Page 2 of 7 FirstFirst 1234 ... LastLast
Results 16 to 30 of 91

Thread: UBER!!! Profits

  1. #16
    Senior Member cvclubs's Avatar
    Join Date
    Jun 2010
    Location
    Las Vegas
    Posts
    537

    Default

    Quote Originally Posted by Vintage Limos View Post
    Well, some factors here... When you drive someone 50 miles from your home base, you will in all likelyhood be driving home empty, so double your fuel expense. If I drop someone in Chicago, being that I am a suburban operator, I have certain barriers that prevent me from picking up another ride in the city unless that person is leaving the city. Here in Chicago, limos registered as Chicago businesses have different license plates than suburban companies (and they pay good money for them). Get caught encroaching in Chicago turf and the city will fine you thousands of dollars per violation.

    Uber looks good on the surface, much like a casino does. It looks like your getting a ton of money, but then they take some back, and then they leave you with the check, leaving you very little. How many people make a living off gambling at a casino? Probably the same amount that make money off of Uber.
    Sorry I did not see this second post.

    I checked out the LA Uber site and came across their official rates for an SUV. It is a base rate of $15 plus $4.50 per mile or $1.20 per minute traveling under 11mph. Based off your example a 50 mile ride would be $240 ($15 + (50x$4.50)). https://www.uber.com/cities/los-angeles

    I would happily drive my vehicle out 50 miles with an empty return for $240 ($192 after uber commission). Unfortunately I will never have that opportunity because I will be restricted to charging exactly $60 for the hour after the $5 fuel surcharge as per Nevada regulations.
    Last edited by cvclubs; December 13th, 2013 at 09:39 PM.
    Nick Groat
    Las Vegas, Nevada
    Nick@BellaVitaLimos.com
    Bella Vita Limousines

  2. #17
    Senior Member
    Join Date
    May 2001
    Location
    Los Angeles, CA
    Posts
    1,695

    Default

    Thought this thread was going to be about their actual profits. They are doing pretty good if you ask me:

    http://techcrunch.com/2013/12/04/lea...-213m-revenue/

    213 Million!

    And CV you wrote:
    $240 ($192 after uber commission).
    They actually take 28% on the SUV work for some reason. Don't know why they would take more on a vehicle that has higher operating expenses, But I think they allow the SUV to do Sedan work if they are the closest to the pick up. So that increase in utilization would be a good reason to run an SUV. I would imagine you only get the higher SUV rate only when the customer orders the SUV.

    Also have to factor in the surge pricing but that can get difficult.

    But I tell you one thing. Every limo company should have an account on Uber just for the reason of last minute breakdowns and such. For whatever reason you need a car in 15 minutes and all your affiliates are booked. Bring up Uber and send a car right to your customer. You get the drivers contact info and a text message of when they arrive. You are Taking a risk on what sort of driver will show up but it is better than nothing.

    And with the rates they way they are you will probably end up paying less than if you farmed it to an affiliate.

    i would make sure all my dispatchers had the app on their smartphone. Wish they had a computer interface for it where the company CC could be used for multiple users.
    Last edited by Steve W.; December 14th, 2013 at 12:11 AM.
    Steve Walker ppvsteve@gmail.com

  3. #18
    Senior Member cvclubs's Avatar
    Join Date
    Jun 2010
    Location
    Las Vegas
    Posts
    537

    Default

    Quote Originally Posted by Steve W. View Post
    Thought this thread was going to be about thier actual profits. They are doing pretty good if you ask me:

    http://techcrunch.com/2013/12/04/lea...-213m-revenue/

    213 Million!
    Uber doing so well is no surprise! 213 mil is great! I don't get why limos.com is not going this route. I always thought their recent business plans were terrible. Limos.com could be doing this same sort of thing and being industry respected instead of viewed as a joke.
    Nick Groat
    Las Vegas, Nevada
    Nick@BellaVitaLimos.com
    Bella Vita Limousines

  4. #19
    Senior Member
    Join Date
    May 2001
    Location
    Los Angeles, CA
    Posts
    1,695

