# Yesterday, Barron's came out with an article saying that Uber/Lyft are cutting fares again...could this be a trigger for more fare cuts in your area?



## Young Kim (Jan 28, 2015)

This article came out yesterday suggesting Uber/Lyft are cutting fares again. Could this happen in your next of the woods? At .60 a mile here in Chicago (after Uber's cut), I feel we are already kinda skimming the bare bones where we can be profitable. If they slash fare rates again... oh boy. I recall in the taxi industry it was fixed rate in Chicago and the fares always crept up, as cabdrivers and their unions always seemed to push City Hall to raise fares. With Uber/Lyft, they can slash rates anytime, to get more riders.

https://www.barrons.com/articles/ri...ng-its-bad-news-for-uber-and-lyft-51594746341
The article stated that on average, fares were down 10.6% in April and 13.3% in June. I wonder how July's average will be?


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## 1.5xorbust (Nov 22, 2017)

As soon as there is a shortage of drivers Uber/Lyft will raise the rates. If there is a surplus of drivers they may cut rates.


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## Jon Stoppable (Dec 11, 2019)

They have been paying out fat bonuses here nonstop for weeks. Maybe after unemployment ends ...


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## Young Kim (Jan 28, 2015)

Jon Stoppable said:


> They have been paying out fat bonuses here nonstop for weeks. Maybe after unemployment ends ...


Agreed Mr. Bear about the "fat bonuses" at Uber corporate. It is sort of strange that all of us put up with the fat bonuses and turn a blind eye to it because "it's capitalism". If say a bunch of people, let's think of a big group of people BEFORE Uber capitalism had an idea. Let's call the group "Villagers". Let's say that a couple of people in the village came up with an idea that would help us catch fish or harvest crops a lot more efficiently. Go forward to seeing that idea yield great harvest and fish... Let's say that the original villagers (who came up with the idea) decided that of the 1,000,000 unit fish and harvest the two would take 999,999 fish and leave just one fish for the rest of the village to carve up and nibble on... well I think you would soon have some juicy meat to feast on with your BEAR claws.


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## Uberguyken (May 10, 2020)

The minute it drops below $.58 cents it's a wrap for me....


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## Jon Stoppable (Dec 11, 2019)

Corporate boards are an oligopoly, which votes themselves regular pay raises, because every CEO thinks they are well above average.

In bear society it doesn't work that way. Bears aren't social, so you have to defend your catch with your own paws. Bears don't have a team of lawyers to do it for them.


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## Young Kim (Jan 28, 2015)

Jon Stoppable said:


> Corporate boards are an oligopoly, which votes themselves regular pay raises, because every CEO thinks they are well above average.
> 
> In bear society it doesn't work that way. Bears aren't social, so you have to defend your catch with your own paws. Bears don't have a team of lawyers to do it for them.


I wish I could come into one of their corporate board meetings where they divy up their billions with a few Grizzly Bear friends...


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## Seamus (Jun 21, 2018)

When you are losing money on every ride you have to make it up with volume!


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## 33101sundevil (Jul 14, 2020)

Seamus said:


> When you are losing money on every ride you have to make it up with volume!


If u lower the fares and increase volume
Are u not Running in place? 
IDK I'm an uber driver


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## Seamus (Jun 21, 2018)

33101sundevil said:


> If u lower the fares and increase volume
> Are u not Running in place?
> IDK I'm an uber driver


My comment was actually sarcasm. If you lose money on each ride increasing the volume actually increases the losses which is worse than running in place. It's the same logic used in 2018 when Uber announced to drivers that lower rates=more money!:thumbup:


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## 33101sundevil (Jul 14, 2020)

Seamus said:


> My comment was actually sarcasm. If you lose money on each ride increasing the volume actually increases the losses which is worse than running in place. It's the same logic used in 2018 when Uber announced to drivers that lower rates=more money!:thumbup:


 thx u for clarification..
FYI, sarcasm can be Denoted with &#128579;

Great post &#128579;


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## Young Kim (Jan 28, 2015)

Seamus said:


> When you are losing money on every ride you have to make it up with volume!


When I first heard about this, it was a Saturday Night Live skit:






The clip was about how a bank just makes change for people who come in with larger bills, except they don't make any profit, because they give back exact change. The clip cuts off early, but when the bank manager is asked how they can still do this and stay in business, he answers with the words... "VOLUME!"...


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## Seamus (Jun 21, 2018)

33101sundevil said:


> thx u for clarification..
> FYI, sarcasm can be Denoted with &#128579;
> 
> Great post &#128579;


Welcome to the forum&#128579;
We all look forward to the many more witty comments you will add and the instructions you will give&#128579;


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## Young Kim (Jan 28, 2015)

33101sundevil said:


> If u lower the fares and increase volume
> Are u not Running in place?
> IDK I'm an uber driver


The classic song by U2 comes to mind:






This should play for each pax when they enter our vehicles...


