Tag: Transportation

NIMBY, Silicon Valley Edition

Silicon Valley techies really don’t want self-driving cars on their streets.

This is very different from the XKCD cartoon, where software experts disavow computerized voting for everyone, because it is most of the article is about the people wanting the testing to go on somewhere else:

Karen Brenchley [full disclosure, we dated in the mid 1980s] is a computer scientist with expertise in training artificial intelligence, but this longtime Silicon Valley resident has pangs of anxiety whenever she sees Waymo self-driving cars maneuver the streets near her home.

The former product manager, who has worked for Microsoft and Hewlett-Packard, wonders how engineers could teach the robocars operating on her tree-lined streets to make snap decisions, speed and slow with the flow of traffic and yield to pedestrians coming from the nearby park. She has asked her husband, an award-winning science-fiction author who doesn’t drive, to wear a shiny vest while cycling to ensure autonomous vehicles spot him in a rush of activity.

The problem isn’t that she doesn’t understand the technology. It’s that she does, and she knows how flawed nascent technology can be.

“I’m not skeptical long-term,” said Brenchley, who has lived in Silicon Valley for 30 years. “I don’t want to be the guinea pig. I don’t want my husband to be the guinea pig.”

Well, then who should be the guinea pig then?

If it’s not ready to share the roads with your bike-riding spouses or children they are not ready to share the roads with ANYONE‘S bike-riding spouses or children.

I expect to see commercial fusion power before we see truly autonomous cars outside of very limited roadways.

BTW, Elon Musk’s vision for a video only self driving scheme is even more hair-brained, as this Twitter thread demonstrates.   (after break)

Musk doesn’t care though, because he is one major facial scar away from being a Bond villain:

Uber Abides

It turns out that Uber has a unit to police driver behavior and qualifications, and they are forbidden from reporting crimes to the authorities:

Inside the 23-story Bank of America Tower in downtown Phoenix, a team of nearly 80 specialized workers grapples with some of the worst incidents that happen in Uber rides. Armed with little more than a phone headset and GPS ride data, these agents in the Special Investigations Unit have to figure out what went wrong.

But when they make a determination, the SIU investigators are coached by Uber to act in the company’s interest first, ahead of passenger safety, according to interviews with more than 20 current and former investigators. Uber has a three-strikes system, investigators said, but executives have made exceptions to keep drivers on the road. For instance, a New York-area driver allegedly made three separate sexual advances on riders, said an investigator assigned to the case. After an executive overruled the investigator, the driver was allowed to continue working until a fourth incident, when a rider claimed he raped her.

The agents are forbidden by Uber from routing allegations to police or from advising victims to seek legal counsel or make their own police reports, even when they get confessions of felonies, said Lilli Flores, a former investigator in Phoenix — a guideline corroborated in interviews with investigators, alleged victims and plaintiffs’ attorneys.

This is still going on, so it’s not just a Travis Kalanick thing.

In fact, it’s not just Uber, It’s Lyft too, because evading responsibility is at the core of the “Gig Economy” business model.

In More Enlightened Times, Elon Musk Would Be in the Dock

Even ignoring his highly inaccurate tweets about Tesla, things like going private and impossible promises about self-driving cars, we have the corrupt self-dealing around Tesla’s purchase of Solar City.

If the SEC or the DoJ were actually interested in pursuing stock fraud, Musk would be in a world of hurt:

Back in 2016, Tesla acquired solar panel manufacturer SolarCity, billing the $2.6 billion deal as an opportunity to create “the world’s only vertically integrated sustainable energy company.” From a SolarCity solar panel to a Tesla battery, the company promised, the in-house supply chain would scale up clean energy for all and provide cost synergies to the businesses and shareholders.

But SolarCity, of which Tesla CEO Elon Musk was chairman, was deeply in debt at the time. Now, newly unsealed documents in an investor lawsuit say the situation was far worse than that. They allege that SolarCity wasn’t just carrying a heavy debt load: it was completely insolvent.

The upshot of reams of law surrounding mergers and acquisitions is that C-suite executives and company boards of directors are supposed to make sure shareholders get the most money possible out of their investment. If they’re going to sell the company, they have to make sure they’re accepting the most valuable reasonable offer. Companies doing the acquiring, meanwhile, are supposed to do their homework to make sure they’re not wasting their resources on a bad deal—and Tesla shareholders say the SolarCity acquisition was exactly that.

………

SolarCity only continued to function because of SpaceX money, the suit alleges:

As SpaceX’s chairman, CEO, CTO, and majority stockholder, Musk caused SpaceX to purchase $90 million in SolarCity bonds in March 2015, $75 million in June 2015, and another $90 million in March 2016. These bond purchases violated SpaceX’s own internal policy, and SolarCity was the only public company in which SpaceX made any investments.

