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(Slate)   Your days of cheap Uber rides subsidized by VC tech bros are over   (slate.com) divider line
    More: Sad, Parking, Automobile, Public transport, Taxicab, Parking lot, Sustainable transport, car-sharing, wave of companies  
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896 clicks; posted to Business » on 18 May 2022 at 6:05 PM (6 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



44 Comments     (+0 »)
View Voting Results: Smartest and Funniest
 
2022-05-18 5:15:33 PM  
If I'm paying good money I'll hire real cab drivers.
 
2022-05-18 5:33:48 PM  
Yeah, no shiat.   I had to use Uber/Taxis about a month ago and was shocked that my taxi rides were cheaper than Uber, and not by a small margin.
 
2022-05-18 5:44:23 PM  

raerae1980: Yeah, no shiat.   I had to use Uber/Taxis about a month ago and was shocked that my taxi rides were cheaper than Uber, and not by a small margin.


I'm not a huge fan of Uber. But in a city that I don't know it's brilliant.

You press the button. You already have your destination entered. You can see the route. You don't have a taxi driver scamming you and taking the longest way or to the address because they conveniently heard you wrong.

/yes I have gotten into shouting matches with taxi drivers
//amazing how quickly they back down when they see you writing down details that you'll need for your complaint call
 
2022-05-18 6:07:49 PM  
Can Slate ever get to the point before the ninth paragraph? Who actually likes reading that crap?
 
2022-05-18 6:09:23 PM  

Gubbo: raerae1980: Yeah, no shiat.   I had to use Uber/Taxis about a month ago and was shocked that my taxi rides were cheaper than Uber, and not by a small margin.

I'm not a huge fan of Uber. But in a city that I don't know it's brilliant.

You press the button. You already have your destination entered. You can see the route. You don't have a taxi driver scamming you and taking the longest way or to the address because they conveniently heard you wrong.

/yes I have gotten into shouting matches with taxi drivers
//amazing how quickly they back down when they see you writing down details that you'll need for your complaint call


The user experience with Uber is so vastly superior to cabs in most cities that Uber would be preferable even if more expensive.
 
2022-05-18 6:18:16 PM  

trialpha: Gubbo: raerae1980: Yeah, no shiat.   I had to use Uber/Taxis about a month ago and was shocked that my taxi rides were cheaper than Uber, and not by a small margin.

I'm not a huge fan of Uber. But in a city that I don't know it's brilliant.

You press the button. You already have your destination entered. You can see the route. You don't have a taxi driver scamming you and taking the longest way or to the address because they conveniently heard you wrong.

/yes I have gotten into shouting matches with taxi drivers
//amazing how quickly they back down when they see you writing down details that you'll need for your complaint call

The user experience with Uber is so vastly superior to cabs in most cities that Uber would be preferable even if more expensive.


I owned a hotel near downtown. Dealing with Yellow Cab was horrible. They were rude on the phone, rude in person, often late and several times left after waiting 2 minutes for the fare. Several times, I drove my customers to the airport. Yellow Cab is a monopoly.

When Uber and Lyft came around, my life got so much easier.
 
2022-05-18 6:18:17 PM  

raerae1980: Yeah, no shiat.   I had to use Uber/Taxis about a month ago and was shocked that my taxi rides were cheaper than Uber, and not by a small margin.


I live about 3 miles from Knott's Berry Farm. My wife's company had a party at Knott's a few months ago and we decided to take an Uber since there was an open bar. Uber wanted almost $65 for the trip, a local cab company did it for $15. Definitely check cabs in addition to Uber/Lyft.
 
2022-05-18 6:20:08 PM  

edmo: If I'm paying good money I'll hire real cab drivers.


My hope out of all this is that if the cab companies come out of it the other side they offer better service than they did until Uber and Lyft started eating their lunch.

Prior to the ride sharing apps every time I tried to book a cab they were "ohhh, we can maybe get one to you in 45 mins", then it doesn't show and you call up and they're "oh, it'll be there in 10 mins", then 20 mins later you call up and they'd be "the driver said you weren't there so took another fare". Combined with all the drivers pretending they couldn't accept card payments, so you need to get cash out, then pretending they don't have change.

Like, I have a lot of issues with the rideshare apps and some of their business practices, but what they were replacing was, at least in my area, an absolute shiat show.
 
