# What you rates should be!



## pengduck (Sep 26, 2014)

Ok so I have done a little research and have come to the conclusion that the Uber rates should be as prescribed below. Assuming that Akron is on the money with their rates the following should occur.
Based on the cost of living index for Raleigh-Durham our rates should be as follows for Uber X:
COLI Actual
Base - $1.96 Base - $1.55
Minute - $0.29 Minute - $0.20
Mile - $1.37 Mile - $1.20
Minimum - $5.00 Minimum - $4.00
Cancellation - $5.00 Cancellation - $5.00
However I believe that the minimum should not be the fare rather the minimum you can net. I also believe that the cancellation fee should be a minimum of$10 no matter what your COLI. This would discourage people from using Uber and then looking for another way home or where ever they are going. I will list just a few of the big cities below with the multiplier for you to compare your city. You need to multiply this number times the Akron, OH rates.
Atlanta - .956
Baltimore - 1.194
Bethesda, MD - 1.305
Chapel Hill - 1.13
Charleston, WV - .927
Boston - 1.325
Charlotte - .932
Cincinnati - .938
Dallas - .919
Denver - 1.032
Detroit -.994
Honolulu - 1.657
Houston - .922
Los Angeles - 1.364
Miami - 1.06
Nashville - .889
Brooklyn - 1.817
Manhattan - 2.167
Queens - 1.59
Newark - 1.297
Orange County - 1.464
Philadelphia - 1.265
Phoenix - 1.007
Pittsburgh - .915
Richmond - 1.045
Sacramento - 1.162
San Francisco - 1.64
DC - 1.401
Seattle - 1.214
Don't see your city listed? Google cost of living index for selected U.S. cities.


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## Worcester Sauce (Aug 20, 2014)

pengduck said:


> Ok so I have done a little research and have come to the conclusion that the Uber rates should be as prescribed below. Assuming that Akron is on the money with their rates the following should occur.
> Based on the cost of living index for Raleigh-Durham our rates should be as follows for Uber X:
> COLI Actual
> Base - $1.96 Base - $1.55
> ...


...your "research, conclusion and assumption" are so profoundly flawed, that I do not know where to begin...so I won't. I'll move on to a post more worthy of contemplation and comment....


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## pengduck (Sep 26, 2014)

Worcester Sauce said:


> ...your "research, conclusion and assumption" are so profoundly flawed, that I do not know where to begin...so I won't. I'll move on to a post more worthy of contemplation and comment....


I am just trying to show there is a more logical way for the rates to be done other worrying about what Lyft does. Also the need to modify the rates based on the COLI for each city in order for the drivers to earn a living wage.


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## Sly (Aug 30, 2014)

The logical rates for setting rates is the highest profitability where quantity of customer matched up with cost per ride, and number of available drivers at that price meet in the middle of the supply/demand curve.


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## elelegido (Sep 24, 2014)

Sly said:


> The logical rates for setting rates is the highest profitability where quantity of customer matched up with cost per ride, and number of available drivers at that price meet in the middle of the supply/demand curve.


Say what?!

Revenue is maximized when price elasticity of demand = 1.

Profitability may or may not be maximized at this equilibrium point, depending on cost structure.


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## pengduck (Sep 26, 2014)

Sly said:


> The logical rates for setting rates is the highest profitability where quantity of customer matched up with cost per ride, and number of available drivers at that price meet in the middle of the supply/demand curve.


That requires Uber to be logical. Haven't you noticed there will be good demand so Uber lowers the rates.


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## Sly (Aug 30, 2014)

pengduck said:


> That requires Uber to be logical. Haven't you noticed there will be good demand so Uber lowers the rates.


I wouldn't call this good demand compared to the number of available drivers.


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## elelegido (Sep 24, 2014)

pengduck said:


> Ok so I have done a little research and have come to the conclusion that the Uber rates should be as prescribed below. Assuming that Akron is on the money with their rates the following should occur.
> Based on the cost of living index for Raleigh-Durham our rates should be as follows for Uber X:
> COLI Actual
> Base - $1.96 Base - $1.55
> ...


All the coli means is how much typical living expenses in each location will cost in comparison with a base location. Or, put another way, how much more/less you would have to earn in each location in order for your general living expenses remain at the same proportion to your income.

This may be used by Uber in predicting impact on driver supply levels in each city, but I think it would be very far down their list of pricing criteria.


