# Faster and Cheaper: How Ride-Sourcing Fills A Gap...



## Michael - Cleveland (Jan 1, 2015)

*Faster and Cheaper: *
*How Ride-Sourcing Fills a Gap in Low-Income Los Angeles Neighborhoods*
http://botecanalysis.com/wp-content/uploads/2015/07/LATS-Final-Report.pdf

Full Published Report linked

*Executive Summary:*
Ride-sourcing services such as Uber and Lyft have created unprecedented competition for the taxi industry and sparked intense debate between detractors and proponents of the new services. To date, the arguments have been based on emotion and self-interest rather than evidence. Funded by Uber Technologies, Inc., BOTEC designed and ran a rigorously controlled study in order to generate actual data as to the relative performance of taxis vs. UberX rides in low-income Los Angeles neighborhoods. The findings demonstrate that compared to taxis, Uber is faster and cheaper by a large measure. Data collected in this study shows that an app-summoned UberX ride arrives in less than half the time of a telephone-dispatched taxi and costs less than half as much, even during periods of "surge pricing." UberX was also more reliable, with no wait time exceeding 30 minutes.​
This research was funded by Uber Technologies. The funder had no influence or editorial control on the creation of this report. The study and statistical methodology were designed and approved by a research group consisting of Rosanna Smart, Brad Rowe, Dr. Angela Hawken, Nate Mladenovic, Peter Gehred, Clarissa Manning, Sam Hampsher, Marlon Graf and Dr. Mark Kleiman. The project was directed by Brad Rowe and managed by Nate Mladenovic with significant assistance by Sam Hampsher. Rosanna Smart served as Lead Data Analyst and Co-Principal Investigator. Madeline Brozen of UCLA's Lewis Transportation Center deserves thanks for her early analytical assistance.

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21 Jul 2015 - New York Magazine article examining the study:
*Should You Trust Uber's Big New Uber vs. Cabs Study?*
http://nymag.com/scienceofus/2015/07/should-you-trust-ubers-big-new-study.html
...
The results were not good for taxi companies. On average, the researchers found that "a taxi takes two to three times longer to arrive than an UberX," while costing twice as much. The initial study was conducted over the course of a day, but the researchers followed up over the next three with so-called validation studies, this time not informing Uber which neighborhoods they'd be operating in to cut the chance that the company would, say, have extra drivers waiting in the suddenly "hot" regions of the experiment to reduce wait times. The results were similar.​


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## Another Uber Driver (May 27, 2015)

Funded by one of the contenders, done somewhere that not too many cab drivers ever have worked.........HMMMMMM.

On another note, however, while *Curb* (formerly Taxi Magic) is not too popular an e-Hail application in many places where it operates, according to what people are telling me, in South Chicago, everyone loves it. The people there, for years, complained that they could not get cabs. *Curb* (then called "Taxi Magic") brought the taxis to the people there. 
*Curb* does not work with individuals drivers; fleets only. I have heard from a number of Chicago residents about *Curb*, but have yet to hear from a Chicago driver about it.

There is an application that is launching in New York City, this week, called *Arro*. It is supposed to come to Washington, at some point.

Another point worth considering is that for people in the less wealthy neighbourhoods (here called "underserved areas"), it is likely that price is the major object. UberX's most loyal customers are those for whom price is the major, if not only object.

I worked as a dispatcher for a cab company that did most of its call business in the "underserved areas". Further, I am aware of how other companies who worked the "underserved areas" operated. Thus, I can state with authority there is a demand for transportation there other than the bus or subway. This brings up the point of surge pricing. I would be curious to know if the Uber-sponsored "study" addressed the matter of surge pricing. If there is a large demand and few drivers (it is not only cab drivers who shy from working the "underserved areas"--read some of the posts on this forum), surges are inevitable. At that point, the major advantage of UberX to that market would at best, diminish; at worst, disappear.


