Uber can lower prices as it did in other states, as long as newbees keep signing up with Uber. They realize the real cost after few months. By that time several other batches are ready to go on the road, and the cycle goes on.
It has been happening for last two years. Me included, I starred when price in nj was $ 2.15 per mile, now it is 1.10, I do not drive at this rate but a lot of other drivers do. Commission stayed the same so uber is making same money or a lot more if Joe drive or tony.
Yes, these jerks can go to any extent. Uber is the perfect example of American greed. I was reading about the interview of one of its biggest investors who say Uber would cut rates because he could. But it was not confirmed by Uber. It was like couple of months ago when Uber and Carnegie Mellon University announced a strategic partnership for creating driver-less car. Uber is planning to invest heavily.
truth be told, revenue from fares is the last thing on uber's demented mind. it's the idea of every last mother@@@@er on the planet having the uber app on their phone. uber's after data, and data is way more lucrative for uber in the long-run. uber can track the movement of the herd, and that lil bit o' info is worth paying for....for many corporations looking to better target their advertising. this data is also valuable to intelligence agencies for obvious reasons.
The irony in all of this is that Uber's driver turnover is ridiculously huge, but its ratio is negligible. With more and more part-time drivers signing up every week, there's no need to increase fares or decrease commission.
In a 0.75 a mile market , the driver is getting just under standard expense per mile. I'm assuming the per minute rate comes to under minimum wage too. I can't fathom how uber can get away with this as they're not fully disclosing the information with their false advertising. I talked to a few uber drivers in Atlanta last weekend and they had no clue. At least they accepted my cash tips
Uber is taking advantage of people with difficulty, such as lost the job or between jobs. All passanger:customer understand that and willing to pay fair share. Uber in the other hand trying to pay less and less to increase its market share and kill all taxi and lemo companies at the cost Os driver expense.