I'm expecting this to increase fares, but currently there is a lot of room between Uber's fares and traditional taxi fares so even if they went up 20 or 30% they would still be a fair bit cheaper.
I'm expecting this to increase fares, but currently there is a lot of room between Uber's fares and traditional taxi fares so even if they went up 20 or 30% they would still be a fair bit cheaper.
In almost every place I've been to in the US in the last few years, Uber has not had competitive prices at all. They did back in ~2014, but their rates have been higher than yellow cabs and taxi services for a while now.
The only place I've been where this is true is NYC, which have piled regulations onto Uber (specifically and professionally licensed drivers, registered vehicles, etc) to the point that it seems to have closed the cost gap with taxis (who of course are also subject to these regulations). That is to say, Uber the company operates in New York, but it doesn't operate "Uber the ridesharing service", from an economic perspective.
OTOH, I don't have a ton of data points, since even at price parity taxis offer worse service, less accountability, less traceability (eg for lost items), worse incentives, less price transparency, etc etc
Regardless in NYC Ubers tend to be about the same or more expensive during normal hours. And significantly more expensive during peak times. How much of the surge pricing goes towards the drivers pay? I'd wager margins are excellent for Uber during surge pricing.
There will come a day when each city will operate it's own system to facilitate app based taxis (will be on some standard protocol), and Uber a central entity out of SF won't be competitive or will be taxed out. Why let an entity extract X% of each ride out of its economy? Not worth it.
These debates about Uber/Lyft/etc employment status always seem to omit that there are two very distinct classes of people finding work with these services - one group is doing it part time in their personal vehicles, and the other group is doing it full-time in commercial vehicles. The interests of those two groups don't necessarily align.
My hope is that we'll eventually get to the point where we'll be able stand up a decentralized alternative that will allow us to cut out the Uber middleman.
Also nowhere near the rudeness of cabbies but they HATE only having to drive a 5-20 blocks to take you between neighborhoods. Always hoping for that 30 mile ride.
Just can't seem to please every customer...