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New York becomes the first state in the US to put a cap on ride-hailing services *cough* Uber *cough* Lyft... The Hustle Sponsored by New York votes to limit rideshares, a huge pre-IPO blow to Uber and Lyft The New...
By: Wes Schlagenhauf
August 9, 2018
New York becomes the first state in the US to put a cap on ride-hailing services *cough* Uber *cough* Lyft...
New York votes to limit rideshares, a huge pre-IPO blow to Uber and Lyft
The New York City Council voted to cap the number of ride-hailing cars, a controversial decision that makes NYC the first major city to limit them.
For Uber and Lyft, this year-long freeze on new licenses in their largest market is the biggest setback yet in the war against NYC regulators -- and the timing is terrible.
NYC has always protected yellow cabs with rideshare regulations
In other cities, anyone who passes a background check can drive for Uber and Lyft, but NYC drivers must register as ‘for-hire vehicles’ with the Taxi and Limousine Commission.
But, when NYC Mayor Bill de Blasio introduced a 2015 bill to cap the number of for-hire vehicles, an aggressive Uber TV ad campaign pressured the city council to vote against a cap.
After the 2015 vote, though, the number of registered ridesharing vehicles has jumped from 12.6k to 80k, increasing Manhattan driving by millions of miles.
No one agrees how the cap will affect the city
According to NYC officials, the cap won’t take “away any service that is offered” but instead “uplift drivers.” Ridesharing companies, however, argue the cap will screw over riders.
A public policy expert for Lyft claims the cap “will bring New Yorkers back to an era of struggling to get a ride, particularly for communities of color and in the outer boroughs” (the NAACP agreed with this assessment).
Regardless of who wins in the long run, New Yorkers will likely pay more and wait longer for Ubers and Lyfts in the immediate future (although cabbies will finally see their medallions regain value).
This loss looks really bad for Uber and Lyft as they plan IPOs
The NYC cap calls into question how well Uber and Lyft will be able to grow if other cities follow up with similar restrictions.
While Uber and Lyft will fight the council’s decision, the signature of Mayor De Blasio (a known Uber-hater) is all that’s left for the ruling to go into effect.
Yellow cab, holla back
7 YEARS LATER: Magic Leap finally launches its first product
After eons of beating around the augmented bush (and months of our barbed skepticism), Magic Leap finally announced the launch of its first commercial product yesterday.
Priced north of $2k, the Magic Leap One Creator Edition AR headset, according to the company’s press release, “brings digital content to life here in the real world.”
And it only took them 7 years to get it there...
Which is fair, because tech takes time, but also insane considering the amount of money Magic Leap has been able to squeeze out of investors ‘on spec’ -- more than $2B since it was founded in 2011.
They recently declared the product would be out “sometime this year” during the announcement of their exclusive mobile partnership with AT&T last month, and looks like that “sometime” is now.
So far, so good
Back in October, Magic Leap’s technology was sharply criticized by several news sources, the consensus being that the so-called revolutionary AR device was more of a leap than a reality.
But, CNBC reporter Todd Haselton was invited to take the new headset for a spin yesterday, and, well, he spit some pretty strong words straight outta positive town:
“The Magic Leap One is impressive… unlike any computer I’ve used before... The experience with the goggles was like a computer-generated 3-D world with real depth.”
As Mattress Firm considers bankruptcy, Casper will build 200 physical stores
Casper, the startup that pioneered online mattress delivery, announced plans to open 200 retail stores over the next 3 years, according to the Wall Street Journal.
Casper’s announcement comes just days after reports that the country’s largest mattress-maker, Mattress Firm, hired bankruptcy consultants to explore taking a looong nap.
And, as WSJ points out, Casper joins successful direct-to-consumer e-tailers like Warby Parker that have crossed the digital divide to build their brand with physical stores.
As Mattress Firm fades to memory foam, Casper gets real
Mattress Firm built a sleep empire of 3.6k stores, but volatile consumer demand made it hard for the ’Firm to pay its 3k+ expensive store leases.
