The Great Uber Crisis of 2021
So as discussed on another thread, it costs around $100 to go from Manhattan to JFK but in my shitty city (let's call it Boston) you legit cannot get a Lyft or Uber during prime hours. If you need a ride at 1 AM you better be able to make the walk, wave a taxi, or sleep on a couch. So I get it from the driver's perspective but it has really made me appreciate the ability to get picked up whenever I made a request. I don't feel great about the outlook of Uber given their standoff with drivers and find most taxi drivers airport dependent and lazy. Anyone have thoughts on the outlook of ride share in any city that is not NYC?
Edit: Adding this LinkedIn thread: https://www.linkedin.com/news/story/where-have-al…
"Every person in this country has driven for them or knows someone who has. You can only screw over so many people before word travels! It’s a business model that only works for the driver on a short-term basis. I’ve never seen a business that has such a huge turnover ratio. They have exhausted theirs driver supply. This day was a long time coming.”
I seem to recall that different states have handled Uber in different ways...
but beyond that is the underlying demand...
If there is not a large demand how many people are going to enter the supply side?
Valid and I've spoken to a few drivers who discussed the inconsistency of ride requests. However, I would assume that demand is coming back now that the city is opening up a bit but I keep reading discouraging articles about drivers not coming back.
Not to mention that Uber kinda seems like it treats its drivers pretty bad. I was talking to a driver and he said that Uber took him out of the city and drove him out to some random place to get a ride. If he rejects the ride he gets penalized. So his only option was to drive 30 mins out of the city.
Ubers/Lyfts over the past 3-4 months in my city have also been extremely difficult to find and 2x-4x as expensive compared to even mid-covid times. I wonder how they can survive long enough to have self-driving car fleets.
Boston NEEDS these drivers and it kinda changes the bar/social game if people can't count on them to get home.
I've been tellin' y'all: the robotaxi is coming. Maybe not today; maybe not tomorrow. But it's comin'. And it is gonna change everything.
yessss - I can't wait - robotaxiiiiiiii
I'm in a mid-sized Midwest city (not Chicago, deeper Rust Belt) and have had friends travel to a few other cities. It's bad all over. At least 10-20 minute waits on normal days at normal times, like Saturday at 1pm or Tuesday at 6pm, and prices are at least 2-3x what they usually are.
I met a long-time uber driver at the bar last weekend and we chatted about it for a while. Basically, the unemployment benefits right now pay more than most drivers make, so most drivers are just sitting out on the sidelines. I also think the Uber / Lyft model of taking a loss by overpaying drivers and cutting prices for passengers is finally catching up to them; its only a matter of time before they have to have a margin +0% on a per-trip basis.
I really hope the issue resolves soon because I've been car-free for 7 years and a huge reason is because I could count on the reliability of Ubers. Now, not so much.
It's an awful combination of surge pricing being outlawed in some states (i.e. government) and too much stimulus replacing work (again, government). Up until now, anyone who said too much welfare reduces the incentive to work was considered evil - but this instance, and the academic studies from top tier economists, are finally proving what most of us could see pretty clearly.
My father called the educated elite who couldn't understand basic principles "educated beyond common sense."
How does this make sense? In that case former Uber drivers will just wait until demand pricing gets high enough and then go pick people up. I'm not sure how you accept that the market is efficient and works well but then refuse to bow to the inevitable conclusion - that pay just isn't high enough to incentivize people to go out and work for what's barely a living wage if they don't have to.
Market isn’t acting efficiently because of generous government stimulus. What is so difficult to understand here?
Uber prices in Denver have gotten absolutely stupid lately. It's going to be a bird scooter summer
Bird scooters are so much more fun, although taking them home from the bars can get a little sketchy
I lived in Boston up to late 2019 and went out a lot and literally n e v e r had trouble getting an uber. Idk where you're at but West End, Fidi, Seaport, Theatre, and Southie have not once caused me problems. Ubers to and from Logan via my parent's house in the near suburbs also never an issue. Has it changes over covid?