The scenario described is as follows:  Musk owns over 50% of SpaceX, and you used their money to prop up Solar City until Tesla, which is a publicly traded firm, bought the solar panel installer out.

Musk’s cousins founded the company, and Musk was Solar City’s largest shareholder, and they all made made a lot of money as a result, Elon netted about $½ Billion, of what can only be called looting.

This is as corrupt as hell, and in the days before Reagan emasculated the SEC and the white collar crime division of the DoJ, he would be under criminal indictment, and banned from both the securities industry, as well being banned from serving as an executive or a board member of of a publicly traded company.

Of course, after Reagan, and Bush, and Clinton, and Bush, and Obama, it’s, “No harm, no foul.”

Above the Law

An administrative law judge has ruled that Tesla and Elon Musk violated labor law in their treatment of employees advocating for a union:

Tesla Inc. committed a series of violations of the National Labor Relations Act in 2017 and last year, a judge ruled Friday.

The electric-car maker illegally threatened and retaliated against employees, according to Amita Baman Tracy, an administrative law judge in California.

Nothing stopping Tesla team at our car plant from voting union. Could do so tmrw if they wanted. But why pay union dues & give up stock options for nothing? Our safety record is 2X better than when plant was UAW & everybody already gets healthcare.

— Elon Musk (@elonmusk) May 21, 2018

The judge’s order calls for Tesla to offer reinstatement and back-pay to a fired, pro-union employee, and to revoke a warning issued to another union supporter. The ruling also calls for the company to hold a meeting at its assembly plant in Fremont, California, that Musk must attend. Either he or an agent with the labor board must read a notice to employees informing them that the NLRB concluded the company broke the law.

It will no doubt be appealed to the NLRB, where the minions of newly appointed Labor Secretary Eugene Scalia will no doubt rule against the workers, because that is what they do.

Even if the NLRB rules against them,it is a marker.

Companies that mistreat their employees mistreat their customers as well.

Uber And Lyft Cheat Their Drivers

In July, an Uber driver we’ll call Dave—his name has been changed here to protect his identity—picked up a fare in a trendy neighborhood of a major U.S. metropolitan area. It was rush hour and surge pricing was in effect due to increased demand, meaning that Dave would be paid almost twice the regular fare.

Even though the trip was only five miles, it lasted for more than half an hour because his passengers scheduled a stop at Taco Bell for dinner. Dave knew sitting at the restaurant waiting for his fares to get a Doritos Cheesy Gordita Crunch or whatever would cost him money; he was earning only 21 cents a minute when the meter was running, compared to 60 cents per mile. With surge pricing in effect, it would be far more lucrative to keep moving and picking up new fares than sitting in a parking lot.

But Dave, who was granted anonymity out of fear of being deactivated by the ride-hail giant for speaking to the press, had no real choice but to wait. The passenger had requested the stop through the app, so refusing to make it would have been contentious both with the customer and with Uber. The exact number varies by city, but drivers must maintain a high rating in order to work on their platform. And there’s widespread belief among drivers that the Uber algorithm punishes drivers for cancelling trips.

Ultimately, the rider paid $65 for the half-hour trip, according to a receipt viewed by Jalopnik. But Dave made only $15 (the fares have been rounded to anonymize the transaction).

Uber kept the rest, meaning the multibillion-dollar corporation kept more than 75 percent of the fare, more than triple the average so-called “take-rate” it claims in financial reports with the Securities and Exchange Commission.

Had he known in advance how much he would have been paid for the ride relative to what the rider paid, Dave said he never would have accepted the fare.

“This is robbery,” Dave told Jalopnik over email. “This business is out of control.”

………

Jalopnik asked drivers to send us fare receipts showing a breakdown of how much the rider paid for the trip, how much of that fare Uber or Lyft kept, and what the driver earned.

………

Of all the fares Jalopnik examined, Uber kept 35 percent of the revenue, while Lyft kept 38 percent. These numbers are roughly in line with a previous study by Lawrence Mishel at the Economic Policy Institute which concluded Uber’s take rate to be roughly one-third, or 33 percent.

………

Those take rates are 10.6 percent and 8.5 percent higher than Uber and Lyft’s publicly reported figures, respectively.

………

“This is really fascinating and troubling,” said Sandeep Vaheesan, legal director of the Open Markets Institute, a nonprofit studying corporate concentration and monopoly power, when briefed on Jalopnik’s findings. Vaheesan went on to say the findings “support the argument that their business model is built on large scale labor exploitation.”

