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Uber to End Surge Pricing, Allow Tips

Home Forums General Columbus Discussion Transportation Uber to End Surge Pricing, Allow Tips

Viewing 15 posts - 1 through 15 (of 30 total)
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  • #1125289
    Ned23
    Ned23
    Participant

    This could possibly kill Uber, or at least make it a less viable mode on weekends and holidays. The people I know who drive for Uber say they only work on Friday & Saturday nights because of the surge prices, otherwise they would rather be out with their friends like everyone else. As part of the deal, they’re ending their “no tip” policy. They’re hoping tips will make up for the loss.

    Uber Plans To Kill Surge Pricing, Though Drivers Say It Makes Job Worth It – NPR May 3, 2016

    Sometimes you call an Uber, and what you thought would be an $8 ride is going to be two, three, even four times more — the result of greater demand brought on by a blizzard, or a baseball game. Whatever the reason, surge pricing is not fun.

    It turns out Uber is working to fix it — or, should we say, end it. The move likely will be great for riders, but not for drivers….

    …As part of a recent class action settlement, Uber plans to start letting drivers collect tips. It could be that the income lost from surge is replaced by passengers voluntarily giving a bit more…

    #1125303

    wpcc88
    Participant

    This could possibly kill Uber, or at least make it a less viable mode on weekends and holidays. The people I know who drive for Uber say they only work on Friday & Saturday nights because of the surge prices, otherwise they would rather be out with their friends like everyone else. As part of the deal, they’re ending their “no tip” policy. They’re hoping tips will make up for the loss.

    Uber Plans To Kill Surge Pricing, Though Drivers Say It Makes Job Worth It – NPR May 3, 2016

    Sometimes you call an Uber, and what you thought would be an $8 ride is going to be two, three, even four times more — the result of greater demand brought on by a blizzard, or a baseball game. Whatever the reason, surge pricing is not fun.

    It turns out Uber is working to fix it — or, should we say, end it. The move likely will be great for riders, but not for drivers….

    …As part of a recent class action settlement, Uber plans to start letting drivers collect tips. It could be that the income lost from surge is replaced by passengers voluntarily giving a bit more…

    So they only work when they can charge people 3 or 4 times the amount it would taking a cab anyway? Sounds like a morally solid business practice. This is in no way going to kill Uber, it may thin the herd but they will survive.

    #1125304

    OneBagTravel
    Participant

    so it’s going to kill the people who just drive during the surge nights. I see no problem with that ha.

    #1125305

    Mike88
    Participant

    I dislike this.

    This is going to end up costing people more on average per ride since the Expectation of a tip will very very quickly become the norm. One of my favorite parts of Ubers is the fact that I do not HAVE to tip.

    #1125306
    Ned23
    Ned23
    Participant

    I don’t think that Uber has a choice. I think that as long as they consider the drivers to be independent contractors then surge pricing is considered “price fixing” between independent contractors and runs afoul of anti-trust laws. They would have to hire drivers as staff in order to get around that. They can’t prevent the independent drivers from accepting tips, either. There are several large ongoing court cases that are driving this; that is my understanding.

    #1125308

    RedStorm
    Participant

    I dislike this.

    This is going to end up costing people more on average per ride since the Expectation of a tip will very very quickly become the norm. One of my favorite parts of Ubers is the fact that I do not HAVE to tip.

    You still don’t HAVE to tip with this change.

    #1125313

    ohbr
    Participant

    I always tipped so it is actually better I can do it through the app. What my recent experiences have been would I would secure an uber, it would cancel, and then I would have to re-request an uber and all of a sudden there is surge pricing. I did not experience that in this city, but other places so I wonder if that was an issue that needed to be addressed as well before it became a larger issue.

    #1125317
    Ned23
    Ned23
    Participant

    most people I know tipped, except when it was a big surge price. The few times I used it I tipped, just because it felt weird not to.

    #1125427
    Coremodels
    Coremodels
    Participant

    Always tip anyway, I like my 5 star passenger rating.

    #1125435
    Ned23
    Ned23
    Participant

    so it’s going to kill the people who just drive during the surge nights. I see no problem with that ha.

    It does mean fewer cars during busy times. That may or may not be a problem for folks.

    #1125441

    Mike88
    Participant

    You still don’t HAVE to tip with this change.

    Obviously you don’t HAVE to, but you know the expectation to tip will become a norm in a matter of weeks. I don’t know a single person who says they regularly tip their Uber drivers. I guess based on comments here a lot of people do but that has not been my experience. So for me this is basically going to raise cost of all of my ubers by 20%. Thus my reasoning why I dislike it.

    Personally I hate Obligatory tipping. Don’t get me wrong I do it in situations where you have to (Bars, restaurants valets etc), I know people rely on it, but I don’t like the practice.

    #1125442

    drew
    Participant

    Prediction: within a couple of years, the price for an Uber ride won’t be that different for the price of a comparable cab ride. The only real cost efficiency I can see is the lack of need for a dispatcher, otherwise all of the other costs are very close to the same – car maintenance, cost of gas, income significant enough to make it worth working for them, etc.

    Even the lack of benefits associated with being a ‘contractor’ will have to come from somewhere, and I doubt that government is going to be willing to allow such a high profile company set the precedent that it’ll come from the public coffers.

    #1125456
    Not that Tom
    Not that Tom
    Participant

    ^^ but conversely, won’t the cost of a cab ride adapt to the (cheaper for now) cost of an Uber ride?

    #1125462

    CB_downtowner
    Participant

    ^^ but conversely, won’t the cost of a cab ride adapt to the (cheaper for now) cost of an Uber ride?

    It would be a bummer to have prices raised on Uber. But let’s be real… the main reason people use Uber is because of the technology and the app, especially in Columbus. Even if the prices are the same, I’d still much rather use an Uber where I can track my car and pay through my phone.

    #1125466
    Posole
    Posole
    Participant

    Prediction: within a couple of years, the price for an Uber ride won’t be that different for the price of a comparable cab ride. The only real cost efficiency I can see is the lack of need for a dispatcher, otherwise all of the other costs are very close to the same – car maintenance, cost of gas, income significant enough to make it worth working for them, etc.

    Even the lack of benefits associated with being a ‘contractor’ will have to come from somewhere, and I doubt that government is going to be willing to allow such a high profile company set the precedent that it’ll come from the public coffers.

    Maintaining big digital database on the internet is not cheap. A cab dispatcher makes what, $15/ hour? How much does a big data system cost?

Viewing 15 posts - 1 through 15 (of 30 total)

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