Uber CEO Stunned By $52 Bill For Reporter's 2.9 Mile NYC Uber Ride (msn.com) 76
theodp writes: Wired Editor at Large, Steven Levy, was hit with a $52 bill for a 2.9-mile Uber ride in New York City as he headed to interview Uber CEO Dara Khosrowshahi. "Do you know how much it cost me to go 2.9 miles to where we are now in an Uber?," Levy asked Khosrowshahi. "And he said $20, and I said, 'no it was like $52,' and he said, 'oh my God wow.'" [While Khosrowshahi attributed the head-scratching fee to "surge pricing," Levy insisted that made no sense given the trip took place at "10 a.m. on a sunny weekday and it's not like the president's in town." Uber's CEO blamed inflation for the increased rates, telling Wired during his sit-down that "everything is more expensive."]
When asked for a statement, Uber shared the following: "Riders' fares are a direct result of the city's regulations." "The fact is that they're not subsidizing rides anymore," said Levy of Uber. "And the way that company operates is expensive." Uber, which had recorded more than $31 billion in losses since it launched in 2009, reported its first profit ever on Tuesday.
When asked for a statement, Uber shared the following: "Riders' fares are a direct result of the city's regulations." "The fact is that they're not subsidizing rides anymore," said Levy of Uber. "And the way that company operates is expensive." Uber, which had recorded more than $31 billion in losses since it launched in 2009, reported its first profit ever on Tuesday.
Stunned? (Score:5, Funny)
Uber CEO was probably stunned by the fact the final bill was SO LOW
In other news - Rumors are swirling that Uber will revise it's "surge pricing" in ways that will increase a customer's bill even further.
/sarcasm
Re: (Score:3)
Uber CEO was probably stunned by the fact the final bill was SO LOW
He was probably stunned that anyone would want to interview him to begin with.
Re: (Score:2)
Uber CEO was probably stunned by the fact the final bill was SO LOW
In other news - Rumors are swirling that Uber will revise it's "surge pricing" in ways that will increase a customer's bill even further.
/sarcasm
That wasn't just sarcasm good sir, it was satire.
Is anyone surprised that a company like Uber is engaging in such practices?
I don't buy it (Score:5, Interesting)
If you just took and paid an uber driver $25/h and multiplied that by 1.3x to cover employment costs, then paid them federal fuel wage for their car, you'd see what the real world costs are on the ride. And this is NYC, wages for this sort of work are really low there. 2.9 miles at 10am is like... 10-15 minutes and maybe a toll if you're crossing the river. If that driver was completely independend w/o the app he could make a great living charging $12-15 for a ride like that. Uber is just taking way too much of a cut for offering the app.
It's not like the uber app is billions to build and maintain, it's a pretty simple mapping and processing app. Not free, but spread over the number of rides it's nearly nothing.
Uber is just gouging. They've grown too big and have to gouge to support the increadible amounts of overhead.
Re: (Score:3)
Uber was until recently also losing money like mad. The journalist is quoted in the summary as saying "the way that the company operates is expensive."
I'm curious what way that is. Did the coke parties not stop when the founder was ousted?
isn't it obvious? (Score:2)
A taxi company normally hires high school graduates to sit in a call center in a cheap part of town in class C office space. A bookkeeper, some mechanics, etc. All people who make pretty low wages. Uber has THIRTY THOUSAND EMPLOYEES and they make six-figure salaries. How the hell do they have thirty thousand employees when Microsoft got by with 20,000 in the 1990s when it made all sorts of software without all the modern frameworks and cloud infrastructure we have today.
The simple answer is that Uber, like
Re: (Score:2)
How the hell do they have thirty thousand employees when Microsoft got by with 20,000 in the 1990s when it made all sorts of software without all the modern frameworks and cloud infrastructure we have today
You've answered your own question.
Re:I don't buy it (Score:5, Informative)
Start out cheap to undercut the taxis and once Uber has the market share start jacking up prices. Business as usual for suits.
Re: I don't buy it (Score:2)
Re: (Score:2)
Re: (Score:2)
Tokyo has clean, safe, on time, and very frequent trains covering much of the city and beyond. Rarely do you have to walk more than 10-15 minutes from anywhere to find a station. And more like 5-10 minutes from core areas. Plus almost all of the stations are accessible by elevator if your legs don't work very well. Why anyone would take a taxi there is beyond me.
Many reasons. Old people who can't walk well, people on crutches or in wheelchairs, people who don't want to stand up in train cars for many minutes, people who don't want to be packed next to other people, people who don't trust strangers on a train platform (especially late at night), people who don't want to walk minutes between stations, babies with lots of equipment, keeping a bunch of young kids together, carrying luggage or other large items, need to get somewhere quickly, bad weather, tourists who
competition vs taxis (Score:2, Insightful)
The last I check very few taxi companies can compete against companies that can afford to lose billions every quarter for years.
