# Uber is experimenting with letting riders wait longer in exchange for cheaper fares



## BurgerTiime (Jun 22, 2015)

https://qz.com/1308173/uber-is-experimenting-with-letting-riders-wait-longer-for-a-cheaper-fare/









Good things come to those who wait for their Uber.

The ride-hailing company has started testing a feature that gives riders the option to trade a shorter wait for a cheaper fare. "Prices are lower at 17:00," Uber recently advised an Uber employee who requested a ride in Berkeley, California, and tweeted a screenshotof the feature.









The image showed the Uber employee that he could request a ride "now" (4:56pm local time) for $10.18, or wait until 5pm and pay $8.15, about 25% less. "If you're OK leaving later, we'll request your ride at 17:00 for a lower price," Uber's app stated. (Update: The tweet was deleted shortly after Quartz published this story.

The option to wait longer in exchange for a cheaper ride is being tested among all Uber employees in San Francisco and Los Angeles, a company spokeswoman told Quartz in an email. "Affordability is a top reason riders choose shared rides, and we're internally experimenting with a way to save money in exchange for a later pickup," she said.

Uber constantly varies its prices, a system known as dynamic pricing. Much like timing the market, attempting to book an Uber at the lowest price can be an ill-fated gamble. Waiting a couple minutes before booking can lead to a price that is either dramatically higher or lower.

The exact science behind Uber's fares has also become more obscure since summer 2016, when the company quietly switched from the old model, where it flagged surge pricing to users, to one in which it quoted them the ride price "upfront" at the time of booking. This "upfront pricing" model allowed Uber to charge the rider one price, and pay the driver based on another. (A 2017 analysis by driver blog The Rideshare Guy showed the math tended to work out in Uber's favor.)

The company has said fluctuations in dynamic prices reflect real-time changes in rider demand, driver availability, and other variable conditions, such as traffic. But the information, as an economist would say, is asymmetric. At any given moment, the driver and rider know far less about the fare-whether it's relatively high, or low, or liable to swing up or down-than Uber does.

Uber has raised prices for riders in some of its largest US markets this year, responding to a tighter labor market, higher gas prices, and widespread frustration among drivers. "We have to make [driving for Uber] more attractive, because the alternatives are becoming more attractive," CEO Dara Khosrowshahi said at a technology conference outside of Los Angeles in late May.

But wary of alienating passengers with higher prices, Uber is also working on several ultra-cheap ride options. These include Express Pool, a version of Uber's shared UberPool that asks the rider to walk to a nearby street corner with the goal of picking up multiple people at once. Uber has poured tons of money into Pool discounts in an effort to get more people to share their rides. Khosrowshahi said at the conference that Uber was spending "hundreds of millions of dollars" on Pool. "A very, very important push for us is to innovate to lower cost," he said.

Offering riders longer wait times in exchange for cheaper fares is another way Uber could keep prices low for the most price-sensitive customers. It's also a strategy that makes a lot of sense. Uber tends to charge more when lots of people in the same area request a ride at the same time ("demand is off the charts!" as the old surge pricing warning went). One function of those higher prices is to attract more drivers to the area, thereby evening out supply and demand.

You can look at the option Uber is testing among employees now as the inverse approach: Instead of charging customers more to get a ride now, when demand is high, Uber tells them they can pay less if they're willing to wait, shifting some of that demand to the future.

Uber declined to provide additional details on the test, for example, how long a rider might be asked to wait and in exchange for what discount. For a company that operates on Uber's scale-4 billion rides across 600 cities in 2017 alone-being able to move little bits of demand, even by just a few minutes, could be a powerful tool for keeping fares low and wait times short.

Uber co-founder and former CEO Travis Kalanick used to talk about how the point of surge pricing was to keep Uber reliable. "Higher prices are required in order to get cars on the road and keep them on the road during the busiest times," he wrote on Facebook in December 2013, after the company had angered users in New York with sky-high surge during a bad snowstorm. "This maximizes the number of trips and minimizes the number of people stranded."

The implicit assumption was that Uber customers wanted a ride as fast as they could get one, whatever it might cost. The system being tested now, on the other hand, acknowledges a different kind of rider-someone for whom saving a little time is less valuable than saving a little money.


