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Re-imagining capitalism - UBER-Predators & UNDER-Dogs

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Re-imagining capitalism - UBER-Predators & UNDER-Dogs

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In the context of an interesting joint one-week seminar by the Universities of St. Gallen & Copenhagen held 30 min input on platform capitalism and platform coops with special focus on UBER as it was the main subject of the day. Very lively discussion with well informed students asking good and the right questions followed in the remaining 45 min.

In the context of an interesting joint one-week seminar by the Universities of St. Gallen & Copenhagen held 30 min input on platform capitalism and platform coops with special focus on UBER as it was the main subject of the day. Very lively discussion with well informed students asking good and the right questions followed in the remaining 45 min.

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Re-imagining capitalism - UBER-Predators & UNDER-Dogs

  1. 1. Re-Imaging Capitalism UBER-Predators & UNDER-Dogs Thomas Dönnebrink OuiShare Connector Germany Freelancer Collaborative Economy Besonderer Dank @AlbertCanig @TDoennebrink thomas@ouishare.net
  2. 2. UBER ... was yesterday PlatformCoops ... will be tomorrow
  3. 3. UBER … was yesterday PlatformCoops … will be tomorrow. How does this juxtaposition of UBER and platform cooperativism fit? UBER is a specific company, a particular platform while the denomination platformcoop can be considered a more general and not yet familiar term. And then the presumptuous prediction: UBER was yesterday, platformcoops will be tomorrow? Is this a prognosis, a prophecy, a pompous assumption or wishful thinking? Let's think about it.
  4. 4. in: 449 cities in 66 countries (Wikipedia) VC: 12.5 Billion$ in 15 rounds by 56 investors (Crunchbase)
  5. 5. You know UBER? The online transportation network from Silicon Valley as well - or more simply and precisely a mobile App which connects passengers with private freelancer drivers. Today UBER is operating in about 450 cities in 66 country (continuously there are more added or dropped at times as they occasionally get prohibited to operate in certain cities). A quick check at Crunchbase tells us that Uber has collected until now more than 12,5 billion $ in 15 founding rounds by 56 investors. So the war chest is well stuffed. Nevertheless money gets also quickly burned above all for marketing, lobbying, lawyers and lawsuits. According to a study by the labour economists Lawrence Katz and Alan Krueger the close to 400.000 UBER driver in the USA could constitute around 2/3 of all gig economy work. In addition to the enormous evaluation of currently more than 62 billion $ this circumstance also contributes to the high visibility of UBER. So no wonder UBER finds often immitators or wanna-bes. „We will be the UBER of X“ heard before?
  6. 6. >1,5 Mio. Listings in: 34.000 cities in 191 countries (Wikipedia) VC: 2.39 Billion. $ in 8 rounds by 32 investors – 10 acquisitions (Crunchbase)
  7. 7. As often one can also hear: “We are the Airbnb for X” Hereby the second flagship of this category gets named which could have served just as well as pars pro toto. Most of you will know airbnb: It is an online marketplace where people can - via Internet or mobile phones - list, discover or book private spaces. Two of the three founders began in October 2007 during a designer fair to rent out an airbed in their living room. This turned into a business model and in August 2008 into the foundation of a company. Today there are more than 1,500,000 listings in 34,000 cities in 191 countries. Airbnb managed in a fraction of time to offer more beds than the biggest hotel chains and they achieve this with a fraction of employees and an even higher valuation. Factor 10 could be a good approach for a rule of thumb. A fresh look into Crunchbasereveals that airbnb has collected almost 2,4 billion $ in 8 funding rounds from 32 investors from which also financed ten acquisitions. Of course airbnb or UBER are mentioned here just as pars pro toto for a certain generic term. Often pitches of startup of this category start with: "We are the airbnb or uber for X". Where X can then represent a arbitrary industry, area of life or need. In case you hear this phrase in the future you might want to check out if one of the jury, business angels or journalists makes a cross onto a paper in front of him or her. My assumption would be they playing bullshit bingo as a pastime.
  8. 8. A little interactive element
  9. 9. What is the secret of “success” of these platforms? Let’s approach the question in form of a quiz.
  10. 10. a) Founded after 2000 b) US Enterprise c) Zero d) 42 Question: What do the following brands have in common ?
  11. 11. Question: What do the following brands have in common ? a) Founded after 2000 (Not Alibaba) b) US enterprise (Not Alibaba) c) Zero d) 42 (The Hitchhiker’s Guide to the Galaxy)
  12. 12. after 7 year the world’s biggest taxi company owns ZERO cars > 1 Mio rides/day in 2015 after 12 years the most popular media platform produces ZERO content after 17 years the most valuable retailer in the world has ZERO inventory after 8 years the largest global provider of accommodation owns ZERO of its own real estate 80 Mio accomodations in 2015 The Power of ZERO 41 Bil. $ 62+ Bil. $ 184 Bil. $ 210 Bil. $ 20 Bil. $ 25+ Bil. $
