# Profit cut for Uber



## UberXWhip (Aug 17, 2014)

Uber gets 20% of the total take on ride, if the prices go down, their cut goes down with it. Could there be some method to the madness here we are not seeing? Is it possible this could somehow turn out to be beneficial for drivers in the end?

Just a thought...


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## kalo (Jun 28, 2014)

UberXWhip said:


> Is it possible this could somehow turn out to be beneficial for drivers in the end?
> Just a thought...


Ridiculous thought.


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## LisaB (Jul 20, 2014)

UberXWhip said:


> Uber gets 20% of the total take on ride, if the prices go down, their cut goes down with it. Could there be some method to the madness here we are not seeing? Is it possible this could somehow turn out to be beneficial for drivers in the end?
> 
> Just a thought...


uber loves and wants drivers like you!


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## UberXWhip (Aug 17, 2014)

What if, just _what if,_ the new fares stuck but as soon as you dropped off, you were getting pinged _close by_ 30 seconds later, all day, every day...that would move the needle for me.


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## Jeff212 (Aug 1, 2014)

They don't mind the small cut of their 20% because if they get increased volume it does not cost them a whole lot! it is you the driver that has to spend more fuel, time, and wear and tear on vehicle.... Their computer does their work....


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## Jeff212 (Aug 1, 2014)

Sit i


UberXWhip said:


> What if, just _what if,_ the new fares stuck but as soon as you dropped off, you were getting pinged _close by_ 30 seconds later, all day, every day...that would move the needle for me.


n down town Santa Monica, you get the pings already.... You can only run so many fares an hour....


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## KrisThuy (Aug 6, 2014)

UberXWhip said:


> What if, just _what if,_ the new fares stuck but as soon as you dropped off, you were getting pinged _close by_ 30 seconds later, all day, every day...that would move the needle for me.


right the more trips u do the more $$ safe ride fee uber piles up and go smilling their arse for making them rich


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## BeachBum (Aug 6, 2014)

UberXWhip said:


> Is it possible this could somehow turn out to be beneficial for drivers in the end?


If Uber cuts prices by half and gets three times as many riders, they win big. Yes, the drivers do end up getting it in the end... the hind end.


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## KrisThuy (Aug 6, 2014)

how can anyone compare a

1.25 per mile vs 1.10 per mile
and then goes to say ull earn more

ur calculator is broken broda
or change the battery


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## BeachBum (Aug 6, 2014)

Jeff212 said:


> Sit in down town Santa Monica, you get the pings already.... You can only run so many fares an hour....


And there's the rub. I rolled 3 hours solid Saturday night, ping to ping. Made 50 bucks gross. All Uber, no tips.


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## UberXWhip (Aug 17, 2014)

BeachBum said:


> If Uber cuts prices by half and gets three times as many riders, they win big. Yes, the drivers do end up getting it in the end... the hind end.


Sure, BeachBum, but how long will a new driver stay on the system when he realizes after his 1st day driving for UX is not profitable?

I for one, had no idea what Uber's deal was before I gave my first ride, all I knew is that I supposedly could make extra cash. I applied, got approved, and they bugged me every single day for a month to request my iPhone, I ignored all their texts and emails, I just wasn't that optimistic about it even after uploading all my docs. All of sudden one day I get a FedEx tracking number in my email sent from Uber Technologies, the phone shipped to me without me ever requesting it. Got the phone and started trying it out after work, one ride at a time. I'd go home, sit on the couch and wait for a ping. I told myself if I don't make anything on the first few rides, the phone was going back. It was profitable, and kind of fun.

My point is, if I didn't make any money on my 1st or 2nd ride I would have figured it out right then and there and quit. I'd think anyone out there would do the same. Uber can't operate turning drivers every day or two. This is why I'm very _cautiously _optimistic that there might be a bigger plan we aren't seeing or that is being kept secret.


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## BeachBum (Aug 6, 2014)

UberXWhip said:


> Sure, BeachBum, but how long will a new driver stay on the system when he realizes after his 1st day driving for UX is not profitable?


