Uber Update Spotlights 'Upfront Fares' While Burying Surge Pricing Notifications

[sentiblue]

For a long time, I ride Uber after having few drinks with co-workers or going out with friends on the weekend, but I finally had to ditch Uber and switch to Lyft because of the discriminatory pricing in the name of "Surge".

I have only couple destinations for my weekends... and they are near each other. From those locations to get home always cost around $13.

One day I got home between 10-11PM and I was notified about the surge... but of course I had few drinks and didn't really mind nor paid attention to see what the surge multiplier was.

That trip cost me near $50.... This is ripping customers off... I know demand was high, but charging more than 3 times the normal demand ride is ridiculous.

So long Uber!!! I took their app out of my phone and will never reinstall it unless they get rid of this stupid idea.

 

[rekhyt]

Anyone got a screenshot of this new change?

Don't use Uber that often.

 

[canadianreader]

I remember when I took an uber ride for the first time I was anxious about the price since I heard about bad surprises and was also anxious about security but since then I use it often to travel around the city when I need it and it is by far less expensive than taxis from downtown to my area is a 24$ with a taxi and 16$ with an uber.

 

[emcampbe]

I agree...mostly not a big deal if the surge is included in the price estimate you see, and they do include the 'heavy demand currently' line. It seems that the notification is just different without the specific increment - which may not matter much if I need to go somewhere. I'm either ok with the price, or not I can try somewhere else.

Not much different then how airfares are priced and shown - they do it based on demand (and expected demand), but I never get a warning showing this fare is 1.2x or 1.7x higher. I see the price, and if I'm good with it, I book it, or if not, I go somewhere else.

 

[0098386]

Hmm, if I was using Uber for the first time and it was during a surge period, I'd likely see the price and not use it again. They must at least say it's a surge period and just not display the amount its increased by?

 

[sudo1996]

Exactly I hate hidden fees that come along after you show me the advertised price. The price that is shown should be what I will pay or at least have the option of paying if I don't want to add extra services.

Restaurants are the worst in this respect. You'll pay about 50% extra after tax, tip, gratuity, and maybe a credit card fee. What the heck is the point of a tip if you always pay it, and why does the U.S. allow people to sell things with the tax not included in the price?
[doublepost=1466890116][/doublepost]

Just one more reason to stick with Lyft, as far as I'm concerned. Their whole model is better. And the drivers are usually happier. Generally, my Uber drivers spend most of the ride complaining about how terrible it is to drive for Uber.

That's never happened for me.
[doublepost=1466890241][/doublepost]

One day I got home between 10-11PM and I was notified about the surge... but of course I had few drinks and didn't really mind nor paid attention to see what the surge multiplier was.

That trip cost me near $50.... This is ripping customers off... I know demand was high, but charging more than 3 times the normal demand ride is ridiculous.

How is it ripping people off? If demand is high, the service is worth more, and the customer agrees to pay it. And did they change the interface or something? Last time I got the surge pricing, it was modal (came up in front of me with an "OK" button), totally obvious.

I use it occasionally and usually get the non-surge pricing. It's the cheapest, most available thing there is. Sure, go ahead and use Lyft or a taxi, but it's not going to be any better.

 

[0007776]

why does the U.S. allow people to sell things with the tax not included in the price?

I think that is more tradition, and marketing since they can advertise a lower price, than any law. I hear advertisements periodically of stores saying that they will pay the tax for you as part of a promotion, so from the government's standpoint I'm sure they are just discounting it to whatever price plus sales tax is the original price.

 

[sudo1996]

I think that is more tradition, and marketing since they can advertise a lower price, than any law. I hear advertisements periodically of stores saying that they will pay the tax for you as part of a promotion, so from the government's standpoint I'm sure they are just discounting it to whatever price plus sales tax is the original price.

At least in California, it's illegal to charge more than the advertised price for an item. IDK about the rest of the U.S., but I'll bet similar laws exist. They sometimes say "plus tax," sometimes not, but it doesn't seem fair to not say what the tax is either way.

 

[0007776]

At least in California, it's illegal to charge more than the advertised price for an item. IDK about the rest of the U.S., but I'll bet similar laws exist. They sometimes say "plus tax," sometimes not, but it doesn't seem fair to not say what the tax is either way.

I'm sure there's a workaround there otherwise some lawyer would have started a class action lawsuit to get a lot of money in lawyers fees.