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## IthurstwhenIP (Jan 12, 2018)

Conditioning

Express = walk to the bus stop

This = wait for the scheduled bus time

Uber = bus 2.0

less efficient than a bus but driver costs less than unionized bus and maintenance


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## JimKE (Oct 28, 2016)

LOL...look at the prices! You'll be giving them a* one to 1 1/2 hour ride for $8* ...that's $8 to Uber. So you'll get about $4...and 1*...and about four complaints for Navigation, making them late, professionalism, etc.

But at least you get to pick them up in Berkeley! LMFAO.

Man, they must be having some horrific opioid overdoses at Uber HQ these days!


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## Blatherskite (Nov 30, 2016)

I'm wondering if when this cheaper fare trend eventually passes the zero point and drivers start paying riders, will there still be in-app tipping?


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## Working4peanuts (Jan 16, 2018)

JimKE said:


> LOL...look at the prices! You'll be giving them a* one to 1 1/2 hour ride for $8* ...that's $8 to Uber. So you'll get about $4...and 1*...and about four complaints for Navigation, making them late, professionalism, etc.
> 
> But at least you get to pick them up in Berkeley! LMFAO.
> 
> Man, they must be having some horrific opioid overdoses at Uber HQ these days!


If uber can make enough people wait 4 minutes to save $2, they will entice pax to order rides at the same time.

Note that the above fare is a pool ride quote ($8 for an hour eta). The result is guaranteeing that anyone that picks up these clowns will be driving 4 pax at a time in their clown cars and get paid only for one clown only.

Uber will absolutely roll this out sooner than later. Drivers will be flooded with 1 star ratings as a 15 minute trip will turn into an hour trip.

Fuggin hilarious that Uber employees use pool...

The end of uber.


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## heynow321 (Sep 3, 2015)

So ****ing stupid. Drivers will just adjust their behavior


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## FormerTaxiDriver♧ (Apr 5, 2018)

*Too much luggage!*










https://qz.com/wp-content/uploads/2...e1529357339532.jpg?quality=80&strip=all&w=940


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## uberdriverfornow (Jan 10, 2016)

Blatherskite said:


> I'm wondering if when this cheaper fare trend eventually passes the zero point and drivers start paying riders, will there still be in-app tipping?


lol mandatory tipping


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## autofill (Apr 1, 2016)

"*Uber has raised prices for riders in some of its largest US markets this year*, responding to a tighter labor market, higher gas prices, and widespread frustration among drivers. "*We have to make [driving for Uber] more attractive*, because the alternatives are becoming more attractive," *CEO Dara Khosrowshahi said* at a technology conference outside of Los Angeles in late May."

LMAO!


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## Uber's Guber (Oct 22, 2017)

Uber won't cut THEIR share of the pricing. They will only offer the lower fare to the customer when the driver takes the hit.


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## Trump Economics (Jul 29, 2015)

BurgerTiime said:


> https://qz.com/1308173/uber-is-experimenting-with-letting-riders-wait-longer-for-a-cheaper-fare/
> 
> 
> 
> ...


As drivers earn less than minimum-wage 
As drivers live in their cars 
As drivers struggle to eat 
As drivers commit suicide 
As drivers struggle to put gas in their cars 
As Uber already takes 30 to 80% of every fare

... penny pinchers rejoice.

Folks, I'd like to coin a new term: Corporate Sociopath

Your honor, I rest my case.


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## Pulledclear (Oct 31, 2017)

Union


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## REX HAVOC (Jul 4, 2016)

JimKE said:


> LOL...look at the prices! You'll be giving them a* one to 1 1/2 hour ride for $8* ...that's $8 to Uber. So you'll get about $4...and 1*...and about four complaints for Navigation, making them late, professionalism, etc.
> 
> But at least you get to pick them up in Berkeley! LMFAO.
> 
> Man, they must be having some horrific opioid overdoses at Uber HQ these days!


It sounds like Uber management is pressuring this minions to come up with new ideas to make more money and make our lives more miserable.


