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Uber Tests Cheaper Fares For Riders Who Are Willing To Wait Longer (qz.com)

Posted by BeauHD on from the time-is-money dept.

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.

51 of 94 comments (clear)

  1. Good AI by 110010001000 · · Score: 1, Funny

    This is a good application of Deep Learning Neural Networks AI. Very clever.

    1. Re:Good AI by phantomfive · · Score: 1

      Where does it say they are using neural networks, or even AI? I didn't see that in the article.

      --
      "First they came for the slanderers and i said nothing."
    2. Re:Good AI by Hognoxious · · Score: 1

      Maybe they'll go full retro and work 3D printing in somehow.

      --
      Confucius say, "Find worm in apple - bad. Find half a worm - worse."
  2. Cheaper Later? by number17 · · Score: 4, Insightful

    Is it actually cheaper later or is it more expensive now?

    1. Re:Cheaper Later? by 110010001000 · · Score: 1

      You just blew my mind.

    2. Re:Cheaper Later? by PolygamousRanchKid+ · · Score: 1

      Is it actually cheaper later or is it more expensive now?

      When everyone chooses the option to wait until after 17:00 . . . the demand will be so high, that the "surge" prices kick in.

      Then it will be even more expensive.

      Just like in casino gambling . . . the house always wins in the long run.

      --
      Schroedinger's Brexit: The UK is both in and out of the EU at the same time!
    3. Re:Cheaper Later? by alvinrod · · Score: 2

      You've hit the nail on the head. This is why I think Uber shouldn't have fixed rates and let riders and drivers negotiate prices for each ride. If you really want quick service to an out of the way location, offer to pay more and someone will be more than glad to take you there. If you want to attract one or two last customers before quitting for the evening, drop your rates and you'll get more takers.

      Doing this would also lend Uber much more credence when it tries to claim that its drivers aren't employees.

    4. Re:Cheaper Later? by parkinglot777 · · Score: 1

      Also, would there be any surcharge if the "later" just falls right into the time they usually top it up with a surcharge rate? For example, it is $10 right now and if you wait, it would be $8. But then 5 minutes later, a 25% surcharge is added due to rush time (or whatever reason). How could it be cheaper?

    5. Re:Cheaper Later? by DontBeAMoran · · Score: 1

      Serenity now, insanity later.

      --
      #DeleteFacebook
    6. Re:Cheaper Later? by Sloppy · · Score: 2

      To be fair, "I'm in a hurry so I want you to blow off other customers to give me priority," simply is a premium request.

      If you don't want to nice your process like most other people then you don't have to, but it comes with a price.

      --
      As copyright owner of this comment, I authorize everyone to defeat any technological measure which limits access to it.
    7. Re:Cheaper Later? by SCVonSteroids · · Score: 1

      https://media.giphy.com/media/...

      --
      I tend to rant.
    8. Re: Cheaper Later? by Anonymous Coward · · Score: 1

      People don't want to haggle. The reason market makers like Uber exist is because they aggregate both supply and demand.

    9. Re:Cheaper Later? by mysidia · · Score: 3, Informative

      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.

    10. Re:Cheaper Later? by Junta · · Score: 1

      I would guess that after 5pm the available driver base increases (people who have gotten off work on their day jobs starting to take fares because they can't afford rent without a second job).

      --
      XML is like violence. If it doesn't solve the problem, use more.
    11. Re:Cheaper Later? by N1AK · · Score: 1

      The fact none of the remotely well known ride sharing firms uses this kind of model is a good indicator that this isn't seen as an attractive option. I'm not entirely sure why in Uber's case given that it isn't like they have one fixed pricing calculation, but I assume it is because they feel that drivers and customers don't want the mental load of optimising the rates constantly to get a bite.

      To give an example of what I mean. I use a P2P investing platform where you can set rates you are willing to lend at, or you can let the platform select a rate to lend quickly. You can easily get a few percent more by actively managing it (which when it can be thousands invested is a notable difference) but most investors use the automatic option. If people investing thousands aren't willing to make a couple of minor tweaks to rates which could make them $100's over the lending term then what's the market for that kind of option on transport?

    12. Re:Cheaper Later? by Solandri · · Score: 1

      Neither. They're just the market price at that time of day. Your phrasing implies the price is somehow higher or lower than market price, and that someone is manipulating the prices to be higher or lower. It's the market price itself which is fluctuating throughout the day - fewer riders but more drivers means lower prices, more riders but fewer drivers means higher prices. The change in price is what dampens the fluctuations in wait time. Higher prices encourage more drivers to give rides, helping work through the backlog of unusually large numbers of people wanting rides at that time. Lower prices encourages drivers who don't need to drive to get off the road, so as not to create the situation of a long line of taxis waiting in line at the airport for a handful of riders.