Re: (Score:2)
Re: (Score:2)
Exactly that! The Uber app is not rocket science. I will never understand why those indipendent drivers does not band up togheter and undercut those assholes. The same thing goes for food delivery riders, all those gig economy companies may provide the platform but the drivers/riders are doing the heavy lifting, it's time that they wake up.
Erm, because they lack the resources to. You can't just shout "huzzah" and produce a magic "app". That shit takes lots and lots of VC funding and VCs don't fund a proles revolution.
Meanwhile Uber will have just replaced all it's striking "contractors" with a whole new bunch of saps who believe the nonsense that you'll earn megabucks "driving in your spare time". The Uber/Gig Economy model depends on a never ending supply of suckers to replace those who have slowly realised that they're being taken advant
Re: (Score:2)
It's harder than you think since the independent drivers you speak of would also have to have arrangements with restaurants/fast food places to get the order to them. That, along with needing to create an app, need some kind of brand recognition, are all challenges that Uber has already overcome.
Re: (Score:2)
If that driver was completely independend w/o the app he could make a great living charging $12-15 for a ride like that. Uber is just taking way too much of a cut for offering the app.
Then why doesn't the driver do so?
I mean, if Uber isn't adding enough value, then why is the driver using it?
Re:I don't buy it (Score:5, Interesting)
The value of Uber is it enables the driver to find customers.
Would YOU answer a random Craigslist ad offering ride services? Call a random number and give a random stranger your credit card or other payment info?
Uber acts as a hub to pair riders with drivers, a payment processor, and at least gives the outward appearance of a legitimate business you can hold accountable. That's the value they bring to the system, and that's worth something.
It's probably not worth what they charge but it's worth something...
=Smidge=
Re: (Score:2)
Would YOU answer a random Craigslist ad offering ride services?
That's how we used to do it, only Craig was called phone and the list was so long it was a book. I am being facetious but only sort of.
Re: I don't buy it (Score:1)
You called taxi COMPANIES, not random individuals, and in many cities taxis were required to have medallions and were regulated by local government.
Re: (Score:2)
You called taxi COMPANIES
DID YOU?
A lot of minicabs were just a bloke with a car.
Re: (Score:2)
Re: (Score:2)
The value of Uber is it enables the driver to find customers.
Which was the implied point of my question. Uber is providing value to the driver.
If it's not enough value, then the driver wouldn't use it. But he is, so ... it is. To him, at this time, anyway.
Re: (Score:2)
It's not like the uber app is billions to build and maintain
You're underestimating just how expensive this app has become ... in legal fees.
Re: (Score:2)
in legal fees... sure. but that's because of their poor labor practices in the first place. the technicals of the app are not an issue.
Re: (Score:3)
Uber is just gouging. They've grown too big and have to gouge to support the increadible amounts of overhead.
They're also shooting themselves in the foot. Not so much for people using them sporadically, but I think they're losing tons of fares when people are somewhere on vacation for a few days because they take such a huge chunk of the fare.
What my wife and I do is request rides through the uber or lyft app until we get a driver we like. Then we just let them know, "hey, we're at X hotel for the next few days, is it OK to call/text you directly if you're normally in the area." We offer them 60-70% of the fare th
Re: (Score:2)
Agreed. We do the same or look for alternative transportation. I was in NYC a few weeks ago and we did a lot more subway and bus rides than usual. Also found that Lyft or a Taxi can actually be quite a bit cheaper.
Re: (Score:2)
How much are taxis in NYC? I mean, New York City is one of the few places in North America with a decent public transit system. Has Uber/Lyft/etc decimated the taxis in New York that you can't just hail one from the street like in the movies anymore?
I know, taxis, eww, old school, Uber is new school, yadda yadda yadda.... but still.
Re: (Score:2)
no, there are tons of taxis in NYC. Sometimes an uber or lift is a bit cheaper, sometimes more expensive. yes you can still flag one down in the street.
Inflation? nope. Greed (Score:1, Offtopic)
Here is Lowes with 4 stores all within 30 miles of the furthest apart.
Look at the pricing. It runs from $12.47 at the rainier store ( the rich area ) to $49.98 at the Everett store ( the poor area). [imgur.com]
That is just INSANE.
Re:Inflation? nope. Greed (Score:5, Insightful)
You must have queried during a price update. The Rainier store now shows $50.03, as do the Olympia, Everett, Mill Creek, and Lynnwood stores.
Oddly, the Tukwila and Renton stores show the item is unavailable, and is available for in-store sales only, but shows the online price at $22.97 if it was permissible.
I'm guessing this became a clearance item and the prices are in flux as they attempt to clear inventory.