Don’t support Uber or Lyft, and if you live in California, contact your legislator to support the legislation classifying gig economy employees as employees.

It seems that all of the “gig economy” business plans are centered on cheating someone or other.

Yet Another Reason to Hate Uber

They have allied themselves with the Koch Brother(s) to go on a jihad against mass transit.

In fact, it is central to their business plans to drive mass transit out:

At first glance, the rideshare corporation Uber couldn’t appear more different than conservative oil-mogul billionaires Charles G. Koch and his brother, the late David H. Koch. Uber has hired numerous former Democratic Party campaign managers and lobbyists, and the company’s CEO, Dara Khosrowshahi, has publicly criticized the Trump administration, including over the travel ban on several majority-Muslim countries. The Kochs, meanwhile, have gained a reputation for bankrolling the Republican Party.

Yet Uber — the Silicon Valley start-up gone public — shares at least one goal with the most prominent funders of modern conservatism: the destruction of America’s public transit.

………

A close look at the growing war on public transit reveals the planks of this corporate consensus.

In documents filed with the Securities and Exchange Commission, Uber’s executives claim to see a “massive market opportunity” in the estimated 4.4 trillion miles traveled each year by people using public transit across 175 countries. The company continues to heavily subsidize per-ride costs to inflate its value to investors and undercut existing options, despite bleeding billions of dollars. “Uber is effectively a middleman for a money transfer from venture-capital (VC) firms to consumers,” writes James P. Sutton in National Review. Simply put, effectively supplanting the taxi industry wasn’t enough: Uber plans on undercutting public transit to finally turn a profit.

For their part, the Koch brothers have been funneling money to their political action committee (PAC), Americans for Prosperity, to kill proposed public transit projects nationwide. Last year, they led the charge in stopping a popular $5.4 billion transit plan in Nashville, Tennessee, that had even been backed by a coalition of the city’s business community. The Kochs have funded similar anti–public transit efforts in Arkansas, Arizona, Michigan, Utah, and other states.

………

Uber has joined the Koch brothers on this libertarian crusade, using a corporate shell game to avoid paying billions in taxes and lobbying against taxes and fees on rides across the globe.

………

Most important, both the Koch brothers and Uber understand that their freedom depends on taking freedom away from working people. Uber has spent generously on fighting to ensure its drivers maintain their precarious status as independent contractors. The company has also invested heavily in technology that would get rid of drivers altogether, including driverless cars. The Koch brothers’ anti-worker views date back much further, all the way to the counterrevolutionary days at the end of the New Deal era. Fred Koch, Charles and David’s father, owned an oil refinery corporation and was active in the archconservative John Birch Society. Through groups like the National Right to Work Legal Defense Foundation, the Kochs have long led the attack against collective bargaining rights for public employees, including train and bus drivers.

At the end of the day, the Koch brothers and Uber are much like Coke and Pepsi. They may have clashing styles, but their product is largely the same: lower corporate taxes, deregulation, lower wages, and private control over public goods like mass transit.

It’s all about privatizing the public commons.

They want to take what is all of ours, and sell it back to all of us.

The Koch Suckers Lose One

Despite millions of dollars in Koch brothers money, a Phoenix referendum to kill light rail fails decisively:

Voters in Phoenix have soundly rejected a proposal that would have halted the expansion of the city’s light rail system — a proposition that had the backing of dark money linked to the notorious anti-transit Koch brothers.

In a 62-to-38 percent vote, residents turned aside Proposition 105, which would have redirected a previously passed tax away from light rail towards other transportation improvements. It would also have required “terminating all construction, development, extension, and expansion of” light rail.

The vote was 107,370 against Prop 105 to 64,666 in favor. A second ballot proposition that would have capped spending on city services until its pension debts are reduced was defeated by a two-to-one margin.

The effort to end light rail in Phoenix was part of the legacy of the petroleum tycoon and conservative radical Charles Koch and his late brother David, who funded grassroots activist campaigns to kill transit projects in cities around the country.

It’s a pity that David Koch didn’t live a few more days to see his rejection by the people of Phoenix.

Think of the Innocent Venture Capitalists!

How dare a city set minimum standards for pay and disabled accessibility, as well as charging the companies for the congestion that they cause.

I’ve said it before, but it bears repeating:  Most of the so-called “Disruptive Innovation” out there is either regulatory and legal arbitrage (breaking the law), or monetizing the commons (Making the rest of use pay for their business model):

Uber CEO Dara Khosrowshahi, who took the helm of the controversial company back in 2017, is known for being pretty unflappable. He was even upbeat during the company’s second quarter earnings call, when he was charged with explaining why Uber posted more than $5 billion in losses in just a few months’ time.

