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Saturday, August 01, 2015

Uber reduces all rates in the East Bay and South Bay of California

Uber does it again. This ride app powerhouse is making another bold move to reduce rates again. It is in their best interest to stimulate ridesharing business. Beginning July 31 and effective immediately, Uber reduced East Bay and South Bay rates another 15%.

Last year, Uber reduced trip rates 15%. Before this price drop, a trip would cost 30% more back then than today. Imagine how much money drivers are losing out making, especially with Uber implementing two serious price drops and taking away $1 safe ride fees.  

Uber wants to stay competitive. In the process, Uber is belittling their drivers. They're reducing prices to bottom of the barrell minimums. Who loses out with these ridiculous rates? Drivers. 

Ridesharing is following the wrong path. Gas prices are still high. Drivers are spending thousands to repair and maintain vehicles that wouldn't require these services without driving needy people around the East and South Bay. 

What in the world is Uber thinking? Before reducing fare prices to trick drivers into believing ridesharing business will multiply, Uber could've requested driver feedback on this sensitive matter. In our honest opinion, these are horrible business tactics to increase usage. 

Uber is obviously a first-class name. Easy and South Bay rides are already in high demand. What is the motivation behind reducing UberX rates to South California minimums? We covered the disastrous fare rates in South California, simply the worst business model in the growing ride app business. We don't know one happy ridesharing driver in South California. It is that bad! 

Guaranteeing UberX drivers at least $21 net pay is nothing. Lyft drivers are making a fortune; they are receiving commission kickbacks upon completing various hours per week. Uber doesn't offer commission rewards, nor do they launch any of their guaranteed rates in various Bay Area cities. 

The following rate reductions apply to UberX drivers servicing East Bay and South Bay cities.  

SAN FRANCISCO
uberX FARES
(Unchanged)
NEW SOUTH + EAST
BAY uberX FARES
(Changed)
BASE FARE$2.20$1.95
PER MINUTE$0.26$0.20
PER MILE$1.30$1.10
MIN FARE$5.00$5.00


Based on this 15% price reduction in East Bay and South Bay cities, we are seeing Los Angeles fares dwarfing this once viable Bay Area ridesharing business. The real winners are Uber and its clients. 

After calculating all expenses and vehicle depreciation, UberX drivers are making far less than minimum wage. Quite a few drivers are experiencing major financial setbacks to keep ridesharing. In the end, bad credit and worn down vehicles will drown these Partners. 

This is of course, with exception of tactically intelligent ridesharing drivers, who can make decent money driving people. Driving at the right time and in the right areas will maximize earnings.  

East Bay and South Bay are definitely unhappy about South California rates emerging in Bay Area cities. Want to make money driving with Uber? Make it a goal to drive in San Francisco. 

Not too many UberX drivers are excited about making a guaranteed $21 an hour net pay giving rides in East Bay and South Bay cities. Clients are far too smart to accept surges. It is too common for UberX drivers to coast throughout these red surged areas and get no ride requests.  

Visit the North Bay and San Francisco to keep earning the same fares. Keep in mind that Uber sets specific time and day requirements under these $21 hourly guarantees in East Bay and South Bay cities. After gas, wear and tear, repairs and maintenance cost, an In & Out employee will outearn East and South Bay UberX drivers. That is the honest truth. 

Is accepting this 15% price reduction worth the risk? Does it manipulate drivers to service San Francisco? You be the judge of that. Will drivers be cranking out way more rides to make the same money? 

East Bay and South Bay drivers must make 15% more to match pre-July 31, 2015 fares. Made $200 last Friday after commission and fees? You will need to earn $230 this weekend. Another extra airport trip. 7 minimum rides minus the $1 safe ride fee. 

Two fare reductions within a year reduced UberX prices down 30%. $21 an hour net pay guaranteed is peanuts compared to what Lyft drivers and Sidecar drivers are earning. 

Ridesharing is no longer a lucrative job. It once was until competition undermined hardworking drivers. Uber doesn't compensate their drivers for lost time due to sick Uber clients making a mess. If drivers clean up vomit chunks, they only get $30-$60. This is so ridiculous! Uber drivers investing 3-4 hours cleaning and disinfecting their vehicles will likely hundreds in fares. 

Another problem is Uber clients standing in front of bus stops and on red line curbs. These clients refuse to listen and take notice that their actions will result in drivers receiving expensive tickets. Uber won't pay a dime to cover these citations. They don't care to cover the cost of damage inflicted by drunk clients. Unfortunately, the cost to repair broken door handles and door locks fall on drivers. 

Tell us that reducing fares another 15% within a year is worth the risk. It is not. A $100 trip last summer would now earn an UberX driver $65. After commission, a driver is lucky to see $51. 

Ridesharing is going in the dumps. Reducing prices and using demand as an excuse to perform this modification will ultimately result in less supply of drivers within East Bay and South Bay cities. Thus, demand will increase and prices will surge. Uber can still surge prices to compensate drivers. 

We'll wait and see if UberX drivers are earning more money with another 15% price reduction. What unreliable chart will be released to support this claim? Maybe Uber Partner summaries will disappear again to avoid comparing results. This is a poor change to increase usage, not earnings. 

In our honest opinion, East Bay and South Bay drivers will have to work far harder to make up the difference. Demand doesn't earn the bulk of ridesharing dollars, it is primarily longer trips without traffic. UberX drivers who cover more miles in a reasonable time can/will make good money. 

Whatever the case, Uber is dropping the ball on East Bay and South Bay UberX drivers. These drivers can expect to stay on the road longer to earn the same amount. If your day job informed you that you would make $3 an hour less ($20 an hour paying job) and you could work OT, you would need to stay almost an hour longer a day to make up this difference. 

In ridesharing, you lose gas, time and increase safety risks staying on the road longer. We don't see this 15% price reduction as a good model. No UberX Partners were informed of this price change until 2 days ago. Good job Uber for increasing demand and possibly decreasing supply.

Two thumbs down! 


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