  13. 13. And the winner is ... ZERO Since a) Alibaba was founded 1999 b) Alibaba is a Chinese company and d) the number 42 is quite important in the context of the Hitchhiker's Guide to the Galaxy but is irrelevant here. UBER: after 7 year the world’s biggest taxi company owns ZERO cars. FACEBOOK: after 12 years the most popular media platform produces ZERO content. ALIBABA: after 17 years the most valuable retailer in the world has ZERO inventory. AIRBNB: after 8 years the largest global provider of accommodation owns ZERO of its own real estate. These platforms are operating with external assets and collaboration forms which made them rapidly big, rich and influential. Here we see some figures from 2014 (in grey partially updated).
  14. 14. Graphic:Honeycomb3.0byJeremiahOwjangCrowdCompanies-www.web-strategist.com
  15. 15. Alongside house and car there are still many realms in which thousand of platforms – partly with exponential growth rates – increasingly and rapidly changed and transform our economy and society and how we travel, live, work, think and act. There are different attempts to comprehensive overviews. One of the most known is the Honeycomb of Jeremiah Owyang of Crowd Companies. Here the latest edition 3.0 released March 2016 in which 280 startups were picked and categories out of 460 investigated.
  16. 16. Uberisation & Monoculture Foto:http://venturebeat.com/2014/09/11/yes-a-build-your-own-uber-for-x-kit-costs-only-400/ Foto:syndicatspgic.frFoto:http://www.scriptonitedaily.com
  17. 17. The realms, industries and startups might have been multifaceted and the ideas and their implementation creative. Nevertheless when it came to governance and ownership models creativity and multiplicity quickly died out. The term Uberisation does not only translates into a description of the technical aspect of a platform, a mobile app, to enable the Peer-to-Peer transactions between customers and providers, but also into a narrowing of pathways of design and action to those of the neoliberal, libertarian Silicon Valley. They predominantly look like this: - Search and implementation of a marketable idea - Attraction of plenty of VC capital - Scaling and striving for monopoly positions in order to - Achieve rapid and lucrative IPOs to rake in high ROIs –> everything else is – at the most – just subordinated to this logic – at the latest when the VC capital and with it the inherent constraints have taken over the helm. The presence and the impression of success names like UBER and Airbnb – as well as the company, models and philosophies they represent – have left in the media, in the heads of young entrepreneurs and profit oriented investors, are enormous. It would seem that Margret Thatchers TINA: “There is no alternative” still reverberates strongly.
  18. 18. PlatformCapitalism, capitalism on steroids & 1%
  19. 19. Is it surprising that in the end what goes into the process is what comes out? Sascha Lobo coined the term “Platform Capitalism” in one of his Spiegel Online articles in September 2014 and Jeremiah Owyang emphasized in one of his keynotes on the OuiShare Fest 2015 in May, that the VCs have invested – in a short space of time – almost 12 billion $ in the collaborative economy. This means: most startups belong the VCs, the Venture Capitalists. In a nutshell: the sharing economy is owned and steered by the 1%. And Douglas Rushkoff, author of the best-seller: „Throwing rocks at the Google Bus“ sums up on the South by Southwest (SXSW) Conference that “digital tech was supposed to usher in an age of prosperity, but so far it has put industrial capitalism on steroids. Social networks surrender their missions to data mining, and banks abandon investing for algorithms- all to stoke growth. Startups sell for billions but destroy more jobs and markets than they create.“ Rushkoff therefore calls for a new operating system for the digital economy.
  20. 20. Article in the Shareable Magazine (2015-11-03)
  21. 21. But what could this look like? Neal Gorenflo, editor of the Online Magazine Shareable describes it graphically impressively on the 03.11.2015 “How Platform Coops Can Beat Death Stars Like Uber to Create a Real Sharing Economy” The manuell for to be StarWars rebels consists of five main recommendations: 1. Incubate (new) templates. Experimenting with the interaction of new legal, financial and organizational aspects. 2. Offer a better Service at a competitive price. It can be assumed that users also turned into owners are easier to convince, retain and stay motivated. 3. Take cooperation to the next level. Platformcoops can share much more than proprietary and silo oriented enterprises. And Michel Bauwens – in his Open Coop call – recommends to do this globally and across industries. Also cities should get proactively involved. They should collaborate among each other and with the platformcoops in order to shape the Sharing and Collaborative Economy in the public interest. 4. Create an ecosystem to distribute wealth. Platform Cooperatives need an own ecosystem to be able to compete, but one that distributes wealth instead of concentrating it in the hand of a few. This seems asking for a lot, but platform cooperatives also have natural allies to create such a system. And they are not few: e.g. city governments, unions, NGOs, university, the free and open source (software) movement or social investors like social venture funds, foundations et al. And I would like to add the rapidly increasing crowd of millions and millions of individuals with a new commons sense ready for profound system change or already working on it. It has taken decades for the wonder of Silicon Valley to unfold. It needs a similar ecosystem to nurture and grow a platformcoop movement. Which brings us to the fifth recommendation: 5. Build a mass movement which should have the following characteristics: a) be populist & trans-partisan b) move from moral arguing to practical doing. c) develop from mono to multi stakeholder models.
  22. 22. The opening
