Not for us, but to stay afloat. Uber is hemorrhaging cash and they have to turn that around to stay in business. I’m sure the Uberkids don’t lay awake at night fretting over the drivers, but a lot of them are going to be out of work if they can’t get the money part right. Their investors may be wild and crazy…but they’re not stupid.
Because Uber isnt just trying to undercut taxis. I am 100 miles north of you and you guys have a very good light rail system that Uber wants to compete with.
Even with your rates you have more up front expenses (long run you dont beat up your own car) bc you have to pay the cab company. I would def drive a cab if my city paid 75 cents a mile. In a market that pays 1.50 or 1.75 I would prob opt for my car.
Uber is not losing money because of ridership nor fare. Uber is losing money because they discount the PAX and promoters for marketing. It is getting the money from Drivers and giving it to Sales people.
Issue is there is a good pool of riders now. They need to stop wasting money on marketing. Fare alone is a good marketing tool. 25%/75% split is acceptable. Now get rid of other fee and and spending. We both will profit.
I am curious on why you think they did that? Can you please tell us what the conditions and Market was like in your area before they raised the rates? Could you tell there was a driver shortage or super high demand a lot of surges? Any information like that would be appreciated.
Obviously they should raise it in a lot of areas. But also wondering how many new drivers would come into the market. What kind of changes have you seen since it has been raised? Thank you for any information.
I believe it’s a number of factors. For one, this is an island, so no outside drivers can come and drive. It’s rated the 2nd worst traffic in the country next to L.A. and it’s also rated the 2nd most expensive next to S.F. For some reason the people living here pride their selves on those facts.
I am convinced Uber was ultimately losing market share to Lyft because Lyft payed slightly higher rates and the potential for tipping. I say that because when I would log on the rider apps of both, there were 60 Lyft drivers available and maybe 10 Uber drivers most of the time.
I made $769 on 32 hours of driving for week one of the price increase and also I have seen a lot more drivers out on the rider app. I am sure it will settle but then again, busy season will be here soon.
That’s the way it should be ($769 for 32 hrs). I think it’s a do or die moment for Uber & Lyft. Raise prices or loose the drivers who do the job well.
Exactly what i just posted over on the Sacramento section… Where apparently Lyft just cut prices again, and so I’m thinking, Sac Uber might just cut prices agsin too (from an already too low .75 cents a mile…) But if they do, i wonder how many seasoned drivers will finally quit, meaning less drivers, leading to faster pickups, and more surges… In other words, better for the drivers that can hold on…
Not excusing Uber but with pool they aren’t trying to compete with taxis they are trying to compete with the bus/light rail
Uber raised the rates from $1 per mile to $1.50 and from $0.20 to $0.22 per min. I hope they do the same for others. I am super excited about it but I thought it would have made more sense to raise the rates to reflect time than distance because traffic is super awesome here, I say sarcastically.
Nah, its Hawaii people are still going to use Uber no matter the price. Public transporation sucks. Higher rates only kill business where there is a solid alternative.
Drive select and/or the surges. Yes, the rates here suck, but we do have a lot of activity and surges (especially late night) only way to be semi successful is to be in right place at right time. The areas that do surge are consistent, so it is somewhat easy to plan. The part that sucks is when you get a ride that puts you out of position to catch the surge.
But then they lowered the price and it wasn’t worth going back to that area after I dropped pax off. Now that they raised the price very similar to the way it was before, I might try my old strategy again.