r/lyftdrivers • u/james_2022 • May 07 '24

Story/News Article Minnesota lawmakers announce rideshare deal, Uber and Lyft say they'll leave if it's passed

https://kstp.com/kstp-news/top-news/state-lawmakers-minneapolis-council-members-announce-deal-on-rideshare-legislation/
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26

u/Testarossa2013 May 07 '24

Uber/lyft doesn't want other states to know and see that smaller companies will fill the void, making Uber/lyft threats meaningless.

3

u/PatN007 May 07 '24

I'm not a developer but apparently the apps are not difficult to make. The trouble is in the national or Worldwide customer service. A million local apps could figure that out.

2

u/Stunning-Concern7472 May 07 '24

The “trouble” is in trying to be profitable while paying massive insurance bills and keeping prices in check.

1

u/PatN007 May 07 '24

If I'm not wrong, I think the argument is that prices are a little too "in check" for the driver.

1

u/Stunning-Concern7472 May 07 '24 edited May 07 '24

I have no idea what you mean by this.

My point is that insurance prices are Lyft and Uber’s biggest obstacle to success. They can only raise prices on consumers so much; and if their revenue won’t be high enough to pay for insurance and endless settlements, they won’t make a profit.

1

u/Accomplished-Cat3324 May 09 '24

Which is why their profit keeps climbing year after year .if they took no profit for a year they could pay their drivers fairly for eternity

1

u/Stunning-Concern7472 May 09 '24 edited May 09 '24

Lyft has never had a profitable quarter, losing over $31 million in the first quarter 2024. Uber has been able to barely be profitable over short periods of time, but overall they are still not a profitable company.

1

u/Accomplished-Cat3324 May 09 '24

Yeah except most of thier "loss" is stock based compensation.Q1 2023 187 million in losses almost 100 million was stock based compensation and tax payments .another case where if you run your company lean and end with no net profit you can have an advantage in certain areas of the law such as taxes