  23. 23. Concerning the last point, creating the mass movement that is: On Nov. 13.-14. 2015 the first Platform Cooperativism Conference took place in New York City. Organised by Trebor Scholz, professor for culture and media at the New School in NYC and Nathan Schneider, journalist and assistant professor for media at the University of Colorado Boulder. Both released an article in Dezember 2014 which coined important terms. Nathan Schneider wrote the Shareable article: "Owning is the new Sharing“ and Trebor Scholz published in Medium the article: “Platform Cooperativism vs. The Sharing Economy.“ I recommend to read both. According to Trebor Scholz platform cooperativism “is about cloning the technological heart of online platforms and puts it to work with a cooperative model, one that puts workers, owners, communities, and cities in a kind of solidarity that leads to political power” (Quelle) The event brought together 100+ contributors and each day a 1000+ Coders, designers, scientists, researchers, cooperativists, platform entrepreneurs et al. 1.800 people followed the twitter account @platformcoop and the hashtag #platformcoop were leading on 13. of November the national chart for 5 hours. As intended the conference turned into a „coming-out party“ for the cooperative Internet. Participation, feedback and enthusiasm even surpassed all expectations and thus not only contributed to a decent dissemination of the concept of platform cooperativism, but set in motion a new and important political debate about the economy and society in general. For more information, videos etc. see www.platformcoop.net
  24. 24. The Momentum Samples
  25. 25. After the conference more events around the topic took place. Just to name those I organized and attended myself these were after the common event with Michel Bauwens in NYC, Events in Barcelona, Madrid, Badajoz, Paris, and different in Berlin: like one with Michel Bauwens, one with Trebor Scholz, one at PlatformCoop fairmondo, one at Coliga. More to come. Interested parties are welcomed to join one of the corresponding Facebook groups like PlatformCoopBerlin for Information about further events. Or start your own PlatformCoop X group, where X stands for a certain city or region.
  26. 26. The Momentum Buildup of infrastructure
  27. 27. Further PlatformCoopX groups are currently forming. Recently in Valencia. I hear of interests an activities in Brussels, UK and of further events in Australia and I will be involved myself in events in Tenerife and Mexico City that that the same topic on the agenda this autumn. And the second conference in NYC is already scheduled: 11. – 12. of November 2016. Save the date! The facebook group: Rise of the Digital Cooperative serves as international pin board and on www.internetofownership.net one finds a „directory for the online democratic ecosystem“ with the enumarations of platformcoops, events und – very recently – a blog. The idea of platform cooperativism picks up pace and resonates with people.
  28. 28. PlatformCoops Still in its infancy
  29. 29. Despite of all atmosphere of departure and first established foundation and initiated momentum it has to be emphasized: platform cooperativism is still in its infancy. There are not many pure platformcoops – yet. Just a few can already look back on longer experience and none is as known, talked about or successful in financial terms as UBER, airbnb & co. – yet again. Nevertheless for more and more entrepreneurs about to launch a platform-based start-up are taking the cooperative model as an option into consideration. Or already incorporated entities are considering to transform into cooperatives – or have done so already. The founding of platformcoops is on the rise, the experience and exchange increases. I call it the beginning of the Collaborative Economy 3.0. In the directory of internetofownership.net or among the contributions of platformcoop.net examples can be found. In an article on May 18th 2016 Shareable presents the following: 1.Fairmondo a platform cooperative from Berlin consisting of 2000+ cooperativists that have collected more than 600.000€ in several funding rounds so far to work on a platform that wants to challenge ebay and Amazon. An offshoot in the UK has evolved, another in the US is in the making. 2. Stocksy is a Canadian based platformcoop for stock photography in which the featured photographer also become the proprietor of the platform. Stocksy is already profitable and growing rapidly. 3. Backfeed is a platform from Israel creating platform coops by means of blockchain technology.
  30. 30. 4. Juno is one of the growing examples of UBER challengers. Ist is not a cooperative, but the factor that 50% of shares a set aside for driver and that it is aimed at just taking 10% of commission instead of the current bite of 20-25% UBER takes out, makes this NYC based approach also an interesting case. Especially given that it is initiated by the Viber Founder who has sold his company for 900 million $ showing that he possesses the funds, connections and talent to pull this off. 5. Union Taxi is another UBER challenger from Denver. This one 100% driver-owned. 6. VTC Cab is a platform cooperative from Paris calling UBER out in Paris. 7. Modo is a car-sharing platform cooperative from Vancouver with 16.000 cooperativists and a fleet of 500 vehicles, which each member can easily rent out for 4$/h via the App. 8. Timefounder via this platform from Barcelona the contributions of project collaborators are tracked and turned into fair equity shares. 9. Enspiral is a fast growing and turning famous collective of social entrepreneurs and freelancers from New Zealand. With loomio and cobudget they have developed two open source programs which successfully address pressing questions of efficient as well as transparent and participatory decision making processes and fair value distribution and have made it available as open source. 10. Tapazz is a P2P carsharing cooperative from Belgium. 11. Peerby is not a cooperative, but a B-Corp from the Netherlands. Since they have recently raised – in what turned out to be one of the most successful crowdfunding campaigns – more than 2 million € from their users and promoters they are now predominantly owned by them. The conscious embedding and anchoring of certain cooperative principles in other form of organizations – like B- Corps in this case – is another interesting development and possible leverage.
