GM takes sides, invests $500 million in Lyft to oppose Uber

[Lowell]

I'm curious as to the forum's take and Detroit experiences on the disruption of the taxi market created by the emergence of the 'ride-sharing' services Uber, Lyft and the recently demised Sidecar.

Crain's reports in this article that GM is bolstering the struggling Lyft with an eye to a driverless-cab future.

GM and Lyft said they will work together to develop a network of self-driving cars that riders can call up on-demand, a vision of the future shared by the likes of Uber CEO Travis Kalanick and Google-parent Alphabet Inc. More immediately, America’s largest automaker will offer Lyft drivers vehicles for short-term rent through various hubs in U.S. cities, the companies said in separate statements Monday.

To see for myself, last summer I downloaded the Uber app to my iPhone and tested if by hailing a short ride from a walkable Starbucks, where I never see a passing cab, to my home.

I was impressed. Not only was a ride immediately on its way, I knew the price, the year and make of the car, the rating of the driver, and could see it moving toward me on the map [as well as seeing the movement of 3 or 4 others in the vicinity]. The driver was a genial retired guy who did it for side bucks about 15 hours a week.

On first blush it seems win-win. Customer gets better, lower cost service, drivers make decent money, no more shot-the-dark wondering if and when the cab was coming and who would be driving it. But I also read of darker stories, driver's getting squeezed, traditional cab companies who have to comply with regulations losing out and now the above, a driver-less taxi future where the jobs are gone.

Thoughts?

[Wesley Mouch]

I've yet to try Uber -- and glad to hear your experience. I haven't been in Detroit taxi in 20 years or more. The last experience was to City Airport to catch a flight to St. Louis -- so you know it wasn't yesterday. The cab was miserable. Beaten up and smelly. The driver borderline alive.

On arrival in St. Louis, we took a cab that was clean, fresh, and driven by a hard-working immigrant who seemed pleased to be helping us. Night and day.

I like the idea that people can make money and provide a service on their terms. Not everything in life needs to be a full-time occupation. Uber could replace a lot of private cars -- and provide a lot of supplementary income -- while providing value. I have heard that Uber increases the dollar size of the taxi market quite a bit when it arrives. So it appears they are serving a great need that we didn' know existed.

I'm looking forward to giving it a spin sometime soon.

[downtownguy]

I use Lyft and/or Uber at least once a week. I'll die a happy camper if I never get into a tradtional cab again.

Taking a cab was always a crap shoot. How many times would you have to call dispatch before a cab finally came? Ask the dispatcher if the cab could call when they arrive so you don't have to stand outside in the cold waiting, and you would be met with a hearty laugh. Then, if you actually got a cab, you would never know what creative route they would take to your destination. Many times, they would just quote a ridiculous fare up front assuring you it would be cheaper than if they ran the meter. [[Yeah, sure.) I've heard horror stories of driver's dropping people off in the middle of the street if the destination wasn't far enough away to make it worth their while.

When Lyft came to town, Uber dropped their rates to try and undercut them. When did you ever hear of "regulated" taxi rates coming down? The apps keep your credit cards on file so you never fumble for cash. In more than two years using Lyft/Uber, I've only had two or three mildly unpleasant experiences, and that was just a sourpuss driver. With taxis, grumpy drivers were the default.

And when you travel to other cities where Lyft/Uber exist, your app goes with you.

Cabbies have brought this on themselves, and I am crying no tears for them.