Lyft gets taxis, a recession makes Uber cheaper and riders get overcharged. LegalRideshare breaks it down.
LYFT GETS TAXIS
Lyft will start dispatching taxis. Bloomberg reported:
Lyft Inc. will begin dispatching standard taxis to some US riders starting next month in a first as it expands its features to compete with much-larger rival Uber Technologies Inc.
The rollout will begin in St. Louis on May 5 for riders who have opted in to taxis as an alternative to gig drivers in rideshare vehicles. Such users may be picked up in a cab when they request Lyft Standard, “Wait & Save” or priority pickup rides, the company confirmed to Bloomberg News.
The upcoming feature was discovered within code found inside of Lyft’s mobile app. The code indicates opted-in users will be matched with a licensed taxi when the pickup is faster. Like with a regular rideshare trip, users will be able to pay, tip and submit a rating within the Lyft app.
RECESSION MAKES UBER CHEAPER
A recession could make your ride cheaper. Business Insider reported:
If the economy enters a recession, more people could sign up to drive and deliver for Uber, Dara Khosrowshahi said on Friday.
“If there is more unemployment, the cost of Uber will come down, because, to some extent, the cost of labor comes down,” Khosrowshahi said at the Semafor World Economy Summit in Washington, D.C.
Khosrowshahi said that Uber tends to be “recession-resistant” since many people still want groceries, restaurant delivery, rides around town, and other “everyday use cases” — even if they cut back spending in other areas.
“You may put off going on vacation in Europe this summer, but you’re still going to treat your family to a nice dinner,” he said. “We specialize in small treats, not big treats."
UBER OVERCHARGED RIDERS
Uber overcharged riders. Block Club Chicago reported:
New rules went into affect Jan. 6 that allowed rideshare companies to charge a $1.50 congestion surcharge for all rides to and from Downtown 6 a.m.-10 p.m. daily, with the revenue benefitting the city. But customers since then have noticed they’ve been charged the fee outside those hours.
After Block Club Chicago reached out to Uber about the discrepancy, the company is now promising refunds.
Marty Regan was one of the customers overcharged. When he checked his Uber receipt after a recent late-night ride home in the West Loop, he caught the $1.50 congestion surcharge tagged on his fare even though it was after hours.
“You can’t look at all the taxes and fees when you book a ride,” Regan said. “It’s a money grab at worst.”
Uber is now “actively identifying all affected customers and will issue refunds accordingly,” spokesperson Josh Gold said. The surcharge fees, including the overcharges, were collected by Uber and paid to the city in accordance with rideshare regulations, Gold said.
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