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Will Uber Cut Rates In January 2017? (2016-12-19)

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RideGuru
304 Rider Driver Driver Guru
 Posted 6 years, 1 month ago

Uber has consistently cut rates in January for three years in a row now.  In fact, it’s actually happened on the same day the last couple years and, as you can imagine, it’s not a happy day for drivers. Nobody likes having their pay cut overnight, but Uber has this bad habit of cutting prices AND telling drivers it’s going to be good for them too! They argue that lower prices increase demand and allow drivers to increase their utilization rate, thus making more money.

Yet, after three years of these rate cuts, I have yet to find a single driver tell me they make more money after fare cuts than they did before.  Oh, and there’s the fact that rate cuts mean drivers have to drive more miles to make the same amount of money, thus increasing their expenses, which Uber never takes into account. I think rate cuts are bad enough, but Uber’s messaging around rate cuts has always caused a lot of resentment among drivers. (read more)

http://therideshareguy.com/will-uber-cut-rates-in-january-2017/

Comments

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    RPaulson
    560 Driver
     6 years ago

    This will prove the recent rumblings about whether Uber's business model is legit or not.  Are they really a legitimate and profitable business?  or are they just on a mission to make taxis go bankrupt by waging an unreasonable price war.

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      Kenyon
      55 Rider
       6 years ago

      Agreed!  The company continues to show a deficit year after year - somethings gotta give here.  Even though they are hammering the taxi industry, it's too big and established an industry to be pushed out completely before Uber's model caves in on them.

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    jbauer
    398 Driver
     6 years ago

    Again?  How can they go any lower.  This will pretty much gurantee that people will be back driving taxis.  (this is nyc0

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    lilly
    1026 Rider Guru
     6 years ago  (edited 6 years ago)

    The next biggest question is whether or not Lyft will follow suit... once again...

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      jbauer
      398 Driver
       6 years ago

      Lyft will almost definitely follow suit.  They have to!  but that's all part of Uber's plan!  to make Lyft lose just as much as money as they are.  The one will the deeper pocket will win!

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    CasPer
    330 Rider
     6 years ago

    As a consumer, I am enjoying the price cuts.  

    ...unless, of course, at some point all of this will blow up and the price will sky rocket.

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      TonyAlmeida
      1149 Rider
       6 years ago

      how would it ever blow up?  Capitalis wins, no?

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        TonyAlmeida
        1149 Rider
         6 years ago  (edited 6 years ago)

        *capitalism.

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          CasPer
          330 Rider
           6 years ago

          if it's unsustainable, well, something will break, right?  investors of Uber not dealing with it.  Uber will someday reach a point they have to make money

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            RPaulson
            560 Driver
             6 years ago

            here's another potential.   and more likely too. 

            Uber prices out all other competitions and end up having a monopoly.  Then they can do wahtever they want with their prices.  

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    CTG07
    223 Rider
     6 years ago

    I think its crazy that they could lower rates again!