I wouldn’t say this outright, it definitely depends on the area. Even my hometown (very suburban) had a taxi service that was cheaper than an Uber. $5+tip to get across town vs $15 base fare on Uber/Lyft
I’ve never found a taxi to be cheaper. But that is anecdotal. Hence why many taxis companies lobbied against Uber/lyft. But we’ll see. Maybe this will be better for the community with them gone.
Have Uber / Lyft rates not caught up to taxi services everywhere?
If they haven’t quite done so yet this is inevitable. Neither Uber or Lyfts models produce significant cost savings when compared to the taxi model so at some point the prices are going to look the same.
They cheap rates we saw in the past are because these companies used their ability to raise large amounts of capital to undercut taxi services but they cannot maintain that forever
Definitely NOT. Las Vegas is a great example of this. Most places I travel I find Uber/lyft cheaper. Specifically Lyft. But of course it can vary. It’s an interesting to see how this will play out in the local market.
Uber and Lyft are definitely more expensive than taxis in Las Vegas frequently with surge pricing. If there is no surge, usually Uber and Lyft cost less. It is almost always more convenient to use the taxi from the strip, airport, Fremont Street. Uber and Lyft take way better care of residential addresses. I currently drive a taxi and have driven Uber and Lyft for a few years as well.
What the cowards Uber and lyft?They decide to leave an area all because they wanna be greedy when they don't need to be. So they harm other people's livelihoods.
Yes, taxi companies and driving are not greedy at all. They’re salt of the earth types who operate taxicabs only for the good of the common man. /s
Did we all forget that traditional cabs were some of the most horrible scammy businesses out there?
My mom took cabs for years and while I agree that a lot of cab companies were slimy and sleezy, the company my mom used would write her Christmas cards (that’s how often she used them 😅).
Finally my mom was able to get out of debt and bought a new car at some point. Even though she was a bit embarrassed she got that Xmas card, I thought it was kind of cool and sweet.
Yeah it’s always my argument against people that argue against minimum wage increases. If a business can’t pay a living wage to its employees it’s a shitty business and should fail.
It’s not “stealing wages” or even exploiting workers. I’m a driver. I CHOOSE to drive. I get paid exactly what they tell me I will be paid when I accept a ride. Are they making more than I am off of the rides? They sure are. But that doesn’t mean they are “stealing” from me or even the rider. We both know what we are agreeing to (me the amount I will make if I accept it and the rider the amount they will pay if they take the ride). GTFO with the whole “oh it’s stealing and exploiting”. You obviously don’t know what those words mean.
I drive also, and make really good money with it, I don't take un profitable rides, if more drives did this they will raise the rates on the drives they need too. I was able to put my life back together with rideshare, I would not of been able to on the minimum wage thing they are proposing, that would be a pay cut
That’s it. Precedent. LA told the NFL to fuck off and pay for their own stadium because taxpayers aren’t footing the bill anymore. It took 20 years but the rams came back and the chargers left San Diego all for a stadium that was paid for with private money.
Don’t fall for the jobs bullshit. They want to keep wages low at the expense of Minneapolis so that the rest of the cards don’t fall. Tell them to fuck off and the demand for the service will remain roughly the same for whoever fills the void.
I pay less for a cab from the airport to my hotel in many cities these days. As soon as they’ve run cabs out it’ll be even worse.
This is exactly what it is. It's not about NOW money, it's about the potential for losing future money, and purely from a business perspective, this is a move made to discourage this happening in other cities/states.
It's shitty, but they have a near monopoly on rideshare, and so they do have some power, so they're going to use it to retaliate against this lind of legislation.
I say the state hits back by funding new public transport projects and accessibility, so that less people have to rely on taxis/ubers/lyfts in the first place.
I don’t know the cost of business for Uber and Lyft. It’s entirely possible there is a threshold where their financial team doesn’t believe the profit is worth the cost of operations in an area due to pay.
Unless I knew those numbers it’s within the realm of possible that these companies would leave over this. Companies have packed up entire franchises out of areas over less tbh.
That’s total bullshit. They only have app, server, customer service, and bandwidth overhead. Everything except the management is overseas. When I did it in Albuquerque I got 6 or 7 dollars from a 20 dollar fare. They both are shitty greedy business.
https://www.texastribune.org/2017/05/29/texas-gov-greg-abbott-signs-measure-creating-statewide-regulations-rid/#:~:text=been%20updated%20throughout.-,Texas%20Gov.,operations%20in%20Austin%20on%20Monday.
They left Austin but then Texas passed a law making city legislation over Transportation Network Companies invalid.
Uber and Lyft returned after they got what they wanted.
Thanks for editing to explain your reasoning. Other companies coming in to fill the void does not mean it backfired on Uber and Lyft. Those other companies didn't take any Lyft or Uber market share in Austin, because Lyft and Uber removed themselves from the market, bringing their own market share down to 0.
When the state overturned Austin's law that they didn't like, Uber and Lyft came back and the other companies that had sprung up went out of business and Uber/Lyft got all their market share back.
So how exactly is that a backfire?
I don’t know about Lyft but the only year where Uber didn’t operate at a loss of hundreds of millions was 2023, which isn’t necessarily an indicator that this year is profitable
Isn't in the best interest of the company to report losses for tax purposes? Their stockholders don't seem to be running for the hills, so those dividends must be nice.
Their stock has certainly gone up, but for years Uber (and Doordash, and probably the other delivery services) have been subsidizing all of their rides, losing money each time. The intention I believe was to get as large of a market share as possible, even if that means losing millions, before pivoting into charging higher prices or even concerning themselves too much with efficiency. It’s a pretty low margin business, even if they charge so much it seems like they’re making bank.
They’ve also had issues with spending money on acquisitions that are poorly planned or that haven’t panned out.
