# Rideshare pricing themselves out of business?



## Beninmankato

I'm reading a lot of tweets from people disgusted with their fare quotes. I agree with them. How many people will quit using these services? Once you lose a customer it's very difficult to bring them back. I feel like these companies are going backwards at an accelerated rate. It's hurting our tips, our rapport with clients, and our future potential.


----------



## Seamus

Beninmankato said:


> I'm reading a lot of tweets from people disgusted with their fare quotes. I agree with them. How many people will quit using these services? Once you lose a customer it's very difficult to bring them back. I feel like these companies are going backwards at an accelerated rate. It's hurting our tips, our rapport with clients, and our future potential.


Only because Uber and Lyft devalued the product and made people believe they could get cheap rides. That worked great for pax but drivers make 1972 Taxi rates and U/L can't make a profit. The blame for devaluing the product lies squarely with them.

In my market, prior to U/L it cost $175 to go to an airport with a taxi or limo. In Uber and Lyft's race to the bottom they convinced people they only had to pay $55 to $60 and the driver is lucky to get $30-$35. Not worth the time and mileage on your car. When people were paying $90 with U/L and the driver was getting 60 everyone was happy they were saving money. So of course anything north of $60 now is an "outrage" because they forget they used to pay $175.


----------



## 25rides7daysaweek

Beninmankato said:


> I'm reading a lot of tweets from people disgusted with their fare quotes. I agree with them. How many people will quit using these services? Once you lose a customer it's very difficult to bring them back. I feel like these companies are going backwards at an accelerated rate. It's hurting our tips, our rapport with clients, and our future potential.


Nobody is ever going to quit using rideshare
People are generationally hooked
The only question is who will be running things when our kids kids use autonomous cars...


----------



## Mole

25rides7daysaweek said:


> Nobody is ever going to quit using rideshare
> People are generationally hooked
> The only question is who will be running things when our kids kids use autonomous cars...


My money is on Tesla.


----------



## UberBastid

Beninmankato said:


> I'm reading a lot of tweets from people disgusted with their fare quotes. I agree with them. How many people will quit using these services? Once you lose a customer it's very difficult to bring them back. I feel like these companies are going backwards at an accelerated rate. It's hurting our tips, our rapport with clients, and our future potential.


You right.
Uber needs to lower the rates again - so we can make MORE.


----------



## SHalester

they just need to be a tad under cab's rates. Plus, due the convenience RS is not in any danger of failing......yet....

Tesla's robotaxi fleet? Not anytime soon.


----------



## tohunt4me

Beninmankato said:


> I'm reading a lot of tweets from people disgusted with their fare quotes. I agree with them. How many people will quit using these services? Once you lose a customer it's very difficult to bring them back. I feel like these companies are going backwards at an accelerated rate. It's hurting our tips, our rapport with clients, and our future potential.


Theyll be back. 1st time it rains


----------



## SpinalCabbage

Those who don't like the prices can always go back to using cabs or public transportation. Meanwhile rideshare drivers are being paid less than the federal government says it costs to operate a vehicle.


----------



## Beninmankato

I'm not talking about taxi cab rates here. I'm talking rates that are way higher than a taxi. Like $30 for a 10 minute ride type stuff.


----------



## UberPotomac

Beninmankato said:


> I'm not talking about taxi cab rates here. I'm talking rates that are way higher than a taxi. Like $30 for a 10 minute ride type stuff.


What is wrong with demand and supply?
If you charge 2 trip and no driver take it
Charge 5 and no driver take it
Charge 10 and a driver WILL take it
Let demand and supply set the rate. 
Same work for passengers , they are free to walk home . If they demand the convenience , they must be willing to afford it .


----------



## Beninmankato

UberPotomac said:


> What is wrong with demand and supply?
> If you charge 2 trip and no driver take it
> Charge 5 and no driver take it
> Charge 10 and a driver WILL take it
> Let demand and supply set the rate.
> Same work for passengers , they are free to walk home . If they demand the convenience , they must be willing to afford it .


Do you think it's the drivers that are pocketing most of this surge? I certainly do not.


----------



## UberPotomac

Beninmankato said:


> Do you think it's the drivers that are pocketing most of this surge? I certainly do not.


Of course not . But asking drivers to work without covering their expenses is not a recipe for success .No business is sustainable continuosly losing money .Pricing has to be profitable for the company and the drivers . U/L were irresponsible trying to expand the customer base at drivers expense and now is saying that customer do not want to pay more but at the same time , U/L keept a larger cut .


----------



## Beninmankato

UberPotomac said:


> Of course not . But asking drivers to work without covering their expenses is not a recipe for success .No business is sustainable continuosly losing money .Pricing has to be profitable for the company and the drivers . U/L were irresponsible trying to expand the customer base at drivers expense and now is saying that customer do not want to pay more but at the same time , U/L keept a larger cut .


Profitable yes, predatory and your're going to lose them.


----------



## goneubering

Beninmankato said:


> I'm reading a lot of tweets from people disgusted with their fare quotes. I agree with them. How many people will quit using these services? Once you lose a customer it's very difficult to bring them back. I feel like these companies are going backwards at an accelerated rate. It's hurting our tips, our rapport with clients, and our future potential.


Rideshare isn’t going away. It’s actually mostly a good value when you compare it to your other choices.


