One year of ride-hailing
Arrival of services changes way Capital Region moves around
Lyft, Uber mark first anniversary upstate.
Shannon Mainville was one of the first drivers to sign up for Lyft and Uber when the services debuted in the Capital Region a year ago.
The opportunity to meet new people, design her own hours and network with potential employers — “people know you’re punctual, clean and friendly” — appealed to the Cohoes resident. Mainville usually starts driving in the morning before her part-time afternoon shift at a local library, and over the past 12 months she’s racked up 3,000 rides.
“I love it,” she said. “You can set your own schedule.”
Another driver, Dawn Kojac, joined Uber because she wanted another income source in addition to waitressing and many of the jobs in her hometown of Windham, a town in the Catskills, are seasonal. She said she’s one of the only drivers in a rural swath of upstate New York, where public transportation is limited or nonexistent, and many of her passengers are older people commuting to doctor’s appointments or travelers visiting the area.
“I make more money driving for Uber than at the restaurant,” she said.
June 29 marked one year since ride-hailing companies began operating in upstate New York and Long Island, which were previously some of the nation’s last holdouts against the services.
At issue in the debate leading up to the legalization were the differences between the downstate and upstate taxi industries and labor classifications and protections for drivers.
In June, Brooklyn state Sen. Martin Golden introduced legislation that would offer workers’ compensation coverage to certain ride-hailing drivers.
Initially more than 20,000 people signed up to drive for Uber and Lyft, according to the state Department of Motor Vehicles. That figure had swelled to more than 150,000 people as of May 30, though there may be
some duplication with people driving for both companies, according to a spokesman for the DMV.
Uber and Lyft would not provide specific driver and ridership figures, but a spokeswoman for Uber said there are “tens of thousands of riders and thousands of drivers” in upstate New York and a Lyft representative said ridership has grown 50 percent upstate since Jan. 1.
Ann Ferracane, the general manager for Lyft in upstate New York and New Jersey, said that the response locally has been tremendous. In the beginning people were primarily using Lyft to get to and from parties, bars and gatherings, but more people have started using it to get to work, she said. The company is in the process of testing its new monthly subscription service in Albany and several other markets.
“It really does shape the way the community commutes and drives or lack thereof,” Ferracane said.
“Thousands of Uber drivers have been able to earn on their own schedules while helping hundreds of thousands of Uber riders move around their communities safely with ease,” Danielle Filson, a spokeswoman for Uber, said via email. “Thank you Albany and to all who have been on this journey with us this year — we look forward to many more.”
Several drivers in the Capital Region affirmed this framing: They are their own bosses and can clock in and clock out when they want to. The apps are a way to make extra money, supplementing another revenue stream or supplying the capital for hobbies or bills, and the social aspect is also appealing, they said. On an average day they may earn under $100 driving for one of the apps, but on a busy evening they can usually make a few hundred dollars.
The local market has grown as more people have heard about the apps, said Doug Pollicino, who lives in Schoharie County and drives for Uber and Lyft. The former is more popular in the streets, while the latter is more popular at Albany International Airport, he said. The most requests come in during weekends or after concerts and shows.
He believes the ride-hailing options have made the roads safer, with people requesting a ride instead of driving themselves home after a party or event.
“It’s been good for the community,” he said.
But it’s not without difficulties. There are gas, insurance and upkeep costs to consider. People will try to get in the car with open containers of alcohol or try to smoke or vape inside, Mainville and Kojac said. They keep buckets, bags and air fresheners on hand and have their cars cleaned and vacuumed regularly. Some parents will request a ride but won’t have a car seat for their child, so when Mainville arrives and finds out she then has to cancel the ride. Driving in rural parts of the state and losing connectivity is a problem for Kojac.
The women, who have driven people as far as Harlem, Newark, Utica and Middlebury, also take safety precautions. If a customer books a long trip, Mainville and Kojac will send their route and location to their loved ones, and they keep their purses strapped on or in hidden spots in the car.
Ride-hailing companies’ arrival in the Capital Region has dealt a financial blow to taxi companies like Capitaland Taxi. Last year the company’s departures at Albany International Airport were down 5.3 percent compared to 2016, owner Bret Peek told the Times Union in February. He did not respond to messages left last week.
Uber, Lyft and taxi companies can drop off passengers at the airport, but Capitaland has the exclusive passenger pick-up contract and Lyft has the exclusive ride-hailing contract. Uber does not have a contract with the airport and has balked at having a third party monitor its activity.
“Our travelers have embraced Lyft as an outstanding, reliable and efficient means of transportation,” said airport spokesman Doug Myers. “Capitaland’s ride numbers and revenue have decreased slightly. We attribute this to the competition that followed the arrival of Lyft.”
In a six-month period from last July through December,
Lyft provided 19,528 rides from the airport, the Times Union reported in February. A Freedom of Information Law request is pending for figures since June
29, 2017. Capitaland pays a $2 fee per vehicle every time it transports passengers from the airport but does not pay a drop-off fee, while Lyft pays $2 for each pick-up and drop-off.
The airport authority collected a little more than $1 million in parking fees last July, the month Lyft arrived at the airport, compared to $1.3 million in May, according to figures provided by the airport. Rates have not gone up and there’s higher demand for parking close to the terminal, so the airport has opened two more long-term lots, Myers said.
Rental car companies at the airport have seen revenue shrink from $707,627 last July to $347,271 in May. A spokeswoman for Enterprise Holdings, which has a presence at the airport, said the company does not disclose financial details on a market-by-market basis because it is privately held. She also sent the Times Union to a June news release announcing the opening of the company’s 10,000th location. A spokeswoman for Avis said ride-hailing businesses are the company’s “ally.”
“The more opportunity a consumer has for mobility, that doesn’t involve owning their own car, the more we benefit,” she said in an email. “As the decline in car ownership continues, the future holds a greater need for more, and more flexible, mobility options, which explains why the pie is getting bigger, not shrinking or just being divvied up.” Hertz did not respond to requests for comment.
The ride-hailing companies have also had an impact on the Capital District Transportation Authority, said CEO Carm Basile. Total ridership is down 9 percent, according to June figures, which Basile attributes in part to Lyft and Uber as well as a tough winter and the switch to the Navigator smart card system.
“Our ridership has been down for the last several months. I don’t think it’s all due to rideshare, but some of that is,” he said. “People who are taking short trips, evening trips or getting around an urbanized area.”
It’s also hurt taxi companies, Basile said. The authority has asked six area municipalities to approve an ordinance setting up a regional taxi system, which would include standardized fares and a mobile payment system. Albany, Saratoga Springs and Troy have approved it, but Schenectady, Rensselaer and Colonie have not.
He sees more transportation options as beneficial to residents of the Capital Region, who can drive a car, take the bus, ride with Uber and Lyft or use the CDPHP Cycle! bicycle program. It’s also a sign of a “changing region and a changing transportation network.”
“Everyone is better off,” Basile said. “We want to see more options.”
The popularity of Uber and Lyft as well as the further integration of technology into people’s lives have pushed the CDTA to get information to passengers in real time and “move quicker,” Basile added.