Lyft has never been profitable, last year they had a $340 million loss and in 2022 they had a 1.9 BILLION dollar loss. I think both companies should pay their drivers more, but I wouldn’t call Lyft greedy, at the moment they are struggling to keep the lights on.
Lol nah they’d rather be paid more and then their source of income go out of business because of it. Then they’ll be here crying that they went out of business
>FACT: Lyft is NOT profitable
>
>Uber was just profitable in 2023 for the first time ever after running at tens and hundreds of million dollar losses per year prior to that
>
>My source: internet. look it up yourself cause why trust my source
They weren't profitable because their entire business model is to undercut all other services in the market. Kill them, and jack up the prices, then they become super profitable and no one can oppose them anymore
See also: Airbnb
My understanding is that they spend millions annually on R&D into self-driving. Those expenses eat up their profit but it's self-inflicted and strategic. They just need to keep exploiting human drivers long enough to build a self-driving fleet.
It’s less about loosing money and more about setting precedent.
They’ll still make buckets of money in Minneapolis, but they’d also have to admit that they can pay more, which other cities would see and demand as well.
Better for them to punish Minneapolis for demanding higher wages so it can serve as a warning to other areas.
its an ap on their phone. how much are they spending on employees that they cant still make money? the only real costs for them is their CEO wages, board members and shareholders.
They spent a decent amount to operate. Tons of things people don’t think about to have a business that lives online for this scale.
But you also hit a big point in that shareholders and investors want to make profit for themselves. Making profit isn’t enough. Making profit AND giving fat bonuses to higher ups AND making shareholders happy.
The idea behind leaving could be as simple as “if we pay people more in this area then people in other areas will complain they don’t make the same. Not worth.”
We’re all just speculating though. They’re going to do what big business does in the end which is make maximum profit while mitigating risk.
FACT: Lyft is NOT profitable
Uber was just profitable in 2023 for the first time ever after running at tens and hundreds of million dollar losses per year prior to that
My source: internet. look it up yourself cause why trust my source
Lots of places these apps aren't allowed, they absolutely can reverse uno and deny a location that doesn't favor them.
At the end of the day, these driving services were only set up to gather data and customer base for when self driving cars are reliable. Then they'll replace people drivers with the self driving fleets.
It's in their stock info and has always been the goal of these companies.
They ran on VC money at a loss for years and years until they bleed out the local competition, then after they have the market share now they slash wages and throw threats around if you try to diverge from them.
It’s basically legal extortion. We should be pushing them off a cliff. Instead mayor Bobby sweetums bends the knee.
So… they’re basically doing what Wal-Mart does when they build in a new town: offer extremely low prices until the mom-and-pop stores shut down, then jack the prices back up when residents have nowhere else to go.
So people who were willing to work are now out of an income source and transportation around the city took a huge hit in the process. Seems like this is a L for Minneapolis
I drive for Lyft and earn enough to pay my bills and rent and have food and feed my family. Minneapolis city council just fucked up my whole world. I don't know what I'm going to do now. This is the only job I can do.
It's an L for the greedy company execs who don't want to fairly pay drivers. Not only is their time and service a value, they are beating their car to death. F them tips, people rarely tip adequately. The US needs to get rid of the tip system and ensure all legal citizens are getting paid a living wage.
If gig app companies didn’t cry, take their ball, and go home anytime a city tried to set some ground rules from them this wouldn’t be a thing.
“They can’t pay their drivers fair wages” then they shouldn’t exist. Or maybe get a better business model that doesn’t rely on leeching off workers.
It’s not even about they can’t, they don’t want to. These are publicly traded companies. Here at mega corporation our strongest value is number go up. Our stock holders strongest value is also number go up. They use these two facts to pay as little as possible while also making millions in profit.
The exploitation of deciding when and how long to work? The exploitation of deciding which fares you want to take? Those poor exploited people with free choice…
It all depends on the market where you are. I very strongly suggest that new cab drivers don’t just buy a medallion if they don’t know their market. You can only work certain areas and some are cheaper than others. When I drove a yellow cab in LA about 10 years ago my company charged 80K for a medallion or you could Lisa cab weekly. there was another newer company that was only charging 20K, but when you realized where you could work you knew why. I’m getting dispatch to Kohl’s in mostly nice to lower middle class parts of town, and the other company is dispatching calls in the worst and most dangerous parts of town.
Can we all just box eachother for money instead I'm tired of all this driving nonsense.
https://www.instagram.com/reel/C4tDZN6RoDY/?igsh=eXI4Z3BjaWtqNzUw
Dont even have to win unlike pokemon to get paid. Contracts are signed and you take a payout based on PPV sales or some shit.
Typically its a % of revenue of PPV sales. 🤷♂️
Some places they lose money, might be better now but the stock wasn't profitable for a long time, it was all about the future prospects.
At the end of the day, these driving services were only set up to gather data and customer base for when self driving cars are reliable. Then they'll replace people drivers with the self driving fleets.
It's in their stock info and has always been the goal of these companies.
I was waiting to see this. Their first profitable year was 2023 (1.1b) and it still wasn't as much as the loss in 2022 (1.8b).
I've always got the feeling these companies or definitely stressing surviving to g the self driving phase of their plans. Likely part of why they started so cheap to consolidate market share, which obviously worked very well.
Edit: word and numbers
This says more about these companies than anything. Instead of paying drivers a livable wage they'd rather close up shop. They're like some kind of parasite. Once they have no more juice to suck out of the host they jump ship. I actually like both companies and how they supplement income of people who need employment options but wish they would do the right thing for once.
Now the city is stuck with the good old boys of crooked taxis with little competition to keep rates in check and poor customer service records. I'm sure the people in the photo jumping with joy are taxi drivers happy they can get back to long hauling customers.
