Part of the drivers of uber technologies (UBER.US) and Lyft (LYFT.US) stated that the operation of self-driving taxis in the market is lowering their income.
According to the Wise Finance app, part of the drivers of uber technologies (UBER.US) and Lyft (LYFT.US) expressed that self-driving taxis in operation in the market are reducing their income. Drivers interviewed mentioned that self-driving taxis are entering the already fiercely competitive local market, taking away money from human drivers.
Phoenix uber technologies driver Jason D, interviewed, mentioned that in recent years, earning money through uber has become increasingly difficult due to intensified competition with other drivers, lower fares, reduced passenger tips, and rising operating costs. Now, the introduction of Waymo One robot taxis has exacerbated this issue.
Several companies are competing for a share of the USA self-driving taxi market. However, Alphabet's (GOOGL.US) self-driving taxi service Waymo One announced in August this year that it provides over 0.1 million paid services per week in Los Angeles, San Francisco, and Phoenix. Waymo One also plans to expand to Atlanta and Austin early next year and will be promoted through the uber app. Although the self-driving taxi industry may slow down due to regulatory barriers and safety issues, taxi experts have previously stated that in the coming years, increasing adoption may harm the income of uber technologies and Lyft drivers. Some drivers have reported that this situation has already occurred.
Of course, it is currently unclear how much of an impact self-driving taxis like Waymo One have on drivers' income. Carl Benedikt Frey, AI professor at the Oxford Internet Institute, previously stated that there is almost no evidence so far that these vehicles have had a significant impact on uber technologies and Lyft drivers' income. But he added that with more and more self-driving taxis on the roads, fares will decrease, affecting drivers' income.
Frey said, "As this technology becomes better and cheaper, drivers will feel it in their wallets." "We have seen similar situations in the past: when uber first appeared, it reduced the income of traditional taxi drivers by about 10%."
Waymo and uber technologies did not respond to requests for comment. In February this year, a spokesperson for uber told foreign media that the company's drivers' income in Phoenix and Las Vegas has not been significantly affected, as uber had partnerships with self-driving cars in these two cities at that time.
A Lyft spokesperson did not respond to questions about the potential impact of self-driving taxis on online car-hailing drivers, but stated that the company's goal is to establish a mixed network consisting of human drivers and self-driving autos. Lyft is also partnering with Mobileye to introduce self-driving autos on the Lyft network.
John, an Uber and Lyft driver in Phoenix, believes that Waymo One's siasun robot&automation taxis have harmed his income. He sometimes asks passengers about their experiences riding in self-driving cars to better understand his competitors.
He mentioned that Waymo One's self-driving autos are sometimes cheaper than Uber and Lyft, which he thinks may deter passengers from using traditional ride-hailing services.
However, comparing the costs of Waymo One with Uber or Lyft is challenging as prices vary due to market conditions, trip distance, potential passenger promotions, and whether customers tip the drivers.
Restricting where robot taxis can operate may help limit the impact on online car-hailing drivers, providing relief to human drivers.
Brad, a full-time Uber driver in Los Angeles, believes that Waymo One's siasun robot&automation taxis do not pose a significant threat in the city as they mainly offer short trips, which are not very lucrative. He added that the most profitable trips are often airport travels, especially when picking up passengers from terminals, a service not allowed for robot taxis at airports. Airport travel for Waymo One in Los Angeles and San Francisco is still restricted but available in Phoenix.
Nicole Moore, Chair of Rideshare Drivers United and a part-time Lyft driver, previously mentioned that airport trips are crucial for many drivers' income. She expressed concerns about the competition from robot taxis for drivers.
A key factor for the success of robot taxis may be whether passengers feel comfortable without human drivers. Jason mentioned that in Phoenix, robot taxis are sometimes risky on the roads. He said, "They often force me out of lanes. I've seen them signal left turns before suddenly signaling right turns."
In June this year, Waymo One recalled 672 self-driving rental cars after one of them hit a power pole in Phoenix. The company stated that there were no passengers on board.
Jason said that some passengers he talked to are satisfied with self-driving cars, and even believe they may be safer than human-driven cars. However, he is firmly against ride-sharing with self-driving cars, as he believes his income has indeed been affected.