Uber Drivers Forum banner
1 - 10 of 10 Posts

·
Premium Member
Joined
·
9,405 Posts
I think he gets a lot right and it's certainly a possibility. I think uber went wrong by trying to be all things at the cheapest. The race to the bottom is never pretty.

Imagine an alternative. Fares are 50% higher. There is a cap on number of drivers or perhaps a limit on when new drivers can work. Drivers are making decent money so they hustle hard and either provide good service or get demoted. Less surge perhaps. So a better experience for riders and drivers alike. Sure you will not get the bus fare passengers but there is a reason why taxis charge what they do. $3.00 rides are unsustainable. Bottom line, let drivers earn more and hold them to a higher standard and you won't have to pay all sorts of sign up bonuses and run a torrent of ads on the radio to keep getting fresh meat for the cannons. Oh, and it would be nice if they were honest too! Not lowering rates them upping fees as well as other sketchy stuff, but that's asking too much!
 

·
Registered
Joined
·
932 Posts
Discussion Starter · #4 ·
I think he gets a lot right and it's certainly a possibility. I think uber went wrong by trying to be all things at the cheapest. The race to the bottom is never pretty.

Imagine an alternative. Fares are 50% higher. There is a cap on number of drivers or perhaps a limit on when new drivers can work. Drivers are making decent money so they hustle hard and either provide good service or get demoted. Less surge perhaps. So a better experience for riders and drivers alike. Sure you will not get the bus fare passengers but there is a reason why taxis charge what they do. $3.00 rides are unsustainable. Bottom line, let drivers earn more and hold them to a higher standard and you won't have to pay all sorts of sign up bonuses and run a torrent of ads on the radio to keep getting fresh meat for the cannons. Oh, and it would be nice if they were honest too! Not lowering rates them upping fees as well as other sketchy stuff, but that's asking too much!
DD I agree 100% Bro
 

·
Registered
Joined
·
603 Posts
"rider fares only cover roughly 40 percent of a ride"

I feel the same way as a driver.
 

·
Premium Member
Joined
·
9,405 Posts
Rider fares covering only 40% of the fare is very misleading. What it means is that they are doing a variety of things that cost serious chunks of money.

Boost, number of trip incentives and guarantee hours probable mean they are breaking even or losing money on fares covered under those. Why do they have to do this? Because rates are too low.
New Driver incentives: again, rates are too low so attrition is high and drivers on staff not driving as much as they could be.
Promos for pax: a cost of doing business and growing your business out. As they have gotten larger these costs should be nominal.
UberEats: just bad business, they are losing a ton on it and there's probably no end in sight
Expansion costs into other countries: I am sure they are spending a fortune in India right now but those costs as well as what they are spending on autonomous vehicles are being counted against the rides we provide. So to say that they are losing money on our rides is somewhat disengenuous because a lot of it has to do with their expansion costs and attempts at new product roll out/research. If they made it a little easier for drivers to make a living by raising rates and adding a tip option, they wouldn't need incentives to drive.
 

·
Registered
Joined
·
603 Posts
Imagine an alternative. Fares are 50% higher.
I think, from a sales standpoint at least, that this would really work. It seems that Uber has failed to take into consideration that their target demographic are the same people who pay $5+ for a cup of coffee. Most of them would probably pay taxi fares or better just because Uber is trendy. (Especially if they would get the vehicle quality back up to what it once was.) Probably too late to start jacking the prices up now, though.
 

·
Premium Member
Joined
·
9,405 Posts
I think, from a sales standpoint at least, that this would really work. It seems that Uber has failed to take into consideration that their target demographic are the same people who pay $5+ for a cup of coffee. Most of them would probably pay taxi fares or better just because Uber is trendy. (Especially if they would get the vehicle quality back up to what it once was.) Probably too late to start jacking the prices up now, though.
Why, they had no problem jacking the SRF up did they. What would be interesting is to leave the minimum fare alone and just raise the mile and minute rate. Most people who are going for a decent ride aren't going to care about a couple of bucks more and the alternative is higher cab rates or the bus.
 

·
Premium Member
Joined
·
249 Posts
Why, they had no problem jacking the SRF up did they. What would be interesting is to leave the minimum fare alone and just raise the mile and minute rate. Most people who are going for a decent ride aren't going to care about a couple of bucks more and the alternative is higher cab rates or the bus.
They need to add a "Drive Thru" button to jack up the per-minute rate while sitting at drive-thrus, gas stations, and grocery stores.
 
1 - 10 of 10 Posts
Top