This Week in On Demand― March 14, 2019
From Lyft bikes to Doordash, the new champ of food delivery, here’s the latest happenings from the gig economy this week.
Lyft To Invest $50 Million in Chicago Bike Sharing Program
A proposed contract from Chicago bike-sharing program Divvy will bring $50 million in investment from Lyft to the city over nine years.
Lyft took over the city’s bike-sharing program last year after purchasing Motivate International, a company that managed government sharing programs in cities like Boston, Chicago, and New York.
The proposal would add 175 stations and 10,500 bikes, bringing the total to 800 stations and 16,500 bikes. It also would require Lyft to pay the city $6 million annually, with a four percent increase each year. The city would also share in $1.5 million generated from advertisements or sponsorships. This money is in addition to the $50 million investment. All city money would go back into transportation.
Tighter Regulations on Ride Sharing in New York Help Smaller Operators
New regulations in New York City have created losses for major players like Uber and Lyft, but smaller operators are starting to see an increase in business.
A rise in the minimum wage for app-based drivers caused both Uber and Lyft to increase prices. In addition, the city added a surcharge for $2.75 for every ride-hailing trip below 96th street in Manhattan.
According to Lyft, these fare hikes and surcharges have reduced the number of ride requests in the area. However, ridepool service Via, the smallest app-based service in the area, have reported an increase in business.
The Manhattan-based company uses vans to shuttle passengers in a ride-pooling service. Via was able to keep fares the same, and riders only have to pay a surcharge of $0.75.
Autonomous Vehicle Heads to Henry Ford Museum
Even though autonomous cars are not yet mainstream, one is headed to the Henry Ford Museum. GM announced its first autonomous car is making its way to the museum to be displayed in the very front, alongside a 1959 Cadillac.
The preproduction Chevy Bolt EV rolled off a Michigan assembly line in March 2016. It racked up over 12,000 miles of autonomous driving in San Francisco and other cities.
DoorDash Grabs Number One Spot in Food Delivery Market
Fortune magazine announced Monday that DoorDash nosed ahead of GrubHub to take the number one position in the on-demand food delivery market.
In March 2018, DoorDash was barely in the running for the top three services, taking about 15% market share, while GrubHub had almost 40% and Uber Eats was squarely in the middle of the two.
Over the last year, GrubHub’s market share steadily decreased, DoorDash continued to improve, and Uber Eats stayed relatively stable.
Current numbers are almost neck and neck, with DoorDash owning 27.6% of the market, GrubHub at 26.7%, and Uber Eats at 25.2%.
It’s unclear what caused the decline at GrubHub, but with so many new players entering the market, customers have more choices than in the past.
Dallas Transit Hires Uber to Give Free & Discount Rides
Dallas Area Rapid Transit (DART) is offering free and discounted rides to some customers via Uber’s ride-pool service UberPool.
The program provides options for those who live in areas with limited transportation options. Rides are subsidized by DART and serve six zones in the area including Legacy West in Plano and the Inland Port in South Dallas.
That’s the news for this week. Stay tuned for next week’s roundup to see the latest innovations in the on-demand industry.
Image Credit: Steve Fecht for General Motors