  31. 31. In my contribution to the conference in NYC I had presented some more actors. If interested the presentation can be found on slideshare in English and Spanish, therefore I want to exemplify here only three: Goteo from Spain is the cooperative approach to crowdfunding platforms. The platform is open source and successful both for the provider as well as for the users of which more than 70% achieve their funding goal. Only open source and commons based projects are permitted. Good Data from London, is the worldwide first data cooperative, which allows their users to control their data at the browser level. User applying for membership turn into shareholder of Good Data. WeChange is a cooperative from Berlin and aims as becoming a kind of facebook for activists of change. On their open source platform they make available to activists and their groups a serie of interconnected open source tools for their work.
  32. 32. Cooperative Integral Catalana Katalonien FairCoop & FairCoin weltweit/ Katalonien Coop – Migros Schweiz+ Coop federation – Mondragon Weltweit/Baskenland
  33. 33. These were just solitary examples of undertakings trying to address particular problems in and with the form of cooperatives. Nevertheless for a sustainable standing in the market and a long-term transformation of the very same, more is necessary than solidarity and collaboration WITHIN a cooperative. What is needed is the solidarity and collaboration among cooperatives and the creating of more extensive ecosystems that nurture and protects them and that are oriented towards the commons. The exchange increases and first clusters are forming like for example 2010/11 the Cooperativa Integral Catalana, an integral Catalonian Cooperative which also was the breeding ground for the FairCoop Projekt in 2014, an open global cooperative which organize itself via the Internet and which operates beyond borders and the control of nation states. FairCoop aims at creating an alternative global economic system which is based on cooperation, ethics, solidarity, North-South balance and justice in economic relationships. FairCoop is well aware that the transition to a fairer monetary system plays a key role in this undertaking and therefore FairCoop supports Faircoin as cryptocurrency with which the intend to create and distribute commons and common wealth. New avenues are getting explored here and it is exciting to see how these social innovations and experiments will turn out in the future.
  34. 34. Likewise interesting will be the question in which direction traditional cooperative ecosystems will develop. For example Migros: founded in 1925 as a consumer cooperative. Turn-over today at almost 27 billion € and with almost 100.000 employees the largest employer of Switzerland. More than two million of the 7.2 million Swiss are member of this cooperative and 90% of the goods sold get produced by 90 subsidiaries. Migros is broadly positioned and 1% of the annual turn-over flow into cultural projects. Or Mondragón: founded in 1956 in the Basque region. Turn-over today around 12 billion € with more than 74.000 employees in around 260 companies and cooperatives in 41 countries. It is Spain’s fourth biggest industrial and tenth biggest financial cluster. Own cooperative financial institutes play a crucial role in this ecosystem. Mondragon is operating in accordance with the declaration of the cooperative conception of the International Cooperative Alliance. The business culture of this successful and resilient cooperative ecosystem is based on a general culture which derives from the 10 elementary principles in which Mondragon is rooted: Open access, democratic organization, sovereignty of work, instrumentalisation and subordination of the nature of capital, participatory management, compensation solidarity, inter-cooperation, social transformation, universality and education. And here the description of the term cooperative as defined by the International Coopertative Alliance. “A co-operative is an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically- controlled enterprise.” How does this resonate with the what was said here before? .
  35. 35. PlatformCapitalism was yesterday PlatformCooperativism will be tomorrow “The future belongs to enterprises that distribute control and wealth rather than concentrating it, and that's not a utopian dream, it's an increasingly practical necessity in order to attact and keep customers in a zero marginal cost world.“ Neal Gorenflo “Silicon Valley loves a good disruption. So let's give them one.” Trebor Scholz
  36. 36. And to wrap up with two quotes: “The future belongs to enterprises that distribute control and wealth rather than concentrating it, and that's not a utopian dream, it's an increasingly practical necessity in order to attact and keep customers in a zero marginal cost world” Neal Gorenflo’s interpretation of what Venture Capitalist Brad Burnham expressed in the SHARE conference in May 2014 as reported by Forbes in an article entitled, "Why Uber and Airbnb Might be in Big Trouble." "Silicon Valley loves a good disruption, let’s give them one.“ Trebor Scholz, organiser of the mentioned Platform Cooperativism Conference, in his opening speech.
