Why Your Uber and Lyft Rides Are So Expensive | WSJ
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- Опубликовано: 7 авг 2024
- Rides may never cost what they did before the pandemic
Your average Uber or Lyft ride cost 50% more this summer than before the pandemic. But prices were inching up even before lockdowns began. Here’s what drove rideshare prices through the roof, and how the companies are working to bring them back down. Composite photo: David Fang/WSJ
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#WSJ #Uber #Lyft
My father works for Lyft. It’s not about the prices but the commission they take… they give me father $45 for a $110 trip.
What city? The commission is not this high in new new Orleans
@@makeitmakesense2616 NYC
Yeah, I'd be willing to pay 25-35% more if I knew it went to drivers instead of fueling "general backend support" and corporate bonuses.
Just a few days ago, Uber wanted 90$ for a ride from LGA to Park Slope, Brooklyn. I took a yellow cab and paid 50$. It’s crazy what Uber has become.
Driving for Uber/lyft not worth it at all
So Uber offers low prices to put taxis out of business then raises them up to replace taxis in the cab market.
Basically yea… they undercut their prices to shift attention to them and once competition is gone , they are the sole ride company so they can do whatever they want.
Yellow Taxis were themselves a monopoly. That is the reason they couldn't compete.
This was always the end goal.
Same monopolistic strategies that have been used for over a century.
I still don't understand how ride-sharing companies are not turning a profit? when they don't own anything.
It is simple... Someone needs to pay for those executives...
Using more money to invest in technologies and physical office assets, call it a financial loss and boom, no tax :)
do you know how much uber pays software engineer?
Same
They rushed to build their products to get to market early so their highly inneficient and heavily outsourced infrastructure burns through a ton cash. Also they greatly subsidized rides so they could destroy the old taxi industry and buy extreme amounts of ads to keep growing and justify further investment. Under normal circumstances they should be dead by now.
The issue at hand is that fewer people are willing to depreciate their vehicle for peanuts. Basically Uber and Lyft have an ENTIRE fleet of vehicles that they have to pay ZERO maintenance on.
As if maintaining a platform that big was inexpensive
@@arandomhumanbeing2464 if you compare sum the amount of maintenance of vehicles vs the maintenance of the platform, the second number is a joke
The cut that these corporations take from their drivers is unreal.
So why are they still working?
@@AkakiPeikrishvili because most of them don’t know how much money they are losing
@@PG-tc6os the drivers can't calculate their car's depreciation. Uber/Lyft are taking this
I was driving yesterday in Los Angeles for Lyft. Passenger paid $70 for a ride, I got $37 from it!
@@gabespalding8964 right on point
When your competition is welfare ...maybe you're not paying your people enough...just a thought
Exactly, most drivers quit driving during the pandemic because they were making more on unemployment benefits. That's pathetic.
Uber and Lyft will never be profitable to invest in their stocks. Their whole business model depend on drivers that are underpaid..
Are you stupid? Fuel price and lubricants is at least 45% of the cost of a transport operation.
There is also the danger related to passengers......
Seems like it was always a dumb segment to begin with. They are competing with taxis. Taxis were never a rich industry to begin with.
@@RoqueSantosJunior that is correct. That’s why this business does not make sense to work for them or to invest on it.
It's because the prior prices were fully subsidized by investors to get you hooked and then hoping you won't notice/change it. If prices were higher, then more drivers would join.
Excatly they drove the taxi companies out of business and now have a monopoly. Amazon uses the same technique
We noticed
And lower prices or subsidized prices would put the taxi industry out of business creating a monopoly for Uber where they can charge whatever they want
You just put a 6 minute video into a single paragraph. Well done.
Switch to other service would be easy.
I’m an Uber Lyft driver. We don’t get paid enough when you consider gas and all the wear and tear. Now on the other hand Uber and Lyft companies are getting paid way too much just by providing the platform.
The only way to make it worth it is if you drive the most random hours of the day like 4-8 am or 8-11:30 pm you must also drive an efficient vehicle i.e. Honda Toyota Subaru etc… you bet not buy a car expecting to sell or trade in for a fair value. Those miles wreck a cars Value.
Try to compete, then if your "just" notion had any validity whatsoever. Did you take big risks? Find investors? Build, update and release the software on the servers, in the phones, etc.? Work with government tyrants the world over? Advertise? Find you and all other drivers? Pay you and all other drivers?
neither company is not even close to profitability, expect them to increase commissions or charge customers more
Then why would you be staying put?
If I had more technical know-how, I would love to create a service that connected drivers and passengers.
Uber, Lyft, Door Dash and UberEats in the USA are expensive and ridiculous af- compare to Mexico you're getting robbed with said prices and the worst part is they charge stuff out of nowhere.
