A Worker-Owned Cooperative Tries to Compete With Uber and Lyft: 2,500 drivers in New York are organizing to create what they say is a better deal for drivers than what the ride-hailing giants offer.

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>The cooperative has recruited around 2,500 drivers so far and intends to take a smaller commission than Uber or Lyft and charge riders a lower fare. Trying to undercut giant companies which haven’t made a profit yet is an interesting business strategy. If Uber and Lyft, with their economies of scale and networking effects aren’t able to make a profit charging X, why would a startup with neither of those advantages be viable by charging less than X?

Continuity_organizer

Uber/Lyft works because I can install either app and I get access to 99% of drivers in the entire world. I don’t want to have to install a separate app in every place I go to or call random numbers. It’s convenience and economies of scale that cannot be matched by any other company.

crazy_eric

Wait a minute, this whole time, people could create their own worker owned companies if they didn’t like the existing ones? Shocking on what you can do if you put in a little effort.

capitalism93

I see a lot of people drive both Uber and Lyft. Drivers will move to the platform that tends to be more profitable for them, and riders will move to the cheaper platforms too.

otisreddingsst

I think the main issue is undercutting uber and lyft. If im being honest, they already dont charge enough, they just underpay their workers. Im not sure how many of you remember what taxis used to cost before uber and lyft, but they werent exactly cheap either, nor should they be. someone comes up to you, picks you up, and takes you where you want to go. that service should atleast cost 15, no matter where you go, yet you can find uber and lyfts for as little as 5 dollars. theres just no way that you can pay the drivers what they are actually worth by trying to undercut that price

Fook_n_Spook