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## Fuzzyelvis (Dec 7, 2014)

BurgerTiime said:


> https://qz.com/1308173/uber-is-experimenting-with-letting-riders-wait-longer-for-a-cheaper-fare/
> 
> 
> 
> ...


Riders already do this. This is why I refuse to pick up right after a surge ends. If they're cheap let them wait even longer.


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## Uber's Guber (Oct 22, 2017)

Trump Economics said:


> Folks, I'd like to coin a new term: Corporate Sociopath


The term "Corporate Sociopath" has already been coined.
These two (boring) business colleagues discuss their experiences regarding corporate sociopaths.
www *DOT *youtube *DOT *com/watch?v=VntWRXmR9m0


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## FormerTaxiDriver♧ (Apr 5, 2018)

Uber's Guber said:


> The term "Corporate Sociopath" has already been coined.
> These two (boring) business colleagues discuss their experiences regarding corporate sociopaths.


It won't play?


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## Uber's Guber (Oct 22, 2017)

FormerTaxiDriver♧ said:


> It won't play?


They disabled it from playing it on other sites.
The link is www *DOT *youtube *DOT* com/watch?v=VntWRXmR9m0
I'll do an edit to my post.


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## SEAL Team 5 (Dec 19, 2015)

Drivers don't even have to read the article. Just three words in the thread title will be enough of a hint to fully comprehend this article.

*Uber Cheaper Fares*


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## FormerTaxiDriver♧ (Apr 5, 2018)

Uber's Guber said:


> They disabled it from playing it on other sites.
> The link is www *DOT *youtube *DOT* com/watch?v=VntWRXmR9m0
> I'll do an edit to my post.


I found it.


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## FormerTaxiDriver♧ (Apr 5, 2018)

Uber's Guber said:


> The term "Corporate Sociopath" has already been coined.
> These two (boring) business colleagues discuss their experiences regarding corporate sociopaths.
> www *DOT *youtube *DOT *com/watch?v=VntWRXmR9m0


I liked the video. How did Dara K. get through the feedback driven culture of glassdoor reviews?


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## ÜberKraut (Jan 12, 2018)




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## touberornottouber (Aug 12, 2016)

So what will happen is that the passengers will take the 5 minute delay for 25% off and then give the drivers hell and try to make us speed and run through red lights to get them there on time. Of course we will get nothing extra for it or even less as Uber takes the 25% off out of our pay.

I do get how in theory this could help spread out rides. For instance between 8:35-8:50am you get all sorts of people trying to get to work by 9:00am. Of course these are all almost always short runs (otherwise they'd be late). So I guess in theory those not havign to be there by 9am could wait to get the ride at 9:05a and this could help spread the rides out. The problem is Uber doesn't seem to give a crap about the driver anymore and always does things in a way which takes advantage of us. For instance if someone elects this option they should absolutely not be able to report us for "making them late".


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## SuperuberSFL (Oct 16, 2016)

JimKE said:


> LOL...look at the prices! You'll be giving them a* one to 1 1/2 hour ride for $8* ...that's $8 to Uber. So you'll get about $4...and 1*...and about four complaints for Navigation, making them late, professionalism, etc.
> 
> But at least you get to pick them up in Berkeley! LMFAO.
> 
> Man, they must be having some horrific opioid overdoses at Uber HQ these days!


They are total morons, and the destruction is and will be self inflicted.
They have managed to totally screw up a fantastic concept where most people were willing to pay for a solid ride in a private vehicle, sort of a traditional car service on demand, for a mere cab fare.
And look at where we are today - hauling people that belong on a bus for a bus fare - except they are in private vehicles and "entitled " on top of that.
Real efin geniuses !!!


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## Trump Economics (Jul 29, 2015)

autofill said:


> "*Uber has raised prices for riders in some of its largest US markets this year*, responding to a tighter labor market, higher gas prices, and widespread frustration among drivers. "*We have to make [driving for Uber] more attractive*, because the alternatives are becoming more attractive," *CEO Dara Khosrowshahi said* at a technology conference outside of Los Angeles in late May."
> 
> LMAO!