  37. 37. Design the future or designed by it? "Cooperativism in general & cooperative banking associations in particular have the potential to give the rapidly changing economy and society an URGENTLY needed and in the meantime by more and more people wished turn, as they have two aces up their sleeves which are strongly needed by platform cooperatives and can give them leverage, and would help to co-create the necessary and supportive ecosystem: millions of members and billions of capital. What is still lacking is the knowledge, willingness and the action. CALL TO ACTION!
  38. 38. I would like to close with a round up that also includes an appeal. Sharing, commenting and critising is welcomed. In my humbled opinion: "Cooperativism in general and cooperative banking associations in particular have the potential to give the rapidly changing economy and society an URGENTLY needed and in the meantime by more and more people wished turn, as they have two aces up their sleeves which are strongly needed by platform cooperatives and can give them leverage, and would help to co-create the necessary and supportive ecosystem: millions of members and billions of capital. What is still lacking is the knowledge, willingness and the action. Cooperative banks are more than just banks or financial institutions. At least they should have this aspiration. They have the potential to become (again) the hearts of regional, healthy, sustainable, resilient, self-responsible, more human, social and solidary economy cycles which again foster the economy, which serve the societies and which stay within the ecological and planetary boundaries. Like this they do not only enable economical livelihood but recreate community and give meaning.
  39. 39. Vielen Dank! Thomas Dönnebrink OuiShare Connector Germany Freelancer Collaborative Economy www.about.me/thomasdoennebrink thomas@ouishare.net @tdoennebrink +49 176 32335744
  40. 40. About Thomas Dönnebrink Lives in Berlin, is OuiShare Connector and Freelancer. His current focus is on characteristics of new economies and the convergence of ideas, concepts and movements in the context of the advancing transformation of our economy and society in general and platform cooperativism in particular. LinkedIn Profil - thomas@ouishare.net - @tdoennebrink - +49 176 32335744
  41. 41. Community Building 1 Magazin ouishare.net 4 Globale Konferenzen 2 Touren (LATAM/Europa 8 Internationale Summits 100+ Facebook Gruppen 200+ OuiShare Events 2000+ Mitglieder 34000+ Facebook Fans > 30 cities in Europa, Lateinamerica & Near Osten 4. Internationale Konferenz. 18.-21.Mai 2016 “After the Gold Rush”
  42. 42. About OuiShare OuiShare originated four years ago in Paris out of a blog around the topic of collaborative consumption. In the meantime it has developed into an international peer-network with several thousand members and the object of study increasingly broadens becoming more holistic. As a movement, think and do-tank OuiShare has organized by now several hundred events in a few dozens cities in Europe, the Americas and the Near East. Since 2013 the three-day OuiShareFest takes place in Paris in May. As biggest event around the collaborative economy and society it attracts each year more than 1000+ participants and experts from around the world. Values Openness – Transparency – Independence – Impact – Feedback – Action – MPRL (Meet People in Real Life) – PermanentBeta – Inclusion - Play
  43. 43. About Collaborative Economy We distinguish four different fields, which of course overlap & reinforce each other. Best known and most widely spread is the field of collaborative consumption. Less known, but likely even more disruptive to the status quo in the future are the fields of collaborative production and collaborative finance. In a fourth field called openness or collaborative learning, concepts like open software, open hardware, open knowledge, open government and governance are summarized. Aspects of this field of openness play an important role in all three fields mentioned before.
  44. 44. Austin
  45. 45. Wingz (Austin) Inc.
  46. 46. Fare (Austin) LLC and its subsidiaries and affiliates
  47. 47. Ztrip (70 airport locations) Subsidiary of the Transdev On Demand, Inc.
  48. 48. InstaRide (Ontario) Inc.
  49. 49. Fasten (Boston) Inc.
  50. 50. Get Me (Dallas) Delivery Technology Holdings, LLC.
  51. 51. RideAustin (Austin) community driven non-profit ridesharing company
  52. 52. Arcade City (blockchain based) decentralized P2P UBER-killer
  53. 53. Ride Finder.io community driven non-profit ridesharing company
  54. 54. text
  55. 55. Juno (NYC) Juno is one of the growing examples of UBER challengers. It is not a cooperative, but the factor that 50% of shares a set aside for driver and that it is aimed at just taking 10% of commission instead of the current bite of 20-25% UBER takes out, makes this NYC based approach also an interesting case. Especially given that it is initiated by the Viber Founder who has sold his company for 900 million $ showing that he possesses the funds, connections and talent to pull this off.
  56. 56. Union Taxi (Denver) Union Taxi is another UBER challenger from Denver. This one 100% driver-owned.
  57. 57. VCT Cab (Paris) 6. VTC Cab is a platform cooperative from Paris calling UBER out in Paris.
  58. 58. Modo (Vancouver) Modo is a car-sharing platform cooperative from Vancouver with 16.000 cooperativists and a fleet of 500 vehicles, which each member can easily rent out for 4$/h via the App.
  59. 59. Tapazz (Belgium) Tapazz is a P2P carsharing cooperative from Belgium

