Uber, Lyft worsen city traffic, studies show: report
Despite promises of reducing traffic congestion, ride-hailing companies like Uber and Lyft are doing the opposite as their apps pluck passengers off public transportation and put pedestrians in cars, the Associated Press reported.
According to an AP review of research, studies show the ride-hailing apps are directly competing with mass transit and the increased number of taxis and Uber and Lyft cars on the road contribute to slower traffic. A New York-based study cited "vacant vehicles occupied only by drivers waiting for their next trip request," as a contributing factor for high-volume traffic in Manhattan's central business district, the AP reported.
(Score: 5, Insightful) by Anonymous Coward on Tuesday February 27 2018, @09:57PM
Uber is cost effectively only because it isn't charging the cost to the customers that it would take to pay for the service. Between the drivers being paid significantly less than minimum wage and the company itself being massively in debt, the people using the service aren't paying the costs.
The end result is that they're illegally stealing customers from other options like the bus and cab companies resulting in the legal options being unable to compete. At some point, when they've driven the competition under, they'll presumably raise rates to the point where they're turning a profit.
Dumping is illegal for a reason.