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 .

Again, that's simply not how the app works, but feel free to believe whatever you want. I've taken 500+ rides on uber and have experienced a fare being different that what I previewed/agreed/accepted exactly zero times.

Btw, not a fanboy at all. Actually disappointed with quality in Uber and lyft lately. I mostly use Via for my commute now (shared rides in black SUV livery vehicles).

Everything must be re-monetized. Out with the old and in with the new. In our modern "app" world that means taxis are not cool and we need "ride sharing." When you say sharing nowadays, in the new Internet paradigm, that means someone gets paid and someone else does not. Sharing, when stated in Internet terms, means stealing. (Look at the music industry for proof. Napster, etc.) ("Apple never saw a good idea it wasn't happy to steal." Steve Jobs)

Uber is a brilliant way to grab the young people and make it hip to get around town using their phones. Their phones are sewn onto their hand and it has become a part of their body. Any schlub can hail a taxi. The cool kids Uber. And some clever sociopath enriches him or herself in the process.

Actually, surge pricing is brilliant. If there aren't enough drivers on the road to meet demand, pricing goes up. The higher rates entice more drivers to get out there to meet the demand. Simple economics.

Contrast this with the traditional experience, where you get to wait for well over an hour to get a cab in some cities (Vancouver) during peak times.

Uber is amazing.

I used it in LA and SanFran.

It's way cheaper.

Instead of hailing a cab out on the street, you just tap your phone and a guy will be dispatched and arrive within a few minutes.
Need a larger van for luggage or 5 people? Just click that on your phone.

You can wait inside the hotel/restaurant/bar until the cab arrives.

You know the fare ahead of time.
Due to modern GPS and Maps, you even know when you'll arrive at the destination.

The market forces ensure that you will never get screwed by some rigged meter or some jerk driving in circles to pad the fare.

No need to dick around with tipping, either.

Uber is simply amazing on every level. I will never go back to yellow cabs, ever.

I am sure when the telephone was invented, clueless luddites were whining about how they can just walk down the street and talk to whomever they wanted. Or write a letter.
Some people get the obvious, some people never will.

Supply and demand...period. So it does make sense. Higher prices discourage riders and attract drivers.

When it is -40F and the options are standing on the street looking for a cab or using Uber and seeing when the cab is outside your door, the decision is easy.

Demand pricing is a pretty basic concept.

If you don't understand it or it upsets you, it's simply because you had 'demand.'

Demand pricing has been around for decades.


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Thanks…...

In the past week I have been in Charleston, WV. Knoxville, TN.. Gatlinburg, TN.. Asheville, NC. and Roanoke, Va...

For snits and giggles my gf and I checked Uber and Lyft in those cities...

If there was a single car available when we checked that was a surprise.. Seems like these on demand car services have not made in roads into the smaller cities

Was in San Diego and Smell A a few weeks ago and used Lyft almost exclusively...

These type of services are really quite convenient..

I understand the basic concepts of business very well I own two businesses myself. I do not charge my customers double during my busier times simply because I can. I consider this to be a poor business model. My customers deserve to be treated fairly and pay a fair price for the goods or services received.
In actuality in NY this upcharge is price gouging and it is illegal under General Business Law § 396-r. The law even lists taxis and liveries specifically.

Well I guess that makes me a liar. I am relaying an experience I had with Uber and because it never happened to you means it never happened? Google Uber and see if they have ever made a mistake with billing for rides. Like billing people twice for the same ride or billing people for rides they never took. How about the woman in NY who was billed $15,000 for a ride from Brooklyn to Manhattan?

Uber is a highly efficient transportation service in which cities/municipalities wish to learn and earn from. It is a business of the people, created by the people, for the people....

Fk'n liberals ran them out of town here. So if you intend to attend F1 in the states, find another service.

Oh just go to Torchys and get herself a spicy something or other and forget your woes about uber

I actually agree with you, I just don't think that the government should prohibit Uber from using "demand pricing." I think consumers will do it on their own, over time.

Notification informs the consumer of a choice, and "gouging" ceases to exist upon notification. An Uber ride is not a right.

I choose what I want. If Uber is in a 'demand pricing' state and my $5 ride might be $30, I decline. Market forces at work.


For the same reasons, I choose a taxi over a livery cab, or a limo. My choice.

Uber works very well for the customer. Convenient, inexpensive, good service. Cars are clean, drivers are competent, no tipping.

I don't know how well it works for the drivers. There's always been a fair bit of controversy there. Still, people keep driving for Uber, and no one forces then to do so.

It is pretty hard on the taxi companies, but that's life in a competitive market. The very best taxi company in Portland is RadioCab, their drivers are still surviving, and I still use RadioCab about half the time, Uber the rest of the time, and I don't use the crappy taxi companies.

I used to be happy my daughter had Uber available in her college town, so that she could get home safely after a late night at the library or a party. Then Eugene kicked Uber out of town, and that eliminated a safe, affordable transportation option.

One of my friends drives Uber part time, to make a little money. I'm glad he has that option.

I've been billed incorrectly for one Uber ride, I submitted a protest and it was reversed within 24 hours. Not too shabby. I've also encountered surge pricing and it has always informed me up front of the increase in charge before my ride, which I don't find to be unfair.

Here in Philadelphia, a taxi medallion was valued at $500,000, they are now reduced to $10,000 at the latest auction. Uber has changed the marketplace.

I do not understand how an unregulated vendor can just enter a marketplace and be able to operate unrestricted while the incumbent is still required to maintain the standards established by the community in the same marketplace. I do not understand how these small business owners can have not only their livelihood disrupted but their substantial investments in the medallions wiped out.

I understand the horse whip factory closing but this seems different. Especially considering they lost $1.2 Billion dollars. This gives the impression that their product is being sold under the true cost of a viable enterprise.

I think the NYC location issues can be attributed to GPS not accurate due to tall buildings. I am speculating since I have never used my GPS on the phone while in NYC.

I use Uber infrequently: trips to airports, getting to and from the indie shop where my PCar gets work done... I once rode a Pontiac Aztek.

Exactly and the medallion taxi industry is regulated by the city and fare prices are dictated by the city taxi and limo commission. Uber is not only unregulated but they can charge whatever they want.