Notes de l'éditeur

  • https://www.haniel-stiftung.de/nachwuchsfoerderung/der-europaeische-weg
  • https://www.haniel-stiftung.de/nachwuchsfoerderung/der-europaeische-weg
  • Die richtige Antwort lautet: NULL
  • UBER:. FACEBOOK:. ALIBABA:. AIRBNB:.
  • When Uber and Lyft left Austin last month, they thought they were sending a message to the Austin City Council and other local governments looking to regulate them. Instead, their departure may pave the way for a revamp of ride-hailing in Austin that could draw the notice of other cities.
    At least six new companies have launched in Austin, all emerging from the ashes of the Proposition 1 election that left the capital city without the two industry giants in vehicle-for-hire apps, which are also sometimes referred to as transportation networking companies.
    "What [Uber and Lyft] have left us with appears to be the only open TNC market in a major city in the world, maybe," said Austin Mayor Steve Adler. "In the marketplace, when you have a monopoly, or in our case a duopoly, that leaves town, what you would expect to see in the market is innovation and competition. And that's what we're now seeing happening in Austin."
    Uber and Lyft left Austin last month after a citywide vote killed Proposition 1, an ordinance the companies supported. The election came after a $9 million ad campaign from Uber and Lyft that littered the city with signs and mailers but didn't yield an election outcome in their favor.
    Two days after the proposition was defeated, both Uber and Lyft closed up shop and urged supporters to express their unhappiness to their city council member.
    "Due to regulations passed by City Council, Uber is no longer available within Austin city limits," the Uber app now reads. "We hope to resume operations under modern ridesharing regulations in the near future."
    And for a moment, the city held its breath. 
    What would become of ride-hailing in Austin? While other companies offering similar services had operated alongside Uber and Lyft, none had seen anywhere near the same level of success. An estimated 10,000 drivers found themselves out of work after the two companies ceased operations. 
    Newer faces have quickly flooded the market. There's Arcade City, getme and Fare. There's also Fasten, Wingz, zTrip and RideAustin. And InstaRyde will have its official Austin launch later this week.
    Many of these companies, most of which have business models similar to those of Uber and Lyft, are still finding their footing, rushing to get drivers on the road and apps on Austinites' phones in the race to emerge as the face of peer-to-peer transactions in the city. Some sprouted roots in Austin before Uber and Lyft left but have seen a recent boost in business.
    Yet all of these firms still operate in the shadow of the two ride-hailing giants, struggling to distance themselves from their competitors while still offering comparable services. Even now, it's unclear if any of these new companies will be able to offer the same level of coverage or see similar success.
    Before Uber and Lyft exited Austin, one or both of the companies had previously left other cities for instituting fingerprint-based background check requirements, including Galveston, Corpus Christi and Midland in Texas. (Uber recently returned to Midland after the city council voted to modify the city's ordinance.)
    Houston remains the only Texas city with a fingerprint requirement for drivers where Uber still operates — but in April, the company said it plans to cease operations if the city council does not change what it has called an overly burdensome ordinance. Lyft left the city over a year ago over the fingerprint requirement. In Austin, all of the firms now battling for market share are aware that either Uber and Lyft may return to Austin. Christopher David, the founder of Arcade City, said he is assuming both companies will eventually relaunch here.
    "I think they'll come back," he said in an interview last week. "I think they will regret leaving. I think they miscalculated Austin, and I believe the next big rideshare [company] is going to be the one that wins Austin."
    An Uber representative declined to comment for this piece but said the company welcomes the competition.
    The free-for-all prompted Tom Dickman, a 26-year-old software engineer in Austin, to create a website for riders to sift through the new options available and learn how much each would charge for a given ride. The current version includes data about Fare, Fasten, getme, Wingz and Lyft, which still offers rides outside of Austin.
    "I was struggling a little bit with Uber and Lyft leaving and then all of these different companies coming in," he said. "And they all have different pricing models and it's hard even to just know which ones are available where you're standing. So it's just a way to collapse them all together."
    Nearly all of the companies are looking to get all of their drivers in compliance with the Austin's ordinance, meaning they all must pass fingerprint-based background checks — the crux of Uber and Lyft's frustration with the city.
    As it is currently written, Austin's ordinance does not include any explicit penalties if companies fail to comply.