I recently flew into Logan at 1 AM and there were plenty of taxis (thank god) so I think you can count on a ride from the airport or South Station these days. However, it is bad if you are traveling between neighborhoods during peak restaurant/bar hours. Last week at 6PM on Friday and 3PM on Saturday, I saw wait times over 30 mins.
I moved outside of the city to save money during quarantine and I've had a horrible time getting back there after a night out. I know, I did it to myself but finally moving back to a central location in a month. Just want this to be resolved because Uber is basically a form of public transportation in this city.
Maybe it got super worse over COVID with all the businesses closed and nobody needing rides. I never really uber'd during the day since I had a car up there, so guess I never experienced that, but 10pm-3am was never an issue for me. Sucks if that becomes a bigger problem up there.
Flew to Boston a month or so ago and literally had a message on the Uber app in the afternoon at Logan that said there were no drivers in my area. I had never seen that message before, so seeing it at an international airport was especially surprising. Also had no issues with this in Boston or anywhere else pre-COVID.
Its gotta be COVID. Maybe it just fucked things up there big time. That absolutely sucks. I had talked to drivers who would come down from NH and western MA to drive on weekend nights, so I guess the motivation ain't there anymore.
It's usually not bad, Gov. Baker put a stop on surge pricing during the pandemic so everyone just stopped driving
when people are getting paid $30k a year to stay at home it's kinda hard to justify picking up drunk 25 year olds at 1AM for only a few bucks
Yup that is what I think is going on. Also a shame that some riders are disrespectful and don't follow covid precautions. Ruins it for everyone.
Chicago is bad as well for Uber/Lyft
We good over here in Texas bruv.
I talked to a driver about it, and he said Uber has gotten more stringent with background checks specifically traffic violations. This has purged a lot of would be drivers from the app.
Making sure your citizens don't starve or end up on the streets is a valid function of government. Maybe what you should hate is the fact that we allow companies to pay their employees next to nothing and let the American taxpayer pick up the burden of feeding and housing them, in order to juice returns for shareholders.
I don't understand how anyone bemoans the lack of Uber drivers (or labor in general in this market) and does not point the finger squarely at companies that won't pay employees more than enough to get over the poverty line. Telling people they can either go back to working 18 hours days or starve is it's own kind of unethical.
People like you always point to wages here in the US but seem to turn a blind eye to companies like Walmart which outsource everything abroad and will pay some worker $1/day in unsafe conditions to sew clothes. That is far worse than the wages being paid here. Fix that problem first and then I’ll listen.
Perhaps you're thinking of the wrong person? I don't like Hillary Clinton much and never did. When it was a choice between her and the obviously incompetent grifter she ran against, I felt there was a moral imperative to not vote for the unqualified bigot, but that isn't a particularly strong endorsement of Mrs Clinton.
And to say I bend over backwards to not give "capitalists" kudos is absurd. This site is a giant clusterfuck of wannabe hardos who think the free market solves every problem, while being completely ignorant of the context of American capitalism. Most of you (generically) seem to be 17 year olds who just finished Atlas Shrugged and think Ayn Rand solved all the world's problems, instead of producing a shitty fantasy novel. Moreover, I've voted Republican in my lifetime - but there is a big difference between supporting a nativist personality cult which has long since discarded any true interest in crafting meaningful policy and the GOP that existed even just 10 years ago. Republicans actively supported and abetted a coup attempt not six months ago - how anyone with a brain can support that is beyond me.
I wouldn’t use the term “Republicans” in a blanket sense because we are already seeing a fracturing of the GOP- the GOP in Washington who censured Liz Cheney and the GOP at the state and local levels. Personally I see Glen Youngkin the GOP nominee for Virginia governor as an interesting case (not just me both conservative and liberal media are following the VA gov election). He beat out candidates who focused mainly on election fraud and voting machines while his focus has been on school choice , pro small business, policing, etc. (what you would consider to be classic GOP issues). He also has stated on TV that Biden won the election but supports very basic reforms (voter ID and clear audit proceed) so that Americans can trust the election process again(I watched him say this on Fox, and read that he said it on CBS as well). Now there’s a fair counter argument to be made that Youngkin is a unique case because he is trying to appeal to the suburban affluent, highly educated voters of Fairfax County and Arlington and someone like him would never make it in a more rural state like Alabama or even in the national level. Guess we have to wait and see in November if Youngkin can get good voter turnout among the rural areas of VA.
