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Thread: UBER!!! Profits

  1. #31
    Senior Member Greg K's Avatar
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    I know the thread has been dead a few months, but noticed that on Reddit.com, they are advertising:

    Take your first ride with Uber for free, worth up to $20!
    Do they just take you around the block for your free ride?

    For fun I tried seeing the cost from my house to the Columbus Airport... System was nice enough to quote me around $1500 I think it was for a ride from Columbus Ohio to the Columbus Airport in Columbus Georgia...
    This space intentionally left blank.

  2. #32
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    If the gross income to a limo company, not an owner/operator with no employees, is roughly $25 per hour, limo companies will learn very fast that providing cars to Uber at $25 per hour instead of $65 per hour is simply a very poor economic decision. If one is an owner/operator, $25 per hour is $25 per hour more than zero, except when you need to repair or replace your vehicle.
    Ozzie R

    API Limousine - Ultra Limousine - California Limousine - Napa Valley Wine Tours

  3. #33
    Senior Member Billy Bob's Avatar
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    Just an observation. First, I would like to point out that we do very little affiliate work, and really not interested in perusing it. Lets talk about Boston Coach as an example. Since we have done very few runs for the major affiliates, I am not qualified as an expert; however, I do have some thoughts on Boston Coach and Uber.

    It’s my understanding that in the beginning, the advantage Boston Coach had to offer was that one call booked a car any place in the country. They processed the payment, kept their portion and does not allow for a gratuity to be added to the run.
    It appears what Uber has done was to bypass the Boston Coach model and allow the passenger to book directly with the Uber Car.

    I do not see much difference between Boston Coach and Uber.

    I am sure after reading this, you will say that Boston Coach would never allow an affiliate of their to use a rental or personal car for their service.

  4. #34

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    Boston Coach's rates are much higher than the average rate (in my area at least). One of the reasons is that the gratuity is truly factored into the price. Their prices allow for them to take their cut and there's still enough meat on the bone where the operator /driver doesn't starve.

    Example:

    Boston Coach for a sedan from where I live to O'Hare IAP in Chicago... $163.00 minus their cut of 20% (I'm guessing) = $130.00 left for the operator / driver minus gas and depreciation on a 100 mile round trip (approx $40) = $90 for approx 2.5 hours for the operator and driver to divy up.

    What I can get on a good day with no commisions being paid out... $100 (again, on a good day) plus $20 gratuity = $120.00, Driver gets approx $45. After gas, taxes, and depreciation of my vehicle (approx $40), I, the owner, am left with $35 for 2.5 hours of use of my vehicle.

    Uber... $120 total charge minus Uber's cut of 20% and about $5 worth of tolls that are not chargable to the client plus ZERO gratuity = $91 minus gas and vehicle expense ($40) = $51 to split between the driver and vehicle owner however they see fit.

    Conclusion: I'd drive for Boston Coach all day long.
    Andrew Armitage
    Vintage Chauffeuring LLC
    Andrew@VintageChauffeuring.com
    www.VintageChauffeuring.com

  5. #35

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    A guy with an Uber sign caught me off guard at the airport baggage claim the other day. I rarely drive these days and it was a day I ran into an emergency, thus the reason for being there. What struct me was how well kept, dressed and professional he looked.

    I approached him and started asking him questions. He was very polite, well spoken and friendly during our short discussion. Among other things, he mentioned his 4.9/5 rating with Uber as well as a new 2013 Suburban he picked up to use for Uber jobs. I know NYC well enough to know that that 2013 Suburban will be as healthy as a Suburban with 125k miles on it by the time this winter is over... especially with the craters we are dealing with over here. I told him he should be making more on these jobs then what Uber is paying.

    Just before my client came out, we exchanged numbers.

    He has been doing affiliate work for me for a few weeks now and representing my company. He was meant for the limo business. Not Uber.

    The Uber rating system, as important as it can be to their model, can backfire as more and more of these top tier drivers realize how much money they really aren't making.

    This particular driver jumped directly into the game via Uber. Had no limo experience whatsoever. I wonder how many others there are out there that went this route.

    He's told me how much he enjoys the personable aspects while driving my clients and feels as if he is a robot with Uber customers... Oh, and he's obviously getting a fatter paycheck. I welcomed him to the real game with open arms and am looking forward to watching him succeed.