    "The ordinance we passed in January was incomplete," Adler said. City officials had planned to come back later that month to approve penalties and make other changes, he said, when a PAC backed by Uber and Lyft submitted a petition to the city which prompted the Proposition 1 election.
    Now that the proposition has been defeated, Adler said the council must revisit the ordinance.
    Wingz CEO Chris Brandon said the company was already planning to launch in Austin prior to Uber's and Lyft's exit and is looking to take "fingerprinting to the next level" by having all of their drivers in compliance long before the Aug. 1 deadline set by the city. 
    Wingz currently only offers scheduled rides to and from the airport, but the company recently launched a beta version of "WingzAround" in Austin. The new expansion brings its services beyond the airport and allows riders to schedule rides anywhere in the city.
    Both Fare and Fasten said they plan to start fingerprinting their drivers in compliance with the ordinance by the deadline.
    RideAustin, a first-of-its-kind ride-hailing nonprofit, has also emerged as a competitor, although it is still in testing mode and is not yet available to the public. Spokesman Joe Deshotel said its creators supported Proposition 1 but that the company will follow the ordinance and have their drivers fingerprinted. He added that RideAustin plans to keep its money in Austin because its goal is not "world domination like Uber."
    Arcade City officials say their company is technically not a transportation network company and thus not subject to the city's regulations. Currently, Arcade City operates through a private Facebook group and bills itself as a ride-hailing "community" as opposed to a "middleman" like Uber and Lyft.
    David, Arcade City's founder, said drivers can choose to undergo fingerprint-based background checks, which they can then use as a selling point to secure rides.
    Despite the turmoil from the election, Adler said he stands by the council's decisions, even as the fallout has captured national attention.
    "I have talked to mayors from around the country about this issue," Adler said. "My position on this is that cities need to be as innovative and creative as are the industries and businesses and economies that it intersects with ... There's a suggestion that what's happened here demonstrates that Austin is not an innovative city, and I don't think what happened here indicates that at all ... Austin is where ideas go to become real."
    Adler said it was unclear what the ride-hailing environment will look like down the line, but he said he is certain there will be "choices operating at scale in the city." 
    The future could depend on whether the Legislature decides to take action on the issue next year. Immediately following the departures of Uber and Lyft, Sen. Charles Schwertner, R-Georgetown, said he will file legislation on the issue next session that emphasized a free market. Other GOP lawmakers expressed similar concerns on social media after the election. 
    Adler said while statewide regulation is "certainly an option" the Legislature can use, the atmosphere in Austin has already significantly shifted since the election.
    "I think that when some of the legislators initially spoke, it was uncertain as to whether or not Austin had adopted something that would prevent the market to function," Adler said. "I would say the evidence at this point would at least suggest that the market is working well."
    There's little the Legislature can do until the 2017 session, but the House Committee on Business and Industry is holding an interim hearing on Wednesday to discuss "how Texas can support shared economy growth in the state." Uber General Manager Sarfraz Maredia has been invited to testify.
    In the meantime, the future of Austin ride-hailing will be determined by the market, Adler said, "as opposed to government deciding." 
    "There's going to be a battle for Austin," David said. "It's going to be fierce, and it's going to be fun."

  • Wingz Like Fare, Wingz is a service that specializes in rides to and from the airport. (Pre-booked, private airport rides. No Surge. No Stress. Serving the West Coast and Central USA)
    However, unlike Fare, the company is also working with a new concept called WingzAround, which provides rides around Austin.
    It should be noted that WingzAround is not an on-demand service — the company asks that you book your ride at least two hours in advance, and there is a $15 minimum.
    Drivers receive 88 percent of their fare after fees (95 percent if a user books them directly) and 100 percent of tips.
    .
  • Fare – The Driver Alliance Fare was originally slated to go live in Austin later this summer, but it bumped up the launch date post-Prop 1. available around town, and was approved to operate at the Austin-Bergstrom International Airport this week.
    You can schedule a standard, large, or premium car for pickup or request one on demand.
    There is a $10 to $15 minimum fee, depending on the vehicle size.
    As a driver you receive 80 percent of your fares and all of the tips.
    The app also makes it easier to build up a client base, as riders can select you as a preferred driver.

