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Uber CEO Tries To Defend Flat Rate Surge… And FAILS! Recently the Uber CEO Dara Khosrowshahi made some tweets in response to a washington post article concerning how the cost of fares has increase but Uber drivers haven’t seen their share of the increase. This has put light on Uber’s flat rate surge and how it compares to the previous multiplier surge. Join RSG contributor Chris as he goes over how Dara defended the use of the flat rate surge and how that compares to what drivers are experiencing when it comes to Uber driver earnings.
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About The RideShare Guy:
I’m Harry, the founder of The Rideshare Guy. I started driving for Uber and Lyft in 2015 and eventually quit my day job as an aerospace engineer to run The Rideshare Guy full time.
These days, I’m a trusted media expert on all things rideshare and have a number of contributors across the country who are all driving for Uber and Lyft and other gig companies like Instacart, Doordash, and Postmates.
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Harry also consults for both established corporations and start-ups. –
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A a true WIN WIN WIN for Uber Corporate!
Dara was in magician mode with these tweets! Making you believe what is not real 2 be the truth! UBER/LYFT took 35% in 2019 when I did my taxes! My guess now is 40% plus
Hello I'm steve from yonkers ny uber is taking home more then the drivers and this is a example
Unfortunately, Dara will never care about the driver until he is forced to legally. His job is not to care about drivers but to make sure the investors are getting their financial return.
@9:46 in my experience Uber May give you more if it's a longer trip with the flat rate surge. That doesn't happen 100% of the time and the Chicago market. I haven't driven in a long time, but before when they rolled that out it was short-lived. Uber does not 100% of the time on longer trips increased that flat surgery amount that you initially saw. If someone has proof to show me I'll start driving for Uber on search again to find out for sure. Uber's been taking money since 2016 literally stealing money with search on what they charge customers and what they pay to driver!
I was in a hot zone the last 3 days and literally made 50 for all three days. I barely get any deliveries. Sitting right in a hot zone and when I finally received a delivery it was 9 dollar delivery which included a 5.25 serge and the tip.
Surge is gone in California for drivers since 5/1/21-ish, but not for riders. Riders pay big surges, and more than %50 of that money are not going to drivers. I smell FRAUD. Unethical business practices.
Today I made $3.75 and Uber made $19.86 I have the screen shot if anyone wants it ~ also bait and switch with surge
Drivers should strike buy they scared
Keep driving keep getting ripped off do you expect anything any different than that you’re dealing with Uber
Before flat surge I made 170.00 for 50 minutes ride with uberX. Now there is no way I will make that ever.
Lyft isn't even paying more in my area
Now it is 30% to driver, 70% to that nice ….ish man.
That nice ….ish man also stealing the tips .
Uber is a little bit of a scam
Highest take rate I ever got hit with from Uber was 67 percent. Two passengers took a ride that ended up around $22. I got $7.
What's the highest take rate Uber or Lyft has taken from you?
When the driver sees the Uber map turning red , that red good for the Uber , Not for the driver because the flat rate surge , it usually shows how much the driver getting more by dollar amount with surge logo on the bottom of the ping ( it could be $1-11)when there is a ping , that means if the driver got the long ride , that would be a lot less making than regular surge for sure . That is why the driver don’t see surge multiplier info anymore in the fare details, and that is probably main reason to hide the details because nobody will do the long trip once they find out about the flat surge .
I wish this cat and mouse game would end. Just make it a flat 80/20 rate with surge. Can we agree to this @Uber ?
Nice shell game, Dara. What was the PRO-RATA percentage of driver pay for each of those rides in comparison from January to May. Of COURSE fares increased. Of COURSE driver pay per trip increased because people are getting out more, now that more and more is being revealed about Covid-19. What is the PERCENTAGE of each ride's total paid to the driver in May as compared to January, DARA?!?!?! Tell us THAT. Nice try; yet, it's lame spin. Is UBER taking more of a percentage of each ride? Is Uber creating a spread from ACTUAL mileage that equals .02 of each mile? One subtracted from the driver and one added to the rider? If so, this needs to cease immediately. It's FRAUD. If you stabilized fares to a median rate, you would not need to play this
"Go Ant, Go" game with drivers to chase a "surge" that disappears when the ants either do NOT go, or just wait for the next ride? With gas near $3, do you think any SANE person would run 12.1 miles for a $3 surge? Stop all these "control freak" games with the drivers. Get some COMPETENT SQL Experts to analyze each market Get the Artificial Intelligence people to focus on PROFITABILITY and driving shareholder value instead of these "control freak" games designed to squeeze the drivers over and over. Uber/Lyft just can't find a way to create a "win-win".