      Uber is now just giving riders the option to see those fluctuations (at least the ones which make consistent patterns, like time of day) so they can opt to save a few bucks by riding at a different time if their schedule allows. I dislike Uber, but I think this is a great new feature. It helps Uber and drivers too since shifting riders from high-demand times to low-demand times results in lower average wait time for riders, and less downtime for drivers (waiting for a rider to appear) during low-demand times. Everyone wins - riders, drivers, and Uber.

      It's the same as how ticket sites like Kayak/Orbitz/Expedia give you a grid of fares on different days, so you can pick a cheaper fare if it turns out the original date you picked is rather expensive and your schedule is flexible enough to travel on a different day. Most people who fly a lot have figured out by now that airfares tend to be higher on Mondays and Fridays (when business fly employees to/back from off-site locations, resulting in fewer seats available for leisure travelers). Or the power company telling you that your electricity rates are lower between 10 pm to 6 am. This is Uber now telling you that it'd be cheaper if rode at a different time.

    13. Re:Cheaper Later? by nasch · · Score: 1

      People don't want to negotiate a rate for a ride and then wonder if they got screwed. People don't want to spend five minutes haggling over the rate for a 10 minute car ride. And then there's the gaming. If I offer $8 and a driver accepts immediately, what's to stop me from cancelling the request and making a new one for $6? Some riders will be screwed by drivers with more knowledge of the market, and some drivers will be screwed by riders willing to game the system.

    14. Re:Cheaper Later? by Hognoxious · · Score: 1

      If you could do all that kind of shit it's unlikely you'd be driving for Unter, isn't it?

      --
      Confucius say, "Find worm in apple - bad. Find half a worm - worse."
  3. "taxi" by xxxJonBoyxxx · · Score: 4, Insightful

    >> ride-hailing company

    The word you are looking for is "taxi", as in "Uber is a taxi company"

    1. Re:"taxi" by KiloByte · · Score: 1, Funny

      The word you are looking for is "taxi", as in "Uber is a taxi company"

      No -- a taxi is guaranteed to charge more than promised, start the counter at more than 0, take you a scenic route, shortchange you or claim to have no change even though you see it in the driver's wallet. You always get at least one from the above list, if you're going from the airport while looking obviously foreign you're likely to get every single item.

      Uber would have to introduce weekly orphanage shootings using bullets made from charred kitten bones if they'd want to be anywhere near a typical taxi company.

      --
      The creatures outside looked from Alt-Right to Antifa; but already it was impossible to say which was which.
    2. Re:"taxi" by Anonymous Coward · · Score: 2

      >> ride-hailing company

      The word you are looking for is "taxi", as in "Uber is a taxi company"

      No, Taxis are regulated, have commercial licenses and insurance, and where I live the rates are set by the city and not by the cab company -- there is no "surge" pricing.

      Taxis in my city also have mandatory cameras in case of crimes, and the drivers have all had background checks, and a photo of the driver with his name on a placard so you can know who is driving you.

      Uber is some random guy who likely has none of these things, with prices set according to the whims of Uber.

      Uber is a bootleg cab company, who have loudly said "la la la, your laws don't apply to us because we've smeared ourselves with magical unicorn poop".

      Fuck Uber. Not interested.

    3. Re:"taxi" by cascadingstylesheet · · Score: 1

      >> ride-hailing company The word you are looking for is "taxi", as in "Uber is a taxi company"

      But without dispatchers, man! Without dispatchers!! It'll blow your mind, it's freaky awesome, dude!

    4. Re:"taxi" by fluffernutter · · Score: 1

      Taxis in my area also have washable seats, and an emergency strobe and plexiglass shield for the driver. They are also contracted to have at least one waiting at most hotels and the airport, so if you need one you can just walk to the nearest hotel.

      --
      Laws are rules for the court, but merely a bottom bar to hit for life. Think beyond laws in your actions always.
    5. Re:"taxi" by tepples · · Score: 2

      where I live the rates are set by the city and not by the cab company -- there is no "surge" pricing.

      In other words, they run all surge pricing all the time.

      Does your city have a "medallion" system, where the license to operate like a taxi is considered a durable, heritable good not unlike real estate?