 

[scoobydoo99]

I disagree to an extent. Yes- it is better to know upfront what the total cost will be. But, surge pricing is moving from what it is now ("hey, it's really busy so we need to charge you extra") to essentially a hidden fee. I for one want to know that I'm getting charged extra than normal on top of knowing clearly what the whole fee is.

Hiding surge pricing is an attempt by Uber to mislead consumers. Why would I care what the fare is going to be in advance? I already know roughly what the price will be. What i DO want to know is if there's a surcharge.

I think the purpose of a surge fee is to encourage some people not to use uber when the demand is higher than they can meet, and make more money off of those who still want to use it despite the peak period.

nope. The purpose of surge pricing is to encourage more drivers to get out on the road. When idle Uber drivers get a message that 2.5x surge pricing is in effect, they might jump in their car and go active, helping to serve the demand while making more money. I've talked to several drivers who say they were sitting at home, not planning to drive, but got out there due to the surge.

 

[0007776]

Why would I care what the fare is going to be in advance?

Maybe so you can know what you have to plan on paying instead of it being a surprise.

 

[chasonstone]

This isn't totally relevant to the conversation but how do you guys afford to use Taxis or even Uber regularly? Like it's insane to me what some people have said they've paid. Then there are people who rely on these things 100% and I just don't get how it's economically feasible. I live in a rural area, always have. So the whole concept of public transportation is literally non existent here. I've never ridden in a Taxi, I've never ridden on a bus (not counting school buses), I took the metro in DC once out for the sake of the experience, never took a train, no uber/lyft, blablabla. I'll say even that one ride on the metro was way more money than I would be willing to pay on even just a somewhat regular basis. I just don't get it, lol. I think it would stress me out to not have my own vehicle and have to rely on public options all the time.

 

[SuperMatt]

This isn't totally relevant to the conversation but how do you guys afford to use Taxis or even Uber regularly? Like it's insane to me what some people have said they've paid. Then there are people who rely on these things 100% and I just don't get how it's economically feasible.

I'd like to follow up on this. Taxis (including ones you hail online such as Uber and Lyft) are a luxury as far as I'm concerned. In rural areas, it is very rare that an adult doesn't have a car. In a city, if you can't afford a car, Uber is probably too expensive for you too. In that case, there are a multitude of buses and subway lines to choose from. Even when I've occasionally traveled, the first thing I do is find the local public transportation schedules.

If you rely solely on Uber to get around, how much does it cost you per month? I mean, you can rent a car for $20 a day; taxi fares can exceed that within minutes...

Is using Uber constantly cheaper than owning a car?

 

[Fortimir]

Just one more reason to stick with Lyft, as far as I'm concerned. Their whole model is better. And the drivers are usually happier. Generally, my Uber drivers spend most of the ride complaining about how terrible it is to drive for Uber.

Preach. Lyft > Uber.

 

[futbalguy]

I'd like to follow up on this. Taxis (including ones you hail online such as Uber and Lyft) are a luxury as far as I'm concerned. In rural areas, it is very rare that an adult doesn't have a car. In a city, if you can't afford a car, Uber is probably too expensive for you too. In that case, there are a multitude of buses and subway lines to choose from. Even when I've occasionally traveled, the first thing I do is find the local public transportation schedules.

If you rely solely on Uber to get around, how much does it cost you per month? I mean, you can rent a car for $20 a day; taxi fares can exceed that within minutes...

Is using Uber constantly cheaper than owning a car?

"In a city, if you can't afford a car, Uber is probably too expensive for you too."

I think if you only used ride-sharing then yea its expensive. But the only people I know that do that are lawyers or very highly paid professional. In a major city, public transit and ride-sharing is almost certainly far cheaper than owning a car. And who wants to drive around a city and find parking?

Most are not using a Lyft get to the office everyday, you use public transit. You use ride-sharing mostly for one-off commutes.

In San Francisco, most of my Lyft line rides cost $5 flat and the price is locked in advance. It's slow because you have to pick up other people along the way. You only add $1 for an additional passenger. It is extremely affordable and an amazing option.

 

[macintologist]

Do a lot of people not put in their destination when they request an Uber? It seems like if they forced you to put in your destination then this feature would always work. How are they supposed to give you an upfront fare if you don't enter your destination?

 

[wwchris]

I disagree to an extent. Yes- it is better to know upfront what the total cost will be. But, surge pricing is moving from what it is now ("hey, it's really busy so we need to charge you extra") to essentially a hidden fee. I for one want to know that I'm getting charged extra than normal on top of knowing clearly what the whole fee is.