I don't know Dara, but me makes me sad for this world. No one ever said running a criminal enterprise would be easy, but this guy takes SLIME to an entirely different level.

This isn't just PR anymore, he's literally saying one thing about being there for drivers (does a video of him driving for Uber, etc.), and then does the complete opposite.

No, Uber pay hasn't gotten better or more attractive, it's gotten worse.

Fact: you are making less money than you were under Travis Kalanick because Uber is now taking a greater share of your commission in pursuit of a 2019 IPO, and Dara gets millions if the company goes public ahead of schedule.

This guy is in it for himself. Period.

Uber. Lyft. You're giving human excrement a bad name.


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## Logistics12 (Jun 22, 2018)

Blatherskite said:


> I'm wondering if when this cheaper fare trend eventually passes the zero point and drivers start paying riders, will there still be in-app tipping?


Yes, right after you rate the passenger, you'll be given a choice of suggested tips that goes to Uber for continued access to the app. Once you give a tip, you'll be prompted to take a selfie to verify you stupidity- I mean, identity, in order to log back in. Once you're logged back in, you'll be given the opportunity to watch a video, certifying you to be able to do UberEATS so you can earn pennies on the dollar and "eat" all of the risks involved plus, dwindle your time and energy. Only then will you be allowed to go back online... after you submit to a background check for the 2nd time in 3 months.



SuperuberSFL said:


> They are total morons, and the destruction is and will be self inflicted.
> They have managed to totally screw up a fantastic concept where most people were willing to pay for a solid ride in a private vehicle, sort of a traditional car service on demand, for a mere cab fare.
> And look at where we are today - hauling people that belong on a bus for a bus fare - except they are in private vehicles and "entitled " on top of that.
> Real efin geniuses !!!


Must remember to get an aluminum foil helmet. You've been stealing my thoughts!


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## Logistics12 (Jun 22, 2018)

Trump Economics said:


> I don't know Dara, but me makes me sad for this world. No one ever said running a criminal enterprise would be easy, but this guy takes SLIME to an entirely different level.
> 
> This isn't just PR anymore, he's literally saying one thing about being there for drivers (does a video of him driving for Uber, etc.), and then does the complete opposite.
> 
> ...


Thing is, the people Uber hires doesn't have the intelligence to be insulted by their hiring decision. Let's not even discuss the unwitting (insert eye-roll here) drivers Uber uses as PR fodder. I had the displeasure of meeting one of the drivers they selected and sent on a trip to Asia. That was the most uncomfortable ride I've ever taken as a rideshare PAX. Her elevator didn't go to the top floor and she was so far up Uber's stairwell, she couldn't tell that the Uber Express PAX we were supposed to be picking up was scamming her. She didn't believe it until I staryed asking him questions and he finally fessed up.


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## rex jones (Jun 6, 2017)

SuperuberSFL said:


> They are total morons, and the destruction is and will be self inflicted.
> They have managed to totally screw up a fantastic concept where most people were willing to pay for a solid ride in a private vehicle, sort of a traditional car service on demand, for a mere cab fare.
> And look at where we are today - hauling people that belong on a bus for a bus fare - except they are in private vehicles and "entitled " on top of that.
> Real efin geniuses !!!


It is just how large companies think. They are trying to rake in everyone.


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## NorCalPhil (Aug 19, 2016)

JimKE said:


> LOL...look at the prices! You'll be giving them a* one to 1 1/2 hour ride for $8* ...that's $8 to Uber. So you'll get about $4...and 1*...and about four complaints for Navigation, making them late, professionalism, etc.
> 
> But at least you get to pick them up in Berkeley! LMFAO.
> 
> Man, they must be having some horrific opioid overdoses at Uber HQ these days!


Who cares? Uber pays drivers distance + time regardless of what the pax pays. If uber wants to give them a subsidized ride, go ahead. From a drivers perspective it doesn't matter unless they lower rates or suppress surge - neither things a driver can control aside from not driving.

It won't mean beans to those of you anting around at base rates. For the others trying to only drive when its profitable, the timeline is shrinking.


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## 404NofFound (Jun 13, 2018)

What if it is surging at that time because everyone waited?


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