………

The new wave of rule-passing started last summer, when the city instituted the country’s first-ever freeze on for-hire vehicle licenses, barring drivers from registering new cars to drive for the companies. (The freeze exempts wheelchair-accessible and electric vehicles.) In January, Uber and Lyft trips beginning or ending in much of Manhattan got slapped with an extra $2.75 congestion charge. (Taxis got a $2.50 surcharge of their own.) Then, despite a lawsuit from Lyft (and a smaller competitor named Juno), the companies were forced to begin paying drivers $17.22 per hour earlier this year. And a new state law will force the companies to rejigger their fleets to accommodate wheelchair using-passengers more quickly. Phew.

Now, new rules approved by city regulators this month extend the freeze on new Uber and Lyft vehicle licenses in New York indefinitely. (This spring, a judge blocked an Uber lawsuit aimed at stopping it). The rules also cut down on “cruising,” or the time drivers spend waiting for their next rides or driving to their customers, forcing the companies to again rethink how they’re dispatching drivers.

………

The city has symbolic importance, too. Though most other cities don’t have the authority to regulate ride-hail in the way that New York does, many, also sick of traffic, are looking for ways to do so. Some hope to levy fees on the companies, like the kind collected in Chicago, Washington, DC, and, if San Franciscoans decide to pass an upcoming ballot measure, the City by the Bay. Others are attracted to the hard stick of New York’s ride-hail vehicle cap. In the run up to her election, Chicago’s new mayor told a newspaper that she would favor new limits on the number of ride-hail vehicles in the city. (The city’s consumer protection office, which is in charge of regulating ride-hail, did not respond to WIRED’s request for comment.)

………

The ride-hail companies have responded to the rules, which they say have been instituted too quickly for anyone to understand their effect, with cat-and-mouse tactics aimed at keeping riders in cars and revenues in pocket. The companies have, for example, raised prices across the city, a move that Uber says has led to stunted ride growth in some low-income neighborhoods.

The ride-hail companies are also changing the way their apps work for New York City drivers, many of whom work full-time because of the city’s more stringent licensing policies. Now, in times of low demand, Lyft limits the number of drivers on the road, giving priority to high-volume drivers who have accepted and completed 90% of their rides, or those who have wheelchair-accessible cars, or those participate in the company’s Express Drive program, which rents vehicles to licensed drivers who don’t own cars. The driver app also now includes a “heat map” showing where rides are in the highest demand, and Lyft has urged drivers searching for rides to go there before turning on their app—urging them, essentially, to drive to where the app needs them without being paid for it, and without Lyft being penalized by both the new driver wage and new cruising rules. Uber sent an email to drivers earlier this month indicating it is also mulling changes to its driver app.

Rather ironically, the effects of unregulated Gypsy cabs like Uber and Lyft, low wages, unsafe vehicles, and congestion, are the very same reason why the medallion system was implemented in many cities in the first place.

Live in Obedient Fear, Citizen

The headline in American Conservative, :Americans Shocked to Find their Rights Literally Vanish at U.S. Airports,” pretty much says it all.

The article is about how the Department of Homeland Security, CBP, and ICE have asserted that they have the right to search your digital devices without a warrant, probable cause, or access to an attorney.

I seriously need to consider an app that allows people to encrypt their devices and put the decryption key in escrow with your attorney.

Monetizing the Public Commons

If you look at Uber, or Lyft, or Airbnb,* onc cannot help but wonder if the source of these organizations business prospects is an attempt to make money from taking something of value from the rest of us.

For Uber and Lyft, it is increased congestion in cities, along with not paying drivers a living wage, while with Airbnb, it is skyrocketing rents as non-resident investors bid up the prices of homes.

The same is true of scooters, which The Independent properly describes as a plague.

With all of them, you have private entities making sidewalks less usable because of the people using the sidewalks, and for dockless scooters, you further have them strewn randomly around sidewalks, creating a falling hazard and blocking access for the disabled.

This is not high tech entrepreneurship, this is tech bros with more venture capital money than ethics taking the public pathways that we already paid for from us.

The technical term for this is, “Negative Externalities,” but I will call it a theft of the commons:

In cities all over Europe, in every cafe, people are talking about the same thing. No, not Brexit: it’s those damn electric scooters.

The plague started last year and has spread like wildfire: Brussels to Lisbon, Paris to Wroclaw. Silicon Valley start-ups showed up one day with vans full of them – an oversized, motorised version of the children’s toy everyone knows. They dumped them on pavements; you can find and rent them with a smartphone app and ride them around town.

