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Last year, I traveled from DC to NY overnight, and it was 2.5x surge pricing. When i got to my destination, I stuck around in the car to see what the driver app

Last year, I traveled from DC to NY overnight, and it was 2.5x surge pricing. When i got to my destination, I stuck around in the car to see what the driver app was saying. I paid close to $900, driver took ~$250, the entire surge pricing difference went to Uber. I was thinking, that's an crazy markup over their AWS bill but really it's just a robbery.

barbazoo 3y ago
> With Uber, the vast majority of your fare is going to your driver Surely the CEO wouldn't lie to us /s
DonsDiscountGas 3y ago
Isn't (at least part of) the point of surge pricing to bring more drivers out onto the road? Or was that just a lie.
- cryptonector 3y ago
  Would you drive someone 4.5 hours from DC to NYC for $250? The drive back would be $0, so $250 / 9, minus gas and mileage. It's very little. Meanwhile Uber got $650. I wouldn't do it.
  - twelve40 3y ago
    on the one hand, you're right, and what's worse that if we apply the IRS mileage reimbursement to the whole round trip, that alone is not worth it, plus like 50 bucks for gas. On the other hand, $250 cash in hand, now, without having to run around or idle for customers could be a lot of money for someone. People who drive these things don't work for fangs...
  - npace12 3y ago
    The driver asked me if his friend could also come because she was on the crew of the same flight and was also going to NJ. She offered to pay for part of it, but I was happy that I made it home and felt bad for the driver taking 1/4 of the money I paid, so I didn't take it.
- jonathankoren 3y ago
  It’s a complete lie. On a $116 surge price trip, drivers get an extra $5.[0] THIS is how Uber finally turned a profit. None of that Kalanick bullshit about how only self driving cars can make Uber profitable.[1][2] It’s jacking up prices and pocketing the difference. Never trust a tech bro. They’re all grifters and liars. [0] https://www.tiktok.com/t/ZT8LCks4j/ https://www.tiktok.com/t/ZT8LCks4j/ [1] https://www.usatoday.com/story/tech/news/2016/08/19/s-self-driving-cars-uber-ceo-travis-kalanick-ipo/88967594/ https://www.usatoday.com/story/tech/news/2016/08/19/s-self-d... [2] https://www.cnbc.com/2020/01/28/ubers-self-driving-cars-are-a-key-to-its-path-to-profitability.html https://www.cnbc.com/2020/01/28/ubers-self-driving-cars-are-...
  - WillPostForFood 3y ago
    It’s a complete lie. On a $116 surge price trip, drivers get an extra $5 It would be helpful to have a better source than hearsay on TikTok from some rando whose gig seems to be ranting about tech bros. Even a an Uber driver on TikTok would be good.
    - Firmwarrior 3y ago
      How about some secondhand hearsay? I've heard this same thing from Lyft drivers. Their customers are all pissed, the drivers ask why, it's because a $30 ride is costing them $100. Meanwhile, the driver still just gets the usual rate
    - jonathankoren 3y ago
      How very brave you to dismiss screenshots and take obviously out of touch and responsible billionaire Dara Khosrowshahi over the drivers who have been saying this very thing for literally years now. Seriously. What makes Khosrowshahi believable here, and why do you identify with him?
  - bawolff 3y ago
    > It’s jacking up prices and pocketing the difference. Obviously the way to make profit is to charge more than you spend. Literally the definition.
- twelve40 3y ago
  who knows? they have a ton of data that we don't have, and can infinitely tweak the pricing and the take-home based on their needs at the moment
mlinhares 3y ago
I hope he found someone doing the way back, that must have been a horrible time.
acjohnson55 3y ago
You took an Uber overnight from DC to NY? That's wild.
- xwdv 3y ago
  If it had not been surged price, it would have been a hell of a deal.
  - woodruffw 3y ago
    The NE regional is cheaper than that; my round-trip tickets are usually well under $250.
- satvikpendem 3y ago
  Indeed, I'm not sure whether it was in an emergency situation (or if they're referring to NYC versus NY state when they talk about NY) but I regularly travel from DC to NYC and vice versa on Amtrak and it costs me around 100 bucks each way, even in the middle of the night which has some pretty good deals.
ecshafer 3y ago
Greyhound nyc to dc is like $20 and has a dozen buses a day. Plus you have Amtrak. Why take an Uber?
- woodruffw 3y ago
  I would also like to know this. Even a flight would have been cheaper!
  - bragr 3y ago
    Or even renting a car one way!
