No Cars Available - Thanks to New Rate Cuts

HoldenDriver

Active Member
Are you happy, Uber? You cut the rates in the Sac market so far below minimum wage, that anyone north of Sacramento can't get an Uber except during bar hours.

Went up to see family in Chico. Wanted to catch an Uber. No Cars Available. All. Morning. Long.

Nobody here will sign on, because the rate is so low - so no surges happen - because you need multiple people requesting rides. Nobody will request, because the app says NCA.

When you pay people $.65/mile after fees, this will happen. Again, are you happy?

Heck, at $.65/mile off-surge (after Uber's 25% fees), it's only $.12 more than the IRS deduction per-mile. That means driving for Uber is tax-free income. Except... it isn't income, which is why people won't drive, they're better off on food stamps!!

Nobody is winning here. Uber is making no money. Drivers aren't driving. And I can't get a ride. Raise the bloody base rates.

I want the rates up as a pax, not as a driver! Because I can't get an Uber!
 

Tncluber

Well-Known Member
The best is i was at SFO yesterday and pax were telling me they had to wait an hr. No bs. Nobody wants to drive anymore.

Even with surge, the money isn't that impressive.

You still have to pay a lot just to keep things going.
 

HoldenDriver

Active Member
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  • #3
It just doesn't make sense to me. You reach an equilibrium at some point. Uber is clearly below that equilibrium, where customers want to pay more to get better service.

I kinda think - and this may be a conspiracy theory - but if Uber realizes drivers are going to be classed as employees (say, the CA settlement proposal gets nixed), then they may be trying to thin the herd... make rates too low, and then the people that hang in there get min wage + vehicle costs per mile.

If you need to cut your driver fleet from 450k to 250k, this is sure a great way to do it. Frankly, it's the only rational thing I can sort out.
 

Tncluber

Well-Known Member
They cut the rates for pax and then raised the booking fee to increase their profit.

Then they keep the rate low and bring in uberpool. Keeps you busy, but the payout is garbage. The low rate is good for them, because they collect 2 fares of $6 and pay the driver a straight rate of point A to point B. Usually around $7. Meanwhile they collected $5. That's a high percentage of the fare.

They cut the rates and then they offer loyalty incentives. PDPlus and hourly guarantees. Drivers then ignore the low rates and hit the road.

But what drivers are figuring out is that the incentives are not achievable through an honest effort.

And after asking around I've learned there is a pairing algorithm assigned to each driver. And inside the algorithm a code can be written so that the driver will have difficulty achieving which ever incentive they are chasing.

So if drivers aren't hitting the incentive regularly, then drivers aren't going to drive at these rates.

Especially on a holiday.

No thinning of the heard is going on. It's still a $1000 bonus to sign on in sf.

Getting drivers to sign up and then fooling them into thinking they are making money is not an ez business.
 

HoldenDriver

Active Member
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  • #5
Thing is in most of Sac market, there's no Pool and yet rates are even lower at $.75/mile before fees. In my region, no PDPlus or hourly guarantees either.

Hence, NCA constantly and 4-5x surges.
 
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Tncluber

Well-Known Member
Thing is in most of Sac market, there's no Pool and yet rates are even lower at $.75/mile before fees. In my region, no PDPlus or hourly guarantees either.

Hence, NCA constantly and 4-5x surges.
The surge is the incentive. It's the original incentive.

I'm guessing the problem is pax wait out the surge and get cheap, (basically free) ride at nonsurge.

I'm guessing drivers are tired of being fooled by fake surge.
 

Ben105

Well-Known Member
And .65 is a little much for your estimate. The rate in SAC is .74/mile, but after gas, insurance, dead miles, wear and tear, etc, it comes out to more like .34 per mile. I drive for both, but make more on Lyft even though I do less rides. They are priced about the same, but people think Lyft is less expensive (though it's actually a few cents more) because it doesn't surge as often.
 
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