    Default

    Quote Originally Posted by cvclubs View Post
    Uber doing so well is no surprise! 213 mil is great! I don't get why limos.com is not going this route. I always thought their recent business plans were terrible. Limos.com could be doing this same sort of thing and being industry respected instead of viewed as a joke.
    Think I saw they had an app but looked like it only worked for getting quotes and prearranged trips. That is the power of UBER that the driver has 15 seconds to accept the trip. The limo industry has always been more in tuned with the Pre-arranged aspect and could not turn on a dime like that. Seems like Uber may be changing that.
    Steve Walker ppvsteve@gmail.com

  5. #20

    Default

    Quote Originally Posted by cvclubs View Post
    Sorry I did not see this second post.

    I checked out the LA Uber site and came across their official rates for an SUV. It is a base rate of $15 plus $4.50 per mile or $1.20 per minute traveling under 11mph. Based off your example a 50 mile ride would be $240 ($15 + (50x$4.50)). https://www.uber.com/cities/los-angeles

    I would happily drive my vehicle out 50 miles with an empty return for $240 ($192 after uber commission). Unfortunately I will never have that opportunity because I will be restricted to charging exactly $60 for the hour after the $5 fuel surcharge as per Nevada regulations.

    Here are some other real world issues that people don't consider until they are wondering why they aren't making any money.

    There are less SUVs in service on Uber. So when someone requests one, that SUV may have to drive 20 30 minutes or more for their pickup, 20 -30 minutes that you are not making any money and 20 - 30 minutes that you are driving and adding miles to your SUV. Outside of that senario, more often then not, you might wait another 15 - 20 minutes for the clients to actually get in the car because they didn't expect you there so quick.

    Uber does take more of a percentage for SUV, not sure why other than that people will pay more and the driver gets paid slightly more than a sedan. In my experience, not enough to cover the additional expense of operating an SUV.

    When Uber sends you a job and your in an SUV, you don't know if it is an SUV or sedan job until you get there and see how many people are getting in. So you might get stuck driving two people in an SUV for a sedan rate.

    There is no tip added to the fare. Uber states that it's factored in to the fare, but it really isn't. If it is, Uber takes 20% commission on your tip too than. Around here, they really push the no tipping angle and the company policy tells you that you aren't allowed to accept additional gratuity.

    For an SUV in your example:

    $240 - Uber commission of $67.20 + zero tip = 172.80 + almost zero possibility of gaining a repeat customer no matter how great your service is.

    Same job I book... $160 + 20% gratuity = $192.00 + gaining a repeat customer + word of mouth advertising

    And we haven't even touched on the difference in the types of people you will be serving. Uber work is a lot more like taxi work. The likelyhood of having a rude, arrogant, impatient, drunk, or just plain sloppy pick up will dramatically increase with Uber. Probably because they know that they will never see you again.

    As far as wait time in the burbs, with regular Uber sedans, wait time is about 10 minutes between request and arrival. There are plenty of sedans sitting around spread out in the suburbs around here.

    I'm not against Uber, I just don't think they need to scalp their drivers in order to make money. At $213M a year profit, it's time to give a little back to the people that actually brought the revenue in, so they can, you know, afford to pay their rent and buy food in addition to their car service expenses.

    I do use Uber on occasion and will continue to, but I always give the driver a 20-30% tip whether they try and turn it down or not. Love Uber or hate it, they figured out how to make an inefficient industry, a lot more efficient.
    Andrew Armitage
    Vintage Chauffeuring LLC
    Andrew@VintageChauffeuring.com
    www.VintageChauffeuring.com

  6. #21
    Super Moderator gunny's Avatar
    Join Date
    Aug 2004
    Location
    Tampa Bay
    Posts
    5,325

    Default

    UBER functions similar to NYC Black Cars which are on demand radio dispatched as well as many other BC services operating on demand in front of hotels, airports and other type venues. Cabbies normally paying out $700 a week to Taxi Barons for car lease & dispatching may find UBER a happier alternative. Entrenched prearranged limo operations should not feel threatened by the likes of UBER unless the are simply a glorified taxicab service.
    Airport Limo Service Spring Hill, Brooksville, Citrus County FL
    http://gunnysairportlimo.com/tampa_a...ce_spring_hill

  7. #22
    Senior Member
    Join Date
    May 2001
    Location
    Los Angeles, CA
    Posts
    1,695

    Default

    When Uber sends you a job and your in an SUV, you don't know if it is an SUV or sedan job until you get there
    Thanks Vintage I did not realize that about not knowing what kind of job it is till you get there. If I was in an SUV I would take a sedan job if it was around the corner but driving 30 minutes for it would not be a good decision. Now I realize why they are pushing hard for SUV's to sign up in LA , Lots of them dropping out after a while I would imagine with that policy.