I'm not following the VA gubernatorial election, but the guy sounds interesting and sane. But to your last sentence - it's easy to say that the GOP is "fracturing" but that really doesn't seem to be the case. What is happening, as far as I can tell (and I'm hardly a political expert) is that more and more centrist, or even relatively centrist politicians, are being shed by the party in the name of chasing after Mr Trump. Not his politics, but him personally... which again, is not something I can countenance or reconcile with my own beliefs about how this (or any) country should be run. The obvious and open criminality of most of Mr Trump's administration was the price we pay for an entire political party abandoning the idea that they are meant to be a check on the power of an individual in the name of political expediency (not that I think Democrats are all that much better, but it's a noticeable difference).
I don't even mind voter ID, as long as it is provided reliably and free of charge to every American citizen on the day they become eligible to vote. I just know enough history to know that the people who generally advocate for voter ID laws, or even for any kind of test relating to voting, tend to do so in order to explicitly disenfranchise minorities. That being said, I think it's a pretty sad commentary that we're giving Mr Youngkin credit for not being a tin hat conspiracy theorist - that's a disappointingly low bar to clear.
voter turnout in rural VA doesn't really matter in the grand scheme of things. Youngkin needs to get ~40% of NoVa to have any shot of winning, and he's going to have to really push against the retarded education policies proposed by McAuliffe/his posse
And the whole Liz Cheney ordeal makes pretty much zero sense. First of all, nobody really gives a shit about a 3rd ranking minority in the house. Does anyone even know who held the same position two years ago? Regardless, I don't see how the Republican party could bear her bullshit any longer. Her policies are stagnant and her position on Trump and Jan 6 is the exact same as when she was voted to her leadership role just a few months ago. The only thing that has changed over time is that she spends every single day on MSNBC and CNN talking about Trump over and over, and frankly doing nothing to support the party. Voting her out of leadership was a very rational decision, but of course, the msm needs to turn this into a massive pro-Trump ordeal within the GOP.
This has never been about "voter integrity" with the GOP - they simply no longer believe Democrats have a legitimate right to govern. We had two hand recounts in Wisconsin and Georgia (the latter of which actually INCREASED Biden's margin of victory) and 70+ lawsuits that were dismissed in court (including by Trump-appointed judges) for lack of evidence, materiality, or standing. And yet, 2/3rd of today's GOP believe Trump was the rightful winner in 2020. Voter fraud is exceedingly rare, and more cases of fraud were found to benefit Trump than Biden in 2020. There has been so much paranoid rhetoric injected into local races by the GOP (and to a lesser extent some on the left like Stacey Abrams) that most GOP voters have reached a conclusion without evidence.
When did I use the term voter integrity? I mentioned bringing back trust in the election process. I think we both can agree that will be important for the stability of the country moving forward. Youngkin isn’t proposing some in-depth bill either to bring back trust just free voter IDs and a fleshed out audit process (don’t know enough about VA to comment how it compares to other states). If you think what he is proposing is wrong what is your solution?
I put in it quotes, because election integrity is not what Republicans have an issue with - it's losing elections to Democrats that bother them. Which, fresh on the heels of losing the Senate and GOP, is why you've seen hundreds of Republican bills to reduce/restrict voting access, rather than an introspective deep dive on why Trump and certain GOP policies are unpalatable to a plurality of voters. There is no issue of material voter fraud, and never has been. It is a paranoid, partisan talking point by the GOP.
It seems you are wildly underinformed on this issue. Republicans don't have faith in the voting system, because their elected officials have indulged fanatical conspiracy theories and tell them they shouldn't have faith in the voting systems.