It's ALWAYS "we must win, drivers must lose". Wasn't Dara quoted recently in a business publication saying that Uber wasn't seeking "marginal rides"? Oh, but he DOES to put "platform stabilization" ahead of "shareholder value". It won't be long until shareholders get tired of his chicanery. So, he was CEO of Priceline. To quote motivational speaker Matt Foley: "Well la-tee-frickin' da!". How long has Dara been given to get Uber closer to profitability? They only way he inches closer is by ScrUber-ing the drivers. That's working out REALLY well for him, isn't it? Limo service for bus fare. Wait for your rider to abuse you with no meter running, or get a bad rating, or cancel the ride after running 12.1 miles for what you THOUGH was an XL ride. No, it wasn't. Your vehicle just became a daily U-Haul Rental Van. Many minimum fares for the driver don't pay for gas; yet generate booking fees for Uber. What a business model for Uber Technologies! And "pickup premium LIKELY" for a 12.1 mile ride to take someone from the grocery store 1.1 mile and ZERO "premium". Complain some more, Dara, about rides not being serviced, Dara. It's of YOUR OWN making. Have your IT Geeks analyze how many "pickup premium likely" rides are going bye bye. Drivers are wise to this. There WILL come a day when both Uber and Lyft will be forced to show the trip distance. Both companies know it and are living on borrowed time. This is currently NOT a bi-lateral "independent contractor" relationship. They know that too. Neither Uber, nor Lyft need to reveal the exact address for the drop off; but, the day is coming when they will be forced to show the "independent contractor" the mileage he/she can earn. Uber/Lyft are withholding material information from "independent contractors". It will come to a screeching halt in the not-so-distant future. How many rides of shorter pick up distances are going unserved because drivers are running all over hell's half acre? Either the Artificial Intelligence Geeks are inept, or they are doing Dara's "dirty work". Focus on "shareholder value" with a "win-win" scenario and you MIGHT get closer profitability. The more you raise the rates, the less riders feel obliged to tip. This reduces gross earnings and causes your "fleet" to become less reliable and more dangerous for the rider. Roll the dice! And the mileage rate at the end of the year is a MOOT point. It's NOT earnings. Don't play that. No one wants to hear it. Drive "shareholder value". Create a paradigm shift among the Artificial Intelligence Geeks. Get them working on ways to properly analyze each market and understand the "game within the game". You're failing at that because you focus on a "control freak" culture. It appears it starts at the top. Seems like the Artificial Intelligence Geeks are ants too.
Stupid CEO better get his app working not showing drivers moving resulting in tons of cancellations as riders think drivers not coming also irate and abusive text messages and phone calls.
How about when a driver excepts a trip we are able to see all the details about the trip including stops and the final destination, we don’t get any of that info, Uber and lift choose to keep us in the dark, expect customer service to be less than adequate when drivers show up to a disaster, stop keeping us drivers in the dark.
Tired of this Uber and Lyft shit. You drivers are just the lowest. I lost my respect for all of you, like prostitutes rushing for $3.00
Friend gave phoenix Uber ride within last two weeks. Passenger paid just over $60. Driver made just over $20. They compared notes. Passenger was very angry when he found out. The system will never be fair to drivers when the amount passengers pay is decoupled from a fixed percentage to drivers as it used to be.
From the beginning, the business plan was to drive taxis into bankruptcy, corner the market and raise fares to break even, still underpaying drivers, then move to autonomous vehicles and fire the drivers. The company can never stop subsidizing rides and become profitable until that happens. While drivers incur all the cost and taxes of doing business and sleep in their cars, the salaries, bonuses, security and entertainment expenses of the executives remain obscene.
I think we all should stop driving for uber period it's rip off you're destroying your car
Dara in these tweets was disingenuous at best, and outright liar at worst. He presents numbers that are ratios of ratios of an unknown (to us) baseline to make his comparisons.
A far simpler, and nearly impossible to fudge, clarification would have been to directly and unambiguously state the ratio (in %) of Uber's take vs. driver's pay of passenger paid fare.
For example:
"During period A, riders paid $X, uber kept Y% and paid drivers Z%"
"During period B, riders paid $X, uber kept Y% and paid drivers Z%"
etc.
Simple. Easy. Direct. No room to fudge or mislead.
Did he do something that simple and easy for everyone to understand? No, he didn't. He presented an argument based on a ratio of ratios of an unknown (to us) baseline. Why would someone use an complicated obtuse and ambiguous explanation instead of a simple direct clear explanation? Could it be the simple clear direct explanation presents a picture that's directly opposite of the story he's trying to tell?
Sorry if you still drive for these clowns. Hopefully you wake up one day and realize your time on Earth is very limited and worth more.
Do not forget Lyft is just as guilty as Uber. Both are pathetic companies.
Uber and Lyft don’t give a damn about all you drivers out there because you’re not paying for the rides. Uber and Lyft care more about the the passengers even if the passenger are a criminal or rapist.
Different drivers in the same market, siting side by side, get much different surge rates, and the surge area is four times greater. New drivers get the better rate. If you’re an older driver, you will do better if you go off line for a month or two.