Uber/Lyft Shorting Drivers Pay While Raising Fares

The Drive Guy

Well-Known Member
Interesting article here that highlights driver complaints that passengers are being charged surge fares while drivers are being shorted. Article also adds the interesting tidbit that Uber disclosed in their IPO that they expect driver dissatisfaction to rise as a result of the fact that they intend to further slash driver bonuses as a way to cut losses.

The Guardian
 

bpm45

Well-Known Member
Upfront pricing was a brilliant strategy to separate a single market between drivers and riders for rides with a known fixed split of the fare into two markets, one between riders and Uber and another between drivers and and Uber with no fixed split. Allowing Uber to maximize revenue and minimize cost, and screwing both riders and drivers as hard as they could.
 

karachi

Well-Known Member
Upfront pricing was a brilliant strategy to separate a single market between drivers and riders for rides with a known fixed split of the fare into two markets, one between riders and Uber and another between drivers and and Uber with no fixed split. Allowing Uber to maximize revenue and minimize cost, and screwing both riders and drivers as hard as they could.
Ultimately, however, Uber only screws you as hard as you allow them to. Reduced DF was not acceptable to most, so it failed. Such is life.
 

OP-Matt

Well-Known Member
Upfront pricing was a brilliant strategy to separate a single market between drivers and riders for rides with a known fixed split of the fare into two markets, one between riders and Uber and another between drivers and and Uber with no fixed split. Allowing Uber to maximize revenue and minimize cost, and screwing both riders and drivers as hard as they could.
Brilliant indeed. They went from a transportation brokerage taking a fixed % fee against a variable market price product, to a financial market maker taking as much as they could from both sides of the trade. Regardless of their long term fate, their business tactics will be studied for decades.
 
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