Re: (Score:1)
I went to Mill Creek last night and went looking for the cheap ones. They did not have it, and what they DID have, was slightly different than what is being displayed here. Totally different model #s
I have to take my kids to hockey camp in Everett tomorrow so I will stop off at lowes and go check it out.
Interesting stuff.
Re: (Score:1)
Re: (Score:3)
Re: Inflation? nope. Greed (Score:2)
Are garden tool organizers big sellers in the poor neighborhoods?
Re: (Score:2)
Doesn't use his own product (Score:2)
It is obvious the CEO doesn't use his own product.
Of course, with his kind of money, he doesn't need to.
Re: Doesn't use his own product (Score:1)
He likely uses it without seeing a bill (don't they/didn't they have a limo/black sedan division?).
VC (totally not a monopoly) plan (Score:5, Insightful)
The VC startup model is to grab marketshare by pouring in VC money in, crushing any competition. Once marketshare is secured you jack up prices to cash in on your totally not a monopoly.
Re: VC (totally not a monopoly) plan (Score:2)
Re: VC (totally not a monopoly) plan (Score:1)
Running a device like Uber is labor-intensive, legally exhausting, and is simply a huge pain in the backside, especially when compared to the multi-billion dollar/year the Apple App Store/iTunes/etc generates year after year with minimal effort.
Re: VC (totally not a monopoly) plan (Score:2)
Re: (Score:2)
Agreed - or at least, get big enough that economies of scale kick in, giving you an advantage over any other players.
I haven't been to NY in years, but there are still yellow cabs there, right? How much would one of them cost to do a similar journey at that time? Would one likely have been available at that time at the start location?
I'm not defending the charge at all - it seems a bit high, but if it includes "coming to some back water to come pick you up" then maybe it's more justifiable? If there were ye
Re: (Score:2)
The VC startup model is to grab marketshare by pouring in VC money in, crushing any competition. Once marketshare is secured you jack up prices to cash in on your totally not a monopoly.
The problem with Uber is that they haven't crushed the competition (liveried taxis still exist) and even if they did, they lowered the bar to the point where any half arsed outfit could compete simply by charging slightly less, this is one of the side effects of a race to the bottom, you have to stay there or someone else will just undercut you. Uber will reach a point where they can't haemorrhage someone else's (the VC) money because that someone else is asking for it back.
Re: (Score:2)
The problem with Uber is that they haven't crushed the competition (liveried taxis still exist) and even if they did, they lowered the bar to the point where any half arsed outfit could compete simply by charging slightly less
It also assumes the social network like network effect works for taxis. Unfortunately it does not because taxis are fundamentally local. To compete with twitter you essentially need an organization with global reach otherwise it will have huge holes.
To compete with Uber in, say, London
People have the Uber app and gift cards (Score:2)
Uber gets an uplift due to people outside of London arriving and knowing the name
Uber also gets an uplift from two other sources. One is already having a relationship with app review on Apple App Store and Google Play Store. Another is its own network of gift card dealers, as visitors with a lot of stored value in their Uber account are probably less willing to spend a lot of money on a new company.
Re: (Score:2)
Uber also gets an uplift from two other sources. One is already having a relationship with app review on Apple App Store and Google Play Store.
I guess? Last time I took a taxi, I just installed the local app and it was fine.
Another is its own network of gift card dealers, as visitors with a lot of stored value in their Uber account are probably less willing to spend a lot of money on a new company.
That would help yeah. I wonder how common it is: taking a lot of taxis is a quite expensive way to travel so I
It's Cory Doctorow's ENSHITIFICATION principle (Score:5, Informative)
Cory's been writing about this sort of thing in Amazon and, yes, Uber. Plus he calls Uber a "bezzle":
Uber is a bezzle ("the magic interval when a confidence trickster knows he has the money he has appropriated but the victim does not yet understand that he has lost it"). Every bezzle ends.
The full thread is here: https://pluralistic.net/2021/0... [pluralistic.net]
thanks (Score:2)
Uber is a lie (Score:5, Informative)
Earnings per week for our drivers are up 40, 50 percent over the past four years, because that is the cost of time and the cost of labor.
The CEO is a lying bag of shit. As a person that drives for UberEats and has been since 2018, earnings are down. Way the fuck down.
Got some Uber fanboys here (Score:1)
No really, you should get a real job. This isn't trolling. This is common sense.
Re: (Score:2)
Re:Uber is a lie (Score:4, Insightful)
Re: (Score:1)
Re: Uber is a lie (Score:1)
Time to move.
That is not the norm in most locales, here outside Dallas fast food restaurants are paying $14-21/hr, warehouse jobs are similar, and many come with full benefits. I'm sorry you can't make $75K with no other discernible job skills, but there are plenty of opportunities out there that pay much better than federal minimum wages.
