I've been taking Uber pool a lot lately. Sometimes rides are as little as $4 and I go clear across town from SOMA all the way to the north end of the city. How can they possibly make money on rides this cheap? Lyft prices on the other hand are much higher, sometimes as much as 4x.
If prices are surging here & there thru the day/night we are not making a dime. Uber's take on me is 25% (I WAS ONE DAY BELOW THE CUT OFF DATE TO BE AT THE 20% RATE) then wear & tear if you drive regularly would exceed 25-30% Then gas is +- 25% AND since we are "independent contractors we get 1099'ed & so at the end of the day we make no money. I enjoyed it at first but now that I look at the big picture after paying my taxes this year & all I can brag about is that I probably saved quite a few people DUI's & met some fun people along the way!
"I asked if they considered to pay the driver more? [...] He then added that I must realize that they were not competing with Taxis for the drivers, but rather with Walmart."<p><a href="https://www.alexkras.com/my-interview-at-uber/" rel="nofollow">https://www.alexkras.com/my-interview-at-uber/</a>
I've been driving my own car with/for uber for over a year now. I have the grandfathered 20% Uber share fee deal and driving for them is barely break even. For the past 6 months, I've posted signs facing the PAX, taped to the back of the front seat headrests that clues them in about Uber's misinformation campaign which convinced riders that the tip was included and that it was distributed to drivers. Also I printed out any of the numerous national magazine stories (U.S. News and World Report, for one) and stuffed them in one of the seat pouches for PAX to read. The tipping in some cases has been generous ($15-$20) and in others, just a few dollars. The tipping makes the Uber driver experience marginally profitable until something better comes along. Most PAX feel good about tipping once you diplomatically clue them in. Like some will say "nice car, very clean." That gives me the opportunity to thank them and say it helps by encouraging tips. They're all surprised at that until I explain that Uber is fighting to be the low cost rideshare—especially when compared to lift, which includes a tipping mechanism in their app. When the rider compares destination estimates—which may be materially the same—Uber wins it for them because they really believe that the tip is included and that you don't have to add it as you do in Lyft's app. This is another example of how the unscrupulous and immoral Uber continues to climb to the top on the backs of the drivers... who, trust me, are not getting rich and barely making expenses.
I've seen many drivers complaining on Reddit as to how many trips are effectively a net loss once one includes things like wear & tear, much less opportunity cost.<p>Most drivers seem to loathe pool.
Well isn't this multiplied by the number of people in the pool? What is the normal rate for such a ride? Is is four time cheaper than Lyft because they are taking four people?<p>Uber's gameplan is to dominate the app market so when self-driving cars are invented they can own every car on the road.
It's Uber who loses money on those rides, not the drivers. They are trying to get you to use them, instead of the competition. If their strategy works then they can eventually start charging more because they'll be the only rideshare in town.
I use Lyft Line almost exclusively and they are only slightly pricier for me (vs Uber Pool. I always compare and take Lyft if it is under $2 more expensive).