umbluegray
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Joined: Nov 2003
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I Root For: The Tigers!
Location: Memphis
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RE: Uber, lyft vs taxis
(08-12-2018 09:55 PM)GoodOwl Wrote: (08-12-2018 02:03 PM)umbluegray Wrote: I hear what you're saying, but I don't think it's the same at all.
Have you ever had a yard sale or garage sale (depending on which part of they country you're in)?
Should you be regulated the same as and forced to operate the same as department stores?
Should children be able to run a lemonade stand without facing the same regulations as Starbucks?
I don't know if this is true or not, but I've heard Uber started with the intent of selling the tool to taxi companies. No one was interested so they got creative.
I actually started driving Uber back in June 2015 as a way to fund a family trip to Disney World. When November rolled around I had made enough to:
- Reserve a 7-day/6-night stay at Disney's Polinesian Resort (considered one of their delux resorts)
- Buy 5 park hopper tickets for 7 days
- Buy the table service dining plan for 5
In 4 & and half months I had earned enough to cover a pretty darn expensive trip to Disney.
During those initial months of driving I came to realize that I actually enjoyed doing it. It's amazing how many people I've met from not only across the U.S. but from around the world.
... {not going to quote your whole post here---see above for reference if needed}
...
To each his own. Everybody is at different places in their lives. Why deny people an opportunity because some long-standing companies don't like losing business due to their own out-dated business model?
Thanks for sharing blue/gray.
It seems reasonable a lot will depend on 1) location, 2) vehicle type and mileage 3) Insurance costs 4) quality of cab service in area among other variables.
I have heard from a friend from Memphis it is a particularly difficult market for a lot of things, not just cabs. He has some strong opinions of why, but then he grew up there. I've visited for a convention, been to the Peabody a few times to see the ducks walk, and been to the Liberty Bowl and Beale Street.
You say you have USAA, which I generally understand to be the cheapest insurance around bang for buck. Not every Uber/Lyft driver will be able to match that, so generally most of their costs will be higher there.
When I first started in 2015 the car insurance industry didn't know what to do about insuring ride share.
I knew Uber provided insurance for each fare. They were not forthcoming with the information that the insurance only covers from the time you START the trip to the time you END the trip. It does NOT cover when you're in-between fares. Come to find out, your regular insurance didn't cover ANY rideshare time. That's when I realized I had been driving for months with basically no insurance coverage.
Essentially, the moment you turned on your app your regular car insurance stops. The rideshare insurance is $1,000,000 but it only covers when a rider is in the car.
I researched online and found out this was a gray area. I called various companies to get rideshare coverage rates.
Progressive covered rideshare the same as commercial vehicles. It was going to be over $6,000 per year.
USAA was doing a trial run in Texas but they didn't have a product for other states.
I kept calling USAA periodically. They finally had a product they could add to your existing policy called "gap insurance". It's only $5 per month. I jumped on it.
You say you do this part time and are careful about mileage. I guess you refuse some trips you've learned are not worthwhile? You sound pretty astute at this. I'm not sure the average driver is as on the ball as you are. Kudos for you, though for being thorough.
Astute, only due to trial and error.
Uber has a demand-and-supply model for pricing. If more riders are requesting rides from a certain area than there are drivers, prices begin to multiply... 1.3, 1.5, 2.0, 2.5, .... 8.0.
Early on, when I didn't know any better, I would see a surge-price area on the map and drive toward it. Invariably, once you got there the surge disappeared. Probably because every one else is driving to it.
So you learn how to work the patterns. For example, before a Grizzlies game people will want rides downtown to the arena. These people are scattered all over the metro area. So I'll hang out in a suburb that's farther away. It won't be a surge, but it's a long trip both time and distance. Uber charges based on 2 components: distance traveled and time duration of ride.
From a suburb to downtown you could net around $30 for one ride. But then you're downtown. It may not make sense to turn off the app and drive out to the suburbs again hoping to get someone running late to the game.
After the game is a different story. 18,000 people concentrated in one area at the same time causes prices to surge. Make sure you're near the arena when the game is ending.
But this is hit or miss... some people might live a few blocks away while some might live in Mississippi.
The same strategy goes for concerts or various other special events.
There are few exceptions to this. One is Memphis in May. There's a 3-day music festival the first weekend of May. Those prices are always surging all day long.