  6. #36

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    Quote Originally Posted by metroguy2012 View Post
    A guy with an Uber sign caught me off guard at the airport baggage claim the other day. I rarely drive these days and it was a day I ran into an emergency, thus the reason for being there. What struct me was how well kept, dressed and professional he looked.

    I approached him and started asking him questions. He was very polite, well spoken and friendly during our short discussion. Among other things, he mentioned his 4.9/5 rating with Uber as well as a new 2013 Suburban he picked up to use for Uber jobs. I know NYC well enough to know that that 2013 Suburban will be as healthy as a Suburban with 125k miles on it by the time this winter is over... especially with the craters we are dealing with over here. I told him he should be making more on these jobs then what Uber is paying.

    Just before my client came out, we exchanged numbers.

    He has been doing affiliate work for me for a few weeks now and representing my company. He was meant for the limo business. Not Uber.

    The Uber rating system, as important as it can be to their model, can backfire as more and more of these top tier drivers realize how much money they really aren't making.

    This particular driver jumped directly into the game via Uber. Had no limo experience whatsoever. I wonder how many others there are out there that went this route.

    He's told me how much he enjoys the personable aspects while driving my clients and feels as if he is a robot with Uber customers... Oh, and he's obviously getting a fatter paycheck. I welcomed him to the real game with open arms and am looking forward to watching him succeed.
    That is the key. Educating drivers. Uber's downfall will only come from within when they are unable to keep competent chauffeurs and are stuck with drivers with the taxi cab mentality. Uber will never be brought down by lawsuits or outside factors. They are too big and have too much money behind them!

    How to "beat" Uber... Don't worry about them. Do what you do best. Keep your standards high. Incorporate technology where you can to impress your clients. And form personal relationships with your customers and really stay in touch with what they want from a car service.
    Andrew Armitage
    Vintage Chauffeuring LLC
    Andrew@VintageChauffeuring.com
    www.VintageChauffeuring.com

  7. #37
    Senior Member Wade Randolph's Avatar
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    Quote Originally Posted by Billy Bob View Post
    Just an observation. First, I would like to point out that we do very little affiliate work, and really not interested in perusing it. Lets talk about Boston Coach as an example. Since we have done very few runs for the major affiliates, I am not qualified as an expert; however, I do have some thoughts on Boston Coach and Uber.

    Itís my understanding that in the beginning, the advantage Boston Coach had to offer was that one call booked a car any place in the country. They processed the payment, kept their portion and does not allow for a gratuity to be added to the run.
    It appears what Uber has done was to bypass the Boston Coach model and allow the passenger to book directly with the Uber Car.

    I do not see much difference between Boston Coach and Uber.

    I am sure after reading this, you will say that Boston Coach would never allow an affiliate of their to use a rental or personal car for their service.
    The sole reason that Boston Coach was established was because Fidelity Investments was spending a fortune on sedan service around the world. They cut out the middle man and started their own company. They have almost zero in common with Uber.

  8. #38
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    A guy with an Uber sign caught me off guard at the airport baggage claim the other day.
    That's interesting because Uber is on demand only. Why was he inside with a sign? Unless he was picking up actual Uber employees. The usually procedure is to meet on the curb.

    Unless he did not have any clients and was soliciting for Uber rides right in the terminal. Since the job goes to the closest driver can't get much closer than standing next to the person as they are ordering it.

    At LAX they have been writing up Uber Black drivers for Solicitation just for having the app open while driving around:

    BgYMRG-CAAALYua.jpg

    https://pbs.twimg.com/media/BgYMRG-CAAALYua.jpg
    Steve Walker ppvsteve@gmail.com

  9. #39
    Senior Member Wade Randolph's Avatar
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    Quote Originally Posted by Steve W. View Post
    That's interesting because Uber is on demand only. Why was he inside with a sign? Unless he was picking up actual Uber employees. The usually procedure is to meet on the curb.

    Unless he did not have any clients and was soliciting for Uber rides right in the terminal. Since the job goes to the closest driver can't get much closer than standing next to the person as they are ordering it.

    At LAX they have been writing up Uber Black drivers for Solicitation just for having the app open while driving around:

    BgYMRG-CAAALYua.jpg

    https://pbs.twimg.com/media/BgYMRG-CAAALYua.jpg
    Steve, unfortunately I think Uber's second phase will be advance reservations and as directed runs. Their front man in Atlanta had 2 airport permits last year and now is applying for 75. Goldman Sachs, Google and Amazon aren't going to stop until they Wal