1. UberPeople.NET - Independent community of rideshare drivers. It's FREE to be a person and enjoy all the benefits of membership. Sign-up HERE!

Low paid cities. Tweet for higher pay

Discussion in 'Pay' started by Buddywannarideagain, Jan 5, 2018.

Tags:
  1. Buddywannarideagain

    Buddywannarideagain Active Member

    Location:
    Charlotte
    Driving:
    UberX
    tweet for better rates in 2018

    I do it all the time. Do you ? (And you self defeaters who think you know it all shut up in advance)

    @ Uber handle
    @uber_support
    @ anyone who can help !
     
    SpeedyGonzalez11 likes this.
  2. SEAL Team 5

    SEAL Team 5 Well-Known Member

    Location:
    Phoenix
    Driving:
    Livery
    @ if I only had a brain
     
    RangerBella, gofry and HighRollinG like this.
  3. gofry

    gofry Well-Known Member

    Location:
    Upper Arlington
    Better New Year's Resolution: Train for a real job.
     
    Cigars likes this.
  4. Buddywannarideagain

    Buddywannarideagain Active Member

    Location:
    Charlotte
    Driving:
    UberX
    Side gigs should pay too.
     
  5. ShinyAndChrome

    ShinyAndChrome Well-Known Member

    Location:
    Rochester
    Higher pay will attract more drivers, will increase supply, will lower your ping rate until you are back to what you are making now. If that higher pay is also charging more to pax, at the same time as increasing driver supply it will lower rider demand, eroding earnings yet further.
     
    RangerBella, bsliv and HighRollinG like this.

  6. bsliv

    bsliv Well-Known Member

    Location:
    Las Vegas, NV
    And if they don't pay what one would expect, don't do the gig. Unfortunately, there are thousands of drivers who think the compensation is acceptable and do the gig. While the supply of drivers exceeds the demand, expect rates to the drivers to go down not up. If there aren't enough drivers in your area, rates will go up.

    I don't consider myself a self-defeater. The game is unwinnable under the current conditions in my area. I don't know it all but I do understand supply and demand.
     
    kcdrvr15 likes this.
  7. Mears Troll Number 4

    Mears Troll Number 4 Well-Known Member

    Location:
    Orlando-ish
    Driving:
    Taxi
    BUT...

    It will reduce the number of miles you have to driver per $ earned which in some markets (like orlando) it will help the bottom line even if they are making exactly what they used to.
     
  8. bsliv

    bsliv Well-Known Member

    Location:
    Las Vegas, NV
    Maybe. It depends on the numbers. If a 10% increase in the rates to the drivers results in a 10% fare increase to the riders, it may result in 10% fewer riders. It might also mean 10% more drivers.

    Say we start with 100 drivers and 1000 riders with an average fee to the driver of $10 per ride. Each driver would average $100. If each trip was 10 miles, that's 100 miles driven.

    With 110 drivers and 900 riders with an average fee to the driver of $11 per ride, each driver would average $90 with 82 miles driven. 18 fewer miles at $0.35 per mile for cost would save $6.30. So the net effect would be a loss of $3.70 per driver.
     
  9. UBERPROcolorado

    UBERPROcolorado Well-Known Member

    Location:
    Colorado
    Driving:
    UberX
    Over the past few months in have seen an up-tick in foreign drivers and a massive surge of rider complaints about drivers that speak no English and cannot use the navigation.

    Trump needs to hurry up with his wall and DACA plans before riders must learn a foreign language just to communicate with drivers.
     
  10. Mears Troll Number 4

    Mears Troll Number 4 Well-Known Member

    Location:
    Orlando-ish
    Driving:
    Taxi

    You dont' understand how bad the margins are here in Orlando,

    If you use .35c per mile as a cost, your losing/ making sub min wage.

    .35 per mile X 20 miles driven per hour= $7.00 per hour in costs

    $7-10 per hour in revenue minus $7.00 per hour in costs is $0-3 per hour in profit



    Seriously... if you use .35c per mile this i what the margins really are...




    Now if we put more drivers on the road this happens...

    10% fewer rides= 10% fewer miles
    10% more drivers= 10% fewer miles...

