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When I started driving it seemed like all was guns n roses. The only complaint I got about UBER was the surges. Then the horror story about the lady with the $300 ride home posted. Soon I began to get input from pax that they have rideshare tip forums. Those in the know simply use LYFT or a Taxi as a big finger in the air to UBER's ARR's (adjustable rate rides).

So the buzz becomes "UBER can be super expensive". In the world of soundbites, that's all UBER cares about: The customer's perception is that the cost is too high. So they lower rates across the board.

The problem still exists though, no one wants a price gouge based on supply/ demand in real time (surge fare). Since the root problem was never fixed, pax will continue to turn away during surges. The high priced UBER stories will drown out the price cuts.

The price cuts are advertised by UBER and rely on pax paying attention (good luck with that). The surge horror stories get tons more exposure since they are generated at the social media level with viral potential.

Grind on that, UBER
 

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When I started driving it seemed like all was guns n roses. The only complaint I got about UBER was the surges. Then the horror story about the lady with the $300 ride home posted. Soon I began to get input from pax that they have rideshare tip forums. Those in the know simply use LYFT or a Taxi as a big finger in the air to UBER's ARR's (adjustable rate rides).

So the buzz becomes "UBER can be super expensive". In the world of soundbites, that's all UBER cares about: The customer's perception is that the cost is too high. So they lower rates across the board.

The problem still exists though, no one wants a price gouge based on supply/ demand in real time (surge fare). Since the root problem was never fixed, pax will continue to turn away during surges. The high priced UBER stories will drown out the price cuts.

The price cuts are advertised by UBER and rely on pax paying attention (good luck with that). The surge horror stories get tons more exposure since they are generated at the social media level with viral potential.

Grind on that, UBER
I think you nailed it, bud. Most consumers will rebel at the hint of gouging, even those to whom money is no object, even when inflated prices are justifiable, like during food/water shortages.
 

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I understand 5x our higher surge but uber got the rates so low a 3x surge is what a cab is
True! But your passengers will not care. They are being lured in by stupidly ridiculous low prices. When you give customers something for free, it is very difficult to get them to start paying for it when the bills come due. The Internet highway is littered with dead free apps. :) even when the app was really cool, and developers gave it out to spread the word, as soon as they started asking for even minimal donations, the interest dried up. In general, I am afraid that people mostly suck when it comes to their wallets!!!
 

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the riders are the ones agreeing to the surge so if they take surge beyond 3x they should get a taxi I don't fell sorry for them cause they agreed to it
When you have the Uber rider app, you know exactly how much you are going to pay - or, just do the math in your head. Most of my customers coming in from put-of-state don't seem to care much about the rates - they just want to get to their destination as soon as possible. It's the local people who care about the rates. Go figure.
 

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When you have the Uber rider app, you know exactly how much you are going to pay - or, just do the math in your head. Most of my customers coming in from put-of-state don't seem to care much about the rates - they just want to get to their destination as soon as possible. It's the local people who care about the rates. Go figure.
That is not necessarily true. We pick up out-of-town people who got burned by a surge and call us to make reservations for their next night out. When I say "burned "I mean they paid one rate to get downtown, and then found the only way to get back was to pay up to even 10 times the rate. Sure, they agreed to it, because it was 1 o'clock in the morning. But more than a few refused to get stuck in that situation again.
 

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the riders are the ones agreeing to the surge so if they take surge beyond 3x they should get a taxi I don't fell sorry for them cause they agreed to it
The clients we have acquired were new to town, none of them expected sympathy. They just deleted the app and call us now. They are not idiots, they plan ahead to avoid being gouged. And yes, when you pay hundreds of dollars to return home when it only cost $45 to get there, unless there has been some major incident preventing most transportation, that is gouging.
 

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The clients we have acquired were new to town, none of them expected sympathy. They just deleted the app and call us now. They are not idiots, they plan ahead to avoid being gouged. And yes, when you pay hundreds of dollars to return home when it only cost $45 to get there, unless there has been some major incident preventing most transportation, that is gouging.
And now it's under $20 to get into downtown in most cases with the rate cut.
 

