The new cab service apps aren’t just out to end traditional taxi’s, but each other as well. Yesterday, CNN Money reported that Lyft has come forward with a bunch of data to prove that Uber has turned to some nasty tactics to stomp out the competition.
According to data from Lyft, “Uber employees have ordered and canceled more than 5,000 Lyft rides since last October.” The purpose of these cancelled rides is to keep Lyft drivers busy while Uber drivers pick up the real clients. This isn’t just costing these platform entrepreneurs money in revenue, but also gas and time.
Lyft discovered these phantom requests by cross-referencing Uber drivers phone numbers with the numbers of requests, and found that some even use code names.
Other drivers that do actually take the rides are very out of the way and go a very short distance, and often try to recruit the Lyft drivers to switch to Uber, with monetary incentives from Uber to do so.
This isn’t the first time Uber has used questionable tactics to manipulate drivers. “Shortly after Lyft entered the New York market last month, Uber sent a text message to its drivers telling them that city regulations prohibit them from working for both companies. New York City’s Taxi and Limousine Commission says that is not true. (Uber later said in a statement that their official policy is that drivers can work for both services.)” reports CNN Money.
Who isn’t being hurt by these tactics? The customers. Lyft and Uber just keep getting better due to the intense competition, both recently unveiling new ride share services for people going the same way who would like to split the cost.