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Variable payout means some form of fare bidding on driver side, as drivers can reject rides that are too low. On top of that, they are capping their commission
by analyst74 7y ago
Variable payout means some form of fare bidding on driver side, as drivers can reject rides that are too low.
On top of that, they are capping their commission to 25%, meaning that they can't use more profitable rides to offset losses from less profitable ones.
Those two factors combined, means Uber cannot offer fixed pricing upfront without incurring loss.
- Broken_Hippo 7y agoCan one not simply show the driver the price and let them reject if too low? I don't think variable payout is the thing that lets drivers see the price and reject. Besides, if too many drivers are rejecting rides because of pricing, it would allow Uber to set higher minimum pricing and/or wait times. Variable pricing also doesn't mean the second - it simply limits the amount they take from it. They still have tools like minimum pricing. I'd even say minimum pricing would be more beneficial to drivers and wouldn't seem unreasonable to customers (of course, they might just choose to walk short distances).
- Faark 7y ago> of course, they might just choose to walk short distances Walk or choose a competing service. Both seem hardly acceptable, if you want to be the default go-to option to capture the market.
- e12e 7y ago> On top of that, they are capping their commission to 25%, meaning that they can't use more profitable rides to offset losses from less profitable ones. What? Uber is getting payed for a transaction. How is 25% of a hundred dollar ride not more than 25% off a three dollar ride? Uber costs are running the service - if drivers truly are contractors, then payment to drivers isn't a cost for uber?