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I wonder which way the financials tip for Uber/Lyft. If Uber/Lyft are losing money over fewer riders willing to pay the higher price? Or if people need to go wh

I wonder which way the financials tip for Uber/Lyft. If Uber/Lyft are losing money over fewer riders willing to pay the higher price? Or if people need to go where they're going anyway and will pay the premium during the (limited time) strike?

tgsovlerkhgsel 5y ago
If this was the case, Uber/Lyft would likely simply charge the higher price all the time, paying the drivers the same amount they pay normally, and pocket the difference.
dec0dedab0de 5y ago
In my case, it was not because of the strike, but just fewer drivers. I assume because covid meant less rides, and that meant less drivers signing on. I was willing to pay a premium to drink without risking a DUI. I don't know how many others would make the same decision, but with things opening up I suspect the number will be growing. Conversely, In the begining of the pandemic I had many medical visits that were super cheap and fast because the only people on the road were uber drivers. I think surge pricing is almost perfect free market, and the only thing that could be better is more competitors in the app side of it. Most drivers already drive for uber and lyft, and choose whichever they think is the best deal for them at the moment. If there were 4 or 5 viable competitors then it would be perfect. Not as great from a user perspective, but also not awful. Many people I know have uber and lyft and check prices/times on both before picking one. I am really surprised all of the traditional taxi companies have not got together and made an app yet. Uber made things so much better in every way that matters from a rider's perspective. They didn't even need to compete on price, all they needed was a way to get a ride, and know how long it was going to take to get to you, and trust that the price was the price. Anyone who ever needed a taxi in anywhere but a classy urban area hates taxis. That said, I think operating at a loss on purpose to drive out competition should be illegal. I'm not sure how that could be enforced while it's happening, but it's usually obvious after the fact. In which case I think jail time is warranted.

tgsovlerkhgsel 5y ago

If this was the case, Uber/Lyft would likely simply charge the higher price all the time, paying the drivers the same amount they pay normally, and pocket the difference.

dec0dedab0de 5y ago

In my case, it was not because of the strike, but just fewer drivers. I assume because covid meant less rides, and that meant less drivers signing on. I was willing to pay a premium to drink without risking a DUI. I don't know how many others would make the same decision, but with things opening up I suspect the number will be growing. Conversely, In the begining of the pandemic I had many medical visits that were super cheap and fast because the only people on the road were uber drivers. I think surge pricing is almost perfect free market, and the only thing that could be better is more competitors in the app side of it. Most drivers already drive for uber and lyft, and choose whichever they think is the best deal for them at the moment. If there were 4 or 5 viable competitors then it would be perfect. Not as great from a user perspective, but also not awful. Many people I know have uber and lyft and check prices/times on both before picking one. I am really surprised all of the traditional taxi companies have not got together and made an app yet. Uber made things so much better in every way that matters from a rider's perspective. They didn't even need to compete on price, all they needed was a way to get a ride, and know how long it was going to take to get to you, and trust that the price was the price. Anyone who ever needed a taxi in anywhere but a classy urban area hates taxis. That said, I think operating at a loss on purpose to drive out competition should be illegal. I'm not sure how that could be enforced while it's happening, but it's usually obvious after the fact. In which case I think jail time is warranted.