UberXWhip, do us all a favor and add your location to your profile so we know a bit about your market. To answer your question, "profitable" is in the eye of the beholder. A bored Navy wife here in VB might be totally happy tethered to the phone all day and netting $2/hr. On the other hand, someone supporting a family may require $15 to $20/hr. Obviously this would be a just a hobby for the Navy wife, while the other guy is trying to make a living. Uber is hoping to sign up a whole lot of Navy wives.


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## UberXWhip (Aug 17, 2014)

BeachBum said:


> UberXWhip, do us all a favor and add your location to your profile so we know a bit about your market. To answer your question, "profitable" is in the eye of the beholder. A bored Navy wife here in VB might be totally happy tethered to the phone all day and netting $2/hr. On the other hand, someone supporting a family may require $15 to $20/hr. Obviously this would be a just a hobby for the Navy wife, while the other guy is trying to make a living. Uber is hoping to sign up a whole lot of Navy wives.


#1 I don't think anyone would drive for Uber for $2 an hour, no matter what the situation, and #2, I'm sure a housewife could find a better hobby than picking up drunk strangers and driving in circles.

If it does you* all *a favor as you say (even though I've blatantly volunteered that information in some of my previous posts), I'm in the Orange County, CA market.


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## BeachBum (Aug 6, 2014)

UberXWhip said:


> If it does you* all *a favor as you say (even though I've blatantly volunteered that information in some of my previous posts), I'm in the Orange County, CA market.


Why not just put it in your profile so we don't have to dig for it, are you on a secret mission? The OC market is a lot different from my market.


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## BeachBum (Aug 6, 2014)

UberXWhip said:


> #1 I don't think anyone would drive for Uber for $2 an hour, no matter what the situation, and #2, I'm sure a housewife could find a better hobby than picking up drunk strangers and driving in circles.


I was an independent truck driver and saw drivers take loads at a loss all the time. All they looked at was the gross and didn't consider fuel, insurance and other expenses. It was great for the trucking companies. Trust me, people are driving for Uber every day for a lot less than two bucks an hour. They figure if they net 10 bucks all day, it's ten bucks they didn't have before. And they've got a point.


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## UberXBoston (Aug 13, 2014)

When I'm in the city, I don't take a ping that is more than 5 minutes away (traffic often ruins that). I'd like to say more drivers need to do that but I know it's a tough thing to do if you are not in a large city.


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## BeachBum (Aug 6, 2014)

UberXBoston said:


> When I'm in the city, I don't take a ping that is more than 5 minutes away (traffic often ruins that). I'd like to say more drivers need to do that but I know it's a tough thing to do if you are not in a large city.


That's why I don't drive days anymore, seemed like all the pings were 20 mins away and about half would cancel before you got there. It was a steep learning curve for me .


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## UberPissed (Aug 13, 2014)

Uber's 25% off promotion actually cost the company money. For example, a $20 fare would be discounted to $15. The driver, prior to last week, would get 85%, or $17. Now, the rates are reduced 15%. So the $20 fare is now $17. And uber keeps $3.40. 

They are pure shit I hope their children never learn to read.


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## UberXWhip (Aug 17, 2014)

UberPissed said:


> Uber's 25% off promotion actually cost the company money. For example, a $20 fare would be discounted to $15. The driver, prior to last week, would get 85%, or $17. Now, the rates are reduced 15%. So the $20 fare is now $17. And uber keeps $3.40.
> 
> They are pure shit I hope their children never learn to read.


Yes dude, it's called marketing. Of course it cost them money. I am changing my tune a bit on their strategy the more I engage in the debate. They picked up the tab for that 25% off, pay the drivers full fare promotion. We all raked it in. Now they realize that they can crush the taxis harder and raise more awareness by permanently lowering rates. I am feeling that Uber has a master plan here...it may not be the corporate greed we all our so jaded by with other companies. Let's just wait...