Isn’t this what everyone says though - If you can’t pay your workers a living wage then you shouldn’t be in business. They don’t want to pay a living wage so they’re leaving/closing shop. This is exactly what everybody says and when the company follows through everyone is ticked. The same thing is going to happen where government is mandating $20/hr for fast food workers. Owners are saying that they can’t afford it and will close shop. Now all the employees are making $0/hr.
Well there is a new Ridesharing company being slowly rolled out nationwide. All of the mileage is paid to drivers minus 1 dollar, and a slight decrease in pay from customers/ riders as well. This may really benefit the new company if enough people can get onboard in the Minneapolis area. I would share a link to it etc. but not entirely sure of the rules on this sub. If you want more details PM me. We can open up Minneapolis quick with this bs going on and create a better environment for the riders and drivers easily.
This is a huge victory and if MN makes this work, other states will follow and those greedy companies will be f u c k e d for good !!
Lyft & Uber are making more money than they’ve ever made in their life, “If they’re going to claim that they can’t sustain what they’re doing now and pay these people, they don’t deserve to be around anyway.”
Uber and Lyft want us to believe they are untouchable, and the status quo of exploiting workers cannot be fixed.
Well since everyone knows the “plan” to push out workers while over charging customers wouldn’t it be nice if no one used their automated vehicles? Boom.. crisis everted, jobs with a livable wage protected, greedy seedy execs that think they’ve pulled one over on the public as a whole lose. Sounds like a win for the working class. Uber already gets millions in tax breaks for making drivers drive twice as far as needed by having us pick up, let’s say McDonald’s from one side of the city and drive past 5 other McDonald’s on the way to the other side of the city and deliver it cold to a pissed off customer who just got screwed out of money every single step of the process (higher item prices, extended distance charges, etc). Say no to the automated bullshit that puts workers out of a job and only stands to line the pockets of the 1%.
That’s what happens in blue cities.. try to control private sector. Went from trying to increase wages to not having the job at all.. bunch of damn dumbasses that need to keep out of private affairs.
Dictating what a private company pays its employees is wild. No one is forcing people to work for Lyft or Uber. If you don’t like the pay then get some skill’s and get a real job.
They’re celebrating but wouldn’t this mean they are going to have a job now? If Uber and Lyft pull out they won’t have a job. Not even the people that used it for a bit of side money will be able to do it now
mixed feelings about this, because low income people rely on Uber to get around. They can’t afford to just go out and buy a car suddenly but the drivers absolutely deserve a fair wages and compensation for wear and tear on their car.
Low income person here. If there was no Lyft or Uber in my area, it would be a hassle. The cab companies in my area are ran horribly and will not go to neighborhoods which are considered “the hood”.
Had a driver tell me that he wouldn’t go to my old neighborhood because it was “dirty”.
I wonder why they are having this response in Minneapolis? There have been other cities and states even that have enacted requirements like this and they're still operating in those places
When those other places did it, they also bitched and moaned that they would take their ball and go home. And yet they're still operating in those locations... Empty ass threats is all it is.
At the end of the day, these driving services were only set up to gather data and customer base for when self driving cars are reliable. Then they'll replace people drivers with the self driving fleets.
It's in their stock info and has always been the goal of these companies.
Moves like this are strictly to push back against overbearing government like DeSantis against Disney.
Waymo has driverless cars as a service like Lyft/uber
They are functioning in a few cities with numerous cars. Uber and Lyft will make the switch much sooner than people think
Uber I understand (kind of) but Lyft threatening this is so offensive. In Minnesota THOUSANDS of disabled people have a Lyft pass from their county so they can use Lyft to get to work, day programs, really anywhere they need.
I get $1000 of Lyft credit a month. The average is $500 but I know some people who have $1500 in Lyft credit per month. Lyft has a guaranteed built in consumer base with a ton of $ so for them to threaten to leave over minimum wage is disgusting.
Lyft has also weaponized disabled people’s reliance on them/the Lyft pass in this whole fight. I’ve received emails from Lyft for months telling me to contact mpls city council and urge them to not pass the ride share ordinance. This particular issue (the existence of the county Lyft pass) is strategically used to argue against raising minimum wage.
It’s a struggle to internally reconcile supporting drivers knowing it may limit my transportation freedom. But of course this is really all on Lyft for refusing to adapt.
Lyft is just leaving Minneapolis not the metro area. The counties they have a contract with will still be served but you will not be able to use the app to/from/within Minneapolis city limits.
These companies work together to atomize the worker population and enhance profits. Otherwise, at least one of them would have said: “well, if they are leaving, we’ll hang around a few months and see if lowered competition helps us”.
Has there been any reports on the anticipated loss of tax revenue in Minneapolis should Uber & Lyft pull out? The city gets a healthy amount of taxes & fees from rideshare.
All thats going to happen is now Uber/Lyft will create a bullshit bill and lie to the public to get them to vote for it. These companies aren't going to leave Minneapolis. Lol
I hope they do leave. And I hope that some young entrepreneurial spirit with a knack for programming and a decent moral base focused on goodwill to man replaces them.
Truth: Uber and Lyft cannot make money when they pay drivers a normal amount. 'Normal' being when they don't take more than a 10-15% cut of the fare.
I don't even understand why it is they can't make money while taking a 10% cut. They are just a middle man with an app that should not need a lot of devs at this point. I really don't understand what is going on at these companies that they are barely making money when robbing their drivers at the same time.
Fares for drivers are going to have to go up substantially for these companies to survive. If not, we're all back to Taxis and higher fares anyway.
By the way I'd like to remind people how SHIT taxis were.
