Skip to main content

Drivers on French rideshare app BlaBlaCar volunteered to deliver medicine during COVID-19. It highlights the cultural chasm between it and its gig-economy rivals, Uber and Lyft.

* French rideshare app BlaBlaCar, like its rivals Uber and Lyft, saw its business plummet during the coronavirus lockdown. * A group of drivers, with the company's support, created BlaBlaHelp, a volunteer mutual-aid network that dropped off essential items to people in need. 20,000 people registered within 72 hours. * The move highlights the cultural chasm that has emerged between BlaBlaCar and its gig economy rivals. * Visit Business Insider's homepage for more stories. A month into the coronavirus quarantine, French rideshare company BlaBlaCar turned its users into a makeshift volunteer network. Instead of being paid for rides, drivers offered to deliver essential items to people who needed them by downloading BlaBlaHelp. This tech shortcut to mutual aid clearly struck a chord — 20,000 people registered within 72 hours and thousands have followed since.  The move highlighted the cultural chasm that has opened up, and is still widening, between the startup and its rivals, such as Uber and Lyft. BlaBlaCar launched in 2006 and now has a billion-dollar valuation. It has gained nearly 90 million users and expanded to 22 countries across four continents. Profits increased by 71% in 2019 as the company expanded operations to include buses (BlaBlaBus) and regular commutes (BlaBlaLines). The company announced BlaBlaRide, a scooter service, earlier this month. In other words, it's growing just as fast as its rivals — but it differs in two key areas.  Firstly, it focuses on carpooling, connecting drivers planning an intercity trip with passengers who have the same destination. Secondly, its drivers do it to cut costs, not make a profit. They are part of the sharing economy, not the gig economy — and pricing is designed to cover gas, wear and tear, and BlaBlaCar's operation fee (10-20% depending on the journey).  Because the company doesn't employ freelance taxi drivers, it has avoided many of the regulatory headaches Uber and Lyft have faced, particularly in Europe. But it, like other startups, has had a difficult year. Coronavirus nearly brought operations to a complete stop — the prospect of sharing a car with a stranger was either unappetizing or against lockdown rules. In France, where 40% of people aged 18-35 are BlaBlaCar users, the company was operating at less than 10% of normal capacity. Uber and Lyft were similarly devastated during lockdown — Uber lost nearly $1.8 billion in the second quarter of the year. BlaBlaHelp was the result of a week-long hackathon, which began after around 50 BlaBlaCar drivers decided they wanted to help others during the pandemic. The app connects volunteers, called Helpers, with neighbors in need of groceries or medication. To participate, a BlaBlaCar user just needs to connect their existing account to the BlaBlaHelp app. From there, others in the area can see a brief bio and their star rating, imported from BlaBlaCar. Once a Helper lists themselves as available, they are connected to a neighbor in need.  "We asked ourselves and our community how we could best contribute in these difficult times … Now it's over to the community to play their part," chief executive and co-founder Nicolas Brusson said in the company's official statement. BlaBlaCar charges a service fee per journey but BlaBlaHelp does not. Volunteers around the world advertise their help on the app. In the suburbs of Paris, Axelle says she "can get your groceries, pick up your packages, your medication, and more if you need it!" Lucia, in Madrid, says: "Just let me know what you need and where you are."  Mutual aid and the gig economy According to a study commissioned by BlaBlaCar in 2016, users see ridesharing as "a relationship of equals." Research conducted by New York University in partnership with the company showed similar results. Almost half of BlaBlaCar users say ridesharing has made them "more open to others," emphasizing the social nature of the platform. Uber's research on its users in 2015 revealed different motivations. "Driver-partners" use the app in order to "be their own boss". The research did not mention helping others as a motive. They have continued to drive, despite the danger of exposure to the virus, because they need money. Nearly two-thirds of Uber drivers who responded to a survey said they have no alternative source of income. As demand for rides plunged, Uber pledged 10 million rides and food deliveries to healthcare workers and people in need as part of its Move What Matters campaign. The company is also providing governments with user data to aid contact tracing.  But, in May, a survey by The Rideshare Guy blog found nearly 80% of drivers felt rideshare companies weren't doing enough to support them during the pandemic. Despite Lyft and Uber distributing money to drivers since the crisis began, critics have argued that financial assistance like sick pay should not be ad-hoc charity but an automatic right. "It's not in the same spirit at all. Uber isn't a cooperative mutual aid platform like BlaBlaCar," says driver Franck O'Clair, who has logged 343 trips in BlaBlaCar, but none for Uber. Perhaps this goodwill has contributed to BlaBlaCar's recovery. After coming to a near standstill in spring, the company has reported hundreds of thousands of bookings for summer vacations.  "I don't like to make money with BlaBlaCar because for me, that's not the point. I'm not a taxi driver, and the passengers aren't cash cows," O'Clair said.  SEE ALSO: Uber reports a $1.78 billion loss as its food-delivery business outshines rides for the first time Join the conversation about this story » NOW WATCH: What makes 'Parasite' so shocking is the twist that happens in a 10-minute sequence
https://bit.ly/31xzxjj

