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So, another nail in the coffin of what we knew as 'surge' and how UBER plans to turn every ride into a POOL

Full deets here: https://techcrunch.com/2016/06/23/surgepurge/

Excerpt:

No more pop-ups asking you to agree to those murky "2.1x" (or some other "x" amount) surge fares on the Uber app. Soon Uber will just tell you the price of your ride up front.

Uber told TechCrunch in May it was not doing away with surge pricing and denied an NPR report mentioning it would be killing surge. However, it seems Uber is doing away with the feature.

Uber pricing will still fluctuate with demand, but now you'll know the dollar amount you'll be paying for the ride, instead; "no math and no surprises," says Uber.



"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," a post in Uber's newsroom says.

Of course, uberPOOL is less expensive and says it believes riders are more likely to take another Uber in the future if they see the trip price upfront, not just because POOL is cheaper.

Uber will also allow either the driver or rider to update the app if you change your destination in the middle of the ride and says you'll get a notification in the app with the change in price. The rideshare company also told me you won't have to worry if your Uber driver goes way off the map and tries to charge you more or if the route is suddenly busy and they need to change course. The price you agreed on will still be the price you pay.
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That last one seems unreasonable to me as a driver. An initial estimate of say, 20 min can turn into an hour's traffic time at some special events or like today's downtown traffic with the Prez in town. Plus now every clown paying surge will make you wait and do multiple stops...

Goodbye surge, it was nice to experience you. We'll tell the self-driving cars tales of this wonderful era...
 

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That's a good thing.

Consider what's running in a riders mind when they are told "we're charging you more than normal" compared to when they are told "the price is $x"

So long as drivers are still paid surge and perminutepermile of course
 

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That's a good thing.

Consider what's running in a riders mind when they are told "we're charging you more than normal" compared to when they are told "the price is $x".......
I totally concur.
Right after the Jan price cut, I took a Google middle manager to the airport.
It was a 1.1 surge; less than the normal price just a week ago.
He made it a point to tell me this is a surge ride, and why does that happen ?
For someone expensing the ride to his company, he was still not happy paying a modest surge.
It's human nature, I guess ..........
 

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Hmmm I read the article it looks like they're doing a flat rate based on projected distance and time. So if the trip takes longer you get screwed.
 

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Hmmm I read the article it looks like they're doing a flat rate based on projected distance and time. So if the trip takes longer you get screwed.
The flat rate should be able to calculate that. It should anticipate traffic. Uberpool is currently a flat rate for pax, but still time and distance for drivers.

If they roll out the same for UberX, it should still be time and distance for us too.
 

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A silver lining:

If they get rid of time and distance, they must not allow multiple stops on UberX. No drivers will go for that.

I think everything will be the same as far as drivers go, but only that a passenger will see a flat rate instead of a surge price.
 

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The flat rate should be able to calculate that. It should anticipate traffic. Uberpool is currently a flat rate for pax, but still time and distance for drivers.

If they roll out the same for UberX, it should still be time and distance for us too.
Wait can you explain this better? If it's a flat rate how can the final price fluctuate? Or are you telling me that UberX mile/minute rates change as they drive from one area to the next? Like if I pick up someone in SF at $1.10/mile and drive them south, as soon as I leave the city it goes to $.85?
 

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Wait can you explain this better? If it's a flat rate how can the final price fluctuate? Or are you telling me that UberX mile/minute rates change as they drive from one area to the next? Like if I pick up someone in SF at $1.10/mile and drive them south, as soon as I leave the city it goes to $.85?
Uber will subsidize the difference. Suppose you gave me a ride from SOMA to Mission. The agreed price I pay is 8 dollars, no matter what. And suppose the ride took 10 minutes longer because you avoided traffic and went a longer way. End price is 12 bucks. I pay 8, Uber pays 4.

Rates will not change as you exit the city. The rate stays the same as the origin city all the way to the destination.

Basically, Uber is banking on their algorithms being correct. Otherwise they pay out of pocket. I can see how they might inflate the flat rate so they cover their assets as well.

Other users can chime in too if my thought process isn't correct.
 

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A silver lining:

If they get rid of time and distance, they must not allow multiple stops on UberX. No drivers will go for that.

I think everything will be the same as far as drivers go, but only that a passenger will see a flat rate instead of a surge price.
A lining of @#@$:

It's easier for Uber to underpay, intentionally or otherwise. Single pickup Pool rides are dinging drivers at a few dimes per ride, and the effort exceeds the return to get it fixed so Uber is making thousands of dollars extra every night. (Multi pickup Pool rides are costing the drivers the same few dimes, it just won't be fixed. Frog in boiling water)

I'd actually want a flat 75% of what the user pays as a baseline minimum. With any "specials" or discounts coming from Uber and not the driver.

In fact, our contract says Uber is a payment processor and that the charge for the ride is a private transaction between rider and driver, which Uber charges 25% of for acting as payment processor. UberPool itself violates the current contract.

Basically, Uber is banking on their algorithms being correct. Otherwise they pay out of pocket. I can see how they might inflate the flat rate so they cover their assets as well.
It's extremely unlikely that Rider fare < 75% of what driver's gross fare. So the worst that will happen is Uber makes less of a profit. They're never really going to lose money.
 

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Believe me, I've had conversations with pax about pool before. I took a guy from 4th and clement to Potrero Hill. I asked him what he was paying and he said 5.75. The ride was around 7.50 to 8 bucks after commission. It was a single pool. Uber definitely lost money on that ride.
 

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Another thing to consider is that once dynamic pricing kicks in, pax will no longer see the surge symbol, and neither will we if we look at the pax app to see surge.
 
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