Iwantmy240

These companies pretty much do collude on pricing. Every Uber rate cut has proceeded by a Lyft cut to the same rate. Anywhere you go now the mileage and minute rates are exactly the same on both platforms. Uber has raised their fares through upfront pricing, but has not raised driver fares, so the service provided by drivers will not match the service that was paid for.

Good rideshare drivers are no more trained to driver than a taxi or limo. It's just that rideshare gets paid less so you should expect less

kb9522

You do realize the difference between two companies colluding on price and one company responding to an undercut from the other right? If Uber doesn't cut their rate to match Lyft, they will lose market share.

JLewisinSyr

That's not collusion, that is free market economics.

john2g1

Actually that is neither collusion nor a tenant of the free market (in this scenario). If it was individual drivers would set prices based on the "market", their ratings, comfort and luxury level of their vehicle, and current supply/demand.

But I don't want to stray from the OP's topic.

kb9522

Drivers are free to do this... They can create their own rideshare service and compete with Uber... but good luck with that.

Keep grinding that axe though... By the way, the word you're looking for is tenet, not tenant.

cestmoi123

I do remember taxis. They're legally required to take a fare to any location in NYC, plus several suburban destinations. Refusal to do so carries a very substantial fine from the TLC.

cestmoi123

Except, in NYC at least, UberX fares (without tip) are just about the same as taxi fares.

cestmoi123

Actually, having the two largest players in a market signal to each other and end up with virtually identical pricing is very likely collusion.

3Cforme

What's the evidence of signaling here?

cestmoi123

Price matching can in and of itself be evidence of signalling, in a highly concentrated market. Hard to prove, though.

JLewisinSyr

There are still other choices though, it's not just Uber and Lyft, there are other smaller companies that have started and then you have the various taxi companies.

Uber nor Lyft operate in a monopoly and really don't operate in duopoly as there are other options. That said, because there is a strong competition, pricing actions are going to go lock in step because there is little other levers a company can pull to adjust their pricing model, little differentiation.

In markets where there is differentiation, pricing doesn't often go lock in step, because the other can push other differentiating reasons for higher/different pricing.

I think you are looking at the individual drivers as the market, where I look at the holding company. Individual drivers can choose any service they want (there is more than Lyft and Uber), that's part of a free market, and the companies themselves are in a free market to adjust their pricing models as the need to, to either increase market share, differentiate service, etc.

I think you are crossing lines when looking at things like collusion versus free market; you have to keep the eye at the same level.

john2g1

No I am looking at the thing that the customer is paying for: Door to door transportation from point A to point B.

Not to be confused with buses, trains, or planes which although are mode of transportation none of them are a door to door service.
@cestmoi123 You just provided yourself with your own answer... NYC created specific protection laws that apply to NYC only. I am talking about a change system wide.

Considering that this is FlyerTalk I must assume you go outside of Metro NYC.

Again though we have strayed far from the original post: Calling for the destination
@HWGeeks @kb9522 Please re-read my post. I did not say anything about paying more than what was agreed to for the trip/fare.

The original poster has an issue with being contacted for the destination. The OP continued to complain about being contacted in general (might have been accidental but that's what he/she said).

Let me make my point plain: A driver receives a request 20+ mins. away most drivers will ignore the request. Some drivers will accept, contact the rider and find out if it far enough to make it worth the 20+ min unpaid drive to get the passenger.

(@Diplomatico as well) If passengers would recognize the cost and time involved getting to them and show monetary gratitude for the unpaid drive more drivers would accept and fewer drivers would call to ask the destination.

This entire forum is about travel safety, efficiency, reward, and deals. The drivers also would like to be efficient. Driving unpaid to get someone far away only to have them tell you that they are going walking distance away ha-ha is not efficient. It's that grey area Uber intentionally does not address.

Contact your driver and tip when warranted to help ensure you get the best drivers out there and not some new guy or an idiot who doesn't know any better.

diburning

So you want the customers to foot the bill for Uber's issue?

john2g1

I give up man... It's only a few of you. Do you think that the solution is to charge you more just because every car near you doesn't like your score or is waiting on someone else?

Should there be a travel to fee?

Either way the customer will foot the bill.

Little known fact to all of you top tier travelers.... The "upfront pricing" is an algorithm where Uber and Lyft charge the customer more without paying the drivers.

Look it up the issue is in litigation right now. Uber/Lyft started UberPOOL and Lyft Line to appear to investors that they are constantly growing (they wanted the metro bus crowd too).

Uber and Lyft then realized something that drivers already knew... Lyft Line/UberPOOL is not profitable.

So using an algorithm + more "booking fees" Uber and Lyft make you the customer foot the bill for their bad attempt gaining market share to look good in front of venture capitalist.

I'm just glad that other members are reading and making up their own minds.

cestmoi123

Taxis play a much more important role in transportation in NYC than anywhere else in the country, so there was a much greater need to have regulations that punish abusive behavior by taxi drivers.

Want to drive a cab in NYC? Agree to take passengers where they want to go, even if you don't like the economics of a specific trip.

Want to drive an Uber? Agree to take passengers where they want to go, even if you don't like the economics of a specific trip.

The former is a gov't regulation, but there was no prospect for a private company to implement it, as there's no way to differentiate among NYC cab companies from a consumer perspective.