July 25, 2017

Uber and Lyft hurt traditional taxi services nationwide

yellow cabs
By Users Omnibus, Uris on en.wikipedia [BSD], via Wikimedia Commons

“Since the ride-hailing services began operating in Southern California three years ago, the number of L.A. taxi trips arranged in advance has fallen by 42 percent, according to city records, and the total number of trips has plummeted buy nearly 30 percent,” the LA Times reported in April 2016.

And in San Francisco, where Uber and Lyft are based, the largest taxi service, Yellow Cap Co-op, announced in early 2016 that it was filing for Chapter 11 bankruptcy, according to theverge.com .

“The rise of Uber and Lyft has left cab owners across the country feeling the pinch,” the article states. “Drivers are flocking to the app-based enterprises, lured by the promise of more riders and a flexible schedule.”

A January study concludes that while Uber doesn’t necessarily put cab companies out of business, taxi drivers earned less per hour because of a “sharp reduction in capacity utilization in traditional taxi […]

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The News for the Gig Economy Staff is constantly searching the web for the latest news regarding freelancing and gig platforms to bring them to you in one handy place. All articles with this generic author have been sourced with the original location at the bottom of the piece. We encourage our readers to view the original source of all excerpts. NGE is a project of ARC Online, LLC.

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