Theres probably 700 pounds of cocaine in that Mexican uber u payin 2$, just to trick the police
Don't blame the drivers. Uber and lyft set the prices then takes upwards of half. Wished there was an alternative.
That’s exactly what I came here to say!!!
Back to taxis?
Don't work for predatory companies. The drivers are supporthing them. TOTALLY PART OF THE PROBLEM.
I'm an Uber driver and A ride from San Francisco airport to San Francisco downtown costs the passenger over $70, but the driver will receive $20 to $35. considering gas, mile, and time we don't get enough pay. and Uber gets over 70% all the time! if someone needs pictures, videos of the same rider and same driver, I will be happy to share them.
People should just use more fuel efficient vehicles.
@John Connor it might have been a bit more fair if Uber paid for the car and /or fuel expenses…
@@alanmay7929 buy them more efficient vehicles mr smartass ... And even with the more efficient vehicle that vehicle still requires maintenance and your maintenance goes up being a full-time Uber driver
I just saw a hiring sign on chipotle window $20.50 an hour in San Francisco. Also, you get free food. you have a choice, please stop
@John Connor These uber and Lyft drivers will never be happy with how much they will make.
I just saw a hiring sign on chipotle window $20.50 an hour in San Francisco. Also, you get free food. they have a choice, all they do is complaining.
These 2 companies need to get smaller cut than the 25% they taking from drivers. The drivers are paying for everything and those vultures taking big chunk already
If the drivers pay for everything, why are they so ignorant as to work for them and not just compete directly? Oh yeah, because reality and your dizzy thinking aren't aligned.
Uber takes 25% PLUS the 2-4 additional fees they charge the passenger that the driver doesn't get a cut from
Unfortunately, businesses exist for profit. Traditional car services used to charge as much as 40% and they still do
The way they uncritically blame unemployment and not the profit incentive these companies have to keeping prices high nor the fact that drivers don’t offer same benefits like for full time employees
Employee parking used to be $12 but now $20.
Driving is more expensive now.
Uber/Lyft takes 50% cut these days! It used to be 35-40%! So when they get rid of the promo, a lot of drivers will go back to food delivery! Driving passengers around is just not worth it anymore
I really don't see why they take more than 30%. All costs are paid by drivers, not company. Charge more if needed, but to take more than 30% and claim they are paying extra for "driver incentives" is simply wrong!
This! One customer this week i had was paying $11.06 and I ended up with only $5.08 for the trip
I took a Lyft on LI and there was such a shortage of cars I had to spend an extra 10.00 to get “priority” pick up. The trip cost me $25.59. The driver received $6.19. It was 1.6 miles.
the typical lazy worker argument, nice wsj. Explain why then that employment didn't rebound in states that cut off their unemployment insurance earlier then?
Lazy reporting here too. The crux of the problem is the Uber/Lyft cut, not supply/demand.
Gas is $4.00 per gallon
Cars are very expensive
What do you expect? 😒😒
if you want to be cheap, drive yourself to the airport or pick up your own food. The whole point why it’s expensive is because you’re using someone to help you so if you didn’t want to pay, then don’t use the service.
How much is airport parking? And gas? And waiting for a shuttle to take you to your terminal?
@@Striker50_ If your time is so important that you can’t wait for the shuttle then pay the asking price it’s that simple.
@@xtrey19x But again, you didn't answer my question: how much is it to park at an airport daily? It's cheaper to rideshare than to leave your car at the airport lot
Drivers are going to come back until these corporations pay more simple like that.
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I could've sworn I saw this exact article on CNBC a week or so ago?
yes you did. ruclips.net/video/MEk3zMhhltM/видео.html
That’s unethical they are milking out of the pandemic.
I do understand the last point they make - the public is up in arms about driver's getting paid fairly and treated fairly, but then are angry at the rise in prices - can't have your cake and eat it too.
Let's talk about both companies are multi-billions and their C suit is racking in the 💰... kind of odd that was left out of the report.
Because there are always 3 passengers in the car. You, the driver and a middleman called Uber and Lyft.
In NYC many cab drivers are working for car service bases. They provide a more sustainable and lucrative model for drivers. Albeit not with the same reach and market. This is why I don't even try taking an Uber and just pay my flat fee at anytime of the day to go to JFK.
lyft and uber pay 0.60 cents per mile + minimum wage while you are driving. 0.60 is not far from the irs rate of 0.54 /mile so you are basically paid minimum wage while driving. There is no payment while waiting for a ride and driving to your pickup spot.
If drivers are united, they can hire freelance app creator and create more local-community app like uber. This how we will going to drag down price and drivers are paid more.
You can’t create an app like Uber with freelance lol, there are advanced tech working behind the scene. But yeah, drivers can just create a riot to add pressure.
They are doing it in different parts of the country. New York drivers are forming a co-op. Restaurant owners in a city in Iowa formed a co-op called Chomp that is actually giving lower commission to the owners and better wages to the riders.
