Referrals are killing surge

igo

New Member
Just a theory I'd like to get your opinion on. With the RNC coming up, Uber is under a lot of pressure to increase its driver base. It increased referral bonuses to $300 and is encouraging drivers from all over Ohio to come up and drive for the RNC. I think the immediate impact is that surge is dead downtown. Too many new drivers hoping to score big are flooding the market. The supply of drivers far exceeds the demand for rides. So getting $300 for each completed referral sounds great, except when everybody else thinks that way too. You might get $300 right away (ish) but you reduce the normal surge by x% with each referral. And there goes your "decent" hourly rates. I think referrals are killing surge.

I'm guessing that RNC will be a bust. So many drivers and their grandmothers will be out trying to cash in - I predict there will be little-to-no surge. Riots and traffic (probably caused mostly by Uber drivers) will make the ordeal a huge hassle, and without surge nobody will make any money.

I'd be happy to be wrong. Just want to hear what you all have to say.
 

Michael - Cleveland

Well-Known Member
I think referrals are killing surge.
But that is Uber's goal: To have as many drivers as necessary to limit the number of surge periods and reduce how high surges go. You have to remember that Uber is in the business of delivering drivers to riders - not the other way around.
 

crookedhalo

Well-Known Member
With uber insanely high turn over rate I really can't see their business model lasting without autonomous cars, but then again I didn't think people would drive non surge with rates being this low for long.
 

igo

New Member
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But that is Uber's goal: To have as many drivers as necessary to limit the number of surge periods and reduce how high surges go. You have to remember that Uber is in the business of delivering drivers to riders - not the other way around.
Right. The model makes sense for Uber the company. But the drivers are pushing referrals most. If drivers stopped pushing referrals to get that tempting bonus then we might start to see fewer (new) drivers on the road. Boycott referrals and we might see a return of surge. We don't have to play into their scheme.
 

Uber8er

Active Member
That's Uber drivers for you not that bright. In what other profession would you ask someone to come and replace you, so in turn you could make less and less and less??...
 

Uber8er

Active Member
But I don't think it's just the referral. We were seeing allot more surges right after prices went down that caused some drivers to just hang their keys, I think some of those drivers came back and just gave in to Uber and are just driving for .77 cents a mile. Big mistake.
 

Roger in Canton

Well-Known Member
Until the seemingly endless pool of new drivers dries up, then the prices will probably stay at the current level. And the only way that happens, is for real jobs become more plentiful.
 
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