    6. Re:"taxi" by Pascoea · · Score: 1

      You do realize that when applied appropriately, profane language can emphasize a specific point and actually make a good argument more effective. When sprinkled incoherently throughout poorly worded sentences it just makes you look like a buffoon. So there is that.

      Also, i-hail does 100% of what Uber/Lyft does, but with the added "security" that a regulated taxi cab company provides.

      rm -rf ./liberals

      Wow, profane and "clever". Double threat.

    7. Re:"taxi" by bhcompy · · Score: 1

      There's no reason your Uber driver couldn't do the same thing. And, in fact, they do. They skip toll roads, use alternative routes not provided by the app navigation, take "shortcuts" that end up being longcuts, etc.

      The most common taxi ride I take is a flat fare no matter the route or how long it takes(JFK to Manhattan)

    8. Re:"taxi" by dcw3 · · Score: 1

      No -- a taxi is guaranteed to ...some bullshit

      Yes it happens, and no, NO, it's not guaranteed, nor as common as you imply.

      --
      Just another day in Paradise
    9. Re:"taxi" by Hognoxious · · Score: 1

      WTF is an emergency strobe? Is it in case you're attacked by a mob of epileptics?

      --
      Confucius say, "Find worm in apple - bad. Find half a worm - worse."
  4. Ride sharing , my ass.. by GrBear · · Score: 1

    "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"

    There's nothing that implies "sharing", except marketing double speak to avoid and dodge restrictions and regulations imposed on what they truly are, a taxi service.

  5. Re:Would need to be able to lock in that lower pri by Joe_Dragon · · Score: 1

    well the divers are 1099'ers so the drive stuck with small fail can be an ass or just not show up at all.

  6. How about being a self-driving tester? by goombah99 · · Score: 1

    You could be a rider or an obstacle to test obstacle avoidance in return for a discount ride.

    --
    Some drink at the fountain of knowledge. Others just gargle.
  7. No, you pay more for quicker by forkfail · · Score: 3, Insightful

    When World Of Warcraft was in beta, after killing a certain number of monsters, your experience would per kill would be cut in half.

    Everyone hated it.

    So, they flipped it around. Instead, they cut all the experience values in half, but gave you double experience at the start of your gaming session. People loved it.

    Same thing is going on here.

    --
    Check your premises.
    1. Re:No, you pay more for quicker by dcw3 · · Score: 1

      I started in open-beta. Double experience was based upon a couple factors. First, how long you'd been offline. And second, if you logged off with your character in a city, town, or appropriate inn. You could gain that same status, staying online just by parking your toon in a city for a while. But the duration of how much double experience you could get was also based upon how long you sat in the city/town/inn, or were offline. It also maxed out at gaining 1.5 levels.

      --
      Just another day in Paradise
    2. Re:No, you pay more for quicker by Registered+Coward+v2 · · Score: 2

      When World Of Warcraft was in beta, after killing a certain number of monsters, your experience would per kill would be cut in half.

      Everyone hated it.

      So, they flipped it around. Instead, they cut all the experience values in half, but gave you double experience at the start of your gaming session. People loved it.

      Same thing is going on here.

      Classic loss aversion. People react stronger to a loss, real or imagined, than from a gain.

      --
      I'm a consultant - I convert gibberish into cash-flow.
    3. Re:No, you pay more for quicker by Comrade+Ogilvy · · Score: 1

      Which is why a "discount" for being willing to wait makes for sense for Uber. "The same fast service costs you a premium charge" will cause anger while "discount off the usual already fair price, if you wait a bit" will gain kudos.

  8. Can you grasp ? by gDLL · · Score: 1

    You do understand Uber has competition, don't you ?

    1. Re:Can you grasp ? by bobbied · · Score: 1

      You do understand Uber has competition, don't you ?

      Yea, but who knows who they are or has their app already loaded on their phone? Market share is your friend if you are on top and your nemesis if you are not.

      --
      "File to fit, pound to insert, paint to match" - Aircraft Maintenance 101
  9. competition.... by gDLL · · Score: 1

    You do understand Uber has competition, don't you ? ....

  10. explanation ... by gDLL · · Score: 2

    Idea would be that if you are willing to wait a bit then higher chances you can find a shared ride.

    If you like to be regulated hard then please by all means take a cab and STFU about uber.

  11. Use Lyft, It's cheaper by pgmrdlm · · Score: 1

    And you don't have to wait longer. Uber, you are losing business due to you pricing yourself out of the market. Competition is a wonderful thing.