Know why it was smooth in Florida? Because they are allowed to process and count early votes before Election Day. Republicans sued to prevent this from occurring in Pennsylvania, which is why you had people counting votes overnight. Some Republicans are now saying all votes must be counted on Election Day to be valid, which will further complicate things. They knew that the GOP would have the appearance of a lead on election day with in-person voting (given they never took Covid seriously to begin with) and that the early voting and mail-in votes would lean heavily Dem. The "Red Wave" mirage on Election Day was the plan all along.
Sources:
https://www.inquirer.com/politics/election/spl/pennsylvania-election-20…
https://ballotpedia.org/When_states_can_begin_processing_and_counting_a…
Bingo! Most of this site votes Republican because their dad tells them to, and has only ever voted in elections where Donald Trump was the kingmaker of the Republican party. Those of us who are a bit older have an appreciation for the degradation of the GOP and their selective support of "free market/invisible hands fixes all ills/trickle down economics" when it's convenient to contrast against an overblown threat of socialism, while happily intervening in the affairs of industries and private corporations (tariffs, Big Tech, etc) when they need to play their populist card for the uneducated rubes. When the GOP nominees from 2008 and 2012 are two of the most hated in the GOP just 10 years later, don't pretend today's party stands for any ideological consistency or principles.
Lmao at liberals what a joke move to Europe if that’s what you want and enjoy 0% growth and 60% tax
Tangentially related, but I feel like AirBnb is starting to get worse than hotels too.
In many places, I certainly don't see the economic benefits of AirBNB.
Like you'd rather stay in a hotel instead? I prefer Airbnb's for longer stays or group trips but everyone is different.
Aside from the $ aspect, Airbnbs are a total gamble when it comes to cleanliness. I don’t care if they use “professional” cleaning services after each visit, there is such a vast difference in quality/upkeep between the average Airbnb and a hotel room.
In quality? I think the lack of supply makes sense because everyone wants to get out of urban areas.
The fees that are tacked on now are insane. A $400 stay easily becomes $650 after cleaning fees, Airbnb fees, occupancy fees, etc.
I really still do like the personality that different places can have, and it still is the most economical option for large groups.
I know this a few weeks late, but there was a NYT article the other day about how all of the "millennial" service businesses that were heavily subsidized by VC firms are starting to raise prices to, ya know, get cash flow positive. Gravy train was gonna end someday.
https://www.nytimes.com/2021/06/08/technology/farewell-millennial-lifes…
uber changed the share drivers get so it’s lower now. drivers don’t want to get covid and in some cities crime is up so that’s a risk. demand has been down. you can make a lot of money on uber eats as more people are ordering delivery and you don’t have to deal w people. also, a lot of uber drivers come in from the suburbs to drive in cities and that’s not worth it any more.
Ubers have gotten bad, I got stranded at LAX recently for over an hour because there weren't any ubers available. Very tough to get one now.
No taxis either? That is my nightmare.
Same issue in Texas, an airport uber that used to run me $25 is now $60 on a regular basis, $45 if I’m lucky
Absolute garbage in NYC. Takes longer to get one and they're charging 2x-4x the normal price
I have been traveling a bit lately and I can confirm that the Uber crisis is real. I've had to go XL or black just to get a ride since the normal rides aren't even showing up. From the drivers I have talked to they've said that Covid is scaring drivers off and the stimulus checks are making it easier to just stay at home.
Just echoing sentiment here, Chicago is pretty bad right now for these commuter services (among other things lol). $40 to go from the West Loop to South Loop (3 mile, 10 minute ride).
Let's see what happens to supply/demand once Covid/unemployment benefits boost fully recede. However, we've all gotten very addicted to VC-funded subsidized Uber, Doordash, Airbnb, Spotfiy, etc. for the last 10 years. At some point, these investors are going to demand profitability, which will mean higher prices for consumers and/or lower wages for their drivers/hosts/content providers - and the supply/demand fallout from those effects.
If I'm an investor I am not feeling great about Uber throwing $250m towards driver incentives.
https://www.cnbc.com/2021/05/25/uber-ceo-is-not-happy-with-driver-suppl…
FWIW noone I know in NYC takes the subway anymore and ubers everywhere.
The subway sucked balls before covid and is even worse now with the homeless problem.
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