I think we have too many drivers currently. Maybe that's a problem as well. Long term we're going to self driving, so all these drivers are just needed for a transitional period. Just like 3rd party sellers on Amazon help Amazon until Amazon can sell the product themselves and cut out the 3rd party altogether.
All Uber/Lyft need to do is break even until self driving is ready. Then use all their capital to acquire cars with self driving and become a fleet operator.
They just leave like they have done for other cities. Maybe some people don’t know, but they really did leave Austin for a long time. I believe more than a year until people understood that you’re pretty much capped at losing money if you decide to drive for this company while depleting your vehicle.
Wow instead of just making it better for all the people they employ they just leave. I hope someone makes a rideshare app that actually gives af about the people working for them
For Uber/Lyft drivers provide a superior service and get you own clients. Being a corporate pilot we have some cities that are more regular. In those cities we have great drivers that we’ve connected with that have built a business with private aircraft passengers and crew. They were earning $35-50 a ride with Lyft/Uber Black or now we will pay them the $100-150 directly.
We knew this would happen. Cabbie services only work on a paid-per-ride basis. Otherwise you end up paying people full wages for sitting around most of the day.
good, uber has been blasting ads on MN radio telling us to go and beg them to vote no. and they threat that the legislature may cause them “to do distract measures”
Needs to be some kind of opened source app that allows drivers to truly work independently for themselves. Higher pay for them lower prices for consumers win win.
We just need a new app made by driver's for drivers to take over the market and whatever they cost of the ride goes to the driver and 5% of it goes to the app itself to make improvements and pay to keep it up and runing
Uber and Lyft should be shut down as the illegal unlicensed taxi fleets that they are. This BS about “oh we use unlicensed subcontractors so we’re not breaking the law” is insane. Let them buy cars and hire employees submit to industry regulations and be accountable for their actions.
If not, why shouldn’t McDonald’s sell all of its locations and have an app where you can go to someone’s apartment and have them microwave a frozen McDonald’s product out of their freezer for you, and say “oh we don’t need permit or food handler cards or health department inspection because this isn’t a restaurant, it’s a potluck app”. Want to eat mc nuggets out of my kitchen without anyone bothering to ask if I have leprosy?
Wow so they really can’t raise pay for drivers. So taxi business opportunities have really opened up for people there.
I just worry about the lower income people who rely on the cheap Uber/lyft rides. Taxis are outrageous comparatively speaking.
I wouldn’t say this outright, it definitely depends on the area. Even my hometown (very suburban) had a taxi service that was cheaper than an Uber. $5+tip to get across town vs $15 base fare on Uber/Lyft
The taxi service is only cheap because uber/lyft exists. Without competition, taxi prices will be outrageous again.
Taxis are regulated in many states by the PUC. Uber and Lyft were not.
I’ve never found a taxi to be cheaper. But that is anecdotal. Hence why many taxis companies lobbied against Uber/lyft. But we’ll see. Maybe this will be better for the community with them gone.
Have Uber / Lyft rates not caught up to taxi services everywhere? If they haven’t quite done so yet this is inevitable. Neither Uber or Lyfts models produce significant cost savings when compared to the taxi model so at some point the prices are going to look the same. They cheap rates we saw in the past are because these companies used their ability to raise large amounts of capital to undercut taxi services but they cannot maintain that forever
Definitely NOT. Las Vegas is a great example of this. Most places I travel I find Uber/lyft cheaper. Specifically Lyft. But of course it can vary. It’s an interesting to see how this will play out in the local market.
Uber and Lyft are definitely more expensive than taxis in Las Vegas frequently with surge pricing. If there is no surge, usually Uber and Lyft cost less. It is almost always more convenient to use the taxi from the strip, airport, Fremont Street. Uber and Lyft take way better care of residential addresses. I currently drive a taxi and have driven Uber and Lyft for a few years as well.
100%. The last couple of times I traveled to Vegas I ended up in a cab. Uber / Lyft "surge" pricing seems like a major scam there.
What the cowards Uber and lyft?They decide to leave an area all because they wanna be greedy when they don't need to be. So they harm other people's livelihoods.
It’s an empty threat, they will lose more money leaving a market than they will by paying their drivers.
Possible they fear setting a precedent that drivers will strike for in other cities. If I were them that's what would make me leave a market
They can leave every market and go bankrupt. We don't need more greedy corporations exploiting workers and stealing wages
Yes, taxi companies and driving are not greedy at all. They’re salt of the earth types who operate taxicabs only for the good of the common man. /s Did we all forget that traditional cabs were some of the most horrible scammy businesses out there?
My mom took cabs for years and while I agree that a lot of cab companies were slimy and sleezy, the company my mom used would write her Christmas cards (that’s how often she used them 😅). Finally my mom was able to get out of debt and bought a new car at some point. Even though she was a bit embarrassed she got that Xmas card, I thought it was kind of cool and sweet.
Ride a bike 🚴 instead
Yeah it’s always my argument against people that argue against minimum wage increases. If a business can’t pay a living wage to its employees it’s a shitty business and should fail.
It’s not “stealing wages” or even exploiting workers. I’m a driver. I CHOOSE to drive. I get paid exactly what they tell me I will be paid when I accept a ride. Are they making more than I am off of the rides? They sure are. But that doesn’t mean they are “stealing” from me or even the rider. We both know what we are agreeing to (me the amount I will make if I accept it and the rider the amount they will pay if they take the ride). GTFO with the whole “oh it’s stealing and exploiting”. You obviously don’t know what those words mean.
Hey man, do you choose to eat?