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## Moofish (Jun 13, 2014)

Don't forget, Drivers were still getting paid the 25% summer discount out of Uber's Pocket, so with the promo over and the new price cuts, we make less and Uber makes more.

Example, $20 ride gets us $16 after commission, however, with the 25% summer promo, the $20 ride is $15.00, to cover the discount, Uber is paying us $1 to get the original $16, no profit for Uber.

Now with the new price cut, the $20 ride becomes a $16 ride and we get $12.80 and Uber gets $3.20.

I know there are other variables such as safe rider fees and such, this is just a simple example as to why Uber won't be losing money with the price cuts.


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## UberXWhip (Aug 17, 2014)

Moofish said:


> Don't forget, Drivers were still getting paid the 25% summer discount out of Uber's Pocket, so with the promo over and the new price cuts, we make less and Uber makes more.
> 
> Example, $20 ride gets us $16 after commission, however, with the 25% summer promo, the $20 ride is $15.00, to cover the discount, Uber is paying us $1 to get the original $16, no profit for Uber.
> 
> ...


Right. Uber is not in biz to lose money. They need to make money to continue as a company. Maybe I should revise the thread to say "Finally Uber makes money!"...We aren't reinventing the wheel, we are capitalizing on what Uber has built. The sense of entitlement on this board is getting disgusting (myself included). We are taxi drivers, let's face it. Providing lollipops and driving John Q. Drunk from here to there is not a skill, it's a job. Start thinking about what your* worth* is to this company. A guy/girl with a car that can drive people around town. That's it. You're not curing diseases. Millions of people can do what you do. Lose the entitlement attitude and realize you are replaceable and dime a dozen. Stop thinking you are special. If you don't like it, go work for McD's...I heard they are hiring special people there.


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## UberPissed (Aug 13, 2014)

It seems like uber would have been wise to not do the price structure that they did, which created a negative cash flow the fares are already cheap. 

I'm just baffled why they did 3 changes in price policy all at once - $10 device fee, 15% fare reduction and 5% commission hike. 

Regardless of the end goal, the lack of foresight to see how this impacts the relationships with drivers will be the end of them. I'm only 10 weeks in. During the first 6 weeks.... It was great. I really felt like they wanted you to make as much money as possible and were really your buddy. Now I see they are just ******s. 

Vinegar and water.


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## Oc_DriverX (Apr 29, 2014)

Travis feels that if he can lower the rates enough, then people will forgo buying cars and just use TNC's like Uber. To do this he keeps lowering rates and putting as many drivers as they can contract with on the street. And, the more drivers they can get who don't realize all of the costs to driving, the better for Uber. A driver can only give so many rides in an hour. But if Uber has twice as many cars out in an hour, Uber can get twice as many rides given. We do provide Uber with a hell of a lot of capital in the form of cars. This is capital that Uber does not have to finance or come up with. Uber will keep lowering the rates until drivers stop providing the rides and the capital (the cars). But they are banking that enough suckers will drive even if its only to take equity out of their cars. Some might say its worse than a multi level marketing scheme.


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## LookyLou (Apr 28, 2014)

Uber can make more money while lowering fares. They know because they have the data to back their decisions. As they lower fares the rides are increasing overall faster than rates are decreasing. That is all they care to know. They can truly make it up on volume. As the fares go down they are generating more ride volume to more than offset the fare reductions.

Unfortunately that is not the case for most drivers. As a driver you can only perform a certain number of rides per hour and travel a limited number of miles during that time. For us drivers, our costs go up as we take more rides even if that is possible. For Uber their costs do not go up at all as volume increases. They get paid on every pick up, every minute and every mile no matter how many drivers are out or how many rides they are giving per hour.

Even with the current fares 100s of new drivers are signing up in most major cities every week. The majority of current drivers don't have any idea whether they are making any money or not. They don't understand how to figure their actual operating costs. Them and a high percentage of the new drivers signing up hoping for the $25.00 - $50.00 per hour being advertised will never figure it out. They will end up with a worn out car and be trying to figure out how they can buy a new one to keep their job. By that time the founders and early investors will be rich and gone.

