The Rideshare Wars: Uber, Lyft & Sidecar

[music playing] Next, we turn to "On Technology," a new PBS series covering the tech space in and around California.

Tonight, Steve Goldbloom examines disruption in the transportation industry.

Now, I just pepper the streets up again at the exteriors of-- [phone chiming] Jordan.

JORDAN SMITH (ON PHONE): Stevie G, how are you settling in?

STEVE GOLDBLOOM: Yeah, I'm doing good.

I was hoping I could talk to you about a travel per diem for Nora and me.

JORDAN SMITH (ON PHONE): Oh, Steve, I'd love to.

But you know, uh, it's PBS.

So, uh, it's not gonna happen.

Right.

It's just, the place is lovely.

But it's $2,000 a month.

And we've been forced to push the beds together, actually.

JORDAN SMITH (ON PHONE): Why are the beds pushed together?

It's not that we wanted to push them together.

It's that there was no other way to get to the bathroom.

The silver lining is I think there's a great story here about how the tech industry is affecting the cost of living in the Bay Area.

San Francisco is an unlivable-- JORDAN SMITH (ON PHONE): Steve, that sounds like a great story.

And we'll definitely talk about that down the road.

For now, though, the story is how technology is disrupting the taxi business.

So we have an Uber on its way over to you right now.

We are ready to rock.

Noah has his camera running.

I love that story.

I think it's going to be a fantastic story.

What, by the way, is an Uber?

Hey, Travis.

How's it going?

How are you doing?

Hey.

Good to meet you.

Thanks for doing this.

Yes, of course.

Here we go.

This is not bad.

How are you doing, buddy?

We can really hug it out.

I'd love to hug it out.

Hi.

So where do you want to drive close-- close-- we're driving where you want to go.

STEVE GOLDBLOOM: Yeah.

Whose idea was this?

TRAVIS KALANICK: My co-founder and I were in Paris.

And he's like, man, I just want to push a button and get a ride.

How many cease and desist letters have you received?

Mm, a lot.

We have an agreement with the state of California that says what we're doing-- California's all good.

But we have a lot of taxi commissioners that are out there looking to protect the taxi industry.

There's a lot of folks who want to stop the clock or turn it back.

They're reminiscent.

They like the past.

But time moves on.

STEVE GOLDBLOOM: What are you going to Uber next?

Uh, I would never tell you.

But-- but-- You can tell me.

Go to the sign, Noah, and then back to me.

Sign, back to be.

Ready?

Then I'll be able to see it.

It turns out there's more than one player in town.

I'm here outside Lyft, where anyone who owns a car can sign up and start earning-- something this underpaid reporter is seriously considering.

You obviously can't use that, but it's not a bad idea.

How would you describe Lyft to, like, my mother?

So I'd explain it as an easy way through your cellphone or smartphone to get rides from trustworthy people within your community.

STEVE GOLDBLOOM: What's the first thing we do when we get in the car?

We fist bump.

What if you don't fist bump?

It's OK. Um, do you want to go to Sidecar-- or do you want me to do it into the camera?

Now we're gonna loo-- look at Sidecar.

I feel like we can just go cut to Sidecar, and then we'll do it that way.

I read somewhere that you-- you couldn't get home.

I saw a guy delivering a pizza.

And I was like, do you want to take me back home for 20 bucks?

And he was like, oh, you know, this is really cool.

I always wondered what it would be like to drive people around in my car.

And the cabs are saying that it's unfair competition.

Is that right?

What they mean-- what they really mean is it's unfair because there's competition.

Imagine if a group of people owned Italian restaurants, and they found a way to get city government to outlaw French restaurants?

Now, if I wanted to try driving-- Yeah, you could totally do it.

I could do it, eh?

You should try.

How long would it take for me to get approved?

An excellent driver.

[horns honking] Sorry.

For a deeper look at the ride sharing business, this reporter has taken it upon himself to take a Tesla.

[phone chiming] Hello?

JORDAN SMITH (ON PHONE): Steve?

Why did I just get a call from a PR lady at Tesla about her lending you a $100,000 car for a week?

What are you going to do with a Tesla?

[music playing] STEVE GOLDBLOOM: Now, let's go make a few bucks.

Hey.

Steve?

Yes.

You're not married?

Mm-mm.

You just wear a ring?

Now, where are you from originally?

Toronto.

I'm from Toronto.

No way!

Yeah, way.

I've spent a lot of time in Europe.

Oh, have you?

You're from the Bay Area?

California native?

I was in a serious relat-- OK. Yeah, I'm not in-- I'm single now.

That was three years.

You just gave and gave and gave.

[screams] God!

I see him.

I saw him.

TOGETHER: (SINGING) Here I go again.

Girls, what's my weakness?

Men!

OK, then, chillin', chillin', mindin' my business.

Where are you guys going?

[inaudible]?

Smells good.

STEVE GOLDBLOOM: Noah, do you realize we made 300 bucks today?

Ready to go?

OK. More and more people have made San Francisco home because of the tech boom.

Like many growing cities with cars and bikes everywhere, the simple task of hailing a cab has become nearly impossible.

I think-- it's OK. Keep it going.

I mean, maybe we should talk to the taxes, get their point of view.

What are you guys celebrating?

[people cheering] TREVOR JOHNSON: The vast amount of these vehicles are causing huge, huge congestion and traffic problems.

So all these companies-- Sidecar, Lyft-- the fact that they're on the road is a problem?

Yeah, just the fact that they're on the road.

Because aren't they saying that they're keeping other people off the road?

Correct, but the vast majority of the rides that we've observed are one individual in the back.

And it's not an individual that would have been driving.

It's an individual that would've been in a taxi.

Uber, Lyft, Sidecar-- it's exactly the opposite.

People are buying cars to go out and be taxi drivers without following the regulations.

All right, well, look, guys.

Thanks.

We're going to catch a cab.

OK, that's good.

We recommend that.

[beep] DANA (ON PHONE): Hi, Steve.

This is Dana from media relations at Tesla.

I watched your news piece.

It had nothing to do with Tesla.

So I'm wondering what exactly you did with our car and also why you still have it today.

Call me.

Whoa!

Whoa-whoa!

Whoa, whoa!