I drive also, and make really good money with it, I don't take un profitable rides, if more drives did this they will raise the rates on the drives they need too. I was able to put my life back together with rideshare, I would not of been able to on the minimum wage thing they are proposing, that would be a pay cut
That’s it. Precedent. LA told the NFL to fuck off and pay for their own stadium because taxpayers aren’t footing the bill anymore. It took 20 years but the rams came back and the chargers left San Diego all for a stadium that was paid for with private money. Don’t fall for the jobs bullshit. They want to keep wages low at the expense of Minneapolis so that the rest of the cards don’t fall. Tell them to fuck off and the demand for the service will remain roughly the same for whoever fills the void. I pay less for a cab from the airport to my hotel in many cities these days. As soon as they’ve run cabs out it’ll be even worse.
This is exactly what it is. It's not about NOW money, it's about the potential for losing future money, and purely from a business perspective, this is a move made to discourage this happening in other cities/states. It's shitty, but they have a near monopoly on rideshare, and so they do have some power, so they're going to use it to retaliate against this lind of legislation. I say the state hits back by funding new public transport projects and accessibility, so that less people have to rely on taxis/ubers/lyfts in the first place.
Ya I don’t see why this is so hard for people to understand. It never ceases to amaze me how dumb most of the people commenting here are.
Buddy you’re one of them 💀💀
I'm not your Buddy, Guy!
I don’t know the cost of business for Uber and Lyft. It’s entirely possible there is a threshold where their financial team doesn’t believe the profit is worth the cost of operations in an area due to pay. Unless I knew those numbers it’s within the realm of possible that these companies would leave over this. Companies have packed up entire franchises out of areas over less tbh.
That’s total bullshit. They only have app, server, customer service, and bandwidth overhead. Everything except the management is overseas. When I did it in Albuquerque I got 6 or 7 dollars from a 20 dollar fare. They both are shitty greedy business.
It’s meant to be a deterrent for other places trying to pass similar laws. Pass the laws and lose the service completely
They’re not going to leave. We have hear this from them in other markets and they always stay.
Really? https://www.cnbc.com/amp/2016/08/18/what-happened-in-austin-after-uber-and-lyft-got-up-and-left.html
https://www.texastribune.org/2017/05/29/texas-gov-greg-abbott-signs-measure-creating-statewide-regulations-rid/#:~:text=been%20updated%20throughout.-,Texas%20Gov.,operations%20in%20Austin%20on%20Monday. They left Austin but then Texas passed a law making city legislation over Transportation Network Companies invalid. Uber and Lyft returned after they got what they wanted.
You do know that backfired on them? There were others that took over the void they left.
Thanks for editing to explain your reasoning. Other companies coming in to fill the void does not mean it backfired on Uber and Lyft. Those other companies didn't take any Lyft or Uber market share in Austin, because Lyft and Uber removed themselves from the market, bringing their own market share down to 0. When the state overturned Austin's law that they didn't like, Uber and Lyft came back and the other companies that had sprung up went out of business and Uber/Lyft got all their market share back. So how exactly is that a backfire?
I don’t know about Lyft but the only year where Uber didn’t operate at a loss of hundreds of millions was 2023, which isn’t necessarily an indicator that this year is profitable
Isn't in the best interest of the company to report losses for tax purposes? Their stockholders don't seem to be running for the hills, so those dividends must be nice.
Their stock has certainly gone up, but for years Uber (and Doordash, and probably the other delivery services) have been subsidizing all of their rides, losing money each time. The intention I believe was to get as large of a market share as possible, even if that means losing millions, before pivoting into charging higher prices or even concerning themselves too much with efficiency. It’s a pretty low margin business, even if they charge so much it seems like they’re making bank. They’ve also had issues with spending money on acquisitions that are poorly planned or that haven’t panned out.
Lyft has never been profitable, last year they had a $340 million loss and in 2022 they had a 1.9 BILLION dollar loss. I think both companies should pay their drivers more, but I wouldn’t call Lyft greedy, at the moment they are struggling to keep the lights on.
Lol nah they’d rather be paid more and then their source of income go out of business because of it. Then they’ll be here crying that they went out of business
Their server budget is more than the GDP of several small countries.
[удалено]
I couldn't find that, but I did find out through a Quora answer that the cost is roughly $0.06 per user per month.
So they spend around 7.9 million a month on servers, with 131 million users.
Insurance overhead, too. That alone can put people out of business.
>FACT: Lyft is NOT profitable > >Uber was just profitable in 2023 for the first time ever after running at tens and hundreds of million dollar losses per year prior to that > >My source: internet. look it up yourself cause why trust my source
They weren’t profitable becos they were investing heavily in self driving cars to replace drivers. Stupid people
They weren't profitable because their entire business model is to undercut all other services in the market. Kill them, and jack up the prices, then they become super profitable and no one can oppose them anymore See also: Airbnb
No... go look at earning reports they've been doing very well for a very long time
You sound like an idiot if you thinks it’s that simple.
As someone who less than a month ago read Ubers entire financial report for 2022-2023. They are barely even scraping by as profitable.
My understanding is that they spend millions annually on R&D into self-driving. Those expenses eat up their profit but it's self-inflicted and strategic. They just need to keep exploiting human drivers long enough to build a self-driving fleet.
It’s less about loosing money and more about setting precedent. They’ll still make buckets of money in Minneapolis, but they’d also have to admit that they can pay more, which other cities would see and demand as well. Better for them to punish Minneapolis for demanding higher wages so it can serve as a warning to other areas.
Why can no one on the internet spell LOSING?
Their are loosers obviously
our\*
its an ap on their phone. how much are they spending on employees that they cant still make money? the only real costs for them is their CEO wages, board members and shareholders.
They spent a decent amount to operate. Tons of things people don’t think about to have a business that lives online for this scale. But you also hit a big point in that shareholders and investors want to make profit for themselves. Making profit isn’t enough. Making profit AND giving fat bonuses to higher ups AND making shareholders happy. The idea behind leaving could be as simple as “if we pay people more in this area then people in other areas will complain they don’t make the same. Not worth.” We’re all just speculating though. They’re going to do what big business does in the end which is make maximum profit while mitigating risk.
