Uber.... Pls explain.
 

Can someone please explain how Uber works to me? I am a taxi guy yet my kids Uber..... How does it work and what is the economics behind it?

It' an unregulated taxi service where "drivers" work part time hours at their convenience. They use their own car, but the car must pass certain standards.

It's very convenient for YOU because the app is on your phone and you enter your credit card info one time to start, and you never worry about it after that.

No cash changes hands, no tipping. You can get an estimate of the cost before you ride if you like.

When you "hail" an uber on your phone you immediately get a notification with with driver's name, make and model of car, license plate number, and a (generic) picture of said car. You can watch your driver approach on your phone map and see their ETA while you wait.

After your ride you immediately get an emailed receipt for your ride.

Almost always cheaper than a traditional cab.


Very convenient! Some people love it, some people would rather stay traditional.

I've also never had a dumpy car on Uber, nor a bad experience. They are always reasonably late model cars, clean, with respectable individuals behind the wheel. Rarely can I say that about most taxi companies.

I use them all the time, locally and when I travel. Probably never use a traditional taxi again, unless I have to. I heard that Uber had helicopter service from SLC to Sundance during the film festival! Vert progressive company. They are also getting into the vehicle loan biz, it too is way untraditional.

Uses an app tied to a CC. I use them all the time.

They have some awesome features for business travel especially in regards to filing expenses and attaching a corporate card to your account. Much easier than dealing with a taxi.

Not sure how they are losing so much money. What is their overhead?

Uber Loses at Least $1.2 Billion in First Half of 2016 - Bloomberg

They are investing heavily into R&D, hence the posted losses.

In the Chicago, the cars must be 2013 or newer. The driver retains about 70% of the fare. They operate as a business - good record keeping is a must.

Unlike most cab companies, they're not a front for the mafia either.

Sorry, but that is incorrect. The only requirement is that the car is a 2000 or in Chicago. You can find the information in their website. And I can also personally vouch for it. I take an Uber/lyft 5 days per week.

It's an incredibly convenient application, that has definite drawbacks, the main one being that most of the drivers do it part time and don't know how to navigate the city, or really understand how to drive. Still cheaper than owning a car.

That loss was from throwing a ton of money into penetrating the Chinese market, then having to abandon it. Existing local provider was too well entrenched. Same story as so many US companies.

Uber is having difficulty maintaining a driver pool and their efforts to right the ship have become more radical. For example, they're beginning to purchase their own fleet of cars and lease them to drivers. That'll jack their overhead for sure.

I hope they remain viable. While I'm not a frequent user, uber is head and shoulders above a taxi in terms of service.

Be careful when using them. They have upcharges that are not made clear before the ride and it can get quite expensive. A friend of mine took what would have been a $20 cab ride in NYC using uber the ride came out to $65. I took them home from a concert and I checked the rate before I left and the rate was $40 when I got home the bill was $80. I asked them why and they said the rate doubles when there are a lot of people using the app in the same place. I am done with them

I've used Uber a bunch. Generally I have had favorable experiences and prefer Uber over traditional taxi service. However, I've had 2 issues with Uber in NYC. Once I hailed a car where the immediate surrounding area was badly congested with traffic. On the map I could see my Uber was just around the block, so I began to walk towards that location since I could get there faster and we might then avoid some of the traffic. Next thing I know, Uber app says my ride has started...but I'm not in the car!! In the app I can see "my car" rolling off into the sunset, supposedly with me in it. I ended up hailing a yellow cab home. When I got home, I had an email from uber with a receipt for the "ride." I had been charged even though I never set foot in that car. I was able to get a refund, but it was annoying. When you make a complaint in the Uber app, you are limited to the categories they provide in a drop down list. Things like: "my driver was rude", or "the car was not well kept". There is no choice for "driver never picked me up, but banged my credit card for $65 anyway"

Just two days ago it sort of happened again...the app showed that my uber was right in front of me (it wasn't). I wandered around looking for the car, tried calling the driver twice and ultimately saw it about 1 block away waiting. I tried waving him down but he started rolling...the app showed "ride started" but I cancelled it at that point. I didn't get a receipt so they didn't charge me but the guy was sitting 1 block away from the pickup point. not a big deal in a lot of places, but in NYC thats like being in the wrong zip code.

Mark Cuban had the chance to invest when they started - he passed stating he didn't think the business model would sustain itself...

Surge pricing is used when demand is very high, e.g. New Years Eve, or in very cold weather; prices can be double. But the increased price displays on your phone before you get in....I think you were scammed.

Operator error, not the app. The surge pricing is always clearly indicated and you had to accept the multiplier before you could confirm the booking.

I should say was...there are now testing flat pricing where they tell you the absolute price based on your destination, but you need to have an idea of how much the ride should be in order to know if it's surging or not.

When you request a car the system sends it to the driver closest to you. At most any point in time there will be several drivers in the area so your wait time is typically around 5 minutes. No more waiting 45 min for a cab.

I accepted the ride at $40 when I got to my home the receipt was for $80 because of their surge pricing. The whole thing makes no sense anyway why charge more when there is higher volume? Is there any extra service given is the driver doing any extra driving? You are getting exactly the same service as you would at any other time and traveling the same distance. Surge pricing is a scam to make more money.
In NYC most of the Uber drivers are x yellow taxi drivers who found they make more with Uber and anyone who has been in a NYC taxi knows that the way they drive you are risking your life getting to where you are going. So here in NYC Uber is just a yellow taxi with an app that charges more .