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Uber and Lyft both Shortchanging Customers - "Upfront", of course.

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FlutterShy
310 Rider
 Posted 2 years ago

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April 2017: Uber sued for shortchanging drivers with new upfront pricing system

Jan 2018: Lyft Drivers Say They're Getting Shortchanged by the Company

"Bleecker gets paid per ride. He thinks Lyft pays him the rider fare, minus a 20 percent cut that Lyft takes. He said that's what he agreed to when he signed up. But, Bleecker recently heard rumblings that Lyft wasn't being upfront about what it's charging riders. So, he asked some of his riders to help him investigate.

"I was totally floored that it didn't match. It didn't make any sense," Bleecker said. Here's what he told NBC 4 he found: A rider paid Lyft $22.16 for a ride, but the fare Lyft reported to Bleecker was $17.78."

Comments

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    CaptainChampion
    128
     2 years ago

    Fantastic.  No one is nice anymore.  

    Show Hide  5 Replies
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      DonutDrivers
      246 Driver Driver
       2 years ago

      this is the whole thing about upfront pricing, right?  How Uber and Lyft charge whatever they want (whatever they think riders are willing to pay)? 

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        RainbowRash
        101 Rider
         2 years ago

        Can someone explain to me why this is happening.  Doesn't the driver get paid the % still?

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          SmittenKitten
          2004 Rider
           2 years ago

          When the riders and drivers compare their receipts, the prices aren't matching up.  Say Lyft charges the rider $50 for upfront pricing, but when the driver checks his paystub, it says Lyft charged the rider $30 (and he gets 25% of that at $6).

          There are some fuzzy math here, but in the simplest form...

          • Uber/Lyft historically and still mostly calculate their fare based based on distance and duration.
          • Uber/Lyft started to charge upfront pricing, when they realized they can charge more than the prices posted.  They realized they can charge whatever they want. Some say this is a form of wrapping the sursge pricing into it.
          • Uber/Lyft decided to keep paying the drivers per #1.

          Does that make sense?

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            RainbowRash
            101 Rider
             2 years ago

            Thank you.  and that's messed up.   I guess their argument is that the drivers are still getting the same as before.  They figured out how to make more money and they wanted to keep all of that.

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              SmittenKitten
              2004 Rider
               2 years ago

              Yes, but it's worse.  Uber/Lyft basically is known to wrap surge pricing into the upfront pricing.  The problem is, they used to pay drivers for surge pricing.