If this sounds pretty cool, it actually isn’t. On the surface they look like a futuristic, green transport solution: but the problems have quickly become obvious everywhere they spring up.

They need little advertising because people start literally tripping over them as soon as they appear. The scooters, which are surprisingly large and heavy, litter public places by design, blocking pavements and making life particularly difficult for people with reduced mobility. In most larger cities there are also something like six competing systems – blocking about six times as much pavement as necessary. Their loud alarms, triggered by drunk people trying to ride them without paying, are a familiar drone in the early hours of the morning. And a string of deaths of people riding them – and collisions with people who were just walking along minding their own business – have spurred city authorities into action. It’s the free market at its best.

Britain, almost alone, has managed to stay mostly scooter free: saved by its strict road regulations. One law dating from 1853 bans the riding of a “carriage of any description” on the pavement – while licensing rules mean that they would have to be insured and number plated to be ridden on the roads. Thus the dockless schemes are de facto banned. The UK has got this absolutely spot on: they are neither appropriate to ride on the pavement, nor any different from any other motorised vehicle.

………

Could they be tamed and become a useful part of cities’ transport mix? A docking scheme – similar to the one used by Boris Bikes – would solve the biggest issue: the blocking of pavements. But of course, the tech firms pushing them haven’t bothered with that – they would have to apply for planning permission, and buying land in prime city centres would probably render the whole thing unprofitable. Better just to fly-tip their product wherever they fancy: I have seen it in Brussels, at 3am: men silently unloading scooters out of an unmarked van and leaving them on the pavement, like a reverse burglary.

There’s also no reason in principle why individuals couldn’t simply buy and own an electric scooter like they own a bike or car. Most of the problems come from the dockless rental system which encourages user to leave them strewn around the place.

Also, why, when you can get a ticket for riding a bicycle without a helmet, are the helmet laws not being enforced.

With docked scooters, at least, there is a requirement that the businesses pay for their own storage infrastructure, as opposed to obstructing the sidewalks, but, of course, that won’t attract the VC bucks.

*Full disclosure, I use Airbnb.

This is a Feature, Not a Bug


Elon Musk thinks that he is this.


He is actually this.


And the polling

It turns out that of all the names given to driver assistance technology, Autopilot is the one most likely to cause over-reliance on the tech.

This is not a surprise. Overselling the feature, and generally overselling the features of his car, has been central to the business plan for Tesla Motors.

Does the name “Autopilot” cause people to overestimate the abilities of Tesla’s driver-assistance technology? It’s a question that comes up in the Ars comments almost every time we write about the feature.

Critics warn that some customers will assume something called “Autopilot” is fully self-driving. Tesla’s defenders counter by pointing out that autopilot capabilities in planes aren’t fully autonomous. Pilots still have to monitor their operation and intervene if they have a problem, and Tesla’s Autopilot system is no different.

A new survey from the Insurance Institute for Highway Safety brings some valuable hard data to this debate. The group asked drivers questions about the capabilities of five advanced driver-assistance systems (ADAS). They identified the products only by their brand name—”Autopilot,” “Traffic Jam Assist,” “Super Cruise,” etc. Survey participants were not told which carmaker made each product, and they did not learn the capabilities of the products. There were 2,000 total respondents, but each was asked about only two out of five systems, leading to a few hundred responses for each product.

………

For example, 48 percent of drivers said that it was safe for a driver to take their hands off the wheel when Autopilot is active, compared with around 33 percent for ProPilot Assist and less than 30 percent for the other systems named. Six percent of drivers said it was safe to take a nap in a car with Autopilot, while only three percent said the same for other ADAS systems.

Tesla further compounds this issue by promising that full autonomous driving will be available in a matter of the next few months.

This, and Theranos, is what happens when the Silicon Valley, “Fake it Until You Make It,” is applied to the real world.

It Appears That There IS Such a Thing as Too Corrupt to Investigate

Among the more blatant bits of self-serving corruption in the Trump Administration, at least outside of Trumps close family, Elain Chao, Transportation Secretary and wife of Mitch McConnell stands out.

As the New York Times reported, Chao has repeatedly engaged in official actions calculated to boost her family’s shipping business and her husband’s political fortunes, up to, and including attempting to get the government pay for her representatives of her family’s business travel with her on an official visit to China. (also here)

Some Democrats want to look into this nexus of corruption, but others are afraid that Chao will cancel road projects in their districts in retaliation.

Seriously, this is akin to defending oneself against an accusation of witchcraft by threatening call upon her dark masters to turn the investigators into pious pink toads, (The Cerebus defense) and Chao doesn’t have to even allude to this, the congresscritters are terrified of her:

House Democrats are poised to launch an investigation into the Department of Transportation Secretary Elaine Chao over allegations that she used her position to advance the interests of her family and her husband’s political career.

