Over the past few years, Uber has improved the platform significantly with new features, like stacked trips, driver destinations, uberPOOL & uberHOP, and behind the scene improvements including improved surge algorithms, better background check and safety processes, and more. These improvements have substantially improved the experience for drivers and riders alike.
Uber is profitable. It’s leveraging growth seeding, which is basically investing to grow supply and demand for future earnings. Uber can pull a switch and be profitable in the snap of a second.
Lower fares in no possible way increase driver earnings. The maximum number of trips per hour is about 4. You can’t stuff more than 60 minutes into an hour. Even a minimum fare takes 15 minutes to complete the ride.
I have never had an hour with more than 3 rides, personally. It increases Uber’s take, because if demand actually does increase, they are collecting more SRF’s, and since they’re raising their commissions for new drivers, they win and drivers lose.
Uber is profitable? Profitable companies take in more than they expend. Uber is burning through investor cash, and spent $25 million more than they took in during 2014.
Uber is already profitable in many cities. It is choosing to spend more money to accelerate its growth. It’s not losing money. There’s a distinct difference. Think of it as taking student loan debt to earn more money later.
AS IF you didn’t know…drivers DETEST Uberpool and so do the riders once they realise what it entails. As for me, sadly, I miss out on all that extra pay picking up the 2nd pax because I never do it. No bulging in my stocking this Xmas I guess.
Uber is profitable in matured markets. If they shut down the massive expansion and a few newer markets, they would be profitable from that point forward, from what we know. Uber works, at least for Uber and the pax.
It’s obvious that you don’t drive. There are so many variables that go into every request. Until riders learn to set their pickup location correctly, be ready to go, and not waste a driver’s time, 15 minutes is about the fastest any request can be fulfilled.
If you’re getting the same number of requests post-fare-cut, then if there was no fare cut you would have been receiving less requests. Demand for Uber is considerably elastic.
Uber is losing money. Uber will always lose money. You cannot keep drivers. In your own admission Uber claims the turnover rate for drivers at 16 months is 60%. I guess because they are making so much money with the lower rates.
You and I and Uber know the real cost of runnung a vehicle and all 3 of us know that it is not possible to make even min wage at .75 uberX and .68 UberFool.
That’s not what’s been observed in just about every market at Uber. Rates are often cut when the demand is starting to taper off, or is predicted to decrease. If you don’t notice a change in the number of requests, perhaps surprisingly it can actually indicate that the analytics and pricing optimization was spot-on.
Uber’s Data Science teams have some of the most talented people in the field. Their processes are extremely rigorous and robust and are certainly used to give empirical results
Increased demand…just does not happen and any demand increase is only a result of Uber freebies consumed by Pax not sharing a ride most never wanted to and fell into it by Uber’s opt into pool as Uber’s set login position.
All Uber advocates, as well as the company itself, mistake earnings for revenue. It’s a deliberate mistake, attempting to shift focus away from all the direct costs that the driver, not Uber, pays.