As an aside, this seems to be a confused mixed message coming from Uber. I think the purpose of a surge fee is to encourage some people not to use uber when the demand is higher than they can meet, and make more money off of those who still want to use it despite the peak period. This sounds like the people in charge of the service (making sure customers are getting appropriate service by matching demand with pricing) are fighting with the bean counters (take customers even if we can't realistically serve them all- cash is king).

Actually, that is only one side of the equation. They surge prices so people who don't want to pay the price and are in no hurry can wait until demand goes down. This gets less people to use it and decreases demand. However, the really big part you are missing is that it encourages driver to go to the busiest places at the busiest time to make more money. If you are a driver, you may plan on going out on the night of the Beyonce concert and giving rides so you can make more money thus creating more "supply" to meet the demand. It is actually quite ingeneous. Here is a great podcast where they interview the head economist for Uber about these issues. http://play.podtrac.com/npr-510308/pd.npr.org/anon.npr-mp3/npr/hiddenbrain/2016/05/20160516_hiddenbrain_uber.mp3

 

[scoobydoo99]

This isn't totally relevant to the conversation but how do you guys afford to use Taxis or even Uber regularly? Like it's insane to me what some people have said they've paid. Then there are people who rely on these things 100% and I just don't get how it's economically feasible. I live in a rural area, always have. So the whole concept of public transportation is literally non existent here. I've never ridden in a Taxi, I've never ridden on a bus (not counting school buses), I took the metro in DC once out for the sake of the experience, never took a train, no uber/lyft, blablabla. I'll say even that one ride on the metro was way more money than I would be willing to pay on even just a somewhat regular basis. I just don't get it, lol. I think it would stress me out to not have my own vehicle and have to rely on public options all the time.

As someone who grew up in rural areas, then moved to big cities, I can understand why it makes no sense to you. I've lived in DC for the last 5 years, and own a brand new car. However, I often choose to take Uber instead of driving due to the difficulty in finding parking (and not wanting my car to be exposed to being scratched and dinged, but that's another story). In DC, street parking is extremely hard to find, and the complicated parking rules mean you are often at risk of a ticket or towing. Pay lots cost around $11 for 1 hour and $25 for more than an hour, plus they may close at various times, meaning if you don't get your car by a certain time, the gates close and your car is stuck until morning. Given Uber's simplicity of being picked up/dropped off right in front of my venue instead of spending 10-30 minutes circling for parking, Uber is much, much cheaper overall. I suppose I pay $7-20 for each Uber ride, depending on distance, but that's the cost of living in DC.

I'd like to follow up on this. Taxis (including ones you hail online such as Uber and Lyft) are a luxury as far as I'm concerned. In rural areas, it is very rare that an adult doesn't have a car. In a city, if you can't afford a car, Uber is probably too expensive for you too.

It's not that we can't afford a car, quite the contrary, it's that we can afford to pay for the luxury of NOT having to drive a car. It's a nightmare!

 

[SuperMatt]

As someone who grew up in rural areas, then moved to big cities, I can understand why it makes no sense to you. I've lived in DC for the last 5 years, and own a brand new car. However, I often choose to take Uber instead of driving due to the difficulty in finding parking (and not wanting my car to be exposed to being scratched and dinged, but that's another story). In DC, street parking is extremely hard to find, and the complicated parking rules mean you are often at risk of a ticket or towing. Pay lots cost around $11 for 1 hour and $25 for more than an hour, plus they may close at various times, meaning if you don't get your car by a certain time, the gates close and your car is stuck until morning. Given Uber's simplicity of being picked up/dropped off right in front of my venue instead of spending 10-30 minutes circling for parking, Uber is much, much cheaper overall. I suppose I pay $7-20 for each Uber ride, depending on distance, but that's the cost of living in DC.



It's not that we can't afford a car, quite the contrary, it's that we can afford to pay for the luxury of NOT having to drive a car. It's a nightmare!

As a DC resident too, I personally cannot justify the cost of taxis or Uber. The metro and bus routes can take you just about anywhere and cost a fraction of an Uber ride. I do agree with you on driving though. My condo has an underground garage which is fantastic. I drive to work but take Circulator or metro or other buses when I need to go somewhere else in the city where parking might be problematic.

PS - Don't forget the bikeshare....