But even as some members of the House Transportation and Infrastructure Committee say such a probe is inevitable, other Democratic lawmakers have expressed doubts about whether the current evidence is sufficient to warrant it, according to three lawmakers with direct knowledge of the conversations that have taken place over the last several days. And some lawmakers who spoke to The Daily Beast expressed unease—at this time—to call out the secretary for fear that doing so would affect their ability to advance infrastructure projects in their home districts.

Such hesitation reflects both the unique status Chao enjoys within the Trump administration—where she has heavy sway over federal funds that politicians of all stripes covet—and the wider conundrum that Democrats lawmakers face in going after the president’s team. With aggressive oversight efforts already launched into several other Trump Cabinet officials, senior Democratic aides say a sense of fatigue has set in among members, one that’s been exacerbated by the difficulty the party has had in making progress on already-launched investigative efforts.

I would argue that this calls for heightened scrutiny.

Given her position, secretary Chao must be as Caesar’s wife, above suspicion.

The Computer is Your Friend

It’s an article about the problems with self-checkout at the grocery story, which is at least 3 orders of magnitude an easier nut to crack than a self driving car, everything has a bar code, the shopper can re-swipe, etc., but it still does not work.
Much like self-driving cars, it probably does not deliver the benefits promised, and its proponents proposed redefining the environment to accommodate their “update”:

Automation is often presented as an inexorably advancing force, whether it’s ushering in a threat to jobs or a promise of increased leisure or larger profits. We’re made to imagine the robots rising, increasingly mechanized systems of production, more streamlined modes of everyday living. But the truth is that automation technology and automated systems very often fail. And even when they do, they nonetheless frequently wind up stranded in our lives.

For every automated appliance or system that actually makes performing a task easier—dishwashers, ATMs, robotic factory arms, say—there seems to be another one—self-checkout kiosks, automated phone menus, mass email marketing—that actively makes our lives worse.

I’ve taken to calling this second category, simply, sh%$ty automation.

Sh%$ty automation usually, but not always, comes about when new user-facing technology is adopted by a company or institution for the ostensible reason of minimizing labor and cutting costs. Nobody likes wading through an interminable phone menu to try to address a suspect charge on a phone bill—literally, everyone would rather speak with a customer service rep. But that’s the system we’re stuck with because a corporation decided that the inconvenience to the user is well worth the savings in labor costs.

That’s just one example. But it gets at what makes spending some time wading through the world of sh%$ty automation worthwhile—it often doesn’t even matter if automation improves anything at all for the customer, for the user, for anyone. If some enterprise solutions pitchman or government contractor can sell the top brass on the idea that a half-baked bit of automation will save it some money, the cashier, clerk, call center employee might be replaced by ill-functioning machinery, or see their hours cut to make space for it, the users will be made to suffer through garbage interfaces that waste hours of their day or make them want to hellscream into the receiver—and no one wins. Not even, sometimes, the company or organization seeking the savings, which can suffer reputational damage.

………

To start, let’s look at everyone’s favorite cluster of machinery to walk past in the grocery store with a dismissive scowl, to hold off approaching until you’ve finally, painfully decided the line you’ve been stuck is so painfully not-moving it’s worth the hassle: Self-checkout kiosks.

There are fewer better poster children for sh%$ty automation than self-checkout. I have literally never, as in not one single time, successfully completed a checkout at a self-service station in a grocery store without having to call a human employee over. And it’s not because I’m an idiot. Or not entirely, anyway. Incessant, erroneous repetitions of “please place your item in the bag” and “unknown item in the bagging area” are among the most-loathed phrases in the 21st century lexicon for a reason, and that reason is that self-checkout is categorically awful.

Hence, I turned to Alexandra Mateescu, an ethnographer and researcher at Data & Society, and a co-author, with Madeleine Clare Elish, of “AI in Context: The Labor of Integrating New Technologies,” which uses self-checkout as a case study, to find out why.

To understand how we arrived at our current self-checkout limbo, and why it’s terrible and dysfunctional in the special way that it is, it helps to understand that the technology we encounter in the grocery store is just the most recent iteration in a century-long drive to offload more of the work involved in the shopping process onto us, the shoppers.

It sounds an awful lot like the self-driving car.

This Also Explains Theranos

In this examination of toxic individualism to describe how Uber was a Silicon Valley success and a real world failure, (most disastrous IPO in history) it explains a lot about the general lawlessness that permeates the culture.