    --
    Anonymous comments are as pathetic as the anonymous "sources" that contaminate gutless journalism from the New York Time
  12. At some point, public transit is the price floor by tepples · · Score: 1

    I figured this feature would be more like "wait 45 minutes"

    As opposed to the alternative, which is anywhere between "wait 59 minutes" and "wait 60 hours" depending on what day of the week it is. (Source: FWCitilink.com)

  13. A city taxi service by AHuxley · · Score: 1

    thats on time and for a set price it starting to look like a great idea.

    --
    Domestic spying is now "Benign Information Gathering"
  14. Shared rides? by Pascoea · · Score: 1

    ...top reason riders choose shared rides...

    Does this mean this option intends to group customers that are going to a similar location together, sharing the cost? Or is this still just Uber pretending they are not a taxi service?

  15. I’m announcing my very own ride sharing app! by Hallux-F-Sinister · · Score: 3, Insightful

    WolkThare saves you even MORE money than UberD-LAID, or UberL8r or whatever they’re planning to call it. With WolkThare, you simply get picked up at your destination, then immediately dropped off, and since you are then already THARE, you neither get into, nor out OF, your WolkThare ride-share vehicle, because, since you are already where you are going, you don’t really NEED it to be thare at all! WolkThareAnbak offers you a FREE return trip if you went THARE using our revolutionary, game-changing and paradigm-disruptive app in the first place, and there’s NO WAITING AT ALL! When you’re ready to go, just WolkThare and start your journey immediately! No time like the present! Unlike UberNow versus UberL8r, our soon-to-be-award-winning-app does not require you to have an account, download anything, and it’s totally ad-free! No surge pricing, no tipping, no upselling of premium services, and your driver will never rape or murder you, plus you get free exercise, no JYM MMBRSHYP or app required! Unlike SOME app-based ride-sharing services, WE don’t charge you extra if our app detects your phone’s battery is low. It’s like Paleo for transportation! This is how your ancestors got around!!!

    WolkThare is unlike Uber, Lyft, Riid, Flye, and Zwym in that WolkThare works even if your smartphone’s battery has died completely, if you left it at home, or even if you’ve never HAD a smartphone! Even if you’ve never seen one. Even if you are unaware smartphones even exist! Are you a tribesman in the Kalahari in the eleven hundreds, or an Inuit fisherman in the Aleutian Islands circa 552 BCE?!? Do you need to get from A to B? Just WolkThare!

    --
    Our reign has gone on long enough. Indeed. Summon the meteors.
  16. Willing to wait? by PPH · · Score: 1

    Here's directions to the nearest bus stop.

    --
    Have gnu, will travel.
    1. Re:Willing to wait? by K.+S.+Kyosuke · · Score: 1

      Ten meters away from my door... Total non-issue.

      --
      Ezekiel 23:20
  17. The obvious question and the obvious answer.... by LVSlushdat · · Score: 1

    The obvious question is "Will Uber eat the lower fare or will the driver???".... Come everybody, you KNOW the answer that.. THE DRIVER, OBVIOUSLY...

    --
    THANK YOU, Edward Snowden!! Americans owe you a debt of gratitude (whether they know it or not..)
  18. How about allowing more vehicles to lower fees? by darth_borehd · · Score: 1

    Their rules require drivers to use 5-seater vehicles. How about 4 seaters and 2-seaters?

    Who wouldn't like being picked up in a corvette?

    Or how about allowing motorcycles with a second seat or sidecar?
    Most people who ride Uber/Lyft do so alone and would probably be OK paying less for a smaller vehicle.

    1. Re:How about allowing more vehicles to lower fees? by demonlapin · · Score: 1

      It’s not that I don’t enjoy riding in a Corvette, it’s that a two-seater is useless for most such rides. Maybe if I’m dropping my car off for service and need to get to work, or coming from home and picking it up later, yeah. But otherwise, I’m probably traveling with my wife, so no go, or with luggage, so also need a decent amount of trunk space. In either case, I’m not willing to pay a premium. A cramped econobox is a better ride than a Corvette if it gets me there with all the people and/or stuff I need.

  19. effectively a paycut for drivers by bloodhawk · · Score: 1

    just what all those uber drivers need, a hefty paycut.

  20. 20% Less by mentil · · Score: 1

    for $10.18, or wait until 5pm and pay $8.15, about 25% less

    No, $8.15 is 19.94% less than $10.18
    However, $10.18 is ~25% MORE than $8.15 /pedant

    --
    Corruption is convincing someone that the selfless ideal is the same as their selfish ideal.