    - twelve40 3y ago
      speed would be my guess. Especially at night. Everything else from renting to even trains is slower and harder to coordinate.
- midoridensha 3y ago
  Because with those other services, you have to be around other people. Americans hate that.
  - mcpackieh 3y ago
    Amtrak at night is quiet, generally pretty empty, and very civilized. Nothing at all like an intracity bus or subway. But I think many Americans would never even give it a chance. Maybe that's why it's so nice...
    - freeopinion 3y ago
      I've tried to give Amtrak a chance. But I don't live in the northeastern part of the USA. So I would have to drive a few hours to get to a train station, then spend 24 hours longer on the train than I could drive in a car. And it would cost me a lot more to ride the train than to drive myself. I think there is more than one reason that Americans "never give it a chance".
jonny_eh 3y ago
No amount of the surge pricing should go to Uber. They're already earning more due to the increased number of rides. It's almost akin to taking the tips.
- bawolff 3y ago
  I don't understand why people think this. Uber isn't a charity. Of course they are going to try to take advantage of demand shortages. If drivers want to take in the profit from things like this, they should form a co-op, not be contractors.
  - jen20 3y ago
    The original (stated) point of surge pricing was to encourage more drivers to start work because of higher rates.
  - wordpad25 3y ago
    They can buy Uber stock
  - jonny_eh 3y ago
    It says this on the Uber website: > In these cases of very high demand, prices may increase to help ensure that those who need a ride can get one. This system is called surge pricing, and it lets the Uber app continue to be a reliable choice. The fact that only a fraction of the fare increase goes to the driver is misleading at best. https://www.uber.com/us/en/drive/driver-app/how-surge-works/ https://www.uber.com/us/en/drive/driver-app/how-surge-works/
    - bawolff 3y ago
      It sounds like they are saying - we increase prices so that less people use the app so we can service all the people who do. It is only a misleading statement if you put words in uber's mouth beyond what they say. I don't see anything here suggesting they increase prices to increase supply instead of decreasing demand.
coding123 3y ago
With this one comment, and about $50 million in advertising and $50 million in development, you can erase Uber. (the 50MM in advertising is the budget to make ads that convince Uber drivers to get paid the $900 instead of the $250) And the $50 is the app dev budget.
iepathos 3y ago
Yeah, it is a crazy markup and it's why they were able to increase their ARR by 58% this last year. I think the more frustrating thing is lack of serious competition in the space to keep them from jacking up the prices down so much. Lyft should be drastically undercutting Uber in order to force them to lower prices or out of the market but they aren't, instead they are on average charging more. Need better startups in the space
- flagrant_taco 3y ago
  Wouldn't that effectively be asking Lyft to jump on a grenade for the greater good? Drastically undercutting the competition means you leave money on the table. Let's just assume a 5% discount isn't enough to win riders but 15% is, should the cut fares but anything over 15% just to screw Uber? And does this risk setting a low enough market cap on Lyft that they could be compelled to take an acquisition offer simply because they so drastically under cut their potential revenue? Startups' job isn't to fix a broken market, it's to either become self sufficientquickly or to 10x investor capital depending on the funding model. The only business model that can really justify cutting fares drastically would be a non-profit, maybe some kind of collective run by the drivers themselves.
  - kedean 3y ago
    > Startups' job isn't to fix a broken market An aside...why are we still referring to Uber and Lyft as startups? They are 14 and 11 year old, extremely well established, multinational companies. They are no longer the little guys disrupting an entrenched market. When do they stop getting the excuse of being startups?
    - flagrant_taco 3y ago
      Totally fair, I tossed startup in there pretty loosely as I was thinking about their goals when they originally opened. I definitely don't consider them startups today.
    - wordpad25 3y ago
npace12 3y ago
Receipt: https://imgur.com/nZ9cjQP https://imgur.com/nZ9cjQP

barbazoo 3y ago

> With Uber, the vast majority of your fare is going to your driver Surely the CEO wouldn't lie to us /s

