Wednesday, September 24, 2014

UberX driver takes first UberX trip: Real data

An UberX driver took his first UberX ride today. He shared some great feedback on his ride experience. In this trip, the UberX client asked questions about the driver's earnings and whether they enjoyed driving for UberX.

This UberX driver traveled down South to move their household goods to their new home up North. They've had these items stored in a public storage for 2 years and 6 months. Their first ridesharing ride was taken with Lyft yesterday. Their second ride was requested on the UberX platform. 

Today, the UberX driver requested a ride on UberX. His driver took about 10 minutes to reach this pickup address because he was coming down from the Valley. This Southern California driver was really cool. He shared some good insight on his thoughts about Uber. 

With ridesharing competition, this UberX driver doesn't like where the company is going. Their reduce rates are killing his earnings. He shared that he is only making $10-$15 per hour after gas expenses. This is the real truth. 

Ridesharing drivers don't make much money down South. Unfortunately, ridesharing companies are not transparent with their drivers to keep them in the loop. Economically speaking, when prices are lowered the service provider earn less money. Increasing business doesn't necessarily earn drivers more money. It is a false perception that busy times increase earnings. That is untrue. 

Ridesharing drivers earn more when higher rates and surge pricing are in effect. They won't earn more money if rates are reduced across the board. According to this UberX driver, he must drive more miles, take more trips, and work more hours to make only 15% more. In the Summer, Uber covered the 25% and 15% promos, which helped drivers to make more money per hour. However, Uber reduced UberX rates and this cost-savings is hurting their drivers.

Uber stopped sending Weekly Summary reports. This summary helped drivers to compare data. Recently, Uber disabled the dashboard to prevent drivers from reviewing daily, weekly, monthly and annual earnings and number of trips taken, as well as blocking access to real-time client ratings. This UberX didn't like these recent changes, actually he's wanting to stop ridesharing because fare drops are hurting his bottom line. Adjusting nominal value for ridesharing income is too early to tell.

Want the truth about ridesharing? Don't depend on fabricated data on the Internet. Ask the drivers for real data to reflect on real earnings and real hours worked. Are you willing to drive 98 hours to make $14-17 hours an hour. If you worked a $10 an hour job, you would make more working overtime than with ridesharing. If you make smart decisions driving, you can earn more with less. 

The Valley is a hotspot to give rides. Uber's GPS is using longer routes rather than most efficient routes. It's one-dimensional In-app navigation shows one route. If drivers follow this route, they are actually taking a longer rates, which means higher fare cost per minute, per mile. Instead of taking a client 10.9 miles, the Uber app recommended a longer 14 miles route. Google recommends a route that is 11 miles and takes 14 minutes long. As there is no traffic, these directions are accurate. 

What if Uber is using their app as a way to charge client for more money by choosing only one route? SideCar allows a driver to use Google, Waze or Apple Maps. Uber features a one-dimensional app. It shows the longest route, as we covered with having a driver take a different route to reach a BART stations, when in fact all they need to do is drive .3 miles ahead and make a U-Turn. 

14 versus 11 miles. The cost of this ride is about $5-6 more. This driver deserved the extra fare because he shared some important data and his take on the ridesharing company. He wants to give up driving and is unhappy about policy changes. Ridesharing drivers made plenty of money in the past. They don't make as much many anymore. Rate drops are influencing the bottom line. 

Meanwhile, drivers are working harder to make the same as before. Perhaps, Uber is withholding this data to keep drivers on the road. The truth is these drivers are earning much less and must put in more hours to make up the difference. As competition continues to impact rates, this will hurt ridesharing companies. Drivers will get smart and leave this unfair game. There are no good driving promotions. 

The best data to compare results is interviewing drivers. Two Los Angeles ridesharing drivers in two days have been vocal about the fare changes, sharing that a decrease in earnings required an increase in hours, an increase in miles, and an increase in gas cost. It seems that Uber's app is giving longer routes that take longer to complete. This increases the cost of the trip, thus increasing the fare cost. 

Make your decision to drive on real facts. As of right now, clients are receiving the best deal for rides. Take a ride and save. Nonetheless, drivers are losing out.