As I travel around San Francisco every day I’ve been noticing changes that aren’t looking very good anymore and I’m beginning to believe the party is over.
People aren’t smiling anymore. People aren’t going out as much anymore. People talk more about how tough it is to live here than how great it is to live here. These are signs that there is a shift in San Francisco happening. I do run into people that aren’t like this, but they tend to be older and in more traditional careers that treat their employees like, well, employees. These are usually older people in their mid 40’s at least who have a job that isn’t usually tied to the tech industry and and have lived here for a long time so they’ve got themselves a good set up. Maybe they were able to buy a house when a person could actually buy a house who wasn’t a millionaire. 20 years ago when my wife and I got married we could have bought a house for $200,000. It would have been small, but it still would have been better than some of the apartments that people are living in now that a little more than oversized porta-potties.
Jobs now in the city are paying less at a time when money is worth less unless you’re a programmer which then makes you salaried with little time off to enjoy the things in the City. Even back in 2010 I was being offered jobs at almost twice what the same jobs are going for today. There are a proliferation of contractor positions, but those jobs treat you more like an employee without the benefits and contractor jobs used to pay better than employee positions because they could drop you at any time. Now contractor positions pay less and give you set hours to work and if you take a sick day then be careful because they’ll probably drop you for not doing your job. That’s not the way contractor positions are supposed to work, but very few people are making enough money to take these companies to court since lawyers aren’t very cheap.
The people I’ve noticed who aren’t suffering as much are construction workers, school bus and muni drivers, firemen, police. These are jobs that are more traditional in that you’re paid reasonably with benefits, time off, paid overtime. Personally I’d give up the free lunch and snacks for an extra couple of bucks an hour because I can bring my lunch or buy it cheaper and it’s usually better tasting and better for me. I met a guy worked for our local garbage collectors. He’s making $27/hour and told me the garbage truck drivers make $47/hour. OK, you have to deal with rats and garbage, but that’s a better living than a graphic designer with a Master’s degree being offer a job for $17/hour by a startup as a contractor [ok, not all are like that, but there’s quite a few out there]. Of course there are the doctors and lawyers which there are a lot of in San Francisco as well as health care workers who also make decent salaries. These are the people who smile now. These are the ones that go out to dinner on the weekends and sometimes even during the week. They have the money and time on their hands to really appreciate the City.
I laughingly remember five years ago when I’d pick up kids fresh out of college who would say things like, My Dad got me an apartment and gave me his credit card and is giving me a year to make it in San Fran. Oh joy, Daddy just paid for a year long spring break and my right hand twitched in a smacking motion because they said San Fran [side note: I would even accept Frisco over San Fran]. These people were always going out to a bar or some nightclub every night of the week and they were always asking for a bottle of water in the mornings because they were so hung over from the night before. These people are gone now. I called them long term tourists because I knew they were going to go back home eventually.
Things like that have to happen in order to keep San Francisco what it is, so while even I am struggling to get by right now I know for me it will eventually get better because I was born and raised here and have been through this before. I can handle it. I know where to get a burrito for less than $15 or not spend $4 or more for toast. I don’t take Uber or Lyft to work everyday or order gourmet artisanal food delivered from one of the new food delivery startups that pops up every other week.
San Francisco will never return to the old days and by old days that depends on your age. My Mom isn’t around anymore to remind me she used to pay 5¢ for a candy bar. I find myself starting to say things like that, but it’s more like I remember going out to a bar with $20 for the evening and coming home with change…and I used to drink a lot.
Change is good, but change can also be painful. Let’s hope this leads to something better in the end.
San Francisco is where ridesharing started. Uber, Lyft and the defunct Sidecar as well as smaller players have all started here in the City and they all seem to think they can get rid of drivers now.
This is one of the strangest ideas I have heard in a long time and these companies need to look at Muni in San Francisco to understand what will happen if you remove drivers from cars. Our Muni and BART trains have tried to be autonomous in the tunnels and that didn’t work very well now did it. Many of you may not know this, but there was a time when Muni tried [for a very short time] to have the drivers step out of the compartment when trains entered West Portal Station and let the trains, on tracks, be controlled by a computer. That didn’t work and now a driver has to sit there and make sure the computer is working right and doesn’t crash when the train begins to pass 60 mpg in the tunnel.
I know what some of you are saying, but Google/Uber/some other tech company wasn’t controlling them. OK, fine, but even with a driver riding along on a Muni or BART train have you seen what happens on one of those trains? How would a driverless car picking people up and taking them to their destination on city streets be any different?