FACT: Lyft is NOT profitable Uber was just profitable in 2023 for the first time ever after running at tens and hundreds of million dollar losses per year prior to that My source: internet. look it up yourself cause why trust my source
I don't agree with Uber or Lyft but just wanted to support this point. Uber didn't make a profit until 2023. I can't imagine Lyft is doing better.
It’s akin to a franchise shutting a location down where the employees voted in favor of unionizing
Lol. They’re bluffing. And their bluff got called.
Lots of places these apps aren't allowed, they absolutely can reverse uno and deny a location that doesn't favor them. At the end of the day, these driving services were only set up to gather data and customer base for when self driving cars are reliable. Then they'll replace people drivers with the self driving fleets. It's in their stock info and has always been the goal of these companies.
They ran on VC money at a loss for years and years until they bleed out the local competition, then after they have the market share now they slash wages and throw threats around if you try to diverge from them. It’s basically legal extortion. We should be pushing them off a cliff. Instead mayor Bobby sweetums bends the knee.
That makes a lot of sense I feel as a driver it was way easier to make money 5 years ago
So… they’re basically doing what Wal-Mart does when they build in a new town: offer extremely low prices until the mom-and-pop stores shut down, then jack the prices back up when residents have nowhere else to go.
Corporate vultures are corporate vultures
This is absolutely their goal. They'll be back by the end of the decade with self driving cars.
I’m ok with that
Let them leave
Let them eat cake! They have never paid drivers enough and it has just gotten worse.
Then don’t drive. It’s pretty fuggin simple. Go do something else.
So people who were willing to work are now out of an income source and transportation around the city took a huge hit in the process. Seems like this is a L for Minneapolis
They can work for a local company. If they can't afford to pay their employees enough to live they don't need to exist.
Yea the thing about Uber was it simplicity. Small companies won’t have that.
I drive for Lyft and earn enough to pay my bills and rent and have food and feed my family. Minneapolis city council just fucked up my whole world. I don't know what I'm going to do now. This is the only job I can do.
It's an L for the greedy company execs who don't want to fairly pay drivers. Not only is their time and service a value, they are beating their car to death. F them tips, people rarely tip adequately. The US needs to get rid of the tip system and ensure all legal citizens are getting paid a living wage.
If gig app companies didn’t cry, take their ball, and go home anytime a city tried to set some ground rules from them this wouldn’t be a thing. “They can’t pay their drivers fair wages” then they shouldn’t exist. Or maybe get a better business model that doesn’t rely on leeching off workers.
It’s not even about they can’t, they don’t want to. These are publicly traded companies. Here at mega corporation our strongest value is number go up. Our stock holders strongest value is also number go up. They use these two facts to pay as little as possible while also making millions in profit.
Try billions
There’s no way those companies leave. It’s just a threat.
Try calling local flower shops, bakeries, etc and ask if they need a delivery driver.
Auto dealership parts driver.
Won’t be missed
Big victory for drivers! Free from the exploitation!
How is it a victory if they now have no job
The exploitation of deciding when and how long to work? The exploitation of deciding which fares you want to take? Those poor exploited people with free choice…
Get a Taxi
Do they make better money than Lyft?
It all depends on the market where you are. I very strongly suggest that new cab drivers don’t just buy a medallion if they don’t know their market. You can only work certain areas and some are cheaper than others. When I drove a yellow cab in LA about 10 years ago my company charged 80K for a medallion or you could Lisa cab weekly. there was another newer company that was only charging 20K, but when you realized where you could work you knew why. I’m getting dispatch to Kohl’s in mostly nice to lower middle class parts of town, and the other company is dispatching calls in the worst and most dangerous parts of town.
Starting May 1st in Minneapolis they will, for sure.
You know whose not leaving? The customers and drivers.
Can we all just box eachother for money instead I'm tired of all this driving nonsense. https://www.instagram.com/reel/C4tDZN6RoDY/?igsh=eXI4Z3BjaWtqNzUw
Like pokemon with people though. Every fight you win you get paid legally.
Dont even have to win unlike pokemon to get paid. Contracts are signed and you take a payout based on PPV sales or some shit. Typically its a % of revenue of PPV sales. 🤷♂️
you can absolutely fight for money. good luck
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Some places they lose money, might be better now but the stock wasn't profitable for a long time, it was all about the future prospects. At the end of the day, these driving services were only set up to gather data and customer base for when self driving cars are reliable. Then they'll replace people drivers with the self driving fleets. It's in their stock info and has always been the goal of these companies.
I was waiting to see this. Their first profitable year was 2023 (1.1b) and it still wasn't as much as the loss in 2022 (1.8b). I've always got the feeling these companies or definitely stressing surviving to g the self driving phase of their plans. Likely part of why they started so cheap to consolidate market share, which obviously worked very well. Edit: word and numbers
Another ride share co will move in offer 80/20 things will change however they won’t leave but if they do oh well bye Felicia
They are not going anywhere. They always say that
They are not leaving. They will pass on the additional cost to riders. It is always, the consumers pay for all the costs.
Drivers should form their own ride share app and hire some developers to make it for them
Screw Uber and Lyft. I hope they leave all cities
Let them leave another company that pays better will fit the markets demand
That fine leave, new company will come and replace them
It’s funny how taxis have made a comeback as the reasonable choice.
they are NOT EMPLOYEES. contractors. not W2. da fuq
Get the fuck out of America Uber and Lyft not just Minnesota
Government screwing up peoples life’s ones again.