    FARE is a new personal transportation service. Drivers earn 90% when they drive referrals. Passengers earn 10% credit on all their referral's app spending.
  • new smartphone app

    Our service is backed by over 25 years of trusted customer support and professionally-licensed and insured drivers.

    zTrip is owned and operated by Transdev, the leading provider of passenger ground transportation services in North America.

    zTrip is available in more than 70 markets - currently offered in these locations.

    zTrip is unique in that it allows you to snag a ride with a car or taxi. Once you set your pickup location, time, and destination, you will be quoted a flat rate.
    The company offers on-demand and scheduled rides in the greater Austin area.
    If you choose to drive with zTrip, insurance and maintenance are covered, you get to keep all of your fares, and set your own hours.
  • InstaRyde is a Canada-based service whose first city in the U.S. is Austin.
    InstaRyde is currently in soft launch mode (awaiting approval as a TNC), so there aren't as many available drivers as other companies.
    Minimum fares range from $2 to $5 depending on the number of passengers, but the mileage and time pricing is similar to lower-cost services like Uber and Lyft.
    There's also no surge pricing.
    Thinking about becoming a driver? InstaRyde takes 17.5 percent of the fare — you keep the rest.
  • Fasten This Boston-based service was just approved as a Transportation Network Company (TNC) by the City of Austin, and it began operations earlier this week.
    Fasten assures users that there is no minimum fare and no surge pricing; you pay per minute and per mile on top of a small base fee, depending on the size of the vehicle requested.
    Fasten calculates that drivers make about $1,505 for every 100 rides.
    The company also offers weekly direct deposit.
  • Get Me This Dallas-based startup launched in Austin last fall as a mix between Favor and Uber.
    Users can request anything they want in the greater Austin area, whether it's a delivery or a ride.
    Rates reflect time of day and distance and are outlined by zones centered around your location.
    The charge for a delivery or ride might be a little higher than competitors', but the company promises no hidden fees or surge pricing, and more money goes into drivers' pockets.
    Get Me has beefed up the ride-sharing aspect in the past few weeks.
    Although there have been a few glitches with the app and driver onboarding process, the team is confident in meeting demands now.
    A Go Getter driving job with Get Me is above minimum wage and boasts insurance coverage.
  • RideAustin is a community driven non-profit ridesharing company.

    launch team is led by Joe Liemandt, a longtime Austin tech entrepreneur.  

    powered by donations, with paid and volunteer hours from both the Austin tech community and the broader Austin community working together.
    previous rideshare companies spent millions in infrastructure with the backing of the community - RideAustin can quickly harness this infrastructure.

    Non-profit: More for drivers, less for riders, supporting local charities. (round up fares - include free and reduced priced rides to low income elderly and the disabled.

    RideAustin is a nonprofit helmed by a few high-profile Austinites as a direct response to Uber and Lyft's departure. The RideAustin app for iPhones is live now, but the service (and an Android version of the app) won't be ready until late June. Once live, the charity portion of RideAustin allows users to round up their fare to the next dollar and donate that amount to an organization of their choice.
    Those interested in driving for RideAustin can apply through the iPhone app and complete registration at Crown Plaza Hotel; RideAustin will cover the $40 fingerprinting fee.
  • Arcade City officials say their company is technically not a transportation network company and thus not subject to the city's regulations. 
    Currently, Arcade City operates through a private Facebook group and bills itself as a ride-hailing "community" as opposed to a "middleman" like Uber and Lyft.
    David, Arcade City's founder, said drivers can choose to undergo fingerprint-based background checks, which they can then use as a selling point to secure rides.
    When Uber pulled out of Midland and Corpus Christi, Arcade City drivers entered. Even before we released the first version of our app, drivers took initiative and connected directly with riders on Facebook.
    Arcade City is not a 'TNC'. It's merely a brand, a culture, a way of being with each other. Yes, there will be a certain legal entity offering rideshare insurance to drivers starting this summer. But we will always stand firm on principle that two people should always be able to connect directly with each other, free from outside interference.
  • Bonus: Ride Finder.io With so many ride-hailing apps to choose from, a new Austin service has emerged that streamlines it all.
    Ride Finder.io helps keep track of all the ride-sharing services available in the city.
    The website allows you to put in your starting and ending address, which then estimates your fare across all ride-hailing platforms.
    Ride Finder.io currently provides estimates for Fare, Fasten, Get Me, and Wingz (Lyft – outside city limits)
    but says it will add additional ride-sharing companies as they are announced.


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