It was a relatively quiet week with Uber and Lyft, giving us a chance to catch up on some in-depth reporting on Uber’s CEO, Dara Khosrowshahi and how the media is reacting to Uber’s 180 Days of Change. Today, senior RSG contributor John Ince breaks down the media response to 180 Days of Change and shares an interesting profile of Uber’s new CEO.
Uber will now charge you extra if your driver has to travel longer to reach you [The Verge]
Sum and Substance: Uber is adding a bunch of new fees to sweeten the pot for drivers who may be reluctant to wait for slow passengers, drive longer distances for more out-of-the-way pickups, or get hit with trip cancellations at the last minute. That means some trips may become a little more expensive for passengers — especially those who live far away or take a little longer than usual to get in the car. It’s an acknowledgment that the job of driving begins long before the rider gets into the car, and that some trips, especially suburban ones, don’t feel fair from an earnings perspective, said Aaron Schildkrout, head of driver product at Uber. These new surcharges are aimed “precisely at solving those pain points,” he said.
Riders may balk at the pricier trips, but Schildkrout says it’s aimed at solving a problem for them as well. “It’s not always as easy to get a car in the suburbs as it is in the city,” he said. “Even in the outskirts of a city people sometimes have this experience. So from a driver’s perspective, it’s easy to see why this makes sense: you’re more likely to forgo trips with long ETAs… With this change, we hope to make those long trips more worth drivers’ while. And for riders, we hope this means they’ll able to get a ride reliably where ever they are.”
Uber is also updating its cancellation policy to peg the fee to time and distance. Uber thinks this will advantage both riders and drivers. Riders who get matched with a driver who then refuses to move will end of paying less in cancellation fees, while drivers who travel long distances for a pickup only to get hit with a last-minute cancellation will earn more.
My Take: Nice set of improvements in the app. With these announcements, I’m beginning to think there’s actually something to the 180 Days of Change. Rewarding drivers for long pickups could be quite significant for those of us who drive primarily in the suburbs. On a typical evening, close to 50 % of my pickups will be more than 8 minutes. I’ll be interested to see how much more we get.
UBER IS BROKEN. CAN THE NEW CEO FIX IT? [The Verge]
Sum and Substance: … In a world where high-profile tech CEOs have become household names and, in special cases, the focus of hero worship, Khosrowshahi is a relative unknown. But while industry experts believe that any change will be good for Uber, those familiar with his reputation at Expedia think he’s equipped to tackle the logistics of piloting the most highly-valued private company in the world, and the problems that come with that role.
My Take: This article is old but informative. It gives a good portrait of the guy who’s now in charge of the show. If Uber succeeds, credit this guy. If they fail, let’s all agree to point the finger at TK.
Here’s something to ponder: only $1 billion of Softbank’s $10 billion Uber stock purchase is going into the company. The most savvy investors are taking Softbank’s money – unloading their stock at deep discount from $69 billion, but still hitting a home run on what they originally invested. And guess what? They can simply flee the scene of corporate confusion in an Uber.
Uber will now let you add multiple stops to your route [TechCrunch]
Sum and Substance: Uber today is adding a new feature that will solve a challenge almost every rider, at some point, has faced: the difficulty with picking up friends along the route to your destination. That’s because, until now, Uber has only allowed you to request a ride from point A to point B. That now changes with the introduction of an “add-a-stop” feature that allows you to add up to three total stops to your route.
My Take: All in all this is a solid improvement. It’s not especially significant in the scheme of things but definitely progress. Should help things go more smoothly for both riders and passengers.
Readers, what do you think of this week’s round up?
-John @ RSG