There is already the reported problem of lots of these cars getting into accidents. Most of the time it isn’t the fault of the car’s computer, but the humans that are driving around them. You can write that off if you want, but I don’t think everyone is going to jump onboard from day one when a driverless car becomes available.
Then there are the other problems that people don’t think about. I’m one of those guys that do and here’s something to think about. A driverless car is like the set of Home Alone. People won’t have an overseer to keep them in check. I’ve given rides to young people who even with me behind the wheel have gotten into a fight in the back of my car. I stopped and threw them out, but think about what the first thing that dominates a new technology is…PORN.
VHS, DVDS, the Internet all become intrenched because of the porn industry. I would not be surprised if some of the first people who grab a driverless car will shoot a porn film in it that will be on the internet within a couple of days. The second or third will be someone who pukes and after that will probably be some kid who thinks it would be cool to take a dump in a driverless car.
Imagine if you will for a moment the amount of human body fluids that will be flooding, soaking into and dripping from the insides of a driverless car. No one has talked about safety features in these cars because that of course would be an invasion of someone personal privacy.
Will these cars be equipped with cameras that can see all over the car? Will these cars be equipped with fluid sensors to notify home base if someone barfs or pees in the car? NOTE: I have heard from lots of drivers who have had riders not just puke, but also pee in their cars. This usually happens after midnight and the person is pretty drunk and well, it seems like a good idea at the time… Maybe the companies that are on the bandwagon will make these cars self cleaning so that after a person or porn film crew leaves the car it will sanitize and sterilize the interior for the next rider’s safety.
Then there is the drunken factor that I barely touched on. People like the current ridesharing services because they don’t have to drive home drunk, but their faculties are not at their best. I’ve been asked to pull over so someone could jump out and vomit. I’ve also had a large number of people who put in the wrong address or wanted to go to Safeway, but Google’s Maps which every system uses for some reason chose not the Safeway that was closest to them, but one in the East Bay or North Bay [seriously, try it]. How will the computer controlling the vehicle know whether the customer is right? Will the car electrically zap the riders who have passed out after drinking too much to rouse them to get out because the car has hopefully arrived at the correct location?
In the end the public has been sold a science fiction novel that has been poorly written. This isn’t the taxis of Blade Runner or even Total Recall for that matter. Driverless cars for the masses are a long way off and the idea of driverless transport vehicles are an even longer way off.
Today when people talk about ridesharing they don’t even use that word. They say, Uber or Lyft. Those are the big two everyone knows about, but there was a third company. This company started ridesharing where people who had a car could give other people a ride and make money in the process. That company was Sidecar.
Unfortunately, like many technology based companies, Sidecar will be ending its run tomorrow, December 31st, 2015. This saddens me in many ways because it was the first company I drove for and the people there really used to reach out to the drivers. Some of us, like myself were made Captains because of our interest in the company. We were able to give feedback, help train new drivers and host meet ups to answer questions other drivers had. This was something that Uber and Lyft didn’t do. There was very little wall between the drivers and the people who worked at Sidecar. Chances were if you drove for Sidecar you had met someone who worked there.
Sidecar was an innovative company in that it let the riders choose the drivers which for someone like me was great. I was a favorite among many of the riders and for a long time I rarely had much downtime. Then the fare wars started and Uber and Lyft started to drop prices to ridiculous levels. It used to be that if Uber fares were above 1.4x in surge it was cheaper to take a cab. Now if the fare exceeds 2.0x in surge it’s cheaper to take a cab.
The riders started to flock to Uber and Lyft and Sidecar unfortunately didn’t have the market penetration or money to advertise like the others and the riders fell off. They then moved over to incorporating deliveries which was great for drivers for a while, but then other delivery companies came in and the fare wars began again.
Ultimately, drivers needed to make a realistic amount of money to make it worth it to drive for any company and the drivers started to go where the money was. Drivers for Sidecar could set their own prices which in the end caused Sidecar to be more pricey than Uber or Lyft. This left Sidecar with only a handful of die-hard users that remained. I had made many friends and a few even had my phone number and would text me when they needed a ride, but because they were more expensive, even though the riders had more options, price beat out the service provided.
Now that will be gone and I’m sad because I probably won’t see a lot of those people anymore. I won’t have the fun chats or know ahead of time that the person I’m picking up won’t be so drunk that they’re going to pass out in my car or worse. I feel a loss that what could have been a great company from San Francisco has come to an end. Hopefully something will come out of this, but I suspect that 2016 will have many changes to the rideshare industry and gig economy so expect to see some changes here in the near future.
