Ride-sharing Lyft coming to Ottawa streets

By Sarah Newman

As the one-year anniversary of Uber’s street-legal status in Ottawa passes, another ride-sharing app is looking to set up shop in the city: San Francisco-based Lyft.

On Nov. 13, Lyft announced its official entry into the Canadian market, promising “hundreds” of drivers in the Greater Toronto Area and Hamilton by Christmas.

And by Nov. 16, City of Ottawa bylaw chief Roger Chapman had confirmed to the Ottawa Citizen that Lyft has been meeting with officials in the capital, in a bid to become the second major ride-sharing app licensed in Ottawa.

The other ride-sharing firm, Teslift, currently commands only a tiny portion of the market.

Although many local residents may be eager to try out Lyft, taxi drivers — already upset by the city’s legitimizing of Uber — are not happy. Cab drivers say that allowing a second ride-sharing app into the city could threaten their livelihoods further.

Like Uber, Lyft is a ride-hailing smartphone application. Lyft is Uber’s main ride-sharing rival in most of the United States, although Toronto marks its first international expansion.

For now, Lyft officials are staying quiet on Ottawa.

“There are a number of Canadian cities that would be a great fit for Lyft,” said the company’s communications manager Campbell Matthews, but “right now we’re focused on a successful launch in Toronto.”

As for Uber officials, they say they’re ready for the challenge.

“At Uber, we welcome competition that encourages the use of more transportation alternatives,” said Susie Heath, senior communications associate at Uber Canada. “(Shared mobility services) can help reduce congestion and pollution.”

While in 2017 Uber has been dogged by scandals from sexual harassment to low diversity at its Silicon Valley headquarters, Lyft has been positioning itself as controversy-free and socially-conscious. In March, Lyft president John Zimmer called his company “woke” — a term generally understood as meaning “awakened” to social-justice issues — and “the better boyfriend” compared to Uber.

A survey of approximately 1,200 ride-sharing drivers in January by industry site The Rideshare Guy found that Lyft drivers earn about two dollars more per hour than Uber drivers, and report higher levels of job satisfaction.

Another industry site, Ridester, found that Lyft’s rush-hour premium price algorithm — called “Prime Time” — tends to max out at a lower multiplier, resulting in cheaper fares than Uber’s “Surge Pricing”.

Lyft’s double-whammy of better paid drivers and often-cheaper fares has impressed at least one young Centretown resident, Ian Childs.

“I use Uber an absurd amount,” said Childs, “but Lyft could seriously replace Uber for me.”

Like many Centretown residents, Childs doesn’t own a car. His construction job often takes him to far-flung suburban work sites, making taxis or ride-sharing services essential for him.

Childs said he doesn’t use taxis anymore due to their pricier fares.

“It really comes down to cheaper rides, plain and simple,” he said. “The Lyft app for me at least is going to have to live or die by its pricing too.”

Another factor, said Childs, is the ability to track your driver through your smartphone — something that Ottawa taxi drivers have been trying to implement in taxi cabs with little luck, through the use of “soft odometer” technology.

With Lyft looming on the horizon, taxi drivers are asking the city to either tighten rules for ride-sharing apps or loosen them for taxis. Marc Andre Way, COO of Coventry Connections and co-owner of Capital Taxi, told the Ottawa Citizen recently that allowing taxis to use Uber-style “soft meters” could be the boon the taxi industry needs: soft meters enable customers to track taxis on their smartphones, and allow companies to offer cheaper fares than the city-set prices taxis currently have to abide by.

“In terms of soft meters, there is only hope,” said Nega Haile. Haile is a taxi driver and president of an Ottawa taxi driver’s union, Unifor Local 1688.

Haile said the issue goes much further than soft meters, though.

“We drive from A to B for a fee, and so do they. But we have extra rules: safety regulations, inspections, in-car cameras, and so on,” said Haile.

Haile said Uber has “devastated” the taxi industry, largely due to cheaper pricing, and Lyft might make it worse.

“Our fares are regulated by the city, but Uber and Lyft get to determine their own fares,” said Haile.

“They’re getting a free pass due to unequal rules and regulations,” Haile added. “We want the same rules … We’re law abiders, we’re ready to compete. We just want a level playing field.”

