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comment by kleinbl00
kleinbl00  ·  207 days ago  ·  link  ·    ·  parent  ·  post: Another Study Blames Uber and Lyft for Public Transit’s Decline

I have only anecdata, but I spent $1300 on Lyft in 2016. I spent $2300 on Lyft in 2017. I spent $2050 on Lyft in 2018... in no small part because I stone-cold stopped doing anything but Lyft Line.

In sampling my prices, I was dropping about $20 to get to the airport in 2016, about $30 in 2017 and about $30 for Line in 2018 because I refused to spend $40 to get to the damn airport. That's a price increase of 50% per year. As a consequence, I've gotten good at trains and buses. It takes three trains, two buses and 90 minutes to get to work when it's raining, but also only $1.75. It was worth it to spend $15 to get to work in half an hour; it's not worth $30.

I raise this because my utilization of public transport went down in line with the value Lyft offered me. As Lyft's value has declined, my ridership has declined. I discovered I can get to my place in LA in 45 minutes for $1.75... and when Lyft wants $50 to do it in 40, my interest wanes.

Uber and Lyft still aren't profitable. They're still subsidizing their service through VC losses. As that subsidy dries up, their utilization will go down. Anecdata of one, but after all, isn't their whole "surge pricing" model "you'll pay more when more people are using it?" Sure - it encourages drivers to get out there.

But it also encourages me to ride the subway.




steve  ·  206 days ago  ·  link  ·  

    But it also encourages me to ride the subway.

Wait... L.A. has a subway? wink