Chicago is considering sticking ride-hailing services like Uber and Lyft with a new tax that would add a few bucks onto each ride. Mayor Lori Lightfoot has proposed a $40-million-per-year tax increase as part of a broader traffic plan modeled after London’s famous congestion fines. That means not all rides would be subject to the same fees, but each trip taken within the city would still cost a little extra.

While congestion charges are all the rage in Europe, they’re uncommon in the United States. New York City recently decided to financially penalize every driver taking a trip below 60th Street (something I’m not thrilled about), positioning Chicago as the second major metropolitan area in the U.S. to move forward on congestion fees. Lightfoot claims it’s a necessary first step “to improve mobility and further our goals of ensuring sustainable, affordable and reliable access to transportation options in every neighborhood.”  (Read More…)

Last week, the Center for Auto Safety announced it had reached out to America’s ride-hailing giants to encourage them to stop allowing drivers to use vehicles under active recalls. The group’s release references a Consumer Reports study from this spring that alleged 1 in 6 automobiles commissioned by Uber and Lyft had unresolved defects in the NYC and Seattle areas.

“Unrepaired recalled vehicles are dangerous and can kill or injure drivers, passengers, bikers, or pedestrians. Exploding Takata airbag inflators which have resulted in at least 24 deaths worldwide, GM ignition switch failures which have resulted in at least 170 deaths in the U.S., and hundreds of other less-publicized defects pose equally significant threats to public safety,” explained the advocacy group. “Yet, recent studies from Consumer Reports and others have found concerning numbers of rideshare vehicles with unrepaired recalls on the Uber and Lyft apps.” (Read More…)

We often place ourselves in enviable situations in these QOTD posts, selecting which model best suits us following a sudden windfall, or perhaps deciding which vehicle tops all others in performing a certain task. In a sense, this is just like those other questions.

Except… you’ll be taking a severe pay cut.

Things have gone bad, you see. Somehow, following some unfortunate sequence of life-altering events, all the strings that tied you to a life of leisure and fair pay have snapped. You’re now just surviving. Yes, you’re stuck driving for Uber. (Read More…)

As ride-hailing services utilize the personal vehicles of contractors, rather than a commercial fleet of their own, repairs and recalls have to be handled by individual drivers. While it shouldn’t be a revelation that some recalls fall through the cracks, Consumer Reports is concerned that the ratio of unaddressed safety issues are unbecoming of companies pushing multibillion-dollar IPOs.

“Uber and Lyft are letting down their customers and jeopardizing their trust,” suggested William Wallace, products policy manager for Consumer Reports. “Uber’s website says people can ‘ride with confidence,’ while Lyft promises ‘peace of mind,’ yet both companies fail to ensure that rideshare cars are free from safety defects that could put passengers at risk.”  (Read More…)

Ride-hailing company Uber approached its Thursday initial public offering with an abundance of caution, setting a lower-than-expected share price in a bid to avoid rival Lyft’s stock plunge.

When markets open Friday, Uber’s stock will be priced at $45, near the bottom of a previously stated range that topped out at $50. That puts Uber’s initial valuation at just over $82 billion. Amid controversy surrounding its business practices and growing uncertainty about the viability of huge ride-hailing firms, Uber hopes to raise $8.1 billion from its IPO. (Read More…)

Uber and Lyft drivers from the world over are going on strike today to protest the company’s working conditions and pay. However, the careful timing of the event also appears to be aimed at torpedoing the brand’s fast-approaching IPO.

While Uber exists as a corporate middle man between riders hunting for a vehicle and drivers seeking a fare, the company’s official position is that both are customers. As Uber sees it, it’s providing both with access to its platform and thereby offering a service. But many drivers disagree and claim the only way to make a living is to work ludicrously long hours, which they believe should at least entitle them to be called employees and warrant some benefits.  (Read More…)

Despite playing host to what everyone presumed would be a very hot property, Lyft’s IPO hasn’t panned out as expected. While the company’s Friday stock debut was strong, April 1st was less promising, with Lyft’s share price slipping by nearly 12 percent in a single day. It’s now well beneath the target price, casting doubts about the financial sustainability of mobility firms.

