Took You Long Enough

Again, the New York Times OP/ED page recognizes reality before its front page, finance, or transportation sections do.

In this case, the author is shocked to discover that the Gypsy cab companies have increased pollution, congestion, and costs. 

Their "Profit" model (There is no path to profitability) is to exploit the public good for their own financial gain:

Piece by piece, the mythology around ridesharing is falling apart. Uber and Lyft promised ubiquitous self-driving cars as soon as this year. They promised an end to private car ownership. They promised to reduce congestion in the largest cities. They promised consistently affordable rides. They promised to boost public transit use. They promised profitable business models. They promised a surfeit of well-paying jobs. Heck, they even promised flying cars.

Well, none of that has gone as promised (but more about that later). Now a new study is punching a hole in another of Uber and Lyft’s promised benefits: curtailing pollution. The companies have long insisted their services are a boon to the environment in part because they reduce the need for short trips, can pool riders heading in roughly the same direction and cut unnecessary miles by, for instance, eliminating the need to look for street parking.

It turns out that Uber rides do spare the air from the high amount of pollutants emitted from starting up a cold vehicle, when it is operating less efficiently, researchers from Carnegie Mellon University found. But that gain is wiped out by the need for drivers to circle around waiting for or fetching their next passenger, known as deadheading. Deadheading, Lyft and Uber estimated in 2019, is equal to about 40 percent of rideshare miles driven in six American cities. The researchers at Carnegie Mellon estimated that driving without a passenger leads to a roughly 20 percent overall increase in fuel consumption and greenhouse gas emissions compared to trips made by personal vehicles.

The researchers also found that switching from a private car to on-demand rides, like an Uber or Lyft, increased the external costs of a typical trip by 30 to 35 percent, or roughly 35 cents on average, because of the added congestion, collisions and noise from ridesharing services. “This burden is not carried by the individual user, but rather impacts the surrounding community,” reads a summary of the research conducted by Jacob Ward, Jeremy Michalek and Constantine Samaras. “Society as a whole currently shoulders these external costs in the form of increased mortality risks, damage to vehicles and infrastructure, climate impacts and increased traffic congestion.”

……….

Take urban congestion. Uber and Lyft envisioned a future in which software algorithms would push each car to host three or more passengers, easing traffic and providing a complement to public transit options. Instead, passengers have largely eschewed pooled rides and public transit in favor of private trips, leading to downtown bottlenecks in cities like San Francisco. The duration of traffic jams increased by nearly 5 percent in urban areas since Uber and Lyft moved in.

………

Underwritten by venture capital, Uber and Lyft hooked users by offering artificially cheap rides that often undercut traditional yellow cabs. But labor shortages and a desperate need to find some path to a profitable future have caused rideshare prices to skyrocket, perhaps to a more rational level.

After burning through billions of venture capital dollars, Uber said it was on a path to profitability last year, using an accounting metric that ignores many of the costs that actually make it unprofitable. By the same measure, chief executive Dara Khosrowshahi is projecting this quarter could be profitable. That remains to be seen. Sure, the pandemic had an outsize impact on ridesharing, but even though food delivery helped prop up Uber’s results, the company still lost a staggering $6.8 billion last year, following $8.5 billion in 2019 losses, in supposedly better times. Lyft hasn’t fared much better, racking up $4.4 billion in combined losses over the same period.

………

Now, despite the cynicism of the California fight, Lyft and Uber are trying to foist a similar law upon Massachusetts with the promise of “historic new benefits” for “app-based rideshare and delivery drivers.” Voters shouldn’t fall for it.

So, everything that the Uber and Lyft claimed were a lie.  This should surprise no one.

The fraudulent ethos of the Silicon Valley "Disrupters" is literally on trial right now, as the former management of Theranos is in the dock.

Perhaps, more attention should be paid to the corrosive nature of companies like SoftBank, who are clearly trying to establish a situation where they can extract monopoly rents by driving competitors out of business.