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## pengduck (Sep 26, 2014)

Sly said:


> I wouldn't call this good demand compared to the number of available drivers.


The demand is not for us it is for their wallet!


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## Worcester Sauce (Aug 20, 2014)

pengduck said:


> The demand is not for us it is for their wallet!


Are you guys starting a special ed class?? You are talking gibberish.


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## Orlando_Driver (Jul 14, 2014)

Sly said:


> The logical rates for setting rates is the highest profitability where quantity of customer matched up with cost per ride, and number of available drivers at that price meet in the middle of the supply/demand curve.


Listen to a Sly, he won the Nobel Peace Prize in Economics today !


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## CONDIA (Sep 14, 2014)

We knew it was coming sooner or later.

*LOWER PRICES NOW, soon: FREE!*

The Rhode Island new rates, effective *Friday, october 17*, are as follows:

Base: $1.50 was 1.75
Per mile: $1.20 was 2.00
Per minute: $0.20 was 0.23
Minimum trip: $5.00
Cancellation fee: $10.00

The new prices will continue to grow the rider base and ensure that soon UBER will be the best way to get a FREE ride in Rhode Island.


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## Orlando_Driver (Jul 14, 2014)

At least they gave you advance notice...


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## maxuber (Oct 20, 2014)

I'm surprised more drivers dont switch to Sidecar. You can make your own rates and determine when your "surge pricing" occurs. Drivers could agree on what they should charge for what type of service they are providing (level of luxury). I think if more drivers switch to Sidecar so will the passengers.


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## UberLuxbod (Sep 2, 2014)

I am glad in the UK we are allowed to vote with our feet.

Seems a shame that people in the US are not permitted to work elsewhere bit instead have to start yet another thread about rates.

If you are unable to make money at the rates charged either leave or get a vehicle whose running costs allow profitability.

To be brutally honest the only vehicle to use for UberX is a Prius or Insight.

Anybody using big petrol engined vehicles for low end Private Hire work needs their head read.


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## OldTownSean (Aug 14, 2014)

Worcester Sauce said:


> ...your "research, conclusion and assumption" are so profoundly flawed, that I do not know where to begin...so I won't. I'll move on to a post more worthy of contemplation and comment....


I will give him an A for effort. It looks like he put a ton of thought into this drivel.

Just need to refocus that effort elsewhere, this is useless.


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## OldTownSean (Aug 14, 2014)

UberLuxbod said:


> I am glad in the UK we are allowed to vote with our feet.
> 
> Seems a shame that people in the US are not permitted to work elsewhere bit instead have to start yet another thread about rates.
> 
> ...


What you save in gas driving a prius will all be lost when you a hit hard by a truck ... and I don't mean an 18 wheeler, just a standard Ford or Chevy will put you in the icu or grave. 
I hate spending more on gas, but driving so much the odds eventually stack against you and someone is going to park a large vehicle on your face 

I will gladly drive a prius once it is the largest vehicle on the road or at least close.


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## DriverJ (Sep 1, 2014)

CONDIA said:


> We knew it was coming sooner or later.
> 
> *LOWER PRICES NOW, soon: FREE!*
> 
> ...


Wow, your old rates look like you could actually make some money, if you had enough rides that is. Guess Uber wasn't having none of that crap.


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## scrurbscrud (Sep 11, 2014)

Sly said:


> The logical rates for setting rates is the highest profitability where quantity of customer matched up with cost per ride, and number of available drivers at that price meet in the middle of the supply/demand curve.


Probably the most intelligent blurb I've seen in awhile.


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## scrurbscrud (Sep 11, 2014)

If drivers really were 'independent contractors' they would have an app where each driver would set his own terms.

Very simple. And it's also how the majority of 'independent contractors' work. 

If you don't like what the customer pays, then don't work.

The only redeeming value in Uber's system is surge pricing, which 'tends' to make up for all the other times we are just turning our wheels for overhead.

Every driver *****es about the low everyday fares and nobody *****es when there is surge pricing. 

It tends to balance things out in the end.


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## DriverJ (Sep 1, 2014)

scrurbscrud said:


> If drivers really were 'independent contractors' they would have an app where each driver would set his own terms.
> 
> Very simple. And it's also how the majority of 'independent contractors' work.
> 
> ...


Never had any surge here, but Uber has balanced me out. Now I have a chip on both shoulders.


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