DonsDiscountGas 3y ago

Isn't (at least part of) the point of surge pricing to bring more drivers out onto the road? Or was that just a lie.

cryptonector 3y ago
Would you drive someone 4.5 hours from DC to NYC for $250? The drive back would be $0, so $250 / 9, minus gas and mileage. It's very little. Meanwhile Uber got $650. I wouldn't do it.
- twelve40 3y ago
  on the one hand, you're right, and what's worse that if we apply the IRS mileage reimbursement to the whole round trip, that alone is not worth it, plus like 50 bucks for gas. On the other hand, $250 cash in hand, now, without having to run around or idle for customers could be a lot of money for someone. People who drive these things don't work for fangs...
- npace12 3y ago
  The driver asked me if his friend could also come because she was on the crew of the same flight and was also going to NJ. She offered to pay for part of it, but I was happy that I made it home and felt bad for the driver taking 1/4 of the money I paid, so I didn't take it.
jonathankoren 3y ago
It’s a complete lie. On a $116 surge price trip, drivers get an extra $5.[0] THIS is how Uber finally turned a profit. None of that Kalanick bullshit about how only self driving cars can make Uber profitable.[1][2] It’s jacking up prices and pocketing the difference. Never trust a tech bro. They’re all grifters and liars. [0] https://www.tiktok.com/t/ZT8LCks4j/ https://www.tiktok.com/t/ZT8LCks4j/ [1] https://www.usatoday.com/story/tech/news/2016/08/19/s-self-driving-cars-uber-ceo-travis-kalanick-ipo/88967594/ https://www.usatoday.com/story/tech/news/2016/08/19/s-self-d... [2] https://www.cnbc.com/2020/01/28/ubers-self-driving-cars-are-a-key-to-its-path-to-profitability.html https://www.cnbc.com/2020/01/28/ubers-self-driving-cars-are-...
- WillPostForFood 3y ago
  It’s a complete lie. On a $116 surge price trip, drivers get an extra $5 It would be helpful to have a better source than hearsay on TikTok from some rando whose gig seems to be ranting about tech bros. Even a an Uber driver on TikTok would be good.
  - Firmwarrior 3y ago
    How about some secondhand hearsay? I've heard this same thing from Lyft drivers. Their customers are all pissed, the drivers ask why, it's because a $30 ride is costing them $100. Meanwhile, the driver still just gets the usual rate
  - jonathankoren 3y ago
    How very brave you to dismiss screenshots and take obviously out of touch and responsible billionaire Dara Khosrowshahi over the drivers who have been saying this very thing for literally years now. Seriously. What makes Khosrowshahi believable here, and why do you identify with him?
- bawolff 3y ago
  > It’s jacking up prices and pocketing the difference. Obviously the way to make profit is to charge more than you spend. Literally the definition.
twelve40 3y ago
who knows? they have a ton of data that we don't have, and can infinitely tweak the pricing and the take-home based on their needs at the moment

mlinhares 3y ago

I hope he found someone doing the way back, that must have been a horrible time.

acjohnson55 3y ago

You took an Uber overnight from DC to NY? That's wild.

xwdv 3y ago
If it had not been surged price, it would have been a hell of a deal.
- woodruffw 3y ago
  The NE regional is cheaper than that; my round-trip tickets are usually well under $250.
satvikpendem 3y ago
Indeed, I'm not sure whether it was in an emergency situation (or if they're referring to NYC versus NY state when they talk about NY) but I regularly travel from DC to NYC and vice versa on Amtrak and it costs me around 100 bucks each way, even in the middle of the night which has some pretty good deals.

