Uber’s been all over the news this week, and most of it isn’t good. One of the biggest sticking points between rideshare (and to a lesser extent, delivery) and drivers? More pay! Senior RSG contributor Paula Gibbins goes through the news in this week’s roundup to try to make heads or tails of what’s going on below.
Don’t forget to check out our latest edition of Rideshare Drivers React, where we discuss the latest rideshare and delivery news, share drivers’ thoughts, and more.
Uber looks to bring back surge pricing as solution to rideshare driver shortage [News 3LV]
Summary: As the rideshare driver shortage continues in Southern Nevada, rideshare operator Uber is acknowledging the ongoing issue.
The company suggests one solution would be to resume the practice of surge pricing – increasing the cost for a ride during periods of high demand. The company says the Governor’s state of emergency declaration prohibits the practice.
Uber sent this email out to users:
“You’ve likely noticed that it’s been difficult to use Uber recently in Nevada. One of the main reasons is that Nevada has been in a state of emergency since the start of the pandemic, and Nevada regulations currently prevent rideshare companies from increasing fare rates during a state of emergency. Therefore, the state has prohibited us from using surge pricing (a tool that incentivizes drivers to meet rider demand when and where it’s greatest); as a result, drivers’ earnings—and availability—have suffered.
While this regulation makes sense for short-term emergency situations such as storms and fires, the COVID-19 state of emergency has now lasted for well over a year. And with the demand for rides continuing to increase as the state reopens, drivers and riders alike are being negatively affected by this regulation.
In order to improve this situation, we need your help. Use the link below to ask Governor Sisolak to allow surge pricing in Nevada during the extended state of emergency so drivers will want to get back to helping you get where you want to go.
Thanks,
The Uber Nevada team”
Uber posted a driver announcement online, asking drivers to also reach out to the governor….
My Take: If you want to see Uber and Lyft look desperate, this is it. Asking drivers to reach out to their governor to allow surge pricing so Uber can get more drivers on the road is just pathetic. Or just showing how thirsty they are, to use a phrase the kids use these days. On the other hand, this isn’t the first time Uber has tried to mobilize either its drivers or passengers to contact local government…
Drivers took to Reddit to post about this nonsense. The person who shared this news on Reddit said in a response to another commenter, “I agree….doesn’t seem fair to drivers or passengers to have promotions or surge pricing. Set a fare that is reasonable and fair to everyone. Then it’s easier for passengers to budget, and drivers can be paid a fair rate.”
That’s what drivers really want. They want a fair wage up front. None of this surge or promotions to make it worth your while sometimes but not others. They want to be able to rely on Uber and Lyft for steady, reliable, fare earnings.
Another commenter pointed out, “Prices are high as hell now, how is that not a baseline surge?”
Uber might not be able to call them surge prices anymore because of the pandemic and having emergency measures in place, but if they are already bumping up their prices for passengers, it’s essentially the same thing.
Plus, as someone points out in the article, they don’t think a surge will get drivers back on the road anyway. If sky high bonuses haven’t done it, a little surge pricing added in isn’t going to either.
Passengers are getting frustrated with not finding rides and with how expensive they can get, and drivers have been frustrated with wages that get lower and lower as the years go on. We just have to wonder, with passengers paying more than before and drivers earning less than before, what’s Uber’s game? They are just making both sides of the coin unhappy and that is not going to do their bottomline any favors.
What We Got Wrong About Uber and Lyft [NY Times]
Summary: Uber and some transportation experts once predicted that getting a ride with the tap of an app would help reduce traffic and increase riders’ use of public transportation.
Instead, the opposite happened.
I mentioned this in a recent newsletter. I wanted to go a little deeper today into what went wrong with the promise of on-demand rides and what we could learn from it. How can we believe that technology will help solve big problems if Uber’s great promise didn’t pan out?
Here’s what more research is finding: In the past few years, on-demand ride services have been a major factor in increased traffic in U.S. cities, particularly in the downtowns of big cities. And most research is showing that the ride services have also been a significant reason for declining ridership of public transportation, especially buses….
My Take: The whole article is an interesting take on what was promised in the beginning or at least what was expected and what we have now. Since these “ridesharing” companies don’t often give shared rides, but are acting more like a taxi service transporting individuals or families instead of multiple commuters, it’s something to think about. True, each platform has their “carpool” type of service, but it wasn’t offered in every city, not even every major city, across the U.S.
I’ve heard several taxi drivers who have gone over to Uber or Lyft say that taxi could have been Uber before Uber if they had just taken the time and money to develop the app and map systems needed.
I also find the idea of regulations brought up in the article to be a thinker. It’s true that Uber and Lyft are largely unregulated. There aren’t many limitations put in place with the exception of airports. However, the fact they haven’t been regulated is why they are so popular and now widespread.
Uber CEO says company could get into cannabis delivery [CNBC]
Summary: Uber could start delivering cannabis once federal regulation allows the company to do so, CEO Dara Khosrowshahi told CNBC on Monday.
“When the road is clear for cannabis, when federal laws come into play, we’re absolutely going to take a look at it,” Khosrowshahi said in a “Tech Check” interview.
For now, the company said, it’s going to focus its efforts on its current delivery options in its key categories such as food and alcohol….
My Take: Not surprising, but I came across several comments from drivers on Reddit who do not want to become “drug mules” for Uber delivery services.
One highly upvoted comment stated, “‘Uber is looking for a way to overcharge and underpay in the cannabis industry as well’” as an alternate headline for the piece.
Another stated, “They won’t treat us like employees because they want us to become drug dealers. I see they have a big vision for our future.”
And a third joked, “They’d better use drones; otherwise those deliveries are gonna go up in smoke” indicating drivers would smoke the cannabis instead of delivering it as directed.
Deputies: Uber driver accused of kicking down door, entering LSU student’s off-campus apartment [WAFB]
Summary: An Uber driver has been arrested for allegedly kicking down the door of an LSU student’s off-campus apartment and entering the home only to be scared off by the presence of the student’s roommate, according to arrest records.
According to arrest records obtained by WAFB, Jose Cruz Fernandez, 48, of St. Gabriel, was arrested on Wednesday, April 14 on the charge of unauthorized entry of an inhabited dwelling.
Deputies say Fernandez, while working as an Uber drive, picked up a passenger, who is an LSU student, and began driving them to their off-campus apartment in the 400 block of Ben Hur Road around 2 a.m. on April 7.
When Fernandez dropped the passenger off at their apartment, they told deputies they noticed Fernandez was still in his vehicle in the parking lot as they walked to their apartment, according to the arrest record….
My Take: It’s one of those things where I have no idea how this driver passed Uber’s background check. I mean, obviously, if he doesn’t have any prior offenses, it wouldn’t show up on a background check. But, dang that’s creepy.
As several of the people in the article commented, if you’re a young female, it might be a good idea to at least have a friend or two with you if you’re going to take an Uber. You’re still getting into a stranger’s vehicle despite background checks being done. It’s a shame we have to put the burden of safety on women (this goes for both passengers and female drivers), but it’s unfortunately reality.
I’m grateful they were able to catch this person and that the woman who received the ride is ok. It’s a scary world out there.
Do you think Uber will ever be the same in a post-pandemic world? Will things get better for drivers? We’d love to hear what you’re thinking!
-Paula @ RSG
