Lyft has a problem in NYC. Uber completes almost 9x as many trips per day as Lyft. This is not the case in other cities. In San Francisco, Uber completes only about 1.2x as many trips.

According to the most recent published data for NYC, Uber completed ~170,000 trips per day compared to Lyft’s ~20,000.

It is also worth noting that, according to New York’s Taxi and Limousine Commission, Yellow Taxi’s served ~60,000 fewer trips per day in Jan 2016 compared to the previous year, while Uber increased their number of daily trips by 70,000. This suggests that New Yorkers who used to take taxis are now opting for Uber instead. Ride-sharing companies have provided a better alternative. This is different from other cities in which ride-sharing is drastically expanding the entire “taxi” market. New York City is peculiar because of its established public transportation system and vast cab network. New Yorkers are ride-sharing pros.

Here is the chart comparing the three biggest players:

This disparity is rare. In most cities where both companies operate, they are near equals. Take San Francisco for example, Lyft has 40% market share and in Austin, Texas they have around 45%*, which is extremely close to Uber’s.

Why is New York City Different?

Normally, to grow a marketplace, you have to build supply and demand in parallel. You have to balance delicately the growth of both sides simultaneously. But I believe New York is slightly different and one side deserves a bit more attention here. Let me explain.

The drivers in New York are professionals.

To become a driver in NYC is an expensive and time consuming process and it really only makes sense if a driver is going to do it full time. The Taxi & Limousine Commission has onerous requirements.

These are the requirements of San Francisco v.s. New York:

San Francisco:

Older than 21 Valid License Vehicle Registration / Basic Inspection Insurance

New York: all of the above AND

Inspection by Doctor within last 90 days Upgrade License to Class E or CDL File Online Application for “For-Hire Driver” License($84/year) In person appointment with TLC Wheelchair Accessibility Training Class FHV Training Class

Drivers might prefer one platform to another but in cities in which it is their main job drivers will drive for whichever platform allows them to make the most money. And the switching costs are near zero. If this is a full-time occupation, a few extra dollars per hour (spread over the course of an entire year) has a much larger impact. A driver will weight other factors less heavily. A pink mustache and a great conversation don’t put food on their family’s table.

If a driver is willing to drive for either company, it comes down to which service can offer the driver the most rides (i.e., most money). This means to win over NYC Lyft needs to win over riders. New York City’s idiosyncrasies require companies to pay disproportionate attention to the passenger base.

Why don’t New Yorkers love Lyft as much as other cities?

Although both companies have started to change their brand to become more attractive to a wider audience, their original ethos remains in the mind of consumers.

Uber is “everyone’s private driver” and Lyft is “your friend with a car.”

Anecdotally, the problem most of my friends have with Lyft is that they don’t want the burden of needing to have a conversation. On the surface, this sounds ridiculous. But it’s not. When you’re on your way to a meeting, you want to prepare. On the way back, you want to analyze it. Late at night, you’re tired. There are many reasons why not wanting to talk shouldn’t be considered rude. But Lyft has branded itself—and probably truly believes—that great experiences can be made during these brief interactions.

In this cab-taking, brisk-walking, business-like city, what can Lyft do to win over consumers, while still being true to their ethos? How can Lyft compete with “everyone’s private driver?”

Cut the superficial crap and actually let me be real friends with my driver. Let me turn on Relax Mode.

Relax Mode

I want to be able to get into a Lyft, press a button, and have the driver receive a notification that, for the next 15 minutes, I need silence.

Now some of you might be thinking, “That’s incredibly rude.” You’re telling the driver to shut up. Wrong, I’m treating my Lyft driver as a real friend. My friends and I don’t feel the need to fill every moment with conversation. We read, work, and just hang out next to one another. How many of you have had a conversation that goes like this?

You: “Want to talk about it?

Friend: “Not really.”

You: “Want me to go?”

Friend: “Not really.”

A “comfortable silence” is a sign of a real friendship. And only real friends can sit in silence.

I’m sure some drivers feel obligated to keep up a conversation in an attempt to earn a bigger tip or to stay in line with the Lyft brand, but no one wants to talk to someone who doesn’t want to talk to them.

People shouldn’t feel like they are going to a cocktail party when they call a Lyft—forced to make superficial small talk because both people feel obligated and want to be polite. Instead, give me the option.

When I’m feeling in the chatty mood, which happens more times than not, we’ll have a party in between point A and point B. And when I’m not, my Lyft will serve as a vestibule of tranquility.

Please Lyft, follow through with your mission. Let me become real friends with my Lyft driver—in relax mode.

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*Uber and Lyft have recently decided to cease operations in Austin due to legislation.

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