It’s a complicated issue. Lyft was valued at more than $22 billion when it went public last week, but investors are concerned with the company’s inability to turn a profit. Last year, the ride-hailing giant posted a net loss of nearly $1 billion. With Uber likely to announce its own IPO soon (and likely face similar headwinds), many are concerned.  (Read More…)

Annoyed by the lack of passenger data available from ride-hailing companies like Uber and Lyft, two researchers took matters into their own hands. Hoping to learn why people use ride-hailing apps to get around town, the authors of a study published in the Journal of Transport and Land Use joined forces, with one of the men volunteering to get behind the wheel of a 2015 Honda Civic on the mean streets of Denver, Colorado.

If Uber and Lyft wouldn’t share, maybe real, live passengers would. (Read More…)

Chariot, Ford’s app-based shuttle service, has announced it will throw in the towel due to the rapidly changing “mobility landscape” of major cities. When the company launched in 2014 with Jim Hackett at the helm, it joined a bundle of “microtransit” firms hoping to undercut brands like Uber while providing a viable alternative to public transportation.

Ford acquired the company in March of 2016 for a reported $65 million, proving that not every mobility firm can be a golden goose. It snagged Hackett and made him Ford CEO roughly a year later, where he continued to oversee Chariot as chairman of the automaker’s Smart Mobility subsidiary. Unfortunately, the service is no longer deemed sustainable.

On the upside of things, this ought to put a few coins in the jar labeled “Restructuring Program” at Ford’s Dearborn headquarters.  (Read More…)

Uber’s in a bit of trouble after quarterly losses surged to $1.1 billion dollars. The ride-hailing giant has watched its sales growth dwindle this year, despite an expensive attempt to promote its global expansion.

It’s not the kind of thing you want to see from a company at the forefront of “revolutionizing” the automotive sector, especially since so many automakers seem keen on copying aspects of its business model. (Read More…)

Waymo expects to quietly rolls out a commercial, autonomous ride-hailing service early next month, a new report claims, making it the first such service to open itself up to paying customers.

The company, a subsidiary of Google parent Alphabet, has tested a fleet of driverless Chrysler Pacifica Hybrids in Arizona for some time, recently bringing a group of non-paying riders on board for free test trips in the Phoenix area. Now, it’s time for the real show to start, albeit slowly. (Read More…)

Ride-hailing company Lyft wants you to ditch your car — and hopefully give it up altogether. After rolling out a limited pilot project in Chicago last month, the company has launched a new initiative in 35 American and Canadian cities that compels drivers to leave their car untouched for 30 days.

Lyft hopes to find 2,000 people willing to take part in its “Ditch Your Car” challenge. In exchange, the company will provide credits for a slew of services under its corporate umbrella (ride hailing, bike sharing, but not scooter sharing… yet), as well as credits for transit. What’s stopping these drivers from secretly using their personal vehicles during the month-long experiment? Nothing. (Read More…)

Toyota Motor Corp. is set to drop about $500 million into Uber Technologies Inc. under an agreement that will see both companies work jointly on self-driving vehicles. The ultimate goal is for Toyota to bring to market its own autonomous vehicles using some of Uber’s hardware, with direct access to its ride-sharing network.

According to the automaker, the initial push will use the Sienna minivan as a platform for the “Autono-MaaS” (autonomous-mobility as a service) fleet. This makes the arrangement sound very similar to Waymo’s deal with FCA, which allows Alphabet’s autonomous arm to use the Chrysler Pacifica as a test platform for its self-driving hardware in exchange to having improved access to autonomous technology. However, Toyota said the partnership’s primary goal is improving safety and lowering transportation costs for the public.  (Read More…)

Say you’re an urbanite who made the decision to leave the perils and unexpected expenses of car ownership begin and rely only on your phone. A money-saving choice? Not necessarily, according to a study the American Automobile Association.

Drawing information from numerous studies, AAA’s report looks at the cost of owning a vehicle versus the cost of replacing those same trips with a ride-hailing app and infrequent car rental. It’s not even close, but, as the saying goes, your mileage may vary. (Read More…)

A new study from Schaller Consulting is claiming that ride-hailing services, like Uber and Lyft, contributed to 94 million additional miles being driven on Seattle-area roads in 2017. We’ve heard similar claims in the past. Data-backed allegations typically revolve around the notion that app-based services don’t encourage motorists to carpool so much as they pull pedestrians away from public transportation.

Considering how difficult most subway systems and bus lines are to enjoy, that’s not hard to believe.  (Read More…)