Uber and Lyft Want to Compete With Public Transit, But Will They Succeed?

Ride sharing platforms like Uber and Lyft have been an essential development for countless Americans, allowing many of us to get around our cities (and even pursue a side hustle) more easily. But despite all of their successes -- and their massive blunders -- experts are concerned that the aspirations of these companies could end up being detrimental to the very municipalities they serve.

Because the average price of a new vehicle in the U.S. is $35,309, owning a car isn't always a possibility for residents. Ride-hailing apps have been a blessing for many people who can't afford the costs associated with auto ownership, as well as for out-of-town visitors. These companies had huge effects on the U.S. taxi industry; despite the fact that taxi drivers are actual employees who have to comply with strict regulations and Uber and Lyft drivers are contractors with no real vetting process, Americans like the ease and low costs of booking a ride through those platforms more than opting for a traditional taxi cab.

In contrast, Uber has always maintained that the company is an ally of public transit. Ride-hailing is meant to be a complement for publicly funded transportation options, with Uber stating on its own website that the company actually supports local transit services by filling gaps in existing service and allowing passengers to more easily access their public transportation hubs. However, that messaging changed drastically when Uber publicly stated that its own growth is dependent upon its ability to compete with public transport -- a market that's been identified as being worth $1 trillion. From 2011 to 2012, U.S. passenger bus travel increased by 7.5%, making it the fastest growing form of travel in the country. But Uber essentially wants to keep passengers away from public transportation and their own personal vehicles in favor of booking a ride with one of their own drivers.

Although Uber lost $1.8 billion last year, transportation experts are worried about the company's new approach. If Uber is able to take over a large portion of its target market, they say, cities would become so congested that there would be no space to move on area streets. Large cities like New York would essentially screech to a halt. If passengers are forgoing subways and buses for cars and SUVs, crowded streets and highways will only get worse. And with Uber soon going public, it's unclear as to what's going to happen next. Although Lyft hasn't explicitly identified public transit as public enemy number one, there's reason to believe the company values itself at more than what the entire U.S. ride industry is worth.

Reportedly, some young passengers are fighting back to embrace public transit and shun ride sharing -- so there may be some hope that these platforms won't have the powerful impact that experts fear. But since public transportation is on a national decline, Americans may have to take action to prevent Uber and Lyft from taking over.