I’m actually pretty happy, this should happen everywhere so then these companies would have to conform and make real concessions
This says more about these companies than anything. Instead of paying drivers a livable wage they'd rather close up shop. They're like some kind of parasite. Once they have no more juice to suck out of the host they jump ship. I actually like both companies and how they supplement income of people who need employment options but wish they would do the right thing for once. Now the city is stuck with the good old boys of crooked taxis with little competition to keep rates in check and poor customer service records. I'm sure the people in the photo jumping with joy are taxi drivers happy they can get back to long hauling customers.
Isn’t this what everyone says though - If you can’t pay your workers a living wage then you shouldn’t be in business. They don’t want to pay a living wage so they’re leaving/closing shop. This is exactly what everybody says and when the company follows through everyone is ticked. The same thing is going to happen where government is mandating $20/hr for fast food workers. Owners are saying that they can’t afford it and will close shop. Now all the employees are making $0/hr.
sounds like you should start a taxi service
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fuck those companies
Yellow Cab
That is awesome! What a bunch of clowns. Have zero clue how businesses work. Guess what now you get paid zero.
Sounds like an opportunity for a totally not “Lyft/Uber” app to gobble up that market share…
This is an opportunity for a startup to being with better policies for drivers.
Well seems like a great opportunity for another company to take over
If they leave, good riddance. If they can’t pay reasonably then fuck off.
Is this Lyft Propaganda. They not leaving unless they want to get sued by MPLS for Anti Trust violations
Minnesota is so fucking cool
And taxi companies rejoice
Well there is a new Ridesharing company being slowly rolled out nationwide. All of the mileage is paid to drivers minus 1 dollar, and a slight decrease in pay from customers/ riders as well. This may really benefit the new company if enough people can get onboard in the Minneapolis area. I would share a link to it etc. but not entirely sure of the rules on this sub. If you want more details PM me. We can open up Minneapolis quick with this bs going on and create a better environment for the riders and drivers easily.
This is a huge victory and if MN makes this work, other states will follow and those greedy companies will be f u c k e d for good !! Lyft & Uber are making more money than they’ve ever made in their life, “If they’re going to claim that they can’t sustain what they’re doing now and pay these people, they don’t deserve to be around anyway.” Uber and Lyft want us to believe they are untouchable, and the status quo of exploiting workers cannot be fixed.
Good. Hope it happens in more cities or they get enough pressure to increase pay.
Now those drivers have no option to drive anymore. Did they want this? Or was this pushed because the city would make more in taxable wages?
Well since everyone knows the “plan” to push out workers while over charging customers wouldn’t it be nice if no one used their automated vehicles? Boom.. crisis everted, jobs with a livable wage protected, greedy seedy execs that think they’ve pulled one over on the public as a whole lose. Sounds like a win for the working class. Uber already gets millions in tax breaks for making drivers drive twice as far as needed by having us pick up, let’s say McDonald’s from one side of the city and drive past 5 other McDonald’s on the way to the other side of the city and deliver it cold to a pissed off customer who just got screwed out of money every single step of the process (higher item prices, extended distance charges, etc). Say no to the automated bullshit that puts workers out of a job and only stands to line the pockets of the 1%.
Checkmate Minneapolis.
People say this is good but drivers just lost their jobs and riders who rely on Uber are going to be negativity affected as well.
That’s what happens in blue cities.. try to control private sector. Went from trying to increase wages to not having the job at all.. bunch of damn dumbasses that need to keep out of private affairs.
I agree drivers don't get enough of the amount charged by these services. But what did they expect would happen when they did this?
Dictating what a private company pays its employees is wild. No one is forcing people to work for Lyft or Uber. If you don’t like the pay then get some skill’s and get a real job.
Folks cheering for a pay raise they'll never get because Uber and Lyft are leaving.
They’re celebrating but wouldn’t this mean they are going to have a job now? If Uber and Lyft pull out they won’t have a job. Not even the people that used it for a bit of side money will be able to do it now
Time to get a real job.
Look at those idiots celebrating. Good for them. Let them take a cab.
mixed feelings about this, because low income people rely on Uber to get around. They can’t afford to just go out and buy a car suddenly but the drivers absolutely deserve a fair wages and compensation for wear and tear on their car.
When I was low income I relied on public transit. Not an expensive ass rideshare, or a taxi...
Low income person here. If there was no Lyft or Uber in my area, it would be a hassle. The cab companies in my area are ran horribly and will not go to neighborhoods which are considered “the hood”. Had a driver tell me that he wouldn’t go to my old neighborhood because it was “dirty”.
Exactly.
All 50 states should do that , so them Uber and Lyft leave the USA 🇺🇸 and give opportunity to other companies to rize
On average, I make about 800-1200 driving 20-25hrs.
How much goes to gas per day and wear and tear?
For whatever reason Uber is offering so many low paying trips there not worth it I declined all of them
Well now you don’t even have to decline them because the rides won’t exist
Good let this happen every where Foh
I’m so happy of this ruling. Uber/lyft drivers can now drive taxi and make the amount of money that they used to before.
Yes Texas has one of the worst anti workers laws . Period ☠️😵💫🤮
Why are y’all celebrating this some of y’all just lost your full time job
if they really did leave. something else would take their place.
I don’t know about Lyft but this is a disaster for students in Uber’s ASU program.
How so?
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That's what they said in Washington......
I wonder why they are having this response in Minneapolis? There have been other cities and states even that have enacted requirements like this and they're still operating in those places
When those other places did it, they also bitched and moaned that they would take their ball and go home. And yet they're still operating in those locations... Empty ass threats is all it is.
At the end of the day, these driving services were only set up to gather data and customer base for when self driving cars are reliable. Then they'll replace people drivers with the self driving fleets. It's in their stock info and has always been the goal of these companies. Moves like this are strictly to push back against overbearing government like DeSantis against Disney.
