Cab companies, ridesharing services battle for passengers
By Andra Cernavskis, The Buffalo News, N.Y. | |
McClatchy-Tribune Information Services |
The taxi, a large American-made sedan in good condition, arrived four minutes after the text was sent.
The cab dropped off the woman 19 minutes later at a coffee shop on
Back at
Exactly 12 minutes later, a
After she got out of the car, she paid on her phone and rated her driver on a five-star scale, which determines whether she is matched up with the same driver again.
Lyft started in
Cab companies are hoping the state is successful.
Lyft and other ridesharing services have popped up in cities across the country as a low-cost alternative to cabs and liveries, allowing people with cars to make extra money or subsidize the cost of owning the car. Lyft stresses camaraderie between riders and drivers, and cars bear a fuzzy pink moustache on the grill. The company's slogan is "your friend with a car" and encourages riders to sit in the front seat.
Lyft is especially popular among young people and college students, and advertises heavily on social media.
Taxi drivers in
"My drivers are legal, the cars are insured properly," said
For the rider, the cost difference between taxis and Lyft is dramatic in some cities, although not in
Regulators in municipalities from
In
Why riders use Lyft
Lyft promises service around the clock, every day, around the city and in towns as far as
But riders noted that in outlying areas, Lyft cars can be more readily available than taxis, which is why they prefer the service.
"It was really quick," said Mazzarella, a
Lyft began in
"When I first heard about it, I was really hesitant," said
Seeney, a student at SUNY Buffalo State, now uses Lyft on the weekends when she is out with friends. She likes that the drivers are doing it because they want to and appreciates the occasional cookies and water bottles the drivers provide.
"You don't have to worry about cash," said Muck, who works in information technology. "The driver was friendly and personable, and I like that you can rate them."
Taxis vs. Lyft
Taxi companies, though, are no fans of the service. They have pointed out that Lyft only takes customers who have smartphones and credit cards, excluding many low-income passengers.
"They want the cream of the crop, but they're not looking at the full market to service the full community," Yuhnke said.
In fact, Lyft drivers are matched up with riders, and if the driver has rated a passenger at three stars or below on a previous trip, the driver will never again be matched with that rider. The same is true for passengers who rate drivers at three stars or below. Drivers can also adjust their settings so if a rider has paid them less than the suggested donation, they won't be matched with that rider again.
Lyft also charges riders a cancellation fee of
One of the big differences is the cost to the taxi companies.
Insurance for a taxi can be around
Taxi and livery drivers who pick up passengers for hire in
They also must undergo background checks by the city, at a cost of
Taxis and livery cars are also inspected by the city every year. To drive a livery car in
"There's a lot to driving a doggone cab," said
She wonders how Lyft can advertise to potential drivers that they will earn
"There ain't enough business now, as it is," she said.
Though the city has no record or review of Lyft drivers, the company screens drivers with checks of their driving record and criminal background.
A Lyft mentor checks a new driver's car for safety and cleanliness, and rides with the driver to see how they drive.
Driver
"The experience has been excellent so far," she said. "I think all around it's a great service."
The city views ridesharing as illegal, and the
"If they can't fulfill the state issues, they can't get a taxicab license, and that's a city issue," Golombek said.
One Lyft driver paid
Lyft's operations "violate a host of laws," according to the state
The insurance industry has also not been enthused about transportation network companies.
According to Lyft, its
However, the insurer,
Lyft's operations expose drivers and the private auto insurance market to "intolerable risk, cost and uncertainty," according to
Three dozen Lyft drivers have had their policies canceled across the country once their insurer found out they were driving for Lyft, according to the state's legal papers.
The Lyft terms of service, which riders must agree to before they can use the app, states that every driver must have a valid policy of liability insurance for the operation of their vehicle "to cover any anticipated losses related to such Driver's provision of rides to Riders."
The terms go on to say that each driver is "solely responsible for any and all liability that results from or is alleged as a result of the operation of the vehicle such Driver uses to transport Riders, including, but not limited to personal injuries, death and property damages."
Lyft maintains that its insurance policies have responded as they were designed to and that "because of Lyft's rigorous background and driving record checks and driving rating system, Lyft drivers are among the safest on the road, anywhere."
email: [email protected]; [email protected]
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