Surge pricing. If you’ve ever taken Uber you know what that is. Demand is high for rides, so the price goes up. It doesn’t always seem like that is the case though when you see surge pricing in effect at odd times and I found out some interesting information yesterday.
I was at a meeting when someone mentioned that Uber has a team of employees whose job it is to keep the drivers from hacking the surge pricing system. This person thought it was only in effect on the East Coast, but I mentioned that I’ve heard from online groups that the drivers in San Francisco are doing this as well. Here’s how it works:
When Uber isn’t surging the price is usually less than a taxi. This is good for the riders, but not the drivers. So the drivers have organized online through various ways of communicating to all go offline when Uber does not have surge prices and then request and cancel rides to increase demand causing Uber’s servers to automatically turn on surge pricing thereby increasing the cost of the fare.
There have been recent articles over the past couple of days of Uber & Lyft accusing each other of booking and canceling rides as a way to take drivers off the road. While I don’t know about Lyft because I haven’t met as many Lyft drivers the same might be true there so that in reality it’s not drivers collecting to try to screw up the competition, but the drivers are actually working to increase their profitability by hacking their own systems. This is all just theory from me since none of the other companies working as TNC’s are being affected and none of the other companies increase their pricing when demand is high. In the end it seems that the only people who benefit from less drivers being on the road is the drivers because that then increases how much money you can make.
As an example, I tweeted that after Outsidelands because of Uber’s surge pricing [Lyft doesn’t give you estimates] it would have cost me $40 for a ride home just over a mile from the concert. While this wasn’t a forced form of surge pricing because demand definitely was high, there was also traffic involved which means that $40 estimate [or $75 estimate to get from Outsidelands to Russian Hill] didn’t take into account that it would be a slower ride which would increase the cost and drivers income even more making the fare more expensive.
Most of the drivers who were driving during the Outsidelands surge pricing were making between $60-$100/hour. This is much better than the $17-$30 you hear drivers talk about during non-surge times. Some of these drivers where earning the equivalent of a 40 hour week at $15/hour in six hours in one day.
Now can you see why drivers would like to be able to drive only during surge pricing? I would suspect that because surge pricing pops up so much that Uber isn’t working too hard to stop it because after all it just increases their bottom line.
A lot of this is just speculative talk as I’m not on the inside with Uber, but I am on boards where there are lots of Uber [and Lyft] drivers with loose tongues who think that no one will ever see what you’re posting on the internet and if it’s on the internet it must be true. 🙂
This isn’t getting mentioned in the media or even in any bloggers so I figured I better scoop this story for all my fellow TNC drivers so that the public knows and understands a current problem that we all have now that is especially bad in San Francisco.
In September of 2013 The CPUC decided that ridesharing companies such as Sidecar, Lyft & Uber had every right to operate in California. The CPUC call the companies TNC’s for Transportation Network Companies because they use cell phones to communicate ride requests as well as the processing of payments for rides. One of the little things that was sort of buried in the decision was that all TNC’s much work with local airports to establish an agreement for operating at these locations.
As you know I drive for Sidecar and it was always the general rule of thumb that you could drop off, but not pick up passengers at SFO until further agreements could be reached because at the time that was what the airport had written into it’s laws. Any company doing business on the airport premises or off for the purpose of picking up passengers on airport property had to have an agreement in writing with SFO. Nothing was said about dropping off people so that what we went with.
Well, things have changed. SFO has issued a statement to all TNC’s that until they get a permit from them they cannot drop off or pick up passengers on SFO property. I believe LAX has issued the same statement, but not pretty much every airport in California is like this. From my experience with Sidecar I know that they are actively pursuing the permit, but they have run into a few snags from SFO’s list of items TNC’s need to provide in order to get the permit. This isn’t only a Sidecar problem, but something that all TNC’s have a problem with. Some of the requests are based on old technology that doesn’t apply to new technology. Kind of like if the horse trade organization said that all cars needed to have distemper shots so they were healthy. The two don’t necessarily work together. All the TNC’s are trying to work the bugs out, but currently, no one has a permit.
The biggest problem and this is the most important thing that anyone who uses TNC’s for transportation needs to realize that as of right now the airports are off limits. Let me put that is a bit large type so it stands out:
TNC’s cannot drive you or pick you up from the airport.