    Cabbies normally paying out $700 a week to Taxi Barons for car lease & dispatching may find UBER a happier alternative
    Gunny that is what I am kind of seeing here in LA. It is just a transfer of cab drivers from Cabs to Sedans. Mostly immigrant labor sitting in a car for 14-16 hours a day trying to make a good living. The good news for them is that they no longer have to go to pick up in bad parts of town as the taxi board requires of them. They can stay in the more affluent areas and hopefully keep their lives. I mean the minimum standard to get one is a smart phone and a credit card. Hopefully that will keep drivers safe for a little while.
    Steve Walker ppvsteve@gmail.com

  8. #23

    Default

    Quote Originally Posted by gunny View Post
    UBER functions similar to NYC Black Cars which are on demand radio dispatched as well as many other BC services operating on demand in front of hotels, airports and other type venues. Cabbies normally paying out $700 a week to Taxi Barons for car lease & dispatching may find UBER a happier alternative. Entrenched prearranged limo operations should not feel threatened by the likes of UBER unless the are simply a glorified taxicab service.
    I agree with Gunny. Limo companies don't need to be as concerned with Uber as much as taxi companies do.

    Someone needing a car service spur of the moment probably won't call a limousine service. Most of my clients plan ahead a few weeks, if not a few months ahead for service. The very latest, a day or two before. Could you imagine needing to have transportation and when you attempt to log into Uber on your phone, the system being down or no cars being available, or surge pricing in effect!?

    My company definitely isn't set up for on demand service as I just don't have drivers sitting around waiting for a call. Sometimes it can work out but I just don't have a big enough operation.

    Here's what Uber can't offer. Personalized service and advanced reservations. Many of my clients prefer to know who their chauffeur is and request the same driver each time. Uber will probably not venture into the advanced reservation arena due to the fact that that they never know how many drivers will be logged into the system at any time other other than right now.

    Uber has increased demand for black car service because many people that would have used a taxi before are using black car service.

    Unfortunately Gunny, the taxi barrons will be replaced by sedan barrons, as is already the case in and around Chicago, that lease black car sedans and SUVs on a weekly basis to Uber drivers for $500-$1000 / week.

    If there is money to be made, someone smarter will figure out how to cut it out of the lowest rung's behind. That's just capitalism.
    Andrew Armitage
    Vintage Chauffeuring LLC
    Andrew@VintageChauffeuring.com
    www.VintageChauffeuring.com

  9. #24
    Senior Member cvclubs's Avatar
    Join Date
    Jun 2010
    Location
    Las Vegas
    Posts
    537

    Default

    Ah I now see why we are having this debate. Our markets are very different, complete opposites even. In the areas I travel to and my own market a spur of the moment limousine is very common. I routinely call for limousine pickups as I would a cab. I much prefer paying extra and having a nice ride where I know the rate than a taxi with a driver who is cracked out of his mind in a small uncomfortable vehicle.

    I assume that as someone who operates vintage vehicles your spur of the moment calls would be nearly non existent as your specialty vehicles would mainly be used for long charters such as wedding or events. Your market seems like a much more pleasurable and less stressful way of life. You get the charters where people are expected to behave themselves and plan ahead. We get mainly the partiers and point to point transfers. However we are starting to get a lot more corporate transportation and weddings.

    Uber would only work in one of these two business models. At least that is what I believe.
    Last edited by cvclubs; December 14th, 2013 at 06:18 PM.
    Nick Groat
    Las Vegas, Nevada
    Nick@BellaVitaLimos.com
    Bella Vita Limousines

  10. #25
    Senior Member
    Join Date
    Mar 2008
    Location
    MI
    Posts
    1,951

    Default

    I checked taxi vs uber rates when I needed a ride in Austin a couple days ago. Uber was $38 and a taxi was about $22.