I don't know about lyft... But uber is gonna get screwed big time... Until and unless the radically shift their core business to something else.
The philosophy of bigger is better don't work in the driving industry
@@veerjaggy1837 that's the way ! Just a matter a time, it will be more community based compare to company based. That's how community based delivery/driver can unite and take down a company
The main draw to use them is the price. When visiting the us I almost exclusively used uber because it was just half the price of a normal taxi. If it would cost the same or similar, I'll just get in to whats available. Its simple economics.
Uber and Lyft initially claimed that they would take 25 percent of fares. They are now taking anywhere from half to three quarter. A passenger may pay $15 for say 5 miles and at the end of the trip, all I get is about $6 or $8. They take the majority. It is so sad. We have to service our own cars, deal with extremely rude passengers and the list goes on. Uber and Lyft must be blamed although Lyft is doing so much better. Their bonuses really looks good and go a far way. There is an ease driving for Lyft than for Uber. Lyft match drivers with close passenger but Uber will send you 25 minutes long yo pick up a passenger who is only going 2 minutes down the road, pay $3.00.
Uber used to only take 20% up until 2016
I am curious why uber and lyft can't be profitable. The only thing they have to supply is software maintenance and customer support. They seriously should increase their efficiency and not just keep expanding for the sake of expanding.
I live in kentucky and work 15 to 20 minutes away from my home and I take uber because sometimes it's cheaper then taking Lyft is more expensive because of rider shortage. It's a hook because we need a ride.
The way I see it, as they fase out the discounts, they become more profitable, the drivers hopefully will get paid more fairly per ride instead of chasing bonuses, the people can't afford the rides will go back to using the public transportation system when available, solving the public transportation lack of passengers issues all together. Send like a long term win-win-win situation
Still not nearly as expensive as the yellow cab taxi's..
the point was to destroy labor laws and the functional taxi market and then raise prices after you have a monopoly
Nice video.
I just started working for Lyft, its really the tips that help.
You'd have to be phenomenally stupid to drive for these services. Drivers have subsidized riders and carried the costs all the way.
Take a bus or express train, if there is one. 😜
On a serious note I am guessing it's the Company cuts/commissions, while workers surely getting much smaller cut.
Does anyone have any opinion on how this increases in uber & lyft price would affect normal cabs if they’re still around? Just wanted to know what others think!
I think it wouldn’t do much. Uber and Lyft have become household name at this point that most won’t even switch cause they’re not familiar with other ride service. Similar to how majority of people only use Apple or use google as search engine. Secondly, despite the prices , taxis just don’t have the technology capability of Uber/ lyft. Their apps can instantly give you the nearest driver, whereas taxis you would have to stumble upon one. Also taxi people like to congregate in few locations notably airports and hotels Whereas Uber are ubiquitous
If companies can’t pay benefits to thier employees. They better close.
Uber increased how much it kept, but reduced driver pay so it’s insane to take passengers, plus other jobs are safer
7 year driver here (Since 2014)
Driver pay rates have been cut by Uber & Lyft claiming it to be temporary. Rates have never increased after said cuts. Only down 👇
Per mile in Los Angeles in 2014: $1.28
Per mile in Los Angeles in 2021: $0.64
Pay rates have been cut, while Uber & Lyft are now keeping more of the profits. When I started, Uber only took 20%. Now it's EXTREMELY common Uber takes 30-40%
Uber charges passengers MUCH bigger Service and Booking fees, which goes 100% to Uber. The driver doesn't get a cut of this like before
Well! You have been with them for 7 years, then they must be doing something good for you? Or this business must be working out well for you?
I live in Minneapolis, and it costs 10 dollars to go to the grocery store 1 mile down the road...
👋👍
We should improve and educate ourselves to succeed!
Make Yourself Proud!
Online language classes LOL
Pay drivers better, y'll screwing us drivers by taking 50-65% commission
#1 reason why Uber and Lyft need to be regulated (only allow certain amount to drive in the city). When do Yellow cabs surge?
It's the circle of life in action.
To get rid of a mouse, get a cat. Then to get rid of the cat, get a dog. Then a lion. Then an elephant. And to bring it full circle, to get rid of the elephant. . .get a mouse.
Taxi services had a monopoly, then ride share services broke up their monopolies, but the drivers got screwed. Tesla FSD cars will break Uber and Lyft, and we'll have to see what comes after that.
Replace surge pricing wit higha pay 2 avoid unionizing picketang
From JFK To Midtown Manhattan that’s $100 plus…. From JFK to Jamaica ave is already $50
The drivers will come back when the compensation increases markedly. Forget bonuses, raise the mileage rates.