Please pass this along to all your friends, neighbors, everyone. This has become more of a problem because the airports and especially SFO are starting to crack down. I see reports daily of drivers for many of these TNC’s getting stopped and ticketed for dropping off or picking up passengers at SFO. I’ve heard that it’s happening at other airports in California as well, but SFO is the worse.
Some of the TNC’s are being a bit passive aggressively defiant in that they are telling drivers they will cover the cost of the ticket [which I have heard runs between $220-$600 depending on what they write you up on], but they aren’t telling drivers not to take people to the airport. This makes some of these TNC’s look bad to the CPUC who has given them the right to operate in California. Sidecar has officially told all of it’s drivers to not accept rides to or from SFO and that is easy because riders have to put in their destination when they request a ride. Sidecar is also working on blocking requests to the airport until they can resolve the problem with SFO. Those other TNC’s aren’t doing this.
Why is this a problem for you the rider? The CPUC has given TNC’s a right to operate in California and it was the first state where this was done. All of these companies have started in San Francisco as well so we are the bullseye that everyone is aiming for. Many of you love TNC’s because they’re more pleasant than taxi’s. TNC drivers are held more accountable than taxi drivers to the point that we’re seeing a lot of taxi drivers changing their attitude and coming over to work for TNC’s because they can make more money with less outlay of cash [you do realize that taxi drivers have to pay upfront before the cab even leaves the lot]. In San Francisco and the Bay Area TNC’s have changed the way people get around. TNC’s you can request and they show up within minutes. They don’t demand a tip [though they appreciate it], you will never hear, machine is broken, cash only and in general the drivers are much more pleasant to ride with. Pricing can even be less expensive than a cab frequently.
If you want to see this all go away then go ahead and book rides to the airport. There will always be drivers who will take the risk that don’t understand that while they might get $35 from that ride to the airport [less than a taxi] in the end they could help bringing TNC’s in San Francisco, California and then spreading out to the rest of the country and world to an end. I happen to like driving for a TNC and I’ve met lots of fun and interesting people and made lots of new friends. I know I’m helping out people who need to get somewhere quickly and it’s giving me a way to make money on a flexible schedule. Please do not ask for trips to the airport because if you do you might find yourself walking home at 2am on a Saturday night or waiting an hour to find a taxi to hail.
I’ve been reading a lot lately of the war between taxi drivers and those who drive for TNC’s [that’s the new name for ride sharing companies such as Sidecar, Uber & Lyft]. Actually, it’s not so much a war between the two as it is taxi drivers voicing their anger to just about anyone in the media who will listen. This is were is starts to get interesting.
The reality of the situation is that the cabbies should be looking at the system they’re operating in and quite a few have started. Approximately one third of all taxi drivers have stopped leasing cabs and started using their own cars with TNC’s, mostly Uber, because they are well known and offer the chance for them to make more money through Uber’s surge pricing. It’s not the TNC’s that are a problem, it’s the cab companies that have to charge the drivers so much in order for them to drive the cabs.
One taxi company owner was quoted asking the question, what’s to keep me from buying a bunch of cars and running my own ride share company? Well, to be honest, nothing. There are actually several that are doing so right now. The owner wouldn’t have to purchase the exorbitant taxi medallions [$250k/car], and they wouldn’t have to provide comprehensive insurance to the drivers as they do now, but they could rent the cars out to drivers who don’t own a car and collect on what they make paying a small percentage to the driver. Cab company owners like this idea.
For the drivers, they wouldn’t have to sit down and take a 7 hour class and test [yes, it’s not a very comprehensive test and they are allowed to consult notes] and they can get started quicker with no outlay of cash from their pocket. To get serious for a moment, what cabbies are taught in the training school is minimal at best and they usually take the test right after the class so what they do after they’ve passed don’t necessarily apply to what they just learned. The cab company owners don’t like that idea.
So in the end you’ve got the cab company owners pushing the drivers telling them how bad all the TNC’s are, when in reality it’s the system that the cab drivers have to work under that is the problem. When the TNC’s started as Ride Share companies there was a lot of anger at these new drivers, but now that many cabbies are moving over to the TNC’s they might be yelling at a fellow driver that’s just decided to switch teams in an effort to make more money.
I haven’t had a cabbie yell at me in months lately and a few have actually talked to me about how they could get into the business. One thing that sets apart cabbies from TNC drivers that I think a lot of cabbies learn quickly is that they’re driving their own car and they can’t treat it like a car they’re renting for a shift. Everything is now on them to keep the car looking nice and they have to make sure the brakes are working and the shocks are in good shape, not the company owners. That’s a new way of thinking for a lot of cabbies, but if it makes them more careful drivers when they’re out on the road then everyone wins in the end.