----------



## Beninmankato

goneubering said:


> Rideshare isn’t going away. It’s actually mostly a good value when you compare it to your other choices.


Good to hear. 
From what I've been reading there are a lot of disgruntled customers at this time due to the recent price hikes.


----------



## Escoman

Beninmankato said:


> I'm not talking about taxi cab rates here. I'm talking rates that are way higher than a taxi. Like $30 for a 10 minute ride type stuff.


Yes but 70.percent is going to.Scr-U-ber and Gryft. Allot.of drivers wont come back and people have caught on to to the make $30 b.s. neither will turn a profit and investors.will wake.up.


----------



## goneubering

Beninmankato said:


> Good to hear.
> From what I've been reading there are a lot of disgruntled customers at this time due to the recent price hikes.


I’ve only done a limited test but all the prices I’ve checked were relatively the same as what I paid for rides before the covid panic. The wait times have also been about the same so I’m not buying these stories about high prices and long wait times as being the new normal.


----------



## SpinalCabbage

goneubering said:


> I’ve only done a limited test but all the prices I’ve checked were relatively the same as what I paid for rides before the covid panic. The wait times have also been about the same so I’m not buying these stories about high prices and long wait times as being the new normal.


Here is my experiment results:

Using the rider app I put in an X trip from my house to the Southwest Terminal at LAX. The trip is 70.5 miles. Cost is $90.83... it just bumped to $107.39 as I was typing. Okay, just checked the driver app and I am in a $2.25 sticky surge. So no real price gouging in my area at the moment, but Uber is definitely getting the lion's share of the surge. I see exactly one car in play instead of the normal 8. Ah, second car appeared. He must be trying to get to the sticky surge. Hurry little ant! Get that $2.25. Third car now in play. Fourth car now in play.

All sticky surges, and there was a lot of them, now all gone. no red to be seen. Let me go recheck the LAX trip costs. Cost is now $90.77.


----------



## SpinalCabbage

SpinalCabbage said:


> Here is my experiment results:
> 
> Using the rider app I put in an X trip from my house to the Southwest Terminal at LAX. The trip is 70.5 miles. Cost is $90.83... it just bumped to $107.39 as I was typing. Okay, just checked the driver app and I am in a $2.25 sticky surge. So no real price gouging in my area at the moment, but Uber is definitely getting the lion's share of the surge. I see exactly one car in play instead of the normal 8. Ah, second car appeared. He must be trying to get to the sticky surge. Hurry little ant! Get that $2.25. Third car now in play. Fourth car now in play.
> 
> All sticky surges, and there was a lot of them, now all gone. no red to be seen. Let me go recheck the LAX trip costs. Cost is now $90.77.


When I checked for surges in the experiment above, I saw a $16 sticky surge on the other end of the valley. If that kind of surge pops up again I'll run the same test and see if Uber increases the price charged by the same factor as this one above.


----------



## SpinalCabbage

SpinalCabbage said:


> When I checked for surges in the experiment above, I saw a $16 sticky surge on the other end of the valley. If that kind of surge pops up again I'll run the same test and see if Uber increases the price charged by the same factor as this one above.


Okay, ran the same test from Amazon-ONT2 where there is a sticky surge of $14 to LAX and my quoted price is $97.81.
Not sure why the price is lower when there is a bigger surge.


----------



## Buckiemohawk

Beninmankato said:


> I'm reading a lot of tweets from people disgusted with their fare quotes. I agree with them. How many people will quit using these services? Once you lose a customer it's very difficult to bring them back. I feel like these companies are going backwards at an accelerated rate. It's hurting our tips, our rapport with clients, and our future potential.


We told people why the prices were so low and would triple without taxis. But nobody listens


----------



## The Gift of Fish

Beninmankato said:


> I'm reading a lot of tweets from people disgusted with their fare quotes. I agree with them. How many people will quit using these services? Once you lose a customer it's very difficult to bring them back. I feel like these companies are going backwards at an accelerated rate. It's hurting our tips, our rapport with clients, and our future potential.


Exactly. Rideshare growth exploded only because of the dirt cheap rides subsidized with investor cash.

Pax used to ask me, "How can Uber be so _cheap_? Is it because the network is super-efficient?

"No", I replied. "You are not paying the full price for your ride. Part of it is being paid for by subsidies from Uber's investors. They are subsidizing rides to offer them at low prices in order to grow their business. I could do the same as Uber is doing if I went down to Best Buy, bought all their TVs and then set myself up in the parking lot outside and sold all the TVs at half price. I would do a roaring trade and people would, like you, ask, "How can this be so cheap?"


----------



## observer

Food delivery certainly is.

My daughter, a couple days ago, ordered 15 dollars worth of food. The tab came out to be 30 bux.

I think she said 3 dollar delivery plus a bunch of different fees.

She said, no more, she'll either make it herself or wait till I get something on my way home.


----------



## The Gift of Fish

observer said:


> Food delivery certainly is.
> 
> My daughter, a couple days ago, ordered 15 dollars worth of food. The tab came out to be 30 bux.
> 
> I think she said 3 dollar delivery plus a bunch of different fees.
> 
> She said, no more, she'll either make it herself or wait till I get something on my way home.


I had a "free $30 meal" offer from UberEats. Then I saw that none of the various fees, surcharges and taxes were included, so my "free" meal would have cost me $16. 🤣


----------

