RIDEGURU
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
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.
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.
Again? How can they go any lower. This will pretty much gurantee that people will be back driving taxis. (this is nyc0
The next biggest question is whether or not Lyft will follow suit... once again...
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!
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.
how would it ever blow up? Capitalis wins, no?
*capitalism.
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
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.
I think its crazy that they could lower rates again!