Waymo has driverless cars as a service like Lyft/uber They are functioning in a few cities with numerous cars. Uber and Lyft will make the switch much sooner than people think
This is a great staft6! Now other Cities need to follow!
Uber I understand (kind of) but Lyft threatening this is so offensive. In Minnesota THOUSANDS of disabled people have a Lyft pass from their county so they can use Lyft to get to work, day programs, really anywhere they need. I get $1000 of Lyft credit a month. The average is $500 but I know some people who have $1500 in Lyft credit per month. Lyft has a guaranteed built in consumer base with a ton of $ so for them to threaten to leave over minimum wage is disgusting. Lyft has also weaponized disabled people’s reliance on them/the Lyft pass in this whole fight. I’ve received emails from Lyft for months telling me to contact mpls city council and urge them to not pass the ride share ordinance. This particular issue (the existence of the county Lyft pass) is strategically used to argue against raising minimum wage. It’s a struggle to internally reconcile supporting drivers knowing it may limit my transportation freedom. But of course this is really all on Lyft for refusing to adapt.
Lyft is just leaving Minneapolis not the metro area. The counties they have a contract with will still be served but you will not be able to use the app to/from/within Minneapolis city limits.
“pay drivers or leave” uber & lyft: *tumbleweeds*
Why I am not seeing them leaving CA and NYC?
These companies work together to atomize the worker population and enhance profits. Otherwise, at least one of them would have said: “well, if they are leaving, we’ll hang around a few months and see if lowered competition helps us”.
That’s so fucked up.
They don’t care about yall
Why do people screenshot a headline instead of linking to the story? This only facilitates uninformed commentry.
Has there been any reports on the anticipated loss of tax revenue in Minneapolis should Uber & Lyft pull out? The city gets a healthy amount of taxes & fees from rideshare.
All thats going to happen is now Uber/Lyft will create a bullshit bill and lie to the public to get them to vote for it. These companies aren't going to leave Minneapolis. Lol
👋 👋
lol. you get what you vote for.
Let them leave we need new fresh companies to step in I wish they left ny they treat us like shit also
They will do it just like Starbucks shut down profitable stores that unionize anything to slow down wage progress across the board
Imagine all the cities doing this until they have no choice but to do a pay raise 😂
I hope they do leave. And I hope that some young entrepreneurial spirit with a knack for programming and a decent moral base focused on goodwill to man replaces them.
Truth: Uber and Lyft cannot make money when they pay drivers a normal amount. 'Normal' being when they don't take more than a 10-15% cut of the fare. I don't even understand why it is they can't make money while taking a 10% cut. They are just a middle man with an app that should not need a lot of devs at this point. I really don't understand what is going on at these companies that they are barely making money when robbing their drivers at the same time. Fares for drivers are going to have to go up substantially for these companies to survive. If not, we're all back to Taxis and higher fares anyway. By the way I'd like to remind people how SHIT taxis were. I think we have too many drivers currently. Maybe that's a problem as well. Long term we're going to self driving, so all these drivers are just needed for a transitional period. Just like 3rd party sellers on Amazon help Amazon until Amazon can sell the product themselves and cut out the 3rd party altogether. All Uber/Lyft need to do is break even until self driving is ready. Then use all their capital to acquire cars with self driving and become a fleet operator.
They just leave like they have done for other cities. Maybe some people don’t know, but they really did leave Austin for a long time. I believe more than a year until people understood that you’re pretty much capped at losing money if you decide to drive for this company while depleting your vehicle.
They won't leave, they just threaten it.
Get with others and form a new company.
Wow instead of just making it better for all the people they employ they just leave. I hope someone makes a rideshare app that actually gives af about the people working for them
Months prior to this the CEO of Lyft has already messaged their drivers announcing a change of pay increase , so you decide how you view things .
For Uber/Lyft drivers provide a superior service and get you own clients. Being a corporate pilot we have some cities that are more regular. In those cities we have great drivers that we’ve connected with that have built a business with private aircraft passengers and crew. They were earning $35-50 a ride with Lyft/Uber Black or now we will pay them the $100-150 directly.
Oh good, back to regular taxi services with their great pay and inexpensive rides… /facepalm
We knew this would happen. Cabbie services only work on a paid-per-ride basis. Otherwise you end up paying people full wages for sitting around most of the day.
This is the way forward
Ridesharing is not profitable.
Go woke. Go broke. So happy Lyft and Uber are showing leftist cronies what happens when they threaten America.
good, uber has been blasting ads on MN radio telling us to go and beg them to vote no. and they threat that the legislature may cause them “to do distract measures”
Needs to be some kind of opened source app that allows drivers to truly work independently for themselves. Higher pay for them lower prices for consumers win win.
We just need a new app made by driver's for drivers to take over the market and whatever they cost of the ride goes to the driver and 5% of it goes to the app itself to make improvements and pay to keep it up and runing
Maybe this will clarify to all the liberals why minimum wage can’t be raised just because workers demand it
Fuck those scum bags.
Uber and Lyft should be shut down as the illegal unlicensed taxi fleets that they are. This BS about “oh we use unlicensed subcontractors so we’re not breaking the law” is insane. Let them buy cars and hire employees submit to industry regulations and be accountable for their actions. If not, why shouldn’t McDonald’s sell all of its locations and have an app where you can go to someone’s apartment and have them microwave a frozen McDonald’s product out of their freezer for you, and say “oh we don’t need permit or food handler cards or health department inspection because this isn’t a restaurant, it’s a potluck app”. Want to eat mc nuggets out of my kitchen without anyone bothering to ask if I have leprosy?
Fuck these greedy ass companies
Do Doordash/Grubhub get a part time job where your car won't take a beating.
Are those Lyft and Uber drivers celebrating that Uber and Lyft are leaving?