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## Michael - Cleveland (Jan 1, 2015)

Another Uber Driver said:


> Funded by one of the contenders, done somewhere that not too many cab drivers ever have worked.........HMMMMMM.


Yup... everyone should raise an eyebrow at that - as both you and I have...
but,
Read the report and the article... and THEN say "Hmmmmm".


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## Michael - Cleveland (Jan 1, 2015)

Another Uber Driver said:


> If there is a large demand and few drivers (it is not only cab drivers who shy from working the "underserved areas"--read some of the posts on this forum), surges are inevitable. At that point, the major advantage of UberX to that market would at best, diminish; at worst, disappear.


I do not understand why you are evaluating (questioning?) the affordability of a private transportation service in any given area, specifically "underserved areas" - by which I think you mean "poor" areas (since many wealthy areas - are also 'underserved' due to their distant locations and low population).

PUBLIC transportation systems - and Public-Private cooperative services may (by rules and regulations) be obligated to serve poor areas.
Ride-Sourcing companies thus far are not.
They are private.
They are under no obligation to serve any area
(and are fighting tooth-and-nail to be able to operate where they do now).

The fact that Ride-Sourcing apparently (at least in poorer, 'underserved' areas in LA) provides transportation services that are "cheaper and faster" than existing [private-public] taxi service is a boon to those areas by virtue of the fact that it provides a transportation option that did not exist prior to the introduction of those private services.

Not everyone can afford a cab... 
not everyone can afford an "Uber". 
Are you suggesting that because some people can't afford the cost of an Uber that somehow takes away from the value the service is bringing to those underserved areas? If so, with taxis being twice the cost of an Uber (in the study cited), wouldn't your observation apply doubly to cabs as well?

As to 'surge' pricing... at least according to this study, even a 2x surge would be no more expensive than a cab...
and still provide service in half the time.


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## TwoFiddyMile (Mar 13, 2015)

In 18 years, I've done several tons of ghetto pickups and dropoffs.
A lot of what is at stake from a taxi standpoint is GETTING PAID.
Back in the day, when downtown Boston was dead, I'd go south of Mass Ave.
Plenty of flaggers. Problem is, if I relied on my suburban sensibilities, I'd get paid half the time.
"Company wants money in advance after (name the last top of the hour)". THIS worked- half the people would jump out and the other half would pay up front.

From an Uber standpoint, the Corp should fear stolen and spoofed credit and debit cards.
Then there's the danger aspect- most Uber's are too green to know how to work the hood.
Survive a year of night shifts cruising Columbia Rd you probably developed what it takes.


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## TwoFiddyMile (Mar 13, 2015)

Regarding the true under served areas, rural and exurban america, Uber has a true niche. 
My last customer lives in Simi Valley CA. There? Yeah. Barstow? Yeah.
Certain areas are just never going to have many cabs.


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## Michael - Cleveland (Jan 1, 2015)

TwoFiddyMile said:


> Regarding the true under served areas, rural and exurban america, Uber has a true niche.
> My last customer lives in Simi Valley CA. There? Yeah. Barstow? Yeah.
> Certain areas are just never going to have many cabs.


That's a point I think most hacks aren't willing to acknowledge 
(ie: that there IS life outside of NYC, and other major metro areas).
From my perspective (admittedly narrow and self-focused)
it is the uber-low rates for servicing these areas that is most frustrating.


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## Ca$h4 (Aug 12, 2015)

The Rates in LA are: Base 0.00 (yes, nothing), Per Minute o.18 cents, Per Mile 1.00. (Can see Rates on this forum at Resources). At these Rates Uber has no future in LA and the study is a weird kind of joke.


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## TwoFiddyMile (Mar 13, 2015)

The BS you will have to go through to work the hood is often not worth it even at cab rates.
Hint: you WILL be a drug mule.
Good luck with that.


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## Another Uber Driver (May 27, 2015)

Michael - Cleveland said:


> I do not understand why you are evaluating (questioning?) the affordability of a private transportation service in any given area, specifically "underserved areas" -


I am pressing the "HUH?" button on this reply. Obviously, I am missing something (or maybe a few things), but I can not be too sure what it is.