2022-05-18 6:22:33 PM  
If only this headline was implying the VCs were gone....

\fark VCs
 
2022-05-18 6:25:33 PM  

Target Builder: edmo: If I'm paying good money I'll hire real cab drivers.

My hope out of all this is that if the cab companies come out of it the other side they offer better service than they did until Uber and Lyft started eating their lunch.

Prior to the ride sharing apps every time I tried to book a cab they were "ohhh, we can maybe get one to you in 45 mins", then it doesn't show and you call up and they're "oh, it'll be there in 10 mins", then 20 mins later you call up and they'd be "the driver said you weren't there so took another fare". Combined with all the drivers pretending they couldn't accept card payments, so you need to get cash out, then pretending they don't have change.

Like, I have a lot of issues with the rideshare apps and some of their business practices, but what they were replacing was, at least in my area, an absolute shiat show.


"Credit card machine is broken you need to pay cash"
 
2022-05-18 6:34:21 PM  

Target Builder: edmo: If I'm paying good money I'll hire real cab drivers.

My hope out of all this is that if the cab companies come out of it the other side they offer better service than they did until Uber and Lyft started eating their lunch.

Prior to the ride sharing apps every time I tried to book a cab they were "ohhh, we can maybe get one to you in 45 mins", then it doesn't show and you call up and they're "oh, it'll be there in 10 mins", then 20 mins later you call up and they'd be "the driver said you weren't there so took another fare". Combined with all the drivers pretending they couldn't accept card payments, so you need to get cash out, then pretending they don't have change.

Like, I have a lot of issues with the rideshare apps and some of their business practices, but what they were replacing was, at least in my area, an absolute shiat show.


My Uber drivers often cancel my ride just as they get into my neighborhood. Then I request it again and will get the same driver.

I assume it's some hack they learned to get a few more bucks out of Uber
 
2022-05-18 6:34:47 PM  
In parts of Dallas where they stopped bus service you can get a DART subsidized Uber too and from the light rail stations. It doesn't help me, as I'm too tall for mini-vans
 
2022-05-18 6:41:22 PM  

raerae1980: Yeah, no shiat.   I had to use Uber/Taxis about a month ago and was shocked that my taxi rides were cheaper than Uber, and not by a small margin.


Yup. The CURB app (calls real taxis, not rideshares) has beaten uber/lyft pretty consistently on price lately, but the wait for the driver to show up tends to be a few mins more.
 
kab
2022-05-18 6:51:03 PM  
On Monday morning, an Uber from Manhattan to JFK Airport was $100-nearly double the fixed yellow cab rate. But good luck finding a yellow cab!

That was the entire point.  fark you pay me works quite well when you have few other options.
 
kab
2022-05-18 6:52:42 PM  

SoCalChris: I live about 3 miles from Knott's Berry Farm. My wife's company had a party at Knott's a few months ago and we decided to take an Uber since there was an open bar.


Your feet would have done that trip for free.
 
2022-05-18 7:03:07 PM  

Target Builder: Combined with all the drivers pretending they couldn't accept card payments, so you need to get cash out, then pretending they don't have change.


CSB: I had a taxi driver in Paris try that one many years ago: he couldn't change my 200F note. I guess he took me for a tourist rather than a resident. I told him to drive around the block until the meter read 200F, and suddenly he remembered where he kept his change.

He was extremely pissed.
 
2022-05-18 7:11:57 PM  
I still do not understand how on earth Uber could lose money. Minimal overhead. No fleet. No drivers as employees.

They literally just find people who have cars and people who need rides, broker the deal, and scoop off a commission.

If you can find a way to lose money doing that, your name might be Trump.
 
2022-05-18 7:19:47 PM  

Izunbacol: I still do not understand how on earth Uber could lose money. Minimal overhead. No fleet. No drivers as employees.

They literally just find people who have cars and people who need rides, broker the deal, and scoop off a commission.

If you can find a way to lose money doing that, your name might be Trump.


Uber's plan always involved subsidizing rides to increase membership and get people hooked on the service, as well as to cripple existing, non-subsidized competing services (cabs, shuttles, and other shared ride services).