Essentially, this is Ayn Rand applied to the real world, and failing completely, as it did with Sears:

Uber is now a massive, publicly traded company. Anyone can buy Uber shares at a valuation of about $70 billion. This isn’t bad for a company losing billions of dollars a year, but it’s a fraction of the $120-billion valuation the IPO’s bankers initially floated. It’s roughly what private investors valued it at three years ago, when the company made $7.43 billion less revenue.

………

But some of it should go to Silicon Valley’s cultural divergence from the business reality. Investors loved the company not as an operating unit, but as an idea about how the world should be. Uber’s CEO was brash and would do whatever it took. His company’s attitude toward the government was dismissive and defiant. And its model of how society should work, especially how labor supply should meet consumer demand, valorized the individual, as if Milton Friedman’s dreams coalesced into a company. “It’s almost the perfect tech company, insofar as it allocates resources in the physical world and corrects some real inefficiencies,” the Uber investor Naval Ravikant told San Francisco magazine in 2014.

………

But plenty of companies have experienced founders and do things VCs like. What set Uber apart—and the reason it generated the Uber-for-X phenomenon—was its marketplace model.

The company used computers to restructure the driving labor market (“corrects some real inefficiencies”). Why have a dispatcher send cabs all over a city when an algorithm could do the same thing—with no labor cost or organizational infrastructure, and probably with better results? The cab companies, with their own complex institutional histories, were suddenly irrelevant. Drivers drove and riders rode—and the only thing necessary to connect them was an app on a phone. The model didn’t just make financial sense to people trained to think in Silicon Valley in the 2000s; it made ideological sense.

………

For early Uber investors, Uber was everything that disruption was supposed to be. You took an app, created by a small number of people in a San Francisco office, and used it to erase the institutions—formerly called businesses—that used to sit between the buyers and sellers of services. It wasn’t just a company; it was a company that destroyed the need for other companies. It was pure and uncut Economics 101, capitalism as it was meant to be. And if by eliminating much of the labor that it previously took to organize car services, the company would also generate billionaires … well, to the innovators go the spoils.

………

In Uber’s world, there is no such thing as collective action. Every person is an individual particle of the market, freely interacting with all the others, unless there is pesky government meddling. Uber really was about the triumph of individualism, an ethos that infuses Silicon Valley so thoroughly that it’s hard for most here to see. Companies that fit that pattern are more likely to garner VC attention, get funding, and find success. That’s how Silicon Valley shapes the world.

But they cannot sustain companies within their bubbles of influence forever. They must leave the nest for the public markets, where they are judged on their bottom lines. So far, the market says: This company is worth $50 billion less than its executives and bankers thought.

And in Uber’s world, the market is always right.

Nobel Prize winning physicist Richard Feynman once said, “For a successful technology, reality must take precedence over public relations, for nature cannot be fooled,” the same applies for business, only we need to replace “technology”, with business, and “public relations” must replaced with “ill-conceived and juvenile philosophy”.

Objectivism has failed wherever it has met reality, leaving misery in its wake.

Wages of Law Breaking

I am referring to Uber and Lyft, whose generally unlawful activiteis are billed as “innovative disruption”.

Well, experts at  San Francisco County Transportation Authority and the University of Kentucky, have studied their effect, and the it’s absolutely the opposite of what the hack taxicab companies have claimed:

Uber and Lyft accounted for two-thirds of a 62% rise in congestion in San Francisco over six years, according to a report published on the day of a coordinated protest by drivers.

The figures “are eye-popping,” said Joe Castiglione, deputy director for technology, data and analysis at the San Francisco County Transportation Authority. He co-authored the study with researchers from the University of Kentucky.

It shows that hours of vehicle delays increased by 62% throughout the city from 2010 to 2016, the period when ride-hailing services began proliferating on the streets. Traffic models that exclude Uber and Lyft cars show that hours of delay would have gone up 22% in their absence.

Extrapolating from those numbers, the study’s authors concluded that on-demand ride services — or transportation network companies, as they’re known in academic patois — are clogging roads and siphoning people from mass transit, going against the companies’ stated mission to wean people off of private cars. The authors laid out their findings in the scholarly journal Science Advances, providing fodder for policymakers seeking to regulate these companies.

………

A similar study that the Transportation Authority published last year looked more broadly at swelling traffic from 2010 to 2016, and found that transportation network companies comprised about half of it, with the other half stemming from job and population growth. Wednesday’s study narrowly measured the correlation between ride-hailing services and increased congestion.

Since I am inclined to state the obvious, this result was predicted over 80 years ago, which was one of the reasons why New York instituted taxi medallions 1937.

This is not disruptive innovation, it’s just a twist on a very old scam, and the founders have gotten very rich using other people’s money.