And there's the barbecue contest over the 2nd or 3rd weekend. Believe it or not, those prices surge even higher than the music fest.
I picked up a couple of guys in town visiting for business last May. They were at Beale St hanging out. They didn't go to the BBQ contest, but they were in the price surge regardless. They were going to a hotel in one of the far-flung suburbs. That was a $90 trip.
As far as rejecting trips -- that's a no-no, for various reasons.
1. Uber has to make sure it does not discriminate. When you get a ride request, you don't know where you're going. They only show you the pickup location after you accept the trip.
2. You have a rejection rate and cancellation rate. Get too high and you get booted off the platform.
Do you think it would be different for you if you did it full time instead of part time? I'm not sure the difference in ratio for full time vs part time for cabbies and limos vs Uber/Lyft. I'd imagine it's more skewed to full time for cabs. The medallion thing and extra costs and regulations running a cab in most places makes a difference also, I'd imagine.
I want to make a disclaimer before I continue. What I'm about to say is in NO WAY meant to disparage anyone. I hope no one takes it that way.
I belong to a Memphis Area Uber Driver facebook group. Some members drive full time, others part time.
Those who drive full time seem to like the money they generally make. Sometimes they might hit $200 per day, sometimes more, sometimes less. But it takes pretty much all day to get those higher amounts.
Uber recently added a feature that will lock you off the platform once you hit 12 hours online. You have to take 6 hours off before you can go online again.
Folks who drive full time like the fact they don't have a boss. I completely understand that.
But doing it full time is not an option for me because I couldn't replace my job income with uber income.
But as far as extra income goes, you can't beat it. I had no desire to get another job where I might be stocking shelves or running a cash register. Not that there's anything wrong with that at all. There is NO shame in gainful employment - period.
At my age I don't want to put in 8 hours (sometimes more) and then go do another 5-8 hours. Consider needing to get some sleep time... when would I see my family?
I'm not as much against these services as I am the unequal playing fields due to regulation. I just think Uber and Lyft, etc.. are taxi services and should fall under the same regs, or they should have gotten rid of the regs for cabs so everyone was on a level playing field (yeah, govt give up regulation, right.)
I don't claim to know the history of taxi services and how they came to be regulated as such.
I imagine some of that was at the request of taxi companies decades and decades ago to keep competition OUT of the market. I envision some backroom graft somewhere in New York buying off a councilman to make sure nobody comes over to my turf.
Still to your garage sale/lemonade stand analogy--I get where you want to come from, but next to no one is making that a real business- garage sale is just get a few bucks but really you mainly want to get rid of stuff without dumping it yourself. Lemonade stands are mostly run by kids, right? (i'm not sure if this is different in Memphis, but do you really have adults doing lemonade stands for a going concern, even part time?) I'm not sure it's wise for govt to treat those the same, but mainly due to intent of business purposes and age of proprietors (again, maybe in Memphis its different.)
OK. Valid points.
But there are people who make their living from flea markets. Surely they should not be regulated the same as a department store.
Also, there are differing laws which pertain to sole-proprietorship, partnerships, and corporations. And the laws for each can vary depending on the number of employees you have. And there laws can differ depending upon the type of corporation you are.
I also have a bookkeeping business. It's just me and at the moment I have one client. I've had another client previously and I'll probably have another in the future.
I'm not their employee. I get a 1099.
Surely I should not have to follow the same laws and regulations as one of the Big Four.
I mentioned lemonade stands primarily because of recurring news stories over the past several years where municipalities shut down these sidewalk endeavors for the lack of the proper permits.
It's ridiculous to force children to buy a business permit to sell lemonade.
Another example could be lawn cutting services. Should established lawn companies try to shut down the guy who goes door to door with his lawn mower in his trunk trying to put food on the table for his family?
Still thanks for your insight. I'm sure it will help round out the picture a bit for those reading this thread.
No problem at all. I hope it has helped in some way.
I understand that there are arguments pro and con on both sides.
Oh, by the way, I just remembered... Uber has a service called Uber Taxi.
The passenger can use the app to hail a local taxi.
In this case, the taxi company is using the uber platform to gain ride requests.
Again, these drivers are not independent uber contractors, they are employees of a taxi service that uses the uber app platform.
Something interesting to ponder.
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