We as members of this forum and all of the drivers that participate in the other forums and groups are a very small percentage of total drivers. We have the advantage of reading and learning from what we read. The biggest percentage of drivers on the road don't participate in these forums and groups. Almost every driver I have run into out on the road actually thinks they are making $15.00 - $40.00 per hour, not knowing what they are actually netting.


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## chi1cabby (May 28, 2014)

UberXWhip said:


> Yes dude, it's called marketing. Of course it cost them money. I am changing my tune a bit on their strategy the more I engage in the debate. They picked up the tab for that 25% off, pay the drivers full fare promotion. We all raked it in. Now they realize that they can crush the taxis harder and raise more awareness by permanently lowering rates. I am feeling that Uber has a master plan here...it may not be the corporate greed we all our so jaded by with other companies. Let's just wait...


UberX rates were already significantly lower than local cab rates in ALL THE MARKETS! In some markets UberX rates were lower than cab rates by more than 40%! (In Chicago cabs charge $1.80/mile, UberX charges $0.90/mile.)
Let me say it plainly: these rate cuts have nothing to do with coherent business strategy! They are they result of a pissing match between Uber CEO @TravisK and Lyft CEO @JohnZimmer. The new UberX rates mirror Lyft rates in every market they operate against each other!

https://uberpeople.net/threads/poll...aign-to-counter-this-race-to-the-bottom.1918/


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## chi1cabby (May 28, 2014)

LookyLou said:


> Uber can make more money while lowering fares. They know because they have the data to back their decisions. As they lower fares the rides are increasing overall faster than rates are decreasing. That is all they care to know. They can truly make it up on volume. As the fares go down they are generating more ride volume to more than offset the fare reductions.
> 
> Unfortunately that is not the case for most drivers. As a driver you can only perform a certain number of rides per hour and travel a limited number of miles during that time. For us drivers, our costs go up as we take more rides even if that is possible. For Uber their costs do not go up at all as volume increases. They get paid on every pick up, every minute and every mile no matter how many drivers are out or how many rides they are giving per hour.
> 
> ...


You are forgetting that $1.00 Safe Rides Fee now goes to Uber. For every ride! *More rides with lower base fare, lower per mile rate and lower per minute rate Means not only top line higher revenue figure for Uber but also higher bottom line profit figure too*!


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## chi1cabby (May 28, 2014)

Oc_DriverX said:


> Travis feels that if he can lower the rates enough, then people will forgo buying cars and just use TNC's like Uber. To do this he keeps lowering rates and putting as many drivers as they can contract with on the street. And, the more drivers they can get who don't realize all of the costs to driving, the better for Uber. A driver can only give so many rides in an hour. But if Uber has twice as many cars out in an hour, Uber can get twice as many rides given. We do provide Uber with a hell of a lot of capital in the form of cars. This is capital that Uber does not have to finance or come up with. Uber will keep lowering the rates until drivers stop providing the rides and the capital (the cars). But they are banking that enough suckers will drive even if its only to take equity out of their cars. Some might say its worse than a multi level marketing scheme.





Oc_DriverX said:


> Travis feels that if he can lower the rates enough, then people will forgo buying cars and just use TNC's like Uber. To do this he keeps lowering rates and putting as many drivers as they can contract with on the street. And, the more drivers they can get who don't realize all of the costs to driving, the better for Uber. A driver can only give so many rides in an hour. But if Uber has twice as many cars out in an hour, Uber can get twice as many rides given. We do provide Uber with a hell of a lot of capital in the form of cars. This is capital that Uber does not have to finance or come up with. Uber will keep lowering the rates until drivers stop providing the rides and the capital (the cars). But they are banking that enough suckers will drive even if its only to take equity out of their cars. Some might say its worse than a multi level marketing scheme.


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