On Thursday, September 19th the California Public Utilities Commission voted 5-0 in favor of accepting the ridesharing technology as a legitimate business in California. While it has started in San Francisco due to the need of people to get from point A to point B and not have to wait an hour for a taxi it has grown into something more than that.
As a public disclaimer, I do drive for Side•Car so I am a little bit biased in this area I’ll admit, but I also have lots of people around town who also take taxi’s and even friends who are taxi drivers to fill me in on this so keep this in mind.
To make things clear from the beginning for those who have been trying to get a taxi and had trouble here are some of the reasons why.
Taxi Companies are in the business of renting taxis: There is no incentive for a company to get you from point A to point B. The taxi companies make their money from renting the taxis or in short, they don’t make money from you taking a taxi, but from the drivers who rent the taxis.
There is a combined total of roughly 1200 taxis available in San Francisco: This is split between all of the taxi companies. If you call for a cab to say, Yellow Cab which is the largest you have about 400 taxis available. This cuts the availability of taxis to riders significantly.
It’s much easier to hail a taxi on the street than call for a pick up: Cab drivers are not employees of the cab companies, but independent contractors so they are under no obligation to pick up a call that is requested. There is no require of a cab driver to do anything other than pay for the taxi rental and return it with a full tank of gas at the end of the shift. Anything they do in between is up to them.
Do you see a problem here? Granted, ridesharing companies such as Side•Car, Lyft and Uber aren’t under a requirement to get you from point A to point B either, but there is a psychological mind set amongst the drivers that works in their favor. While there are a few who drive solely for income it is still not the same as a job. They can do it whenever they have free time and start and stop when they want so they can work it into their schedule.
Rideshare companies have been called elitist by cab companies saying that they won’t pick up low-income or elderly people who don’t own smartphones. I would disagree with this. I have had numerous people I’ve given rides to from 20-70 and all income levels in my car. I frequently drive through the Tenderloin or low-income areas that are underserved by taxis and notice quite a few people on the streets with smartphones. I frequently have picked up people at the local grocery stores who need a lift home with several bags of groceries and sometimes if I have the time I’ll help them unload and carry their bags in. I also have people call for me that need their parents picked up and dropped off in various locations around town so it is definitely a scalable technology. Smartphones are also being given away at this point in time and who in their right mind in this day and age doesn’t own a smartphone that calls for a ride? Last time I checked the majority of low-income people don’t take cabs, but wait for the bus using a state subsidized clipper card.
The biggest boon to riders is that if you are outside the downtown or Mission District you can now get a ride. The Sunset, Richmond, Ingelside and Oceanview areas are a no man’s land for getting a cab. I can’t even count the number of people in the Sunset or Richmond who’s said how great rideshare services are because they simply can’t get a cab in those areas.
Now regarding the safety of vehicles in participating in ridesharing there have been a few new requirements.
Each company must keep a $1 million dollar insurance policy to cover each driver in excess of each driver’s insurance.
Each company must maintain a strict drug and alcohol policy [as in no drugs or alcohol]
A 19 point vehicle inspection is required of each vehicle someone driving for the companies must undergo.
There are other points, but these are the safety issues some people might be concerned with. All of these except the last have been met previously. Since most of the companies require each car to be from the year 2000 or later the chance of one not passing a 19 point inspection is rare. I know most oil change companies provide a 21 point inspection when you get your oil changed and if you change it regularly like I do then you know exactly what is wrong with your car so you can get it fixed.
The decision affects not just the San Francisco Bay Area, but the entire state of California opening the door to ridesharing in parts of the state that may not be considered large enough to warrant taxi service. Overall the price of rideshare works out cheaper than a taxi because a tip is expected on top of the fare regardless of whether or not the driver gave you a good ride or not [but we won’t talk bad about you if you do tip]. The taxi system and the way it works doesn’t support the needs of the people it was meant to serve. Ridesharing companies offer more drivers at more times in more places around the Bay Area so it is easier to get to the people and to get them where they need to go. I’ve personally used the service several times and found that I never had to wait longer than five minutes. When I’m driving and I take a call that’s ten minutes away I frequently wish I didn’t have to make the person wait as long, but usually the drivers are happy that I’m at their door within the time noted by the GPS locator used by the apps. Probably the biggest reason I like driving for a rideshare company is that it takes me all over the city to see what’s happening now and not in tomorrow’s newsfeed.