Unless you wish to splurge on ridesharing, you might be taking pleasure in traveling outside without knowing that your air-conditioner is left on in your room. Of course, that’s a poetic take. Here’s what it means.
Most people prefer to take ridesharing rides, despite being more expensive than traditional commute options. But, did you know you can spend more without knowing you are spending more?
A correspondent on Yahoo! Creators discussed the big mistake that passengers commit when booking rideshare cars. And, it is so simple that making a change of heart won’t even take a minute.
It’s checking all the ridesharing apps you got until you find the cheapest option. That’s right.
“Like most people trying to exist in an economy where prices for everyday things seem to balloon to ever-more shocking levels every day, I’m always looking for the tiny habits that make a meaningful dent in my budget. One of those things is rideshare, which I rely on occasionally in my hometown of Los Angeles – especially when I’m getting to and from the airport. It can get super expensive, so I stay vigilant. One thing I never do: book a ride without checking both Uber and Lyft first,” the correspondent, Alesandra Dubin, wrote.
She is a Los Angeles-based journalist specializing in luxury family travel. She also covers lifestyle and entertainment news. She picks ridesharing for the convenience, even if they will always be expensive at all times, compared with taking the train, for instance.
She added that after years of owning the ridesharing apps on her mobile, she noticed that Lyft always charges less. But that isn’t always the case, interestingly enough.
Dubin also cited a recent study on the National Bureau of Economic Research with the title “Leaving Money on the Dashboard: Price Dispersion and Search Frictions on Uber and Lyft,” by Jeffrey Fossett, Michael Luca, and Yejia Xu, saying that people often book rides without checking the other app first, and comparing.
Well, some people are always in a hurry, that for as long as they book a ride from an app, they’re good. But, you also have to consider if the app has drivers who will accept your request, right?
“That means the vast majority of riders are potentially overspending on every single trip. Researchers found that the average price difference between the two services is 14 percent, and at least one of the apps offered a ride that was $1 cheaper 75 percent of the time,” Dubin continued. “It doesn’t sound like much in isolation, but it adds up fast. That 14 percent price gap translates to about $3.50 saved per ride if you simply toggle back and forth before booking – it takes me 10 seconds. Multiply that across even a month’s worth of travel – airport drop-offs, concerts, work events – and you’re suddenly talking real money.”
A recruitment officer working for Hinduja Global Solutions, whom Ridesharingforum.com chatted with, Denisse Lauren, has foregone the traditional ride options for ridesharing, and argued against Dubin, saying that even if she is aware that it helps to check two or more ridesharing apps to find the cheapest, in her area, there is always that one app that would show cheaper fares althroughout, such as inDrive.
But, Dubin would always say, “But this is absolutely not a universal rule – and whenever I’m traveling, the price comparison becomes even more essential. I’ve seen Uber undercut Lyft by a few dollars in some cities, and the reverse in others. You truly never know until you look. Interestingly – and importantly – they also found no consistent winner between Uber and Lyft. Neither app was reliably cheaper, which is exactly why checking both consistently is so important.”
How about you? Would you follow this habit, especially if you got more time, or follow Lauren who notices there’s that single app that would always be cheaper, so she’d not check the other so as to save time, too? Share your thoughts by creating and opening your account here on RSF, your newsroom for ridesharing, coupons, food deliveries, business, lifestyle, and so much more stories!