Uber/Lyft Find New Ways to Destroy Transit

Lyft has a growing service called Line that could make the long-unfulfilled dreams of carpool advocates come true. Users who request a ride through Line are paired with drivers going to the same general destination — a true example of ride sharing instead of the ride hailing that describes most Uber/Lyft rides. Rides might take a little longer if the driver picks up other carpoolers, but the cost is only 40 percent of a regular Lyft ride. The service is available in 19 cities to date and has proven particularly successful in New York, Los Angeles, San Francisco, Chicago, and Miami.

Uber has announced that it plans to expand its app to offer a comprehensive transportation service. Users say where they want to go and the Uber app will give them options of Uber rides, bike sharing, rental cars, or even mass transit. All rides would be paid for through the Uber app, so Uber would get a share of revenues from any public transit agencies that participated.

Even if public transit is one of Uber’s options, these kinds of innovations will continue to whittle away transit ridership. People who now ride transit will be tempted to use Uber to pay for their rides, thus saving the trouble of dealing with ticket machines or exact change. Once using the app, they will also be alerted to alternatives to transit, and some will select those alternatives in place of the transit they were using. Continue reading