I find this problem really strange to be honest. Lyft guys are capable of solving dispatch issues, so why don't they introduce limits in their ToS? For example 5 cancellations in a row - ban. 25%+ cancellations over a period of time - ban. Or instead of a ban, start charging for cancellations over some threshold. If they set the threshold and the resulting action properly, they should be able to handle the bad behaviour with little loss.
I see this as one of the few social problems that can be solved with technology. Use the tech to make the incentives for this behaviour go away.
Agreed. This certainly doesn't excuse Uber's behavior, but as a startup you have to adapt and adjust to whatever issues you are confronted with. When abusive cancellations became a problem, they should have made it either impossible or expensive for the behavior to continue.
I see this as one of the few social problems that can be solved with technology. Use the tech to make the incentives for this behaviour go away.