A new rideshare company with a twist, a 125-item flaw, and tips explained. LegalRideshare breaks it down.
Everything old is new again with Alto, California does the right thing, and don’t forget to tip your driver! It’s all here in This Week in Rideshare.
A new startup is driving straight into Uber’s market share. The Wall Street Journal reported:
Alto Experience Inc., a startup founded in 2018, thinks it can do ride hailing better than Uber Technologies Inc. and Lyft Inc. That means, in part, shifting back toward how taxi companies operate.
The Dallas-based company has tapped investors on its contrarian thesis that owning vehicles and employing drivers will solve challenges that have plagued the gig-economy model pioneered by incumbents Uber and Lyft. Both companies have struggled to turn consistent profits as public companies and drawn ire from regulators.
An Instacart driver called out the company after a 125-item cancellation. Yahoo! added
Maliyah Gibbs (@maliyahgibbs), a 21-year-old who drives for the food deliveryservice, says she recently received a 125-item order, which the customer canceled seconds before purchasing the groceries. After all that work, Gibbs claims she was eligible only for $7 of total pay.
A text conversation, seemingly with the Care Team, shows messages confirming that the order was canceled. Beyond that, Gibbs doesn’t get much info.
As Gibbs continues asking for clarity, the Care Team accuses her of “demanding unnecessary pay” and seemingly threatens to deactivate parts of her account.
For the first time ever, Uber and Lyft are required to adopt measures preventing sexual assaults. Yahoo! added:
Nine years after becoming the first agency in the nation to legalize ride-hailing — and after thousands of publicized sexual assaults on Uber and Lyft rides — the California Public Utilities Commission for the first time is requiring the industry to adopt comprehensive measures to prevent such attacks.
The commission hailed the new rules as “a necessary milestone in its ongoing commitment to ensuring the safety” of transportation network companies, as the firms are known, and a signal to assault victims that their claims will receive “the necessary consideration and sensitivity that respects their rights.”
Do you tip your driver? USA Today explains how it all breaks down:
Although Uber does not require tipping, the median income of an Uber driver falls below the average living wage for a family of four, so many drivers, especially those with families, depend on tips to supplement their income, according to Gigworker.
According to HyreCar, Uber and Lyft drivers make less than $15 an hour when driver costs are considered.
Ridester says a set tip amount of $4-$6 should be the standard, as a $3 coffee delivery could require the same driving or biking distance as a more expensive meal. Business Insider also reports customers and drivers generally believe $4 is a reasonable amount to tip.
As of January 2021, Uber drivers reported an average income of $15.68 per hour, according to Doughroller, while Lyft drivers reported a slightly higher $17.50 per hour.
Both these averages are before expenses like car maintenance and gas. HyreCar estimates Uber and Lyft drivers make less than $15 an hour when costs like these are considered.
Uber adds after-hours grocery delivery. CNBC reported:
As the changes roll out across the U.S. this summer, users will be able to place orders from grocery stores after hours, schedule deliveries, track their orders from store shelves to their homes, select product replacements and shop for items by weight.
Uber launched grocery delivery two years ago, and the company has since acquired the Latin America-based grocery delivery platform Cornershop and added more than 24,000 grocery stores around the globe.
CEO Dara Khosrowshahi told employees in a May email obtained by CNBC that investors are “happy” with the delivery segment’s growth, but that he believes it “should be growing even faster.”