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## 33101sundevil (Jul 14, 2020)

Seamus said:


> Welcome to the forum&#128579;
> We all look forward to the many more witty comments you will add and the instructions you will give&#128579;


Touché 
&#128077;&#129315;


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## mbd (Aug 27, 2018)

Young Kim said:


> This article came out yesterday suggesting Uber/Lyft are cutting fares again. Could this happen in your next of the woods? At .60 a mile here in Chicago (after Uber's cut), I feel we are already kinda skimming the bare bones where we can be profitable. If they slash fare rates again... oh boy. I recall in the taxi industry it was fixed rate in Chicago and the fares always crept up, as cabdrivers and their unions always seemed to push City Hall to raise fares. With Uber/Lyft, they can slash rates anytime, to get more riders.
> 
> https://www.barrons.com/articles/ri...ng-its-bad-news-for-uber-and-lyft-51594746341
> The article stated that on average, fares were down 10.6% in April and 13.3% in June. I wonder how July's average will be?


Drivers made way more money while pax's fares are down...as long as they have less drivers on the road , drivers per/hr will be good. Uber/lyft have too many drivers, then the driver gets the shaft . What Uber charges is Uber's business , they can charge 10% less or 50% more, those are all decided by the Algo god.


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## Roadmasta (Aug 4, 2017)

It's a race to the bottom with these companies. People desperate for money will trade depreciation for money to get by. Unless the government extends the $600 a week unemployment. The roads will be flooded with drivers to take advantage of next month and beyond.


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## _Tron_ (Feb 9, 2020)

Snort. New member put on double-secret probation in record time.


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## Young Kim (Jan 28, 2015)

_Tron_ said:


> Snort. New member put on double-secret probation in record time.


We need to come up with a hazing system for New Members to our fraternity/sorority. Ours is a sacred inner circle.


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## Disgusted Driver (Jan 9, 2015)

Young Kim said:


> We need to come up with a hazing system for New Members to our fraternity/sorority. Ours is a sacred inner circle.


What area you talking about, you are still a young one to me!


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## The Gift of Fish (Mar 17, 2017)

Young Kim said:


> The article stated that on average, fares were down 10.6% in April and 13.3% in June.


I see no evidence that the companies' prices have dropped. The article says fares have declined - maybe pax are just taking shorter trips.


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## Gone_in_60_seconds (Jan 21, 2018)

Roadmasta said:


> It's a race to the bottom with these companies. People desperate for money will trade depreciation for money to get by. Unless the government extends the $600 a week unemployment. The roads will be flooded with drivers to take advantage of next month and beyond.


Yes, desperate and unemployed ppl. But this also means there will be fewer customers too. So, its going to be a vicious cycle that feeds itself.


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## tohunt4me (Nov 23, 2015)

Young Kim said:


> This article came out yesterday suggesting Uber/Lyft are cutting fares again. Could this happen in your next of the woods? At .60 a mile here in Chicago (after Uber's cut), I feel we are already kinda skimming the bare bones where we can be profitable. If they slash fare rates again... oh boy. I recall in the taxi industry it was fixed rate in Chicago and the fares always crept up, as cabdrivers and their unions always seemed to push City Hall to raise fares. With Uber/Lyft, they can slash rates anytime, to get more riders.
> 
> https://www.barrons.com/articles/ri...ng-its-bad-news-for-uber-and-lyft-51594746341
> The article stated that on average, fares were down 10.6% in April and 13.3% in June. I wonder how July's average will be?


UBER HAS ALREADY DEVALUED THEMSELVES

PRICE OF FUEL WILL ONLY GO UP.

LACK OF CAR SALES MEANS SHORTAGE OF CARS IN THE FUTURE.

CAR PRICES WILL GO UP.

DRIVERS ALREADY CAN NOT AFFORD TO SAFELY MAINTAIN CARS AT UBER PAY !!!

UBER IS BURNING BRIDGES ON AN ISLAND.


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## Nats121 (Jul 19, 2017)

Seamus said:


> My comment was actually sarcasm. If you lose money on each ride increasing the volume actually increases the losses which is worse than running in place. It's the same logic used in 2018 when Uber announced to drivers that lower rates=more money!:thumbup:


https://techcrunch.com/2016/02/18/u...ys-company-is-profitable-in-u-s/?guccounter=1
Ever once in a great while the bigwigs at Uber let the truth slip out. Dara has made the same basic comment about Uber turning a profit.

Your comment is exactly what the slimebags at Uber HQ have wanted the "suckers" to believe ever since the massive pay cuts of 2014-15.

The reason? Uber's fear of AB5 and NYC types of laws.

Uber knows that the Bernie Sanders types would be screaming bloody murder about "profiteering on the backs of drivers" if it was revealed that Uber was making making money on our rides. So Uber has chosen to act broke.

For years it's been to Uber's enormous benefit for the public and especially the govt to believe that Uber loses money on the rides. Afterall, how can you pressure Uber to raise driver pay when they're already losing money on the rides.