    (go with me on this)


    So we increase cost, putting more drivers on the road, at the cost of business...

    $7.00-$10 X 1.1 X .9

    $6.93-$9.90
    A slight decrease in revenue...

    with $5.60 in costs
    A substantial decrease in costs...

    $1.33-$4.33 in profit, or an increase of...

    A 44% increase in profit while technically a decrease in total revenue...
     
    bsliv likes this.
  11. bsliv

    bsliv Well-Known Member

    Location:
    Las Vegas, NV
    I like people who work with numbers. The only quibble I have is the '.9' figure. With 10% more drivers and 10% fewer rides, the net is a 18% reduction in the number of rides per driver. If it were 10% more drivers or 10% fewer rides, the net would be a 10%. loss in the number of rides per driver. The '.9' should be '.82'.

    The big unknowns are the number of lost rides due to the fee increase to the riders and the number of additional drivers due to the increased rate to the driver. My example was just to point out that a fee increase to the driver may result in an overall loss to individual drivers. It's counter intuitive but it could happen.

    If Uber doubled the fare to the rider, how many less rides would there be?
    If Uber doubled the rate to the driver, how many of the 96% would restart driving? Plus, how many new people would the higher rates entice?

    Uber has the data.
     
    Last edited: Jan 12, 2018
    Cigars likes this.
  12. Mears Troll Number 4

    Mears Troll Number 4 Well-Known Member

    Location:
    Orlando-ish
    Driving:
    Taxi
    Plus there's business lost to competitors who are magically closer on price then they used to be..


    But honestly.. take orlando for instance... if the rates double they are still lower than a lot of the competition. (sickening) so the tourest business they have wouldn't be lost. What would be lost are the people who get 10 mile $10 UBER rides every day that can no longer afford it and have to go back to the buses.

    And i never said this is the way it works for every market...


    Let's say we double the Orlando rates... and it leads to a 60% decrease in business PER DRIVER..

    $7-10 per hour
    X 2

    14-20

    X .4

    $5.6-$8
    With 60% less in expenses

    2o miles x .4= 8 miles

    8 X .35= $2.80


    $7-10
    - $7.00
    $0-3.00
    VS

    $5.6-$8.00
    -$2.80
    $2.80-$5.20


    Or an increase of 73%-28,000% in profit

    Cause you cant divide by zero a making $2.80 is 28,000% more than 1c. and 1c is as close as you can get to zero mathematically...
    Let's just call it a 74% increase in profit and call it a day shall we?


    Basically doubling the rates in Orlando couldn't possibly hurt a driver unless they truly beleive that it only costs gas to operate a car. And i'm 35c a mile as costs in this math.

    Even if the business gets decimated (which i honestly don't expect) doubling the rates here still vastly increase profit margins.
     
    bsliv and 2Cents like this.
  13. Driver2448

    Driver2448 Well-Known Member

    Location:
    Sacramento

    NY’S resolution: 2017: Lose weight. Check. 2018: get a full time job: check in the first week. Got sick so had to postpone my start date which sucks though.
     
  14. 2Cents

    2Cents Well-Known Member

    Location:
    Otlando
    Drivers still haven't figured the ponz out yet...
    Geez.
     
  15. bsliv

    bsliv Well-Known Member

    Location:
    Las Vegas, NV
    With a doubling of pay to the drivers and a doubling of cost to the riders, one could expect twice as many drivers and half as many riders. With double the drivers and half the available rides, the rides per hour would be reduced from 2 per hour to .5 per hour.


    If each ride was 10 miles and grossed $5:
    Two rides per hour generates $7 in cost, $10 in gross for a $3 net.

    If each ride was 10 miles and grossed $10:
    Half a ride per hour generates $1.75 in cost, $5.00 in gross for a $3.25 net.

    If the number of rides didn't decrease, it would be one ride per hour with double the drivers.
    One ride per hour generates $3.50 in cost, $10.00 in gross for a $6.50 net.
     
  16. DeFazio

    DeFazio Active Member

    Location:
    NYC
    Driving:
    UberX
    Good idea
     

Share This Page