Popular posts from this blog

SpaceX has a 'go' from NASA to return 2 astronauts to Earth on Sunday as Hurricane Isaias threatens several Florida splashdown locations

* NASA on Saturday gave SpaceX a "go" to undock the company's first crewed space mission, called Demo-2, and land it on Sunday evening. * Hurricane Isaias complicated original plans to return two astronauts to Earth aboard SpaceX's Crew Dragon spaceship in the Atlantic Ocean. * Elon Musk's aerospace company may now try to splash down NASA astronauts Bob Behnken and Doug Hurley in the Gulf of Mexico. * Two out of seven total landing sites near Florida must have good weather conditions, and NASA has until about 5 p.m. ET on Saturday to call off the undocking. * Should the weather worsen, NASA and SpaceX can try again a day later or some other date over the next two months. * Visit Business Insider's homepage for more stories. Astronauts Bob Behnken and Doug Hurley have a "go" to return to Earth this weekend and wrap up an historic space mission for both NASA and SpaceX.  Behnken and Hurley launched to orbit aboard SpaceX's Crew Dragon vehic...

What an independent contractor actually is and how it's classified under California's Assembly Bill 5, the gig worker law Uber, Lyft, and others are fighting with a November ballot measure

* California's Assembly Bill 5 (AB5) went into effect in January, adopting a narrow definition of independent contractor that forces Uber and other gig economy businesses to choose between reclassifying workers as employees or risking significant liability for misclassification. * The law serves as a reminder to California businesses to be careful when classifying workers as contractors.  * Classifying independent contractors falls into two main categories: the "right to control" test (often called the "IRS test") and the tougher "ABC test" recently adopted in AB5. * Uber, Lyft, and DoorDash have recently poured $30 million into Proposition 22 — a ballot measure intended to exempt major ridesharing and food delivery companies from AB5. If California residents vote the measure into effect in November, Uber and Lyft can continue classifying drivers as contractors.  * Visit Business Insider's homepage for more stories. In September 2019, Californ...

PayPal parts with top advertising executive after shifting its marketing strategy during the pandemic

* PayPal's chief creative officer Steve Simpson, its top advertising executive, left the company after about a year. * The move came after PayPal shifted its marketing strategy during the coronavirus pandemic, placing less emphasis on the brand and more on catering to small businesses, said a source with direct knowledge of the marketing operation. * Simpson's departure followed that of CMO and former Apple executive Allison Johnson in May. Both "decided to leave PayPal" as the company streamlines its global marketing functions, according to a PayPal spokeswoman. * Visit Business Insider's homepage for more stories. PayPal's highest-ranking ad executive Steve Simpson left earlier this month after just over a year as part of a restructuring of its global marketing business. Simpson, who was chief creative officer, was hired to make high-minded ad campaigns to help PayPal stand out from competitors like Square, Stripe, and Apple Pay. But this strategy chan...