To this day Uber has never provided a shred of evidence that they're losing money in North America. Not a single shred.

Uber refuses to show a breakdown of their finances by country.


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## observer (Dec 11, 2014)

Nats121 said:


> https://techcrunch.com/2016/02/18/u...ys-company-is-profitable-in-u-s/?guccounter=1
> Ever once in a great while the bigwigs at Uber let the truth slip out. Dara has made the same basic comment about Uber turning a profit.
> 
> Your comment is exactly what the slimebags at Uber HQ have wanted the "suckers" to believe ever since the massive pay cuts of 2014-15.
> ...


And now, Massachusetts.

https://www.google.com/amp/s/www.wired.com/story/massachusetts-launches-uber-lyft-legal-headache/amp


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## The Gift of Fish (Mar 17, 2017)

observer said:


> And now, Massachusetts.
> 
> https://www.google.com/amp/s/www.wired.com/story/massachusetts-launches-uber-lyft-legal-headache/amp


Oops!


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## Seamus (Jun 21, 2018)

Nats121 said:


> https://techcrunch.com/2016/02/18/u...ys-company-is-profitable-in-u-s/?guccounter=1
> Ever once in a great while the bigwigs at Uber let the truth slip out. Dara has made the same basic comment about Uber turning a profit.
> 
> Your comment is exactly what the slimebags at Uber HQ have wanted the "suckers" to believe ever since the massive pay cuts of 2014-15.
> ...


Your article is from 2016.

Prior to going public, who knows anything financially for sure. As a privately held company they were not required to publicly disclose key financial information so your guess is as good as anybody's.

May 2019 changed everything however (IPO). Now since they are a Publicly traded corp they can no longer spin financial data, and must file required information. Now for the first time it isn't a mystery.

Since becoming a publicly traded company Uber has posted losses in the Billions every quarter. Also telling, their valuation/market cap has dropped approx *30 BLLION* dollars in a year. Uber sucks the cash out of investors and flushes it down a giant toilet. With verifiable, legally disclosed financials I have no idea how you can logically think they are secretly profitable.


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## ANT 7 (Oct 14, 2018)

This confirms what I though in my other thread. Since I've been back I'm doing less revenue per trip than I used to.


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## mikes424 (May 22, 2016)

Young Kim said:


> This article came out yesterday suggesting Uber/Lyft are cutting fares again. Could this happen in your next of the woods? At .60 a mile here in Chicago (after Uber's cut), I feel we are already kinda skimming the bare bones where we can be profitable. If they slash fare rates again... oh boy. I recall in the taxi industry it was fixed rate in Chicago and the fares always crept up, as cabdrivers and their unions always seemed to push City Hall to raise fares. With Uber/Lyft, they can slash rates anytime, to get more riders.


Yes, in Chicago the city sets taxi rates. There is no reason the city cannot enact an ordinance to set Uber/Lyft rates. Contact your alderman and ask him or her to propose an ordinance to set rates and maximum commission Uber/Lyft can take.


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## K-pax (Oct 29, 2016)

Uberguyken said:


> The minute it drops below $.58 cents it's a wrap for me....


Yikes! In our market, Tacoma has (roughly) $1 a mile, and a lot of drivers avoid it. Why would you even bother if they're basically paying you the IRS rate for depreciation and operating expenses on your vehicle?


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## Young Kim (Jan 28, 2015)

K-pax said:


> Yikes! In our market, Tacoma has (roughly) $1 a mile, and a lot of drivers avoid it. Why would you even bother if they're basically paying you the IRS rate for depreciation and operating expenses on your vehicle?


Indeed, I remember years back when driving for Niles Flash Cab in Chicago we charged $2.00 per mile for rides in Chicago. We paid out .40 cents to the owner, so we would still net $1.60 per mile. Rates 2 and 3 for longer rides were $2.50 a mile to $3.00 a mile. Especially when Uber asks us to drive 10 minutes for a pickup for a 3 minute ride (I avoid those), that feels like getting thrown a nickel or dime per mile.


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## Stevie The magic Unicorn (Apr 3, 2018)

Uberguyken said:


> The minute it drops below $.58 cents it's a wrap for me....


For me it was 65c


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## Young Kim (Jan 28, 2015)

Stevie The magic Unicorn said:


> For me it was 65c


Indeed my friend. I get annoyed when the app tosses me 3 minute rides that show the pickup is like 12 minutes away. Those usually come in the early early morning, usually in the suburbs or in poor areas of the city. Does the company think we are all brain dead? Driving 12 minutes for a 3 minute ride... that is 15 minutes total driving for a likely 1.5 mile distance getting probably just over $3.00. So you drive maybe 7.5 miles for $3.00. I'm a bit tired, but I think the math works out to _about .40 cents a mile_. So in all estimation, when you consider gas and depreciation, you are paying Uber at a loss to drive the passenger.


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