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Lyft brings competition to Uber just in time for the holidays

Lyft is coming to Toronto!

Lyft is the second most popular ride-hailing app and has been around in the United States since 2012, three years after the launch of Uber.  The service will make their first introduction to the international market in Toronto, with a plan to start their business up by the end of the year. This will provide a healthy dose of competition for Uber, a company that is not that popular within the city. In October of 2015, Toronto city council amended a bylaw allowing Uber to operate after the company was hit with a lawsuit filed by the taxi and limo drivers industry in Toronto.

Uber welcomes the competition from Lyft, as Lyft’s president John Zimmer said in a statement. “We see [Toronto] as a world class city. It will likely become one of our top five markets overall,” he said. “As a city, that really shares the values that we have at Lyft- focusing on people taking care of people, treating people well, treating people with mutual respect, and promoting both inclusion and diversity.”

While Uber has faced criticism in the past few months in some major cities, including London and Montreal, Lyft has been increasing its market share in the U.S. and even recorded a growth of  $1.6 billion in financing this past year alone. The company says they are now worth $11bn. In May 2017 , Lyft struck a deal with Google’s Waymo, in order to develop self-driving cars.

The services offered by Lyft are very similar to Uber, complete with reduced prices. But, the launch of  Lyft is  also drawing criticism from the taxi industry operating in Toronto. Beck Taxi, one of the more popular taxi services operating in Toronto, said that Lyft can generate the same amount of negative consequences as Uber, referencing sex assault cases. This all has to do with the qualifications and background information of available drivers.

Lyft has began placing calls for drivers. They plan to launch next month, just in time for the holidays. Lyft will be operating in the Greater Toronto Area and Hamilton and have released five options that Torontonians can look forward to:

  • Regular vehicles for up to four passengers
  • Vehicles that can carry six passengers ( The plus service)
  • High end cars ( premier)
  • Luxury black cars ( Lux and Lux SUV )

No pricing information has been released, but it is expected to be in the same range as Uber pricing, hopefully with promotional discounts considering this will be their Toronto launch. Lyft has also announced it has its eyes on other major cities, including London, U.K..

It will be interesting to see how different Lyft will be in comparison to Uber and how the Toronto Taxi industry will continue to survive.

What are your thoughts on Lyft launching in Toronto and will you be trying this over Uber ? Comment below.

What if Uber and the TTC worked together?

The Toronto Transit Commission (TTC) shouldn’t be afraid of ride-sharing services like Uber.

In fact, according to study released by the American Public Transportation Association (APTA) earlier this month, they should embrace ride-sharing services that allow commuters more options during the hours public transportation is unavailable.

There’s been a lot of talk in Toronto about whether or not Uber is competing against public transportation agencies with the creation of services like UberHOP or UberPool. Last year, the TTC spoke with their lawyers about their monopoly on public transit in the city. They were concerned that UberHOP’s shuttling service was illegal under the City of Toronto Act, which says the only exemptions to this monopoly include rickshaws, pedicabs, taxicabs, vehicles used for providing sightseeing tours, and buses owned and operated by a corporation or organization solely for its own purposes, without charging a fee for transportation, among others.

There has still been no confirmation about whether or not UberHOP is illegal, but they probably shouldn’t be concerned.

The APTA study found that people who use ride-sharing services like Uber or Lyft are also more likely to use public transportation. To make this determination, the APTA, which includes Canadian representatives like TTC CEO Andy Byford, surveyed over 4,500 users of ride-sharing services in seven cities.  About 57 per cent of respondents said the bus and train was the mode of transportation they used the most, followed closely by bike-sharing, ride-sharing, and car-sharing.

These “supersharers”—people who use various shared modes of transportation— also own half as many cars per household and spend less on transportation over all. They are also more active. Twenty per cent of respondents said they had postponed buying a car, 22 per cent decided not to purchase one, and 27 per cent sold their vehicle and didn’t replace it.

One of the most valuable conclusions of the study is that ride-sharing and public transportation shouldn’t be considered as competitors. They simply serve different trip types. Ride-sharing, for example, is mostly used for recreation and social services during hours when public transit doesn’t operate; around 10 p.m. to 4 a.m. Public transit was still the most common form of transportation for daily use.

Since these services are no longer competitors, the APTA recommends collaboration, especially when it comes to technology and mobile payment.

“Everyone can benefit from a transportation system that provides more mobility options through seamless transfers, integrated fare payment methods, and improved information,” the study reads. “However, such a system is only possible if public sector entities make a concerted effort to ensure that collaboration with private mobility providers results in services that work for people of all ages, incomes and mobility needs.”

Public transit agencies and private operators who were interviewed for the study showed a strong interest in finding ways to harness shared-use models and technology, especially associated with the paratransit service experience. A good example of this type of collaboration is Milton’s Go Connect, a ride-sharing service that allows Go Transit commuters to book rides to the station.

At the end of the day, ride-sharing services and public transportation both aim to do the same things—help citizens get from one area of the city to another. Why not open up to a partnership and focus on customer experience?  Why not invest in technologies that will allow commuters to use their mobile phones to reserve spots on paratransit or to pay for any transportation service.

Why is Toronto fighting this? Whether someone uses a bus, subway, Go Train, or ride-sharing program, that’s one less car on city roads. Shouldn’t that be what Toronto strive for?