Should this article be retitled “Uber is better than Lyft”?
Jan 31, 2019
15 Comments
https://qz.com/1537401/lyft-and-juno-sue-over-rules-to-raise-pay-for-ride-hail-drivers/
We did not sue. So why are we still bad?
https://qz.com/1537401/lyft-and-juno-sue-over-rules-to-raise-pay-for-ride-hail-drivers/
We did not sue. So why are we still bad?
comments
“Originally passed in December, the law aims to enforce a minimum wage of $17.22 (after expenses) for drivers on all ride-sharing services, but according to Lyft and Juno, the bill is unfairly advantageous to Uber.
The companies' arguments hinge on the formula the city uses to calculate how much a driver is owed. It uses something called a utilization rate, which calculates what percentage of a driver's time is spent transporting customers—and therefore earning money—versus how much time they spend waiting for a request.
The issue, according to the lawsuits, lies in the size of Uber's user base. Because of Uber's massive market share, its drivers receive a higher volume of requests, resulting in a better utilization rate. Lyft and Juno both claim this will lead to a death spiral —putting them in a position where they have to pay more out of pocket to keep drivers on the road than their main competitor does.”