The biggest strength of Uber and Lyft is their customer base, who have become so loyal that they oppose many regulations that taxis face.
The sharing economy has made consumers realize that many regulations have made the things they enjoy worse, according to The Los Angeles Times. The biggest stumbling block for those companies? People who haven’t used them.
A survey from the Pew Research Center found broad support for “the new digital economy.”
“Eighty percent of those polled by Pew who use the apps said that companies like Uber and Lyft ‘provide good jobs’ for people who value flexibility, 57 percent of those who are familiar with the regulatory debate say the services should not have to submit to the rules that govern existing cab companies,” Natalie Kitroeff wrote for the Times.
Consumers haven’t found much in their experiences to justify more government regulation. That’s good news for Uber and Lyft when they conflict with cities, such as the recent fracas in Austin that led to a ban. It’s also good news for municipal finances, as the tax revenue ride-hailing companies generate can reach into the tens of millions of dollars.
Those who use the apps, however, are a minority. Millennials love Uber — their grandparents haven’t heard of it. Adults under 30 years old “are seven times as likely to use these services as are those age 65 and older,” Pew noted.
They’re also urban- and suburban-oriented.
“Ride-hailing users’ attitudes toward these services are strongly positive; users are in near-universal agreement that ride-hailing saves them time and stress,” Pew declared.
To combat the trouble that Uber and Lyft encounter in cities, they’ll need millennials to persuade baby boomers of their benefits. The Austin ban, after all, was voted on by Austinites, not dictated by the city council.
Pew found that “a sizable majority” felt safe using Uber and Lyft, and 70 percent “describes these services well.”
That’s great news for the companies. They’re providing a service in high demand and keeping customers satisfied. For Americans unaccustomed to the companies, and wary of change, that’s an opening to be exploited by existing taxi companies. Demand the city ban ride-hailing in the name of safety or fairness, then get an uninformed public to support the move.
Already, Pew noted that 35 percent of Americans feel that ride-hailing should be required “to follow the same rules and regulations as existing taxi companies when it comes to things like pricing, insurance or disability access.” If Uber and Lyft aren’t careful, city governments could regulate them out of existence and leave the youth stranded.
