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BUSINESS                 Monday 4 SepteMber 2017
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                    As Uber drove into PR pot hole, Lyft stepped on the gas



            By TOM KRISHER                                                                                                      behavior  but  because  of
            MICHAEL LIEDTKE                                                                                                     Lyft’s customer service.
            AP Business Writers                                                                                                 “They seem to be really re-
            SAN  FRANCISCO  (AP)  —                                                                                             sponsive to the issue when
            When  management  up-                                                                                               you  contact  them  as  op-
            heaval, allegations of cor-                                                                                         posed  to  Uber,”  she  said,
            porate  espionage,  and                                                                                             although  she  noted  that
            revelations  of  sexual  ha-                                                                                        while both companies are
            rassment  sent  Uber  into  a                                                                                       equally  accessible  within
            public relations sinkhole, its                                                                                      the  metro  area,  Uber  is
            long  overshadowed  rival                                                                                           faster  outside  of  Washing-
            Lyft shifted into overdrive.                                                                                        ton,  especially  in  smaller
            The  company  seized  the                                                                                           cities.
            opportunity  to  recruit  disil-                                                                                    Internally,  Uber  has  been
            lusioned drivers so it could                                                                                        making    adjustments   to
            be more responsive to pas-                                                                                          treat  its  drivers  and  em-
            sengers  searching  for  a                                                                                          ployees  better.  It  recently
            ride-hailing  alternative  to                                                                                       matched  Lyft  by  letting
            Uber. It upgraded its smart-                                                                                        riders tip drivers on its app.
            phone  app,  stepped  up                                                                                            It’s also hired thousands of
            marketing efforts to attract                                                                                        people to better distribute
            more riders and expanded                                                                                            the  workload  and  started
            its U.S.-only service into 160                                                                                      serving  its  free  dinners  90
            more  cities  for  a  total  of                                                                                     minutes  earlier  at  its  San
            about 350.                                                                                                          Francisco headquarters so
            On  Thursday,  Lyft  made    In this Tuesday, Jan. 12, 2016 photo, a driver displaying Lyft and Uber stickers on his front wind-  workers don’t stay as late.
            a  big  expansion  move  by   shield drops off a customer in downtown Los Angeles. As Uber recently fell into a public relations   “Tiny,  tiny  symbolism,  but
            announcing that it is add-   sinkhole, its long overshadowed rival Lyft shifted into overdrive.                     it matters to people,” said
            ing statewide coverage to                                                                  (AP Photo/Richard Vogel)  Liane Hornsey, Uber’s chief
            32  states,  bringing  its  total                                                                                   human resources officer.
            to 40.                       tive. And while it concedes  over  30  percent,  accord-  treat our customers better.   The company also recently
            The aggressive tactics cast   that  this  year’s  missteps  ing to Lyft’s internal metrics.  And they like that we have   fired  20  employees  after
            the  much  smaller  Lyft  in  a   have  slowed  its  growth,  it  Logan  Green  and  John  a brand that sort of stands   a report by former U.S. At-
            new  light.  After  five  years   says ridership is still rising be-  Zimmer,   Lyft’s   low-key  for  taking  care  of  people,   torney General Eric Holder
            of being content in its role   cause customers value the  33-year-old  founders,  insist  where Uber has done a lot   found   rampant   misbe-
            as the fun-loving, pink-mus-  service.  It’s  in  the  midst  of  they  haven’t  done  much  to  build  the  opposite  type   havior  and  urged  Uber  to
            tached  underdog  of  ride   self-proclaimed  “180  days  except  adhere  to  a  be-   of brand.”                   clean things up.q
            hailing,  Lyft  is  proving  to   of  change”  in  an  effort  to  lief  that  passengers  should  Nick  Raef,  23,  who  works
            be  a  wily  opportunist  and   alter a culture that fostered  be treated like guests at a  at  Northwestern  University
            a more imposing threat to    rapid  growth  but  also  en-  friendly  hotel  or  even  Dis-  near  Chicago,  considers
            Uber.                        couraged bad behavior.       neyland.                     price  and  brand  image
            But a huge chasm still sepa-  Yet  the  ground  that  Lyft  Both  dress  casually  and  each time he chooses be-
            rates the foes in terms of fi-  has  been  gaining  can’t  blend  into  the  headquar-  tween  Uber  and  Lyft.  Ser-
            nancial resources, ridership   be  ignored.  By  the  time  ters’  workforce.  While  the  vice in Chicago, he says, is
            and breadth of operations.   Uber’s board ousted abra-    soft-spoken   Green   and  close to even between the
            While Lyft’s rides are in the   sive CEO Travis Kalanick in  more  animated  Zimmer  two. But if Uber happens to
            millions per year and only in   June,  Lyft  had  more  than  are  careful  not  to  gloat,  be  misbehaving  on  a  par-
            the U.S., Uber makes 10 mil-  doubled  its  ridership  from  they concede that the tur-  ticular day, he’ll go with Lyft
            lion trips per day worldwide   the  first  six  months  of  last  moil at Uber is accelerating  even if it’s more expensive.
            and has carried more than    year. At the end of June, it  Lyft’s growth.              “I’ve  told  myself  this  con-
            5 billion passengers in over   had passed 2016’s full-year  “As we get service levels to  troversy is worth a dollar or
            80  countries  since  2009.   ride total of 162.5 million.  parity and pickup times are  $2 depending on how bad
            Uber has raised nearly $14   To  be  sure,  Lyft  already  equal, people prefer using  the story was that day,” he
            billion  in  capital  since  its   was  growing  fast  before  Lyft,” Green said in a recent  said.
            inception,  compared  with   Uber went into self-destruct  interview at the company’s  In the Maryland suburbs of
            Lyft’s $2.6 billion.         mode.  Lyft’s  share  of  the  airy offices in a block-long  Washington,  federal  em-
            For its part, Uber is doing all   U.S.  ride-hailing  market  in  office  complex  near  San  ployee  Whitlee  Dean,  28,
            it can to keep its lead. The   the past two years grew at  Francisco  Bay.  “They  like  says she takes Lyft whenev-
            company  this  week  hired   double the rate of Uber, ris-  that  we  treat  our  drivers  er she goes into the city, not
            Expedia  CEO  Dara  Khos-    ing from 12 percent to just  better.  They  like  that  we  so much because of Uber’s
            rowshahi  as  its  top  execu-
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