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Can Uber lower fares and have its drivers make more money?

Discussion in 'Uber Drivers Forum' started by Dreamer, Jan 20, 2015.

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  1. Dreamer

    Dreamer
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    To keep demand high during the slower winter months, the ridesharing service, Uber, has cut fares by 20 percent in 48 markets – including Los Angeles and Orange County.

    The company says a trip from West Hollywood to downtown will now be around nine dollars, instead of $11.

    When Uber lowered prices in the past to muscle out competitors like Lyft and taxi services, passengers loved it but drivers have complained it puts an unfair squeeze on them, complaining their already low take went even lower.

    Uber stresses the fact cutting fares actually helps drivers because they get more business. In a blog post, the company points to data from Chicago where fares dropped 23 percent last month compared to December 2013 while drivers' income increased by 12 percent.

    But drivers have been skeptical whether volume can make up for the price drop. The company's claim that New York city drivers earn a median of $90,766 a year has been refuted. Slate talked to New York UberX driver Jesus Garay in October:

    “They say it doesn’t hurt the pocket of the drivers,” Garay says of the 20 percent fare cuts. “It does. Because it’s impossible with those numbers to be in business.”

    The way drivers see it, ride volume can only increase so much in response to lower prices. Garay says that on average, a ride takes him 20 minutes from start to finish: five minutes to reach the pickup location, five to wait for the customer, and 10 to drive to the destination. For a trip of that length, Garay says he’ll make $10 or $11. “So if you’re busy, you’re going to make three rides in an hour,” he explains.

    Newly flush with a $40 billion valuation, Uber is now willing to put its money where its mouth is; For the first time, Uber will guarantee its partners – as it calls them - an hourly wage of $20 an hour in Los Angeles, or $26 during peak times. (The guarantee comes with a few conditions: Drivers have to accept 90% of trips, average at least one trip per hour, and be online for 50 minutes of every hour worked)

    http://www.scpr.org/blogs/economy/2...er-lower-fares-and-have-its-drivers-make-mor/
     
  2. DBuberGuy

    DBuberGuy
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    technically yes
    but in actuality no
    you have to work much harder
    many folks can make money on low rates with the guarantees
    but they are tricky to obtain and even trickier to make sure Uber pays out
    if you are getting paid less than $1/mile, you shouldnt drive for Uber
     
  3. Brandon

    Brandon
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    Ok people you want the truth here it I been an uber x driver for over a year when I started I was making bank at 7.50 base rate 8 hours a day 40 hours a week I was banking out to almost 2k a week that's right almost $2000 a week and at the time I was getting 90% while uber was taking only 10%. Ever since uber dropped the prices down to $2.20 base rate im literally driving almost double per day and still only banking out $750 a week with as of now my 80% cut.

    So you ask is lowering the prices with uber hurting the drivers the answer is YES!

    Now let's talk about that so called "hourly wage" you're guaranteed! This is s lie as well why you ask. .. simple. Uber tells you that will guarantee an hourly wage but there's a catch if u work under the suggested amount of hours uber will only pay u for the hours not worked so say the guarantee is 8 hours $30 an hour and work 7 uber will only pay the 1 hour you DIDN'T work if you drive for the whole 8 hours uber WILL NOT pay you at all! So how is that guarantee its not!

    I been independent contractor in various jobs and uber calls us independent contractors however they as a company get to decide the fare amount as well as their cut, uh no wrong again legally independent contractors choose the amount for base fare and decide on how much to give back to the company, why, because uber is not a taxi service they DO NOT provide vehicles for driver, we provide our own vehicles out of all 3 platforms in san francisco there is only 1 service that does it right side car drivers pick the lowest cost or the highest cost DRIVERS PICK not the company!

    Uber if you want to continue setting the prices then I demand for a w-2 form!
     
  4. UL Driver SF

    UL Driver SF
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    Problem is you use more resources and hours to get the same amount of money.

    The best way to deal with this is to get the city you work in to set a mandatory minimum.

    The only side it helps is Uber because the get another SRF.
     
  5. UL Driver SF

    UL Driver SF
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    Where are you driving? You mentioned SF but there is no guarantee and that's not the minimum for X.
     
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