayor’s ambition for reducing emissions, an important goal we share,” Josh Gold, senior director of policy at Uber, said in a statement.
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New York isn’t the first government to require an all-electric ridehail fleet. California adopted new rules in 2021 requiring ridesharing companies to electrify their fleets by 2030 — a few years before the state expects to completely prohibit the sale of new gas cars.
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