Uber drivers gang up to cause surge pricing, research says
13 replies, posted
[quote]
Uber drivers team up in gangs to force higher prices before they pick up passengers, research has revealed.
Researchers at the University of Warwick found Uber drivers in London and New York have been tricking the app into thinking there is a shortage of cars in order to raise surge prices.
According to the study. drivers manipulate Uber's algorithm by logging out of the app at the same time, making it think that there is a shortage of cars.[/quote]
[url]http://www.telegraph.co.uk/technology/2017/08/02/uber-drivers-gang-cause-surge-pricing-research-says/[/url]
You mean, Uber drivers would game the system to maximize their personal profits at the expense of the consumer and ultimately the reputation of the company? No way!
It's almost like taxi companies are strongly regulated for a reason or something.
Between corporate strife and things like this, Uber needs a major rethinking.
This is done in a lot of places now, depending on the city the rates are absolutely atrocious and not profitable at all anymore after taking into account Uber's cut of the fare, vehicle expenses and tax obligations.
The only reason I made any money off Uber was using a parents car for it, if I had to pay full expenses (rather than just fuel) it would not be worth the time at all unless it surged.
[QUOTE=Animosus;52535879]This is done in a lot of places now, depending on the city the rates are absolutely atrocious and not profitable at all anymore after taking into account Uber's cut of the fare, vehicle expenses and tax obligations.
The only reason I made any money off Uber was using a parents car for it, if I had to pay full expenses (rather than just fuel) it would not be worth the time at all unless it surged.[/QUOTE]
Maybe Lyft pays much better, because when I use my own car (13-15mpg us, 17-20mpg imp combined), I manage to make a decent living wage, about $13-17/hr depending on demand, taking into account fuel expenses. And I'm in a county where Lyft is barely established at all. In LA I was easily pulling in $20/hr after expenses, and that was at any hour in the day. I could stay awake for 24 hours straight on Lyft and have a constant supply of customers the whole time.
So basically a [I]car[/I]tell
[QUOTE=Trekintosh;52535924]Maybe Lyft pays much better, because when I use my own car (13-15mpg us, 17-20mpg imp combined), I manage to make a decent living wage, about $13-17/hr depending on demand, taking into account fuel expenses. And I'm in a county where Lyft is barely established at all. In LA I was easily pulling in $20/hr after expenses, and that was at any hour in the day. I could stay awake for 24 hours straight on Lyft and have a constant supply of customers the whole time.[/QUOTE]
Also wildy depends, Uber's rated in Australia are fairly high compared to the rest of the world, but cities like Perth and Brisbane get lower rates than Sydney or Melbourne, while cost of living in Perth is very high and vehicle costs in Brisbane are also relativly high.
From my experience with Uber, our only ridesharing service, the only times it's profitable is Friday-Saturday-Sunday nights. Uber really tried to get heaps of people on board here since unemployment is so high, heaps signed up and now there are too many drivers for the demand the city has, so naturally, people try to make fake demand to get more money from it.
When you get those good nights though, they are absolutely on point.
[QUOTE=elixwhitetail;52535717]You mean, Uber drivers would game the system to maximize their personal profits at the expense of the consumer and ultimately the reputation of the company? No way!
[/QUOTE]
It's just like a real taxi even in the ways you don't want it to be.
[editline]3rd August 2017[/editline]
[QUOTE=chipsnapper2;52535798]Between corporate strife and things like this, Uber needs a major rethinking.[/QUOTE]
This doesn't really need that much rethinking.
Just make it so that if you "opt out", you aren't allowed to come back in for a few hours, so people can't just do it and immediately get work again.
really wish lyft came to Australia
isn't this, like, racketeering? isn't this extraordinarily illegal?
[QUOTE=elixwhitetail;52535717]You mean, Uber drivers would game the system to maximize their personal profits at the expense of the consumer and ultimately the reputation of the company? No way!
It's almost like taxi companies are strongly regulated for a reason or something.[/QUOTE]
The funny part is that people are still willing to pay these higher prices than use a regular taxi.
[QUOTE=sgman91;52538086]The funny part is that people are still willing to pay these higher prices than use a regular taxi.[/QUOTE]
Uber is often cheaper where I live and if it isn't I'd rather pay the marginal extra for the 100x better service. Regular taxis round here only turn up 75% of the time, often don't give you time to come out the house, give you wildly inaccurate times of arrival (you're waiting at least 20 minutes regardless), drive dumb routes with the meter on, lie about pre agreed prices and more. At least you know what you're getting with Uber.
Ive been a victim of this shit. Huge ass city with 2 million people that usually have at least 4 Uber drivers in every corner. I pick up my phone and there was only like 2 available driver in the whole city, thankfully that time Uber was still playing the good guy trying to build a reputation so it didn't fuck you up as much as they would today. When the driver finally arrived from the other side of town suddenly hundreds of other drivers start popping out bringing the prices down.
[QUOTE=Trekintosh;52535924]Maybe Lyft pays much better, because when I use my own car (13-15mpg us, 17-20mpg imp combined), I manage to make a decent living wage, about $13-17/hr depending on demand, taking into account fuel expenses. And I'm in a county where Lyft is barely established at all. In LA I was easily pulling in $20/hr after expenses, and that was at any hour in the day. I could stay awake for 24 hours straight on Lyft and have a constant supply of customers the whole time.[/QUOTE]
Lyft charges a lot more than Uber does. Easily 2x-3x during off peak hours for no reason at all. I don't use them anymore for that exact reason.
Some examples:
Wednesday 08/01/17 @ 9:40am in Aurora, CO
Lyft: $17 for a 4mi ride, $15 if I ride-share
Uber: $5 for the exact same ride
Tuesday 07/25/17 @ 12:45pm in Aurora, CO
Lyft: $7.50 for a 1.4mi ride, $4.98 if I shared
Uber: $2.17 for the same ride
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