Friday, August 29, 2014

Begun the SLOG Wars Have: Uber Announces New Driver-Recruitment Initiative, Lyft Displeased

Uber iPhone

If there were any doubt remaining that Uber is a flash-in-the-pan cash-grab startup rather than a serious player in the transportation sector, one need only scope the name of the company's new initiative: SLOG. An acronym for "Supplying Long-term Operations Growth," SLOG suggests that the company very much sees itself in the ride-sharing game for the foreseeable future.

The San Francisco–based dispatch/logistics company has recently been involved in high-profile battles in global cities, as well as in its home state, fending off blows from the entrenched taxi and livery industries and governmental regulators.

The latest kerfuffle sprang up when it came to light that Uber recruiters had been ordering and canceling rides from competitor Lyft's drivers in New York City. According to data compiled by Lyft, since October of last year, Uber contractors booked and canceled 5650 pink-mustache rides.

Uber disputes the allegation but admits that it has been deploying recruiters (who have allegedly been given burner phones and credit cards to use) to take rides in Lyft vehicles with the intent of bringing the drivers over to their side. Uber has taken to its own blog in an attempt to clarify things, explaining the role of the "brand ambassadors" who hailed and then canceled the rides. Their statement reads in part, "We can't successfully recruit drivers without talking to them—and that means taking a ride. We're all about more and better economic opportunity for drivers. We never use marketing tactics that prevent a driver from making their living—and that includes never intentionally canceling rides."

Toyota Prius Lyft car in San Francisco

A Toyota Prius displays Lyft's famous pink mustache as it picks up a passenger in San Francisco.

A story posted this week at The Verge suggests that Uber is spinning the story pretty hard, quoting an anonymous Uber contractor, who maintains, "What's simply untrue is that not only does Uber know about this, they're actively encouraging these actions day-to-day and, in doing so, are flat-out lying both to their customers, the media, and their investors."

For its part, Uber accuses Lyft of fibbing, offering a statement to The New York Times asserting that "Lyft's claims against Uber are baseless and simply untrue. Furthermore, Lyft's own drivers and employees, including one of Lyft's founders, have canceled 12,900 trips on Uber . . . These attacks from Lyft are unfortunate but somewhat expected. A number of Lyft investors have recently been pushing Uber to acquire Lyft. One of their largest shareholders recently warned that Lyft would 'go nuclear' if we do not acquire them. We can only assume that the recent Lyft attacks are part of that strategy."



The truth, as it so often does, likely lies somewhere in the middle. Ride-sharing is a hot frontier in both tech and transportation. It only makes sense that the game's gonna get a bit dirty before the whole thing shakes out.



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