Meanwhile, on the cool side of the mattress, Casper (founded in 2014) established a successful online business selling consumers the dream of not wasting time in a mattress store.
From ‘click-and-order’ to brick-and-mortar
After early e-commerce success, Casper started investing its $239.7m of funding on building its brand, through partnerships with physical retailers Target and Nordstrom.
Then, last February, Casper opened a ‘Sleep Shop’ in Manhattan’s trendy SoHo shopping district. The shop was so successful that the NYC location -- and Casper’s 17 other ‘pop-up’ shops -- will now graduate to full-time stores, primarily to advertise its brand, not sell its actual products.
Casper has increased revenue 50% so far this year from 2017 -- now, it hopes that physical locations will give it an edge over the ever-increasing number of online competitors.
Tinder’s set to double business earnings to over $800m this year
Tinder is set to bring in more than $800m in revenue this year, a feat that Recode reports will make the dating app responsible for almost half of Match Group’s projected $1.75B annual revenue.
According to CFO Gary Swidler, Tinder generates almost all of its revenue from its premium subscription service, Tinder Gold. Gold gives users more features for $14.99, which, according to Swidler, is a “big reason that sales are up.”
Now, their business is almost as big as Snap’s
In Q2, Tinder added almost 300k new subscribers, totaling almost 3.8m. According to Recode, the dating app is growing almost as fast as Snap’s business was last year.
The only difference is Tinder is projected to bring in at least $320m in profit this year, compared to the $353m Snap lost in Q2 alone.
Understanding home ownership often feels like it requires a Ph.D. What you need is someone that cuts it straight, gives you the facts about different mortgages -- oh, and lets you know exactly how much it will cost you.
It’s just better. Better Mortgage gives you the tools and resources to understand the whole home ownership jazz.
With Better Mortgage’s pre-approval tool and mortgage calculator, you just plop in a few details like your income and zip code, then WHAM -- see mortgage options and monthly payment projections instantly.
Their site is also packed with informative articles and videos featuring humans that -- get this -- talk to you like you’re a human.
Plus, Better Mortgage consultants don’t get paid a commission, so they have your best interests in mind when they’re helping you, not their paychecks.
It’s how Better does mortgages -- and, as the name says, it’s just better. Visit Better Mortgage to play around with their mortgage calculator. We did and can’t stop.
FINE-ISH PRINT: NMLS #330511. Better Mortgage Corporation. Not available in all states. See better.com/terms. Fair Housing Lender
things you should...
ATTEND: The next 2X event in Austin, $30
2X is a storytelling event where 8 remarkable women share their stories and the lessons learned along the way. The catch: They only have 10 minutes to do it. These stories are powerful, real, emotional, funny, and about every other adjective you can imagine.
TRIP: Out your taste buds with this magic berry pill, $16.99
Let one pill dissolve on your mouth muscle and Wham! Pickles taste sweet, limes can be eaten whole, and soy sauce becomes a delicious chaser. We’re not sure exactly how these Mberry pills work, but the effects are a great way to pass the time.
RELAX: With videos of random things getting shredded, Free
Ever wonder what happens when you drop a bowling ball into an industrial shredder. No? Neither did we, but now we know. YouTube channel Gojzer is your #1 destination for all things passing through a shredder. Pro tip: Listen with sound.
They say first impressions are everything in business, and that means taking care of that grill. Put some confidence in your smile with pristine dental hygiene. Two-minute timed vibrations, brushed aluminum handle, and free travel cover -- it’s an electric toothbrush fit for 9-to-5.
WORK: In an office designed by premier interior decorators, 15% off
We’ve joined forces with WeWork to give Hustle readers 15% off a workspace at one of WeWork’s tricked out locations around the world. WeWork offers more than just good vibes -- it also gets you access to lectures, networking events, and services to help you grow.