As the one-year anniversary of Uber’s street-legal status in Ottawa passes, another ride-sharing app is looking to set up shop in the city: San Francisco-based Lyft.

On Nov. 13, Lyft announced its official entry into the Canadian market, promising “hundreds” of drivers in the Greater Toronto Area and Hamilton by Christmas.

And by Nov. 16, City of Ottawa bylaw chief Roger Chapman had confirmed to the Ottawa Citizen that Lyft has been meeting with officials in the capital, in a bid to become the second major ride-sharing app licensed in Ottawa.

The other ride-sharing firm, Teslift, currently commands only a tiny portion of the market.

Although many local residents may be eager to try out Lyft, taxi drivers — already upset by the city’s legitimizing of Uber — are not happy. Cab drivers say that allowing a second ride-sharing app into the city could threaten their livelihoods further.

Like Uber, Lyft is a ride-hailing smartphone application. Lyft is Uber’s main ride-sharing rival in most of the United States, although Toronto marks its first international expansion.

For now, Lyft officials are staying quiet on Ottawa.

“There are a number of Canadian cities that would be a great fit for Lyft,” said the company’s communications manager Campbell Matthews, but “right now we’re focused on a successful launch in Toronto.”

As for Uber officials, they say they’re ready for the challenge.

“At Uber, we welcome competition that encourages the use of more transportation alternatives,” said Susie Heath, senior communications associate at Uber Canada. “(Shared mobility services) can help reduce congestion and pollution.”

While in 2017 Uber has been dogged by scandals from sexual harassment to low diversity at its Silicon Valley headquarters, Lyft has been positioning itself as controversy-free and socially-conscious. In March, Lyft president John Zimmer called his company “woke” — a term generally understood as meaning “awakened” to social-justice issues — and “the better boyfriend” compared to Uber.

A survey of approximately 1,200 ride-sharing drivers in January by industry site The Rideshare Guy found that Lyft drivers earn about two dollars more per hour than Uber drivers, and report higher levels of job satisfaction.

Another industry site, Ridester, found that Lyft’s rush-hour premium price algorithm — called “Prime Time” — tends to max out at a lower multiplier, resulting in cheaper fares than Uber’s “Surge Pricing”.

Lyft’s double-whammy of better paid drivers and often-cheaper fares has impressed at least one young Centretown resident, Ian Childs.

“I use Uber an absurd amount,” said Childs, “but Lyft could seriously replace Uber for me.”

Like many Centretown residents, Childs doesn’t own a car. His construction job often takes him to far-flung suburban work sites, making taxis or ride-sharing services essential for him.

Childs said he doesn’t use taxis anymore due to their pricier fares.

“It really comes down to cheaper rides, plain and simple,” he said. “The Lyft app for me at least is going to have to live or die by its pricing too.”

Another factor, said Childs, is the ability to track your driver through your smartphone — something that Ottawa taxi drivers have been trying to implement in taxi cabs with little luck, through the use of “soft odometer” technology.

With Lyft looming on the horizon, taxi drivers are asking the city to either tighten rules for ride-sharing apps or loosen them for taxis. Marc Andre Way, COO of Coventry Connections and co-owner of Capital Taxi, told the Ottawa Citizen recently that allowing taxis to use Uber-style “soft meters” could be the boon the taxi industry needs: soft meters enable customers to track taxis on their smartphones, and allow companies to offer cheaper fares than the city-set prices taxis currently have to abide by.

“In terms of soft meters, there is only hope,” said Nega Haile. Haile is a taxi driver and president of an Ottawa taxi driver’s union, Unifor Local 1688.

Haile said the issue goes much further than soft meters, though.

“We drive from A to B for a fee, and so do they. But we have extra rules: safety regulations, inspections, in-car cameras, and so on,” said Haile.

Haile said Uber has “devastated” the taxi industry, largely due to cheaper pricing, and Lyft might make it worse.

“Our fares are regulated by the city, but Uber and Lyft get to determine their own fares,” said Haile.

“They’re getting a free pass due to unequal rules and regulations,” Haile added. “We want the same rules … We’re law abiders, we’re ready to compete. We just want a level playing field.”