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The Almighty Buck Businesses Software Transportation

Uber Tests Cheaper Fares For Riders Who Are Willing To Wait Longer (qz.com) 94

Posted by BeauHD 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.
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Uber Tests Cheaper Fares For Riders Who Are Willing To Wait Longer More

Uber Tests Cheaper Fares For Riders Who Are Willing To Wait Longer

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  • Good AI (Score:2, Funny)

    by 110010001000 ( 697113 )
    This is a good application of Deep Learning Neural Networks AI. Very clever.

  • Comment removed (Score:5, Insightful)

    by account_deleted ( 4530225 ) on Wednesday June 20, 2018 @08:15AM (#56815386)
    Comment removed based on user account deletion
    • You just blew my mind.

    • 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.

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

      • Re: (Score:2)

        by Junta ( 36770 )

        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).

    • Since the goal here is so segregate people along the price elastic demand curve to maximize the profit area perhaps we could include more categories. Like people willing to cut themselves. Perhaps they could do it on video.
      Maybe they could also clean the cars.

    • 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 employ

      • Re: Cheaper Later? (Score:1)

        by Anonymous Coward

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

      • Re: (Score:2)

        by N1AK ( 864906 )
        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 len

      • Re: (Score:2)

        by nasch ( 598556 )

        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.

    • 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?

    • Serenity now, insanity later.

    • Re:Cheaper Later? (Score:4, Informative)

      by mysidia ( 191772 ) on Wednesday June 20, 2018 @11:55AM (#56816902)

      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.

    • 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 wor

  • "taxi" (Score:4, Insightful)

    by xxxJonBoyxxx ( 565205 ) on Wednesday June 20, 2018 @08:22AM (#56815418)
    >> ride-hailing company

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

    • Re: (Score:2, Funny)

      by KiloByte ( 825081 )

      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 c

      • 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)

      • Re: (Score:2)

        by dcw3 ( 649211 )

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

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

    • Re: (Score:2)

      by Anonymous Coward

      >> 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

      • 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.

      • Re: (Score:3)

        by tepples ( 727027 )

        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?

    • >> 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!

    • You talkin' to me? You talkin' to me? You talkin' to me? Then who the hell else are you talking... you talking to me? Well I'm the only one here. Who the fuck do you think you're talking to?

  • Comment removed based on user account deletion
    • 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.

  • No, you pay more for quicker (Score:4, Insightful)

    by forkfail ( 228161 ) on Wednesday June 20, 2018 @08:56AM (#56815648)

    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.

    • Re: (Score:2)

      by dcw3 ( 649211 )

      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.

    • 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.

      • 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.

  • Hailing a ride is what you do with taxis. It's redundant to call a taxi service a ride hailing service when that is what one does to get a ride.
  • 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.
  • thats on time and for a set price it starting to look like a great idea.

  • ...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?

  • Comment removed (Score:4, Insightful)

    by account_deleted ( 4530225 ) on Wednesday June 20, 2018 @11:01AM (#56816498)
    Comment removed based on user account deletion

  • Here's directions to the nearest bus stop.

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

  • 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.

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

  • 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

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