The part that didn't work out (per TFA) is that fully autonomous vehicles were supposed to be deployed and cut down on the largest cost - labor - and cement Uber's dominance.  Investors kept dumping cash into Uber because they were mislead to believe these technologies were juuuuuusst around the corner, currently in beta testing, ready for deployment in two weeks.
 
2022-05-18 7:28:39 PM  
So an app that shifts all the risk and depreciation of assets to sub contractors they pay poorly is having a hard time making money?
 
2022-05-18 7:49:37 PM  

kab: SoCalChris: I live about 3 miles from Knott's Berry Farm. My wife's company had a party at Knott's a few months ago and we decided to take an Uber since there was an open bar.

Your feet would have done that trip for free.


Yeah, that's all well and good if you don't mind getting somewhere in 40-45min rather than 5-10min.
 
2022-05-18 7:54:31 PM  

kab: SoCalChris: I live about 3 miles from Knott's Berry Farm. My wife's company had a party at Knott's a few months ago and we decided to take an Uber since there was an open bar.

Your feet would have done that trip for free.


Before, maybe. After an open bar? Maybe not.
 
2022-05-18 8:03:34 PM  

valkore: Izunbacol: I still do not understand how on earth Uber could lose money. Minimal overhead. No fleet. No drivers as employees.

They literally just find people who have cars and people who need rides, broker the deal, and scoop off a commission.

If you can find a way to lose money doing that, your name might be Trump.

Uber's plan always involved subsidizing rides to increase membership and get people hooked on the service, as well as to cripple existing, non-subsidized competing services (cabs, shuttles, and other shared ride services).

The part that didn't work out (per TFA) is that fully autonomous vehicles were supposed to be deployed and cut down on the largest cost - labor - and cement Uber's dominance.  Investors kept dumping cash into Uber because they were mislead to believe these technologies were juuuuuusst around the corner, currently in beta testing, ready for deployment in two weeks.


They were also misled into thinking Uber had their own tech in development and wasn't just stealing it from Waymo/Google
 
2022-05-18 8:07:36 PM  

kab: SoCalChris: I live about 3 miles from Knott's Berry Farm. My wife's company had a party at Knott's a few months ago and we decided to take an Uber since there was an open bar.

Your feet would have done that trip for free.


Normally I would have no trouble walking that distance. But walking it in the afternoon heat, through the suburbs with really questionable (And in some spots completely missing) walking infrastructure, after working all day, then walking around Knott's all night, drinking would be a no from me. My wife would have certainly said no, she'd just meet me there after calling a cab for herself. So the $15 to get there in an air conditioned cab and dropped off at the front gate was worth every penny to me.
 
2022-05-18 8:10:29 PM  
CSB.... my wife (then recent girlfriend) planned a weekend trip to Austin around my work schedule (temporarily working in Waco).  About a week before, I found out that Austin effectively banned Uber/Lyft because of the ID/background check issue.  We were planning to be a bit sauced up the entire time (brunch, dinners, bars), so this threw what we thought would be a small inconvenience into our plans.  Not only was basically everyone drinking and driving (outside of some illegal rideshares we saw), but the cabs took FOREVER to get to us. I'm talking like 45 minute waits within the city limits.

Almost every cab driver had some version of "Oh it's great that Uber and Lyft are gone.  Times were really tough for a while when they were around."  YEAH BECAUSE YOU GUYS ARE TERRIBLE.

I fully realize that it's not the individual cabbie's fault for the poor infrastructure, but goddamn... the observation could not have been more obvious.

Say what you will about Uber/Lyft, but they give people an efficient and easy way to drink and not drive.  I have to think that the net benefits outweigh the costs.  If I have to pay a bit more to cut loose and not worry on a semi-rare occasion, fine.
 
2022-05-18 8:15:41 PM  

Hoban Washburne: CSB.... my wife (then recent girlfriend) planned a weekend trip to Austin around my work schedule (temporarily working in Waco).  About a week before, I found out that Austin effectively banned Uber/Lyft because of the ID/background check issue.  We were planning to be a bit sauced up the entire time (brunch, dinners, bars), so this threw what we thought would be a small inconvenience into our plans.  Not only was basically everyone drinking and driving (outside of some illegal rideshares we saw), but the cabs took FOREVER to get to us. I'm talking like 45 minute waits within the city limits.