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When you have the Uber rider app, you know exactly how much you are going to pay - or, just do the math in your head. Most of my customers coming in from put-of-state don't seem to care much about the rates - they just want to get to their destination as soon as possible. It's the local people who care about the rates. Go figure.
if you punch in you address it will tell you
 

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The clients we have acquired were new to town, none of them expected sympathy. They just deleted the app and call us now. They are not idiots, they plan ahead to avoid being gouged. And yes, when you pay hundreds of dollars to return home when it only cost $45 to get there, unless there has been some major incident preventing most transportation, that is gouging.
I agree but if it's 3x it not gouging. that what the normal rates should be.
 

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And now it's under $20 to get into downtown in most cases with the rate cut.
May be ... But these were people willing to pay the $45, (they pay us more) and Uber turned them off in one night. We have several "never again" Uber users. The gouging was so short sighted, like much of their practices :-(
 

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With the Uber rate cuts and the Lyft 50% rider discount, pax should be coming out of the woodwork, right? So, I'll ask again: what happened to all the promised riders?
uber full of it.They drop one dollar to eight five cents a mile.If you cannot afford a dollar per mile take the city bus
 

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Yeah if they can't afford a dollar per mile they should take city bus
It is not even about what people CAN afford, it is about what they WILL afford. For some reason, Uber believed they could promise a nice car, good driver, "better, cheaper, faster than a cab". It was not enough to just be 2 out of 3, which was the only feasible combination....they promised the impossible. They marketed this, and have artificially delivered them by luring drivers out with tricky guarantees. Meanwhile they created a level of expectations when they introduced these services at such rates. Notice they didn't call them "trial rates", they give very little hint that rates will increase. The excuse they make for surge rates is that it is an unusually high demand. So now you have a considerable market segment which is accustomed to bus fare rates for car rides. Take that away, they will balk. It's just human nature.

Take this forum, for example. How many people do you think would pay for a membership in order to fund the technology and admin overhead? Same with Facebook. Millions of users accustomed to 24x7 availability, storage of their life's history, and most will stop using it if it becomes a paid service. Then there are those who claim they cannot afford to go to a doctor without insurance, but they eat out, get mani/pedis, take vacations, buy smartphones, etc. In general, most people are self centered and don't want to pay one extra cent for things unless it is mandatory.

But that ties in to my earlier statement about greed . Like greed, I don't think being self centered is necessarily a bad thing, it is how one goes about looking out for their own interests. I don't blame paxs for expecting cheap rides, it is what was offered. It is not a customer's role to sort out the business's dirty laundry. The problem is your network provider. They offered these rates at your expense, and when they ultimately are forced to walk back these ridiculous rates, that too will be on your heads.
 

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People in fact can't afford to go to the doctor without insurance because the rates for the uninsured are 40% higher than the rates for the insured. Which should be illegal and is just the tip of the iceberg when it comes to how ridiculous the pricing/corruption is in the US medical system. But we don't need to get into a discussion about all that. Just venting.

I agree with most of what you say but it all just speaks to the same point we have all been making on these forums for some time. WHY!!?? Why did they feel the need to conduct their business like this? Why do they need to be 40% cheaper than cabs when 30% would do and the customer has NO idea of the difference? Why do they need to put Lyft out of business tomorrow instead of doing what 100% of other businesses would do and wait and win the war of attrition? Why do they think that customers actually pay that much attention to price when really all they want is for things to work correctly, have a good experience and have the price be competitive/better. Uber has always had all of those things working in its favor!!! So why the need to keep pushing so hard and so fast and so aggressively while also constantly manipulating and tweaking behind the scenes?? It's maddening because it's so transparently unnecessary and yes, it's partly out of greed. But it's also in the personality of a startup (and it's founders) to believe your own press and think that you are the second coming of Facebook/Apple/Jesus/Amazon/ETC. Just listen to Travis talk about his "vision" and you can see right through it. This is not a student of business and smart growth, this is a student of his own ass.

I still believe in Uber and I hope they can get their shit turned around. Until then I just want to make a few extra shekels for my time and effort, whether it be through rate increases or tips or whatever.
 
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