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As was predicted, Uber’s IPO means you’ll be paying higher fares for your rides

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chawes
756 Rider Guru
 Posted 3 years, 4 months ago

This article nicely sums up what I think a lot of us were already thinking.

As we’ve reported before, Uber's success has been based on two unsustainable tactics: subsidizing fares and exploiting drivers.

https://www.latimes.com/business/hiltzik/la-fi-hiltzik-uber-fare-increase-20190531-story.html

After losing over $1B last quarter there is no question things are going to change. 

This industry is in for some interesting times.

Comments

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    Wes
    1602 Rider Driver
     3 years ago

    I've been saying for over a year (sometimes I get it right LOL) fares WILL increase and it will NOT benefit the drivers.  It's all about the bottom line now and reducing driver costs will be part of the formula you can be sure.  Increased fares?  Absolutely but 100% of the increases will go to Uber.

    Driver compensation won't increase until they're forced to do so due to lack of available drivers, and based on the current supply of available drivers, that won't be changing anytime soon.


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    cheesehead
    524 Rider Driver
     3 years ago

    Hopefully this is good for us...

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      chicago49
      253 Driver
       3 years ago

      Don't get your hopes up too high. It's not a driver's market right now. It may never be.

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    Bigfrank
    447 Rider Driver Driver
     3 years ago

    my guess is uberX will be taken out of the picture since they are not accepting many small compact cars anymore then I believe Uber black will be taken out and it will just be Uber XL and Uber SUV

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    ce
    58 Rider
     3 years ago

    What will all the millennials do when they can't get their $6 ride home from their $90 brunch and yoga date? 😂

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    Bigfrank
    447 Rider Driver Driver
     3 years ago

    Rideshare apps are the Illuminati of the transportation business  and fast up also means fast down. The money made by rideshare app executive s is dirty and it will come back to torrment them endlessly. The gig economy for full time drivers is a false sense of security  leaving a big zero at the end of the road . My prediction is higher fares will lead to a demand for premium cars and a end of Uber x  


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      chawes
      756 Rider Guru
       3 years ago

      Interesting prediction. It makes sense, if Uber X fares start to approach Uber Black, Uber X will start to wither and die, so Uber will have to do something to make it more enticing such as raise the vehicle requirements (at the expense of drivers...), like you said. Or X will just go away.

      But, I'm not sure the X rates will actually get that high. Black is more than 2x in most markets. And, even if it does get close, a lot of people are money conscious enough to still take the cheaper ride, and don't care what  car they are riding in.