Re: (Score:2)
Re:Uber is a lie (Score:4, Informative)
Then I have to ask why you're still doing it. The US now has about 0.6 people looking for work per non-farm job opening (down from about 7.0 in 2008), and that's about the lowest it's ever been, which means even marginally useless people can pretty much get a full-time job with benefits anywhere they want. I understand why a Millennial in 2008 would take an Uber job, but why the heck would anyone drive for Uber or Amazon delivery today?
I have a real job that pays quite well. I just do it for a few hours 3 or 4 nights a week (typically Thursday to Sunday from 5pm until 7:30 - 8:00pm). It's just for some extra cash. I don't rely on it for paying bills or anything. If I wasn't doing it I'd be sitting at home on the couch watching tv and rotting my brain. At least this way I can make a bit of extra money.
But I have noticed a serious decline in the amount I make each night compared to previous years. It's gotten a lot worse recently compared to when I first started in August 2018. Back then if a customer wanted to tip you they'd do so after the delivery either by cash in your hand or by digging around in the app to find where to add a tip. Uber didn't make it easy to find where to tip in the UberEats app at that time.
Then during the COVID years, Uber moved the tipping option to more in the customers face. That's when I started to notice a decline in earnings paid by Uber (not counting any tips). Previously a night of 3 hours delivery would net me $80 or more. Now, I can expect half that, including tips.
Uber also started stacking orders. In 2018 you'd occasionally get a stacked order if it was coming from the same restaurant. Now Uber stacks order with different restaurants and pays you $2 for the second delivery despite having to pickup at the first restaurant, drive to the second restaurant and then make both deliveries.
For example say two customers place orders. One from McDonald's and one from Burger King. Let's say both restaurants are across the street from one another and both customers live within 2 blocks of each other.
Now say both customer's pay $6 for delivery. I'm leaving out tipping for simplicity. If those orders were to go to two different drivers both drivers would get $5. Uber keeps about 15% for themselves from the driver. At least they used to. I think it is more now but they no longer give drivers a breakdown of how exactly the what is paid to the driver is calculated. But back in 2018 I would see that they were charging me, the driver, 15% per delivery for using the app. Yes, driver's pay Uber for the privilege to use the app to deliver.
Now say that order is stacked and sent to one driver only. Both customers pay $6 for delivery to Uber and I'm leaving out tipping again. That driver will get $7. The driver should get $10...same as the two drivers in the example above but Uber keeps more of the second fee and only pays the driver based on some algorithmically calculated distance between the first drop off and the second, NOT from the restaurant. Same amount of work done. Same amount of time spent waiting at each restaurant for the order to be prepared, but less pay.
Uber has also dropped the pay for deliveries significantly. I don't think customers are paying less. I think Uber is keeping a larger share of the delivery fee. Back in 2018 trips that would pay $10 - $12 taking me across the city I deliver in, now pay about $5 or less. I know that during COVID UberEats was the only thing keeping Uber barely alive because ride sharing was down significantly. I think they're still stealing from delivery drivers pockets so that they can say the company is now profitable.
When I first started I never cared nor relied on tips from customers. But now, yeah I can see why drivers are getting really frustrated when someone doesn't tip, because Uber is only pay $2 - $5 for the delivery. It's unfortunate that some people are relying on this to live, because it's not viable any more.
So am I going to continue delivering for UberEats? Probably not, because it is just getting worse and worse to the point where it's going to start costing me money rather than making me money.
It's one banana (Score:2, Funny)
Re: (Score:2)
How much could it cost like, $10?
A 3 mile ride in a licensed, liveried taxi in my town is £10-15, depending on traffic. That's less than US$20. That's in the UK in case you're unfamiliar with the pound symbol, late night I usually can just hand the driver a tenner without worry. I should expect an Uber to be cheaper than someone who's paid for licensing, a specialised vehicle (taxis in my town use the same TX4's as London's black cabs), et al. compared to someone who barely passed their test picking me up in a clapped out Citroen Sax
Profit formula (Score:4, Insightful)
Re: Profit formula (Score:2)
Uber's pricing has always been shady to me... (Score:5, Informative)
typical COE thinking (Score:1)
Re: typical COE thinking (Score:1)
Spellcheck?
Why didn't he walk? (Score:1)
Re: (Score:2)
Re: (Score:2)
Re: Wired still does reporting? (Score:1)
Wired is starting to shift a bit to one side. I personally struggled getting thru the Mayor Pete article, it was a bit insane, it read like a literary make-out session with Mayor Pete.
https://www.wired.com/story/pe... [wired.com]
Maybe don't live there? (Score:1)
I'm a regional IT manager that lives in a far more logical location and that'd be about $7 in my city and I have 600x600 fiber and a house that's under $200,000. Just saying. Maybe don't live in NYC?