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Uber Tests Cheaper Fares For Riders Who Are Willing To Wait Longer (qz.com)
An anonymous reader quotes a report from Quartz: The ride-hailing company has started testing a feature that gives riders the option to trade a shorter wait for a cheaper fare. "Prices are lower at 17:00," Uber recently advised an Uber employee who requested a ride in Berkeley, California, and tweeted a screenshot of the feature. The image showed the Uber employee that he could request a ride "now" (4:56pm local time) for $10.18, or wait until 5pm and pay $8.15, about 25% less. "If you're OK leaving later, we'll request your ride at 17:00 for a lower price," Uber's app stated.
The option to wait longer in exchange for a cheaper ride is being tested among all Uber employees in San Francisco and Los Angeles, a company spokeswoman told Quartz in an email. "Affordability is a top reason riders choose shared rides, and we're internally experimenting with a way to save money in exchange for a later pickup," she said.
The option to wait longer in exchange for a cheaper ride is being tested among all Uber employees in San Francisco and Los Angeles, a company spokeswoman told Quartz in an email. "Affordability is a top reason riders choose shared rides, and we're internally experimenting with a way to save money in exchange for a later pickup," she said.
It NEEDS to be more expensive; Uber's a horrendous deal for the transportation workers.... with fares such as $0.99 a mile being offered in many places, after subtracting Uber's 25% cut = Only $0.74 for the driver. Next subtract the fuel, tires, and vehicle maintenance cost, according to IRS guidelines the average deductible cost is $0.54/Mile and could be more (IRS tends to give a low estimate), so $0.74 - $0.54 = $0.20.
Next, because Uber never collects or pays any of the local taxes they effectively amplify their cut --- the driver is responsible for paying 100% of the local sales tax and any other taxes for the entire fare -- including the Tax on Uber's cut (PLUS the driver has to pay the sales tax on the $1.80 booking fee and other charges riders pay which are NOT shared with drivers) FROM the driver's 75% cut of the fare; local tax rate here is 10%, so that's $0.09 per Mile plus $0.18 per Trip. That means for a 5-Mile trip the total tax is $0.13 per Mile.
$0.20 - $0.13 = Leaves $0.07/Mile for the driver after they pay their gas and local taxes.