Almost every cab driver had some version of "Oh it's great that Uber and Lyft are gone.  Times were really tough for a while when they were around."  YEAH BECAUSE YOU GUYS ARE TERRIBLE.

I fully realize that it's not the individual cabbie's fault for the poor infrastructure, but goddamn... the observation could not have been more obvious.

Say what you will about Uber/Lyft, but they give people an efficient and easy way to drink and not drive.  I have to think that the net benefits outweigh the costs.  If I have to pay a bit more to cut loose and not worry on a semi-rare occasion, fine.


For the record, we stayed downtown and did a decent bit of walking, but my wife is a former resident and wanted to hit some out of the way spots.
 
2022-05-18 8:22:58 PM  

Hoban Washburne: CSB.... my wife (then recent girlfriend) planned a weekend trip to Austin around my work schedule (temporarily working in Waco).  About a week before, I found out that Austin effectively banned Uber/Lyft because of the ID/background check issue.  We were planning to be a bit sauced up the entire time (brunch, dinners, bars), so this threw what we thought would be a small inconvenience into our plans.  Not only was basically everyone drinking and driving (outside of some illegal rideshares we saw), but the cabs took FOREVER to get to us. I'm talking like 45 minute waits within the city limits.

Almost every cab driver had some version of "Oh it's great that Uber and Lyft are gone.  Times were really tough for a while when they were around."  YEAH BECAUSE YOU GUYS ARE TERRIBLE.

I fully realize that it's not the individual cabbie's fault for the poor infrastructure, but goddamn... the observation could not have been more obvious.

Say what you will about Uber/Lyft, but they give people an efficient and easy way to drink and not drive.  I have to think that the net benefits outweigh the costs.  If I have to pay a bit more to cut loose and not worry on a semi-rare occasion, fine.


I had to walk home on New Year's Eve in Austin almost 20 years ago.  Sounds like nothing has changed.
 
2022-05-18 8:33:30 PM  

Phil McKraken: trialpha: Gubbo: raerae1980: Yeah, no shiat.   I had to use Uber/Taxis about a month ago and was shocked that my taxi rides were cheaper than Uber, and not by a small margin.

I'm not a huge fan of Uber. But in a city that I don't know it's brilliant.

You press the button. You already have your destination entered. You can see the route. You don't have a taxi driver scamming you and taking the longest way or to the address because they conveniently heard you wrong.

/yes I have gotten into shouting matches with taxi drivers
//amazing how quickly they back down when they see you writing down details that you'll need for your complaint call

The user experience with Uber is so vastly superior to cabs in most cities that Uber would be preferable even if more expensive.

I owned a hotel near downtown. Dealing with Yellow Cab was horrible. They were rude on the phone, rude in person, often late and several times left after waiting 2 minutes for the fare. Several times, I drove my customers to the airport. Yellow Cab is a monopoly.

When Uber and Lyft came around, my life got so much easier.


I worked for yellow cab in chicago for years until my family sold it in 95. At one point my dad owned 3600 cabs with the medalions... My Grandpa screwed Hertz out of the company back in the day. My brothers and I still own Checker in Chicago.
 
2022-05-18 8:41:11 PM  

Izunbacol: I still do not understand how on earth Uber could lose money. Minimal overhead. No fleet. No drivers as employees.

They literally just find people who have cars and people who need rides, broker the deal, and scoop off a commission.

If you can find a way to lose money doing that, your name might be Trump.


Uber's core business of ride hailing is profitable.

To juice up growth metrics in the lead up to its IPO, it went into food delivery. That business keeps losing big money.
 
2022-05-18 8:46:34 PM  
Just for kicks, I just pulled up Uber and checked the fare to my workplace, 2.5 miles away.

$9.92.

That's not bad in the greater scheme of things, although I'm out here in the Detroit Exurbs, and I doubt I'd see a confirmed ride for an hour, and another hour for the driver to get here, only to find out how bad he's been farked with a farked run.
 
2022-05-18 8:48:19 PM  

dumbobruni: Izunbacol: I still do not understand how on earth Uber could lose money. Minimal overhead. No fleet. No drivers as employees.

They literally just find people who have cars and people who need rides, broker the deal, and scoop off a commission.

If you can find a way to lose money doing that, your name might be Trump.

Uber's core business of ride hailing is profitable.


i.kym-cdn.comView Full Size
 
2022-05-18 9:04:48 PM  

scanman61: dumbobruni: Izunbacol: I still do not understand how on earth Uber could lose money. Minimal overhead. No fleet. No drivers as employees.

They literally just find people who have cars and people who need rides, broker the deal, and scoop off a commission.

If you can find a way to lose money doing that, your name might be Trump.

Uber's core business of ride hailing is profitable.

[i.kym-cdn.com image 363x310]


My source is Uber's annual report for 2021. What's yours?
 
2022-05-18 9:28:09 PM  
"Many of those changes have been beneficial. Some have been less so: New York City, for example, overthrew its old taxi regulation system overnight, bankrupting".

Those taxi regulations where insane and in of themselves distorted the market in NY.  They where a joke.
 
2022-05-18 9:30:53 PM  

scanman61: valkore: Izunbacol: I still do not understand how on earth Uber could lose money. Minimal overhead. No fleet. No drivers as employees.

They literally just find people who have cars and people who need rides, broker the deal, and scoop off a commission.

If you can find a way to lose money doing that, your name might be Trump.

Uber's plan always involved subsidizing rides to increase membership and get people hooked on the service, as well as to cripple existing, non-subsidized competing services (cabs, shuttles, and other shared ride services).

The part that didn't work out (per TFA) is that fully autonomous vehicles were supposed to be deployed and cut down on the largest cost - labor - and cement Uber's dominance.  Investors kept dumping cash into Uber because they were mislead to believe these technologies were juuuuuusst around the corner, currently in beta testing, ready for deployment in two weeks.

They were also misled into thinking Uber had their own tech in development and wasn't just stealing it from Waymo/Google


I think you should read what you linked to
 
2022-05-18 9:34:35 PM  

dumbobruni: scanman61: dumbobruni: Izunbacol: I still do not understand how on earth Uber could lose money. Minimal overhead. No fleet. No drivers as employees.

They literally just find people who have cars and people who need rides, broker the deal, and scoop off a commission.

If you can find a way to lose money doing that, your name might be Trump.

Uber's core business of ride hailing is profitable.

[i.kym-cdn.com image 363x310]

My source is Uber's annual report for 2021. What's yours?


Uber reports "adjusted editda" which is something they make up and something profitable companies don't use.
 
2022-05-18 9:49:09 PM  

chitownmike: scanman61: valkore: Izunbacol: I still do not understand how on earth Uber could lose money. Minimal overhead. No fleet. No drivers as employees.

They literally just find people who have cars and people who need rides, broker the deal, and scoop off a commission.

If you can find a way to lose money doing that, your name might be Trump.

Uber's plan always involved subsidizing rides to increase membership and get people hooked on the service, as well as to cripple existing, non-subsidized competing services (cabs, shuttles, and other shared ride services).

The part that didn't work out (per TFA) is that fully autonomous vehicles were supposed to be deployed and cut down on the largest cost - labor - and cement Uber's dominance.  Investors kept dumping cash into Uber because they were mislead to believe these technologies were juuuuuusst around the corner, currently in beta testing, ready for deployment in two weeks.

They were also misled into thinking Uber had their own tech in development and wasn't just stealing it from Waymo/Google

I think you should read what you linked to


The whole story isn't in that article, sorry.

https://apnews.com/article/a298c5990c5e4ce9bc7d0eb5b754dfe9


Uber basically hired the guy with the understanding that he would bring them Waymo's IP.
 
2022-05-18 10:00:22 PM  
You need a mix of options, mainly to keep the heat of competition burning under them, or they get complacent. And, you must, absolutely, need public transportation option available.

That said, here in SF, I do have a number of options:

1. First is walking. SF, despite the hills, is a very walkable city. And I use that option as often as I can.
2. Second is bike share. I use BayWheels, which allows me to take a bike from point A to point B, park it there and not have to worry about it being stolen or broken, because once it's parked, I'm no longer responsible for the bike. I use the bike share whenever I have to go more than 1.5 miles or so, or if I have to get somewhere quickly; and I use it almost exclusively when the route is relatively flat.
3. Public transportation. That's for anything more than 4 miles and I have to arrive there looking fresh.
4. Rideshare (including taxi). I only use this if I am with someone else who cannot use a bus (because the destination isn't close to a bus stop) and the person has some ambulatory problems. Otherwise, I would never use rideshare. Well, maybe if I have to get some place and it's raining hard.
5. Car rental. Only for distances > 20 miles and not within public transportation + walking and/or bike share distance. Say I want to spend an afternoon in Napa. I might rent a car for that.

However, technology is catching up and option 4, rideshare, is going to change with the rollout of autonomous vehicles. Then, I might consider using rideshare for some situations. That would be distances between 4 to 10 miles, have to get their smelling and looking fresh, and need to get there rather soon.
 
2022-05-18 10:50:55 PM  

dericwater: ...have to get their smelling and looking fresh, and need to get there rather soon.


Well, that's no guarantee. If your driver smokes like a chimney, and the car smells like said chimney, then you won't arrive smelling so fresh.

Then there are the people who take "shortcuts", or who get bad directions on their phones...
 
2022-05-18 11:40:31 PM  

dericwater: You need a mix of options, mainly to keep the heat of competition burning under them, or they get complacent. And, you must, absolutely, need public transportation option available.

That said, here in SF, I do have a number of options:

1. First is walking. SF, despite the hills, is a very walkable city. And I use that option as often as I can.
2. Second is bike share. I use BayWheels, which allows me to take a bike from point A to point B, park it there and not have to worry about it being stolen or broken, because once it's parked, I'm no longer responsible for the bike. I use the bike share whenever I have to go more than 1.5 miles or so, or if I have to get somewhere quickly; and I use it almost exclusively when the route is relatively flat.
3. Public transportation. That's for anything more than 4 miles and I have to arrive there looking fresh.
4. Rideshare (including taxi). I only use this if I am with someone else who cannot use a bus (because the destination isn't close to a bus stop) and the person has some ambulatory problems. Otherwise, I would never use rideshare. Well, maybe if I have to get some place and it's raining hard.
5. Car rental. Only for distances > 20 miles and not within public transportation + walking and/or bike share distance. Say I want to spend an afternoon in Napa. I might rent a car for that.

However, technology is catching up and option 4, rideshare, is going to change with the rollout of autonomous vehicles. Then, I might consider using rideshare for some situations. That would be distances between 4 to 10 miles, have to get their smelling and looking fresh, and need to get there rather soon.


Sf is not "very walkable."  You live in fantasyland.  Maybe in your hyper-neighborhood milieu pro-sf fantasy that you have concocted for yourself but your premise is ridiculous.
 
2022-05-19 12:03:19 AM  

mcreadyblue: "Credit card machine is broken you need to pay cash"


Literally the last two cab rides I've taken, the driver pulled this crap. I believed one of them but not the other.

I don't use rideshare very often but I'm going to start. Cab companies have had years to figure out how to compete, at least in terms of service quality.
 
2022-05-19 8:25:13 AM  

valkore: Izunbacol: I still do not understand how on earth Uber could lose money. Minimal overhead. No fleet. No drivers as employees.

They literally just find people who have cars and people who need rides, broker the deal, and scoop off a commission.

If you can find a way to lose money doing that, your name might be Trump.

Uber's plan always involved subsidizing rides to increase membership and get people hooked on the service, as well as to cripple existing, non-subsidized competing services (cabs, shuttles, and other shared ride services).

The part that didn't work out (per TFA) is that fully autonomous vehicles were supposed to be deployed and cut down on the largest cost - labor - and cement Uber's dominance.  Investors kept dumping cash into Uber because they were mislead to believe these technologies were juuuuuusst around the corner, currently in beta testing, ready for deployment in two weeks.


How does that work, subisidizing rides?

So, if the algorithm spits out, say $30 as the cost for the ride, and Uber takes their 25% cut, that ($7.50), where is the subsidy?  Are they charging the user less and funneling some of the investor money to the drivers as bonuses to make up for the discount?  Are they taking a smaller cut on the driver's fees and using investor to run the business instead?
 
2022-05-19 10:31:18 AM  

Izunbacol: How does that work, subisidizing rides?

So, if the algorithm spits out, say $30 as the cost for the ride, and Uber takes their 25% cut, that ($7.50), where is the subsidy?  Are they charging the user less and funneling some of the investor money to the drivers as bonuses to make up for the discount?  Are they taking a smaller cut on the driver's fees and using investor to run the business instead?


I don't think it's even as complex as that.  Uber prices a ride based on what they know about competing services in the area, and the model makes sure the price is low enough to (usually) match or beat the competitor's price.  All that info is easy enough to get.

Then they look at their financials and determine what the price would have needed to be in order to break even on the ride, or get a profit of X%, whatever they're targeting.  Of course the ride sharing service doesn't operate in a bubble and there's all sorts of overhead expenses to consider, which would be a percentage calculation which is added to expenses.

Revenue minus expenses.  The subsidy is the difference between the two prices.
 
2022-05-19 1:30:47 PM  

valkore: Izunbacol: How does that work, subisidizing rides?

So, if the algorithm spits out, say $30 as the cost for the ride, and Uber takes their 25% cut, that ($7.50), where is the subsidy?  Are they charging the user less and funneling some of the investor money to the drivers as bonuses to make up for the discount?  Are they taking a smaller cut on the driver's fees and using investor to run the business instead?

I don't think it's even as complex as that.  Uber prices a ride based on what they know about competing services in the area, and the model makes sure the price is low enough to (usually) match or beat the competitor's price.  All that info is easy enough to get.

Then they look at their financials and determine what the price would have needed to be in order to break even on the ride, or get a profit of X%, whatever they're targeting.  Of course the ride sharing service doesn't operate in a bubble and there's all sorts of overhead expenses to consider, which would be a percentage calculation which is added to expenses.

Revenue minus expenses.  The subsidy is the difference between the two prices.


I looked at their 2021 report:
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I'm still flummoxed.  It looks like they've managed to build an enormous, wasteful bureaucracy on top of what should be a very simple operation: link people up for rides and process payments, taking a cut.  There's no farking way that should lose money - they don't have any real costs other than running the software.  

/Not an expert in corporate accounting.
//Still looks bizarre - like someone earning $100K+/year and somehow having credit card debts from their "lifestyle needs"
///This actually looks like a good case for a corporate raider to fire everyone not actually contributing to the core operations.
 
2022-05-19 6:02:03 PM  

CoonAce: dericwater: You need a mix of options, mainly to keep the heat of competition burning under them, or they get complacent. And, you must, absolutely, need public transportation option available.

That said, here in SF, I do have a number of options:

1. First is walking. SF, despite the hills, is a very walkable city. And I use that option as often as I can.
2. Second is bike share. I use BayWheels, which allows me to take a bike from point A to point B, park it there and not have to worry about it being stolen or broken, because once it's parked, I'm no longer responsible for the bike. I use the bike share whenever I have to go more than 1.5 miles or so, or if I have to get somewhere quickly; and I use it almost exclusively when the route is relatively flat.
3. Public transportation. That's for anything more than 4 miles and I have to arrive there looking fresh.
4. Rideshare (including taxi). I only use this if I am with someone else who cannot use a bus (because the destination isn't close to a bus stop) and the person has some ambulatory problems. Otherwise, I would never use rideshare. Well, maybe if I have to get some place and it's raining hard.
5. Car rental. Only for distances > 20 miles and not within public transportation + walking and/or bike share distance. Say I want to spend an afternoon in Napa. I might rent a car for that.

However, technology is catching up and option 4, rideshare, is going to change with the rollout of autonomous vehicles. Then, I might consider using rideshare for some situations. That would be distances between 4 to 10 miles, have to get their smelling and looking fresh, and need to get there rather soon.

Sf is not "very walkable."  You live in fantasyland.  Maybe in your hyper-neighborhood milieu pro-sf fantasy that you have concocted for yourself but your premise is ridiculous.


https://patch.com/california/san-francisco/most-walkable-u-s-cities-2020-san-francisco-ranks-top-5

SF is among top-5 in walkability.
 
2022-05-19 6:05:36 PM  

slantsix: mcreadyblue: "Credit card machine is broken you need to pay cash"

Literally the last two cab rides I've taken, the driver pulled this crap. I believed one of them but not the other.

I don't use rideshare very often but I'm going to start. Cab companies have had years to figure out how to compete, at least in terms of service quality.


YoTaxi and Flywheel in SF will do everything Uber/Lyft does in regards to accepting credit card payments.
 
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