  11. #26

    Default

    Brandon, although the vintage cars are were my heart is, I also run two sedans, an Escalade ESV, and two stretch limos. The vintage cars are almost all wedding jobs. The late model cars are a mix of all kinds of your everyday limo jobs. The vintage cars work to make my company stand out and act as a draw. Many people have looked at the vintage cars, not been in their price range and I've been able to slide them into a stretched limo.

    Yes, the work is far more pleasurable than transporting drunks around. It happens on occasion, but not too often.

    In Chicago, pre-Uber, taxi and black car service were light years apart. Uber is blurring the lines a bit. But it has gotten people to consider using limo service that might have otherwise never even thought of it.
    Andrew Armitage
    Vintage Chauffeuring LLC
    Andrew@VintageChauffeuring.com
    www.VintageChauffeuring.com

  12. #27
    Senior Member cvclubs's Avatar
    Join Date
    Jun 2010
    Location
    Las Vegas
    Posts
    537

    Default

    Quote Originally Posted by Vintage Limos View Post
    Brandon, although the vintage cars are were my heart is, I also run two sedans, an Escalade ESV, and two stretch limos. The vintage cars are almost all wedding jobs. The late model cars are a mix of all kinds of your everyday limo jobs. The vintage cars work to make my company stand out and act as a draw. Many people have looked at the vintage cars, not been in their price range and I've been able to slide them into a stretched limo.

    Yes, the work is far more pleasurable than transporting drunks around. It happens on occasion, but not too often.

    In Chicago, pre-Uber, taxi and black car service were light years apart. Uber is blurring the lines a bit. But it has gotten people to consider using limo service that might have otherwise never even thought of it.
    I am in 100% agreement with you.

    I also enjoy seeing you operate the vintage limousines and can get how they are a great way to get the hones ringing. Its not something I am interested in or see myself doing but I would like to see more chauffeured vintage vehicles on the road. That would be cool for sure!
    Nick Groat
    Las Vegas, Nevada
    Nick@BellaVitaLimos.com
    Bella Vita Limousines

  13. #28
    Super Moderator gunny's Avatar
    Join Date
    Aug 2004
    Location
    Tampa Bay
    Posts
    5,325

    Default

    Quote Originally Posted by Vintage Limos View Post
    Unfortunately Gunny, the taxi barrons will be replaced by sedan barrons, as is already the case in and around Chicago, that lease black car sedans and SUVs on a weekly basis to Uber drivers for $500-$1000 / week.

    If there is money to be made, someone smarter will figure out how to cut it out of the lowest rung's behind. That's just capitalism.
    Again, in a city like NY, UBER simply is another means to what already exists. In a place like Tampa where government protects entrenched taxi/limo businesses from competition, UBER scares the piss out of them. So much so a Taxi Baron with his fingers on no less then a dozen operations enjoined a lawsuit to defend the regulator's economic protective minimum prices that limos must charge the consumer.
    Airport Limo Service Spring Hill, Brooksville, Citrus County FL
    http://gunnysairportlimo.com/tampa_a...ce_spring_hill

  14. #29

    Default

    Good luck with your fight down there Gunny! I'm opposed to government interference in business when it doesn't impact the actual physical safety of the consumer or employee.
    Andrew Armitage
    Vintage Chauffeuring LLC
    Andrew@VintageChauffeuring.com
    www.VintageChauffeuring.com

  15. #30
    Senior Member
    Join Date
    Sep 2008
    Location
    Kansas City Metro Area
    Posts
    2,668

    Default

    Surge pricing was in effect in NYC because of the snow storm. Lots of people are griping about the minimum $137 fare.
    Tim Wiegman, Jr.
    Boulevard Limousine
    Travel Confidently!
    Serving Kansas City, Lawrence, Topeka
    http://www.BoulevardLimoKC.com - Kansas City Limos
    KC Airport Car Service

Tags for this Thread

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •