UBer pricing

[JHZR2]

Anyone experiencing strange Uber pricing lately? I get it that they have surge pricing, but even without the disclaimer (which no longer gives the multiplier), it seems to change.

Twice in the last three days I've taken Uber from the airport home. The first night I opened Uber, it gave me something like $34 to get home, which is on the high side of normal. Had to wait for luggage, when I went back in, it was $50, then $52, and kept going up. I stopped when it got to $58 and I took a taxi ($38).

Tonight I set up a ride for $27. It said 4 minute wait. The driver texted me after a few minutes, told me 15 minutes, so we cancelled. Went back in and it gave me $34, so I backed out and tried again, $36, then $38.

Ive been playing with the app and asking for re-quotes because I'm trying to understand what it's doing. Perhaps doing that I'm creating false demand and the algorithm is adapting.

I use Uber a LOT when traveling, but these two days it seems like something has changed. I found an article that says that they're using AI and machine learning to dynamically change prices based upon how rich of an area you're starting at and going to, and possibly how frequent a rider you are. There's also the never ending complaints of how Uber drivers aren't paid enough. Uber is now public, so they have to show progression towards a profit. I'd suspect as such they're tuning their algorithms.

I haven't taken a taxi in years. But I have twice in the last three days because of uber's non-competitive pricing.

Anyone else notice pricing being high or changing more than expect3d or anything like that recently?

 

[rubberchicken]

High demand pricing could be affected by flights arriving at an airport. I too have noted a lot of price fluctuation , but there is usually evidence in front of me for high demand: waits at the airport arrivals, concerts, sports games etc. I have also been charged wait fees for delays caused by the driver, which is quite irritating as you generally do not see it until after the ride (and tip). But Uber and Lyft have killed most of the traditional taxi business, and have reduced overall fares as well. In short- yes I have seen it over the last year, but I have no way of fighting it except for playing Uber and Lyft off of each other.

 

[JHZR2]

I know they can and do price in surge. But it is labeled as such. A common one is when you get into union station in dc late, and everyone who just got off the train is looking for an Uber.

Tonight my flight landed at midnight. It was one of the very last flights, as I checked the arrivals board. No surge disclaimer on the app.

I too get infuriated by drivers taking their time, dawdling to see if the next best thing comes along, cancelling after a few minutes, claiming they arrived to start the wait time clock before they should...

Ive not used Lyft but I'll likely sign up now just to have more competition.

In the NE cities, taxis are alive and well. What surprises me is that Uber is starting to close in on taxi prices...

 

[Revving2Redline]

Used them once.Got super drunk and was glad I called.Felt I paid too much but was a cheaper,more responsible alternative.

 

[Wolf359]

Don't forget that the drivers are also a part of it. There could be some collusion going on where enough drivers get out of the app and wait til surge pricing kicks in before they start accepting rides.

 

[Mr Nice]

The same way Amazon is always changing prices....

I also travel a lot and don't care what Uber charges to get me to my destination.

 

[talest]

I stopped using both Uber and Lyft. I used to use them, pretty regularly.

For the distance I travel, even though one town over... the rate was NEVER less than $15, and sometimes $25 or $30 for one way. It was like working to pay Uber.

While everyone may not have this luxury, I ended up buying a bicycle and located a gas station that is 10 to 20 cents cheaper than every other and station in the area, so when I find a good car to get on the road that won't give me any issues, I will go there, and the one Uber trip will be my gas for a week to a month. Got my commute all figured out now. And Uber is not a part of it. Thankful for carpooling and networking before I get back into full action, now if i just touched down somewhere I never been and had to get somewhere, I would probably go back to Uber, since I know what I would be being charged up front. Though that airport rate would likely hurt my eyes. But, in that scenario, alright.

You can be the Uber, of sorts not literally, if you operate the carpool amongst a group of friends that would rather leave their cars at home and are all going to the same or closeby places for work or pleasure.

 

[SeaJay]

Something is changing, and will probably continue to evolve with Uber.

The company is not bringing in enough revenue to keep their stockholders happy. The drivers are starting to become unhappy because they are not bringing in enough money for the costs and time needed to taxi folks around town. And various municipalities are adding regulations to Uber that increase the costs of business such as minimum wages, additional licensing fees, maximum number of cars on the road at any one time in congested urban cities, etc.

If they ever get their fully self-driving car technology nailed down then they may be able to run the taxi service with drivers as a loss leader. But I don't see this happening anytime soon.

So as the OP had done, it is best to shop around for a ride.

 

[atikovi]

Originally Posted by JHZR2
Twice in the last three days I've taken Uber from the airport home. The first night I opened Uber, it gave me something like $34 to get home, which is on the high side of normal. Had to wait for luggage, when I went back in, it was $50, then $52, and kept going up. I stopped when it got to $58 and I took a taxi ($38).


You must live fairly close to the airport. No bus or train you could take? I'm 20-35 miles from the three airports in my area and a taxi would cost $60-$80. That's more than the last flight itself I took. I can ride the bus or train for around $7. The only problem is if the plane gets in after midnight, the bus or trains stop running. In that case, I just park a car in the long term parking the day before and take the bus/train back, then I have my car available when I return the next day after midnight. Costs an extra $8 a day for parking and some extra time, but still better than an $80 taxi.

 

[SZR48207]

Hate to say it but I'd pay a premium for Uber if it means I don't have to deal with cabs ever again. Cabs are so opaque about everything that they're infuriating to deal with.

OP - I think the areas you're traveling to are part of the pricing problem -- no problems with Uber or Lyft out here in the flyover states.

 

[Leo99]

I'm a bit mad at Uber myself. I use them a lot in Vegas and have used them in NYC before with great experiences but had a bad experience a couple weeks ago in Greenwich Village. Needed to get to Penn Station and called for the Uber from the bar we were at. The Uber said to confirm we were at such and such bar. We were. Then it said to meet the driver two blocks away. I don't know where that is. It's confusing down in the Village. I texted the driver where I was but he just cancelled the ride and charged me $5.44 for cancellation. I'm not running around NYC stressing to find meeting place. Took a taxi who picked us up right where we were standing and the price was less than the Uber would have been. At least Uber refunded my cancellation fee. It's good to have choices and a free market for rides.

 

[rubberchicken]

Originally Posted by Reddy45
Hate to say it but I'd pay a premium for Uber if it means I don't have to deal with cabs ever again. Cabs are so opaque about everything that they're infuriating to deal with.

OP - I think the areas you're traveling to are part of the pricing problem -- no problems with Uber or Lyft out here in the flyover states.


This reminds me of an excellent conversation I had with an Uber driver in Chicago a few weeks ago. He told me that in the pre-Uber days, in order to operate a taxi company, you had to get one of the few taxi company permits / licenses issued by the local government. There are only a handful available, and the only way to get one was if somebody else was selling one, and it usually came with a whole company and fleet of taxis. I think there was also a yearly fee to the local government. Before Uber and Lyft these licenses would trade for $500k-$1 million at the top of the market. Now with the advent of ride sharing apps the price of these licenses has plummeted to $50k or less The traditional taxi industry has been badly hurt, perhaps mortally injured. But drivers themselves fled to Uber and Lyft, and they essentially make the same money they did before, while costs to consumers have gone down. And the whole business model of running the taxi has changed- before the driver had to rent the car for about $100 a day plus expenses, in exchange for dispatch and customer leads. So the driver was quite far in the hole before they made a profit, and some days they could not even cover the taxi rental. Now they own the car, and although the consumer rates are down, they actually make a bit more money on average than before. The middle man has changed from the local taxi company to Uber and Lyft, thanks to technology and a creative (in hindsight) idea. If you had run the idea of Uber past me 10-15 years ago, I would have said it was crazy and a waste of time- put your efforts elsewhere. I think the verdict has not been rendered for profitability , but it has certainly changed the taxi industry , and society in general.

 

[CKN]

Having taken several cruises that start and or end in Fort Lauderdale-I can tell you the surge pricing goes in to affect when everyone is getting off a cruise ship at the same time. All of a sudden you can have any where from 2,500 to 5,000 people (depending on the size of the ship) all waiting to leave the dock for other places.

 

[JTK]

I've got the app installed, but have never used it. Like talest said above, I've never seen a fare of less than $15 and that's for just a few mile ride.

 

[Andrew1972]

Originally Posted by JTK
I've got the app installed, but have never used it. Like talest said above, I've never seen a fare of less than $15 and that's for just a few mile ride.


My standard ride around 5-10 miles is typically $15 around here. I use to pick up car after service at our mechanic.

 

[BlueOvalFitter]

Isn't uber just for millennials?

 

[DoubleWasp]

Must not be with how hard the taxi industry has tanked.

I haven't seen as much weird pricing here in Fort Lauderdale, but I just take whatever is the best combination of easy and economical.

Taxi, Uber, Lyft, doesn't matter. Least headache gets my ride.

If I am somewhere not terribly populous, I am not going for a cab. Too many nightmares I faced from them in the past. I once waited and hour and 45 minutes for a taxi. Average was 45 min to an hour. No thanks.

 

[fdcg27]

I find it hard to envision any road to profitability for Uber or Lyft.
As things are, the drivers bear all of the capital costs in rolling stock as well as the operating expenses while providing their own labor on a piecework pay basis.
You'd think both should be rolling in dough, although both remain in the burn phase for investors.
Does it really cost that much to run a bladed server farm and buy wireless bandwidth?
Having had Uber and Lyft do the heavy lifting in clearing local legal/regulatory barriers to entry, what prevents smaller start-ups from offering locally the services that these two offer trans-nationally?
Local users would use these local services as well as savvy travelers visiting popular tourist destinations.
If this type of operation could be set up on a small scale at lower cost than what Uber and Lyft have faced, then rates could be reduced while also allowing higher pay for drivers, which would peel them away from Uber and Lyft.
Just a thought that I'm sure has already crossed the minds of taxi company owners in various cities.
This seems like a business model ripe for decentralization.

 

[PandaBear]

Originally Posted by BlueOvalFitter
Isn't uber just for millennials?


No, companies want us to use them for business trips to save a few bucks.

 

[Mr Nice]

When I travel out of state its much easier to use Uber if I'm unfamiliar with the area.