ecshafer 3y ago

Greyhound nyc to dc is like $20 and has a dozen buses a day. Plus you have Amtrak. Why take an Uber?

woodruffw 3y ago
I would also like to know this. Even a flight would have been cheaper!
- bragr 3y ago
  Or even renting a car one way!
  - twelve40 3y ago
    speed would be my guess. Especially at night. Everything else from renting to even trains is slower and harder to coordinate.
midoridensha 3y ago
Because with those other services, you have to be around other people. Americans hate that.
- mcpackieh 3y ago
  Amtrak at night is quiet, generally pretty empty, and very civilized. Nothing at all like an intracity bus or subway. But I think many Americans would never even give it a chance. Maybe that's why it's so nice...
  - freeopinion 3y ago
    I've tried to give Amtrak a chance. But I don't live in the northeastern part of the USA. So I would have to drive a few hours to get to a train station, then spend 24 hours longer on the train than I could drive in a car. And it would cost me a lot more to ride the train than to drive myself. I think there is more than one reason that Americans "never give it a chance".

jonny_eh 3y ago

No amount of the surge pricing should go to Uber. They're already earning more due to the increased number of rides. It's almost akin to taking the tips.

bawolff 3y ago
I don't understand why people think this. Uber isn't a charity. Of course they are going to try to take advantage of demand shortages. If drivers want to take in the profit from things like this, they should form a co-op, not be contractors.
- jen20 3y ago
  The original (stated) point of surge pricing was to encourage more drivers to start work because of higher rates.
- wordpad25 3y ago
  They can buy Uber stock
- jonny_eh 3y ago
  It says this on the Uber website: > In these cases of very high demand, prices may increase to help ensure that those who need a ride can get one. This system is called surge pricing, and it lets the Uber app continue to be a reliable choice. The fact that only a fraction of the fare increase goes to the driver is misleading at best. https://www.uber.com/us/en/drive/driver-app/how-surge-works/ https://www.uber.com/us/en/drive/driver-app/how-surge-works/
  - bawolff 3y ago
    It sounds like they are saying - we increase prices so that less people use the app so we can service all the people who do. It is only a misleading statement if you put words in uber's mouth beyond what they say. I don't see anything here suggesting they increase prices to increase supply instead of decreasing demand.

coding123 3y ago

With this one comment, and about $50 million in advertising and $50 million in development, you can erase Uber. (the 50MM in advertising is the budget to make ads that convince Uber drivers to get paid the $900 instead of the $250) And the $50 is the app dev budget.

iepathos 3y ago

Yeah, it is a crazy markup and it's why they were able to increase their ARR by 58% this last year. I think the more frustrating thing is lack of serious competition in the space to keep them from jacking up the prices down so much. Lyft should be drastically undercutting Uber in order to force them to lower prices or out of the market but they aren't, instead they are on average charging more. Need better startups in the space

flagrant_taco 3y ago
Wouldn't that effectively be asking Lyft to jump on a grenade for the greater good? Drastically undercutting the competition means you leave money on the table. Let's just assume a 5% discount isn't enough to win riders but 15% is, should the cut fares but anything over 15% just to screw Uber? And does this risk setting a low enough market cap on Lyft that they could be compelled to take an acquisition offer simply because they so drastically under cut their potential revenue? Startups' job isn't to fix a broken market, it's to either become self sufficientquickly or to 10x investor capital depending on the funding model. The only business model that can really justify cutting fares drastically would be a non-profit, maybe some kind of collective run by the drivers themselves.
- kedean 3y ago
  > Startups' job isn't to fix a broken market An aside...why are we still referring to Uber and Lyft as startups? They are 14 and 11 year old, extremely well established, multinational companies. They are no longer the little guys disrupting an entrenched market. When do they stop getting the excuse of being startups?
  - flagrant_taco 3y ago
    Totally fair, I tossed startup in there pretty loosely as I was thinking about their goals when they originally opened. I definitely don't consider them startups today.
  - wordpad25 3y ago

npace12 3y ago

Receipt: https://imgur.com/nZ9cjQP https://imgur.com/nZ9cjQP