Second car and ride-sharing

Periodically, I surf on the Craigslist classifieds to look for a cheap car to buy. Mind you I don’t exactly need another car: I already have a sports car for the weekends, and I commute to work using public transportation. I guess I’m merely looking for a challenge: buy a cheap used car to drive and fix it up along the way as needed. It’s certainly far cheaper than buying a brand new car, and the repair skills I would learn along the way can totally justify the few thousand dollars spent.

But that’s only for the price of the car and future repairs; it’s easy to forget that there’s other costing components to car ownership, such as gas and insurance. When I include those things into the total equation, I cannot square with the comparative low cost of taking the bus to work, which buying a second car would replace as the commute method. I’m lucky to live in a city where public transportation is decent, and on the rare occasions when the next train isn’t due to arrive for more than a half hour - fairly common for late evening hours - the convenience of calling an UBER of LYFT is hard to beat.

Because parking is also a great pain in San Francisco, and buying another car would add that headache as well.

The occasional 20 bucks to get me home via ride-sharing is way less expensive than the fixed cost of owning a car, even one bought on Craigslist for a thousand dollars. UBER and LYFT have so infiltrated our regular everyday function that sometimes I wonder if both companies have reached the mythical “too big to fail” status. Indeed, neither UBER nor LYFT have ever made an annual profit in their existence, but the ride-sharing has become so ubiquitous that people’s livelihoods are wholly dependent on it, be it a driver that needs the income, or a car-less person who needs it to get to work.

A lot of people would be really hurt if UBER and LYFT were to collapse and go away - as money-losing companies are typically wont to do. I guess it’s that prevailing force of preservation that is somehow keeping both companies in business, even though there’s not a cent of profit made. Ride-sharing has become a subsidized method of transportation for the public good, and it’s not far-fetched to imagine one day the government stepping in to provide that subsidy.

I mean, it sure is nice to be able to quickly get home from anywhere, at any hour of the day, without needing my own personal car.

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Indoctrination happens here.

Uber and Lyft drivers go on strike

In major U.S. cities today, Uber and Lyft drivers went on strike in protest of their low pay and terrible working conditions. Frequent users of those ride-sharing services are advised to find alternate methods, such as (ironically) the standard taxi, or public transportation. Well, jokes on them because I always take the bus to work so, you’re welcome, Uber and Lyft drivers: I’ve joined in honoring your protest through no change in my commuting habit.

Jokes aside, I am completely behind those drivers fighting for a decent wage and other ancillary benefits for their job. However, from a macro perspective I’m not sure how Uber and Lyft can provide what they are asking for – profitably, anyways. Indeed, Lyft has recently gone public, and Uber will be doing so this coming Friday; according to each respective company’s S1s, both of them have yet to make a single dime of profit since inception, with the possibility they might never make a profit.

How is Uber and Lyft going to pay their drivers better when they are already deeply in the red, to the tune of over a billion dollars a year in Uber’s case. Surely both companies are seeking to achieve profitability as soon as possible (if you’re not cynical), so an increase in labor costs is not exactly friendly to those ambitions.

Paying drivers more money would mean the prices of rides will have to go up as well, because Uber and Lyft aren’t simply going to eat that cost – again, neither company is currently profitable. Higher ride costs will deter people from hailing a car; the main attraction for ride-sharing on the customer side is it’s less expensive than a cab and only slightly more expensive than public transportation so that the comfort of a private car is worth the extra cost. That equilibrium falls apart if price of a ride creeps to par or beyond a taxi.

So what we have here is a stalemate of sorts, and sadly I think ultimately the loser will the drivers. I am a big fan of ride-sharing; I think it has done a positive service to bring mobility to people that were underserved by traditional taxi companies. Uber and Lyft have forced them to step up their game, and despite the cab driver suicides and low wages for ride-share drivers, both companies have been a net positive to society.

It’s just too bad they can’t make money, other than the initial IPO bonanza for their investors and founding members.

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It’s a shame I can’t eat this entire ensemble in one sitting anymore. Not comfortably, anyways.

Public transit supplemented with ride-share

This morning as I walked to the usual bus stop to begin my commute, the LED information board indicated the next bus would not arrive for another half hour. In the scant two months since I’ve started taking public transit to work, it's the first time there was such a severe discrepancy. More than a few drivers must have called in sick today, as SFMTA drivers are wont to do.

Normally I would simply wait it out and kept on listening to my podcasts. However today I was tasked to open up shop at work, so punctuality was absolutely paramount. A 30 minutes late bus would have been detrimental, so out came the iPhone and an UBER was called.

Is it politically correct these days to hail an UBER car, what with the company's problems of diversity and sexual harassment? Should I have gone with Lyft instead? Probably, but alas convenience trumps virtue-signaling propensities; I'm familiar with UBER and have yet to set up an account with Lyft.  

Those Bird electric scooters everybody in San Francisco is talking about and using haven’t gotten to our “poor” neighborhood just yet, if ever. 

I fully understand the various negative externalities emanating from the advent of ride-sharing, so let's focus on the positives! It is such a relief and convenience to be able to quickly hail a car in case of emergencies like today. I can remember back in high school, way before ride-share and smartphones, if a bus was late there was no option but to keep standing at the stop until it comes. Now I can call an UBER. I mean Lyft.

The events this morning reinforced my belief that public transportation supplemented with ride-sharing is the best option to commute in a major city. I see no practical need to own a car unless you've got young kids. 

Not sure if dungeon in hell or the first floor of the campus Administration building.