I thought prices were determined by drivers bidding against each other. Am I wrong?
“I thought prices were determined by drivers bidding against each other. Am I wrong?”
Yes, you’re wrong on that.
Uber sets the prices. There is the base fee, then a per mile/per minute charge (just like a taxi).
Uber adds on a fee of their own on top of that (taxi does not).
Uber takes 25-30% of the fare (taxi company does not).
Uber will “surge price” (they warn the customer and increase fare by 2x, 3x, 4x, whatever when demand is high (taxi does and can not)
There is no bidding by drivers.
I have driven for Uber, for Lyft, as a taxi, and am a member of several driver groups. So I’m certain of these things.
When surging, Uber and etc. are usually more expensive than a taxi.
When not, they are usually cheaper. Even though Uber takes all that money out of the fee. Here in SF you can Uber pool downtown for, like, $5 (it varies sometimes). There is NO WAY that is all it “costs.” It is being heavily, heavily subsidized.
Our MUNI buses charge $2.50 now, or $2.75. A bus!! and the bus loses money and is heavily subsidized. . . you can only imagine the real cost of an Uber ride.
Taxis MAKE money. The drivers can earn a low wage, if they work hard, with no subsidies whatsoever. The real cost of a ride is truly reflected in the taxi fare.