The Gig Economy Strikes Back

A group of Uber and Lyft drivers serving Washington National Airport have taken to simultaneously turning off their apps to drive surge pricing to increase their fares:

Drivers for ride-hailing apps Lyft and Uber have organized for better pay through collective action – and not by unionizing.

Here’s how it works: a group of drivers who pick up passengers at Ronald Reagan Washington National Airport, outside the US capital, have been turning off their taxi apps simultaneously to influence the surge pricing algorithms used by the two companies.

A report published last week by local ABC affiliate WJLA-TV recounts how a group of 100-150 drivers all turned off their driver apps in sync – coordinated by an individual using an unidentified app – to create the false impression of a local driver shortage.

With the ride supply down as demand peaks, the taxi apps’ surge pricing algorithms kick in, offering higher rates to entice more drivers to come to the airport. Minutes later, once the price rises anywhere from $10 to $19 or so, the drivers sign back on and accept the fare at a level they find more reasonable.

This is why you should not do business with companies that treat their employees like crap.

Even ignoring the ethical issues, it is likely that those poorly treated employees will find a way to fight back, and you are likely to be the battlefield.

Play the Sad Trombone Music

Uber and Lyft approved alleged war criminal to drive

He’s accused of war crimes and torture, but he drove for more than 18 months, raising questions about the thoroughness of the background check process https://t.co/XDEa9eAvoI pic.twitter.com/y7zY17hAaq

— CNN (@CNN) May 14, 2019

Also, Yes

It looks like Uber’s IPO is turning into a complete cluster-f%$#:

Few things prove the ancient warning “Be careful what you wish for” like a Wall Street sure thing that blows itself to smithereens.

For example, the Uber initial public offering.

Investment and tech gurus spent five years hawking Uber as a world-changing business and Uber stock as a stairway to fortune. Contrary voices were heard in the marketplace, it is true, but they were few and far between and in any event drowned out by the drum-beating from the other side.

But now the public market — the defining arbiter of the value of an enterprise, at least as a snapshot — has spoken, and its judgment is harsh.

On Tuesday, Uber closed at $39.96 after trading as low as $36.85, well below its close Friday, its first post-IPO trading day. This is a very eloquent price: It speaks volumes about the judgment of venture investors, about the credibility of private-market valuations of companies, and about Wall Street underwriting.

Remember that Uber was viewed as the ultimate “unicorn,” a term for venture-funded companies with private valuations higher than $1 billion. Onlookers gathered, like gawkers at a shop window, to watch how this unicorn would be transformed into a bellwether in the public markets.

………

Let’s examine Uber’s numbers. At $39.96, Uber is calculated to have a total market value of about $67 billion. That sounds like a lot for a company that has never made money and in fact lost more than $800 million in its last reported quarter, the fourth quarter of 2018.

But the market valuation is a sharp reduction from Uber’s putative value during its private-market era, which ended Friday. In that era, the company’s backers were talking about a valuation as high as $120 billion. That was the peak, but starting about five years ago the company’s putative value never fell below $68 billion.

The company has no path to profitability, there are very little in the way of barriers to entry, and every “disruptive innovation” that were used to justify its high private valuation was either abusive or outright illegal.

If it crashes and burns, it will be a well deserved end to a pox on transportation.

In the Annals of Stupidity

The idea that we should reconfigure cities to accommodate the limitations of robot cars is stupid.

It’s History Schmistory stupid:

Special report Behind the mostly fake “battle” about driverless cars (conventional versus autonomous is the one that captures all the headlines), there are several much more important scraps. One is over the future of the city: will a city be built around machines or people? How much will pedestrians have to sacrifice for the driverless car to succeed?

………

But the driverless car has to deal with pedestrians, as Christian Wolmar discussed at The Register last week: “The open spaces that cities like to encourage would end as the barricades go up. And foot movement would need to be enforced with Singapore-style authoritarianism.”

………

“The randomness of the environment such as children or wildlife cannot be dealt with by today’s technology,” admits Volvo’s director of autonomous driving, Markus Rothoff. The driverless car can’t hear you scream. Tests are not being conducted in real pedestrian-congested conditions.

The cheat is: just get rid of the people around cars, so you don’t need to solve these problems.

When people talk about the future of self-driving cars in the foreseeable future,  this is what they mean.

If this sounds far fetched, I will remind you that there is a recent historical precedent:  In the early 20th century, they restructured the city, and criminalized what had been ordinary walking:  They called it “Jaywalking”.

Do not underestimate the willingness of people who profit from driverless cars to restrict the rest of us, and to place the costs on society as a whole.

They have done it before.