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Discussion Starter · #1 ·
Uber says it's showing more passengers the cost of a ride upfront even during times of so-called "surge pricing."

In a press release posted on the company website Thursday, Uber wrote, "Knowing how much a ride will cost in advance is clearly something riders appreciate: today uberPOOL accounts for over 20 percent of all rides globally. And we now want more riders globally to benefit from this feature."

It should be noted that UberPOOL, in which riders share the car with others, is also cheaper than uberX.

The release says the company began rolling out upfront fares for uberX in certain cities in April, and that will continue to expand. It makes clear that Uber is not doing away with surge pricing. Rather, the customers will be given the exact higher fare in advance instead of multiples. "There's no complicated math and no surprises," the release says of the new system.

So I could think of two Scenarios for this:

1 - let's say Point A to B is usually $10 in the old charging system. Now Uber charge the rider $20 while only paying the drive $10 along with their 20/25% take.

2 - Same payment example as above. Except this time, to kill surge, Uber will continue to give out Incentive Boost - Silver/GOLD/Platinum ... Charge rider upfront instead of the per mile and per minute rate. Driver gets paid according to medal and they make up paying this "incentive boost" by passing the expense down to the rider.

It's all a psychology ploy.. Would riders be more willing to accept a ride when they confirm surge of 2.5x or if they see the upfront fare of $25.... it's that 2.5x surge multiplier that the cheap pax avoid. but if they get the upfront surge price, they will just take it..

thoughts??

P.S here's the link to the article.

https://www.yahoo.com/news/big-change-coming-uber-ride-125514265.html
 

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Discussion Starter · #3 ·
Whatever it is, drivers are sure to lose money and Uber will make more. Guaranteed.
Well Idk about riders losing money. I'm pretty sure Uber will still tell us what our per mile and per minute pay out is. But it sure guarantees Uber pocketing more money to themselves.

Imagine this. we get paid .90c/min and .15c/mile. If we get paid that and upfront fare to ride is $30 while we only drive 10 miles, Uber definitely is committing highway robbery. But we're not "losing" money per say.
 

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This is how Uber turns a profit and increases their share without giving the driver shit. Lord knows they already skim us on mileage.

Our $.90 will never change but their fixed price will be $1.25 a mile to the customer.

It's just your General Contractor to Sub Contractor relationship. You charge me $25 and hour for you service and I charge the client $40 an hour for your service. I make a nifty $15 an hour for management services, of course I throw on the standard additional 10% as well, we'll with Uber it 20/25%
 

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Discussion Starter · #6 ·
This is how Uber turns a profit and increases their share without giving the driver shit. Lord knows they already skim us on mileage.

Our $.90 will never change but their fixed price will be $1.25 a mile to the customer.

It's just your General Contractor to Sub Contractor relationship. You charge me $25 and hour for you service and I charge the client $40 an hour for your service. I make a nifty $15 an hour for management services, of course I throw on the standard additional 10% as well, we'll with Uber it 20/25%
YUP! people have been saying these incentive boosts can't be around for too long without uber making up the money. Looks like the cost will be passed down to the rider but at the same time still making money off of it and taking commission.

Rider doesn't see "surge" but with this, it'll surge all day everyday for uber charges
 

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This is a way around Uber's "Price Fixing Issues." Travis won't last in prison. PAX SEES NO SURGE, DRIVER GETS PAID A PREIMUM.
 

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They are doing this to push Pool to the pax.

Fare Estimate. $25.00. Or Share the cost. Pool available for $10.

They make more money with Pool....it's the only reason they are doing this.
 

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Uber says it's showing more passengers the cost of a ride upfront even during times of so-called "surge pricing."

In a press release posted on the company website Thursday, Uber wrote, "Knowing how much a ride will cost in advance is clearly something riders appreciate: today uberPOOL accounts for over 20 percent of all rides globally. And we now want more riders globally to benefit from this feature."

It should be noted that UberPOOL, in which riders share the car with others, is also cheaper than uberX.

The release says the company began rolling out upfront fares for uberX in certain cities in April, and that will continue to expand. It makes clear that Uber is not doing away with surge pricing. Rather, the customers will be given the exact higher fare in advance instead of multiples. "There's no complicated math and no surprises," the release says of the new system.

So I could think of two Scenarios for this:

1 - let's say Point A to B is usually $10 in the old charging system. Now Uber charge the rider $20 while only paying the drive $10 along with their 20/25% take.

2 - Same payment example as above. Except this time, to kill surge, Uber will continue to give out Incentive Boost - Silver/GOLD/Platinum ... Charge rider upfront instead of the per mile and per minute rate. Driver gets paid according to medal and they make up paying this "incentive boost" by passing the expense down to the rider.

It's all a psychology ploy.. Would riders be more willing to accept a ride when they confirm surge of 2.5x or if they see the upfront fare of $25.... it's that 2.5x surge multiplier that the cheap pax avoid. but if they get the upfront surge price, they will just take it..

thoughts??

P.S here's the link to the article.

https://www.yahoo.com/news/big-change-coming-uber-ride-125514265.html
They will "innovate" themselves right out of business. Other apps will surface and make more intelligent decisions than them, as far as how to run a business that actually turns a consistent profit. When it comes to that, they are clueless.
 

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Discussion Starter · #12 ·
Koolride probably not. They probably want all the drivers to stay in the incentive program. and this expense will be passed on to the rider. Which explains the upfront cost even for UberX
 
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