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Bloomberg reported today that Uber is now facing two new challenges in New York City: competitor Lyft has now entered the market and new legislation is being enacted to place price caps on rides during times of bad weather.
As the sharing economy continues its impressive march, Uber and Lyft (as well as Sidecar) are furthering innovation in transportation. They are creating options for people who don’t own personal vehicles, or allowing people who do own vehicles to get rid of them. They could contribute to less traffic congestion, better economic vitality, and the public good in general.
More options for the public at reasonable prices is a good thing. So in that sense, Lyft’s entry into the New York market should create positive competition. Uber’s announcement to cap surge pricing in storms or emergencies is also good, and should promote long-term brand loyalty.
One point of contention that Mobility Lab and our close partner, the Association for Commuter Transportation, continue to be vocal about is how these companies continue to erroneously and irresponsibly use the term “ridesharing.” And journalists continue to go right ahead in using the term as well, seemingly simply because that’s what the companies are calling themselves.
In terms of the broader public good, these transportation services are not “ridesharing” in the classic sense of multiple people sharing a vehicle to a common destination, so it is unclear whether they actually reduce congestion or add to it, even though they provide mobility. More research is needed to figure this out.
Additionally, as regulatory battles continue around the country, the confusion created by these companies calling themselves “ridesharing” companies does not serve the public good. And in some areas, it has threatened to draw public service ridesharing agencies and individual carpoolers under unwarranted regulations.
Clearly, though, there is demand for these new services, which could really more accurately be referred to as “drivers for hire.” It will be exciting to see how they evolve.
Photo by Sarah