(Reply quote edited for the purposes of brevity, only.)



Michael - Cleveland said:


> Read the report and the article... and THEN say "Hmmmmm".


I did read the article and the report, which explains, partially, at least, why I am posting "Hmmmmmm".


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## Michael - Cleveland (Jan 1, 2015)

Ca$h4 said:


> The Rates in LA are: Base 0.00 (yes, nothing), Per Minute o.18 cents, Per Mile 1.00. (Can see Rates on this forum at Resources). At these Rates Uber has no future in LA and the study is a weird kind of joke.


It's impossible for me to imagine why anyone would drive UberX in LA unless they were using their parent's car and gas.


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## Michael - Cleveland (Jan 1, 2015)

TwoFiddyMile said:


> The BS you will have to go through to work the hood is often not worth it even at cab rates.


Does anyone "work the hood"?
I know the only time I end up in those parts of town are when I get nabbed by a 'ping' while trying to skirt by without one (damn - knew I should have turned the app off)... or I happen to be in a decent part of town, but am the closest driver to the request. Unless I get a bad vibe about something either on the way or when I arrive, I fulfill the request. It's usually just like any other ride... someone heading out to a club or over to a friend's house - or going home. But yes, there are SOME sections of town even I will not go in to for a pick-up.


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## Ca$h4 (Aug 12, 2015)

Hey, twofiddy, does uber have a place to buy a bullet proof windshield? You know those late night hours with surge when you pull up to the nightclub and wait. all of a sudden, pop-pop, pop-pop-pop. Everyone running past your car and your heading toward pop-pop. Better call and tell the passenger you'll be a few blocks away. And reply. PLEASE WAIT, PLEASE WAIT. Are you going to give me a good tip? Yea, up dog.


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## TwoFiddyMile (Mar 13, 2015)

Ca$h4 said:


> Hey, twofiddy, does uber have a place to buy a bullet proof windshield? You know those late night hours with surge when you pull up to the nightclub and wait. all of a sudden, pop-pop, pop-pop-pop. Everyone running past your car and your heading toward pop-pop. Better call and tell the passenger you'll be a few blocks away. And reply. PLEASE WAIT, PLEASE WAIT. Are you going to give me a good tip? Yea, up dog.


Get your nomenclature straight- it's "bullet resistant partition". This separates the pax from you.
The larger the caliber of the bullet, the more likely the Lexan brand plexiglass will stop the bullet cold.
Bullet proof windshield? Now you just dreamin, fool.
And michael, don't know about Uber, but cab companies and drivers spring up around ghettos all over america. I drove ITOA in Boston around 5 years of.my life.
The Departed? The Town?
No thanks.
Lived it.


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## Ca$h4 (Aug 12, 2015)

The so-called study compares uberx to taxis in low income neighborhoods in LA. The study doesn't mention extreme low rates of uberx in LA, so the comparison is false since uberx driver would go bankrupt at those low low rates. Low income neighborhoods have frequent gunfire during late night weekends when surge is likely, therefore, bullet proof windshields is what i meant, not inside car partitions. I didn't make that clear enough in post.


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## TwoFiddyMile (Mar 13, 2015)

Ca$h4 said:


> The so-called study compares uberx to taxis in low income neighborhoods in LA. The study doesn't mention extreme low rates of uberx in LA, so the comparison is false since uberx driver would go bankrupt at those low low rates. Low income neighborhoods have frequent gunfire during late night weekends when surge is likely, therefore, bullet proof windshields is what i meant, not inside car partitions. I didn't make that clear enough in post.


No pro driver has bullet proof windshields.
Stuffs too expensive for our tax bracket
Biggest danger is drug runs anyways.


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## Ca$h4 (Aug 12, 2015)

i agree. But it's creepy a few people die each year with objects coming through the windshield.


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