Well, they succeeded with phase 1 of their plan. Sell your services for unbeatable prices killing off taxi companies. Phase 2, now that the competition is dead raise prices through the roof. Seriously. One time Uber wanted to charge $175.00 for a 28 mile ride to the airport (Burbank to LAX) at 4:15 AM on a Saturday morning. Seriously? Ummm, NO!
We ended up just driving ourselves and paying for long term parking at the Parking Spot the 5 days we were gone.
Everyone I know is slowing down on rides. Just kinda using it for hard to get jaunts. 🐩💨
and the lyft and uber drivers get 1/3 the price of the ride
This video has very loud on rear left and rear right speaker on 5.1 surround sound. It's weird I feel like the narrator is speaking to me from behind and then it switches to front firing speakers on other talking heads lol
I hope they don't come down! Shareholder here!
We are now at the point where a yellow cab becomes much cheaper than a uber ride.
this report is so wrong since I’m an uber driver too and have lots of uber driver friends. The reason why most people didn’t come back is because Uber, Lyft, and other delivery services didn’t pay the driver enough and it doesn’t worth of the time, not the unemployment insurance.
Agreed, I switched over to Amazon Flex from Uber, on some days I make 18 -22 an hour without having the liability of a passenger in my car, and a guaranteed wage before I accept a job.
its come down to just paying more , gas is expensive , its almost worth it to stay home some day instead of filling my tank because it would take 5 hours of driving to pay to fill my tank
Uber sign-up process is difficult now. they do a background check that never gets finished so they are turning drivers away. The shortage is due to Uber itself.
I do this thing called public transportation.
I used them for a few years. I'm back to using a cab because they are too expensive and unreliable in LA.
The Rideshare Guy hasn't actually driven for Uber or Lyft for YEARS. He's just a pr guy at this point.
Prices are up for customers due to the fact that Uber and Lis are charging more for booking fee service fees and nothing for the drivers the drivers get the same pay as before not one penny more that’s strange right where the ones working and then we can all the money went to extra drivers the truth
Exactly, driver does not get a cut of the booking fee or the service fees
They are that expensive because the business model is not working, and never has been, the extra money is so the can say that their companies are not sinking as fast as predicted.
This is why I don't feel bad about people disputing charges from doordash, uber, and etc. They deserve to get scammed.
Drivers and not seeing much more than before. A good chunk of the earnings still going to the platform companies.
Why are the drivers being blamed? The commissions from drivers are sky high!
If you think about it, there is actually no reason for the price to go up. Ok sure, the demand is high, so you might longer to get a ride.
You have to pay the driver’s hazard pay because of delta.
Charging more for customers and keeiping 75 percent and giving ony drivers 25 p or 20 percent
i only use good old taxis
invest in public transportation and forget about these companies!
I took a Uber from NYC to NJ, costed me $190, so expensive!!!!!!!!!!
It's so expensive and yet they pay the drivers the same amount. When the price is raised, that just means Uber and Lyft are taking a larger cut. Drivers need to stop putting up with this scheme. They barely make enough to cover their gas.
It’s all about company growth at first. They want people to hook on their services and monopolize the markets in order to dictate price later on.
Why drivers don't get paid anything but the prices are still increasing >.>
They cut all my bonuses the past 3 weeks which cut my driving time in half
I don’t understand. Google can easily make a cheaper version to compete.
It's the same with taxi before Uber. We human if have too much monopoly (control) will try to rip off in every subtle way. In the past we feel that cabbies are not to be trusted, poor experience rides without much choice other than public transportation. Now the cabbie service diminished, Uber/Lyft will take over the role and the cycle resume.
Not mine though
I don't get it, why americans don't use scooters or bicycles for delivering food? it's way cheaper
Drivers don't get no money like that The rider fare went up and the driver paid Went down
*Because It is UBER price and they LYFT the price up*
Ok we don’t wanna pay high cost for moving. Instead we’ll use other method such as train, taxi, bike and so on.
in Mexico,didi is cheaper and gives coupons
The reason why Uber and Lyft so expensive because of COVID-19 the pandemic messed up everything
Why aren't you guys talking about the full-scale economic crash that's right around the corner?
Lol no they were subsidized to drive taxis out of business now they succeeded and have a monopoly (UBER/LYFT ) and have to make a profit(between insurance and pay rate plus cost of driver/customer)
Its too bad that the rates are so high
Houston is the 4th largest city. WSJ get your facts straight when discussing big cities vs. small.
I'm Texas or all of America?
@@arbaz79 All of the America.
Sooo back to Taxis?
Expensive? Are you serious Uber is 25% the cost of cabs
Tesla robotaxi is coming
Bro, US everything is so expensive
Why isn’t this on the news this should make headlines politicians need to address this situation the working class is getting fleeced just to make it to work
The cut that Lyft and Uber take are ridiculous. We need better reporting and better journalism. I'm a subscriber of the WSJ and I'm very disappointed.