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Let’s start out by saying that I’m a big fan of both Uber and Lyft. I’m indirectly an investor in both companies as I’m an investor in three VC funds that are investors Uber and one VC fund that is an investor in Lyft. I have no idea how much actual equity I have in either company, but based on current valuations the dollar value of my indirect ownership is non-trivial. And Foundry Group came close to investing in Zimride (the predecessor to Lyft) but we ended up withdrawing from what we thought was an inappropriately high priced round, which, in hindsight, was clearly a miss on our part.
Regardless of my support and enthusiasm for these two companies, I’m bummed at the mud they are slinging at each other. I get that this is an intensely competitive market. I get that the stakes are huge. I get that all the reporting I’m reading is second hand and might be fiction. But the ad hominem attacks are escalating rapidly and the behavior they are surfacing isn’t pretty.
Techcrunch summarized this pretty well yesterday, after multiple articles from a variety of places including the NY Times and WSJ. The headline sets the tone: Uber Strikes Back, Claiming Lyft Drivers And Employees Canceled Nearly 13,000 Rides. The NYT article is Accusations Fly Between Uber and Lyft and the WSJ article is Uber and Lyft Rivalry Turns Nasty in War of Words.
I have no idea what, if any of what is being said is true. The tactic being asserted that is most disturbing is this one:
Accused Lyft behavior: “Lyft employees, drivers and one of its founders ordered 12,900 trips on Uber’s app and then canceled them with the goal of slowing down drivers who would otherwise be picking up actual, paying passengers.”
Accused Uber behavior: “177 Uber employees have requested and quickly canceled more than 5,000 rides from Lyft drivers over the past 10 months, Lyft said, in an effort to frustrate Lyft’s customers and drivers.”
As a customer, this sucks. If I was a driver for either service, this sucks. I think this ultimately backfires against each company equally.
Guys – both of you are trying to disrupt a massive market dominated by incumbents and government regulation. I’m sure these incumbents are now laughing their asses off at y’all are acting like petulant children, as they wait patiently for you to chew up capital, value, partners, customers, while generating additional scrutiny from the government forces in the incumbents’ pockets trying to slow you down.
I get that you believe price is a weapon – how you use it for you and your investors to decide. But by messing with each other’s service, especially in a way that negatively impacts your two key constituents, consumers and drivers, you are opening yourself up to a ridiculous amount of scrutiny and quickly playing a no-win, zero-sum game. There is no need at all for this given the massive size of the market opportunity before you.
One, or both of you, should rise above the fray. Keep on competing aggressively. But recognize that you are radically disrupting a market desperately in need of disruption and doing it beautifully. Don’t shit all over it, and yourself in the process.
I’m bouncing around between a bunch of stuff and have a two board meeting day so I thought I’d just toss up a few interesting things I read this morning along with my thoughts.
Don’t let the regulatory past be the prologue for Uber: Phil Weiser, the Dean of CU Law and head of Silicon Flatirons has an excellent OpEd in the Denver Post about Uber in Colorado and the regulatory activity around it. I’ve been vocal with our state government to not behave in “incumbent protection mode” by over regulating Uber, Lyft, and other innovative new companies. It continues to be painful to watch our state government – which is so enthusiasm about innovation and entrepreneurship – keep stepping on their toes, and occasionally in shit, as they try to balance the incumbent / innovator dynamic. I’m glad Phil said what he said so clearly – it needed to be said.
Venture funding goes ballistic: VCJ: Some people are starting to call the top of the current cycle, at least in the context of flows of LP funds into VC firms. We had our LP Annual Meeting yesterday and I had a vibrant conversation with a few of our LPs about this topic at lunch. My view on the world continues to be simple – have a strategy and a set of deeply held beliefs. Evolve your strategy thoughtful and carefully, but never change your deeply held beliefts.
Understanding the Drivers of Success: Matt Blumberg, CEO of Return Path, reminds us that a rising tide raises all boats. He speaks from his own experience about some of the cycles he’s been through with Return Path over the past 12 years and how that masks potentials issues. Greg Sands from Costanoa, who’s been on the Return Path journey with me, Matt, and Fred Wilson from the beginning, weighed in with an email on the past that finished with a great punchline: “Finally, when the slow down comes, figuring out how to separate market dynamics from team team and know whether you have the mgmt team you need for the next part of the journey is *really* hard.”
How Cheezburger Recovered From Their Hiring Blunder: Ben Huh, CEO of Cheezburger, has an outstanding and very open article about some very hard decisions he had to make a year ago, how and why he made them, and how he and Cheezburger have recovered from some bad choices. I love working with Ben and especially enjoy how honest and internally consistent his brain is with what happened.
Heartbleed: What Is The Correct Response? I was going to write a post yesterday on Heartbleed but didn’t get to it. Fred Wilson wrote a great one this morning including searching for the correct response for him personally. There’s lots in the comment thread – go weigh in if you have thoughts or suggestions.
I’ve had continual performance problems with Feld Thoughts over the past few years.
Yesterday, we moved the site to Lagrange Systems in an effort to meaningfully improve things.
How’s it doing? And, more importantly, what’s your favorite high performance, high availability WordPress configuration?
Maybe everyone knows this, but it took me a while to realize that almost all of my performance issues with Google Apps were related to my DNS configuration. Once I switched all my machines and routers to Google Public DNS all of my performance problems went away.
It’s remarkable. Simply hard code DNS to 220.127.116.11 and 18.104.22.168. Problem solved.
My office, condo, and house in Keystone are all on Comcast. For the last month I’ve been struggling in each of them. There are days that Gmail feels almost unusable – five to ten second waits between messages. Web performance was “good enough” so I assumed it was a Gmail problem.
Nope – it was a Comcast DNS problem.
In hindsight, this is kind of obvious. But wow, what a difference it made.
A few days ago, Amy and I came up to our house in Keystone. We haven’t been here for about two months; we’ll be here through the end of the first week of January.
The first few hours were predictable. We “turned” everything on. We unpacked the car. We got settled in.
And I got frustrated. The Internet was slow. The Sonos wasn’t working correctly. Everything was trying to update itself. It was like a giant machine was trying to boot up, but was stuck in an initialization loop.
I wandered around the house tweaking things. One by one I got things working. As I reset things, I kept thinking to myself “I wonder why we need that.”
We bought this house in 2006. The network infrastructure is a cumulative build since then – a NetGear router connected to the cable modem, Cisco WiFi access points on each floor, default Sonos configuration, a Cisco phone that isn’t used anymore acting as a wired network repeater, USB hubs with one device connected, power extension cords, cables, and a bunch of other crap. The last time I was up here I installed an Apple Airport Extreme (which needed an update) but I left everything in place.
I decided to rip it all out yesterday and replace it with the Apple Airport Extreme. The result is a giant box of crap.
For an hour or so I continued to be frustrated. Things were better, but still choppy. I’d set all the computers up to use Google’s public DNS server (the magic 22.214.171.124 and 126.96.36.199) but the network performance was still choppy – fast, then slow, then fast, then slow. At some point I realized I hadn’t set the Airport Extreme to use Google’s public DNS and it was defaulting everything to Comcast.
I made the switch. Boom – everything was fast again. As expected. Pandora played all day long without dropping. Video and audio calls were fine again.
As I looked at the giant box of crap this morning, I thought about the idea of decluttering. We have all this gunk in our lives that just slow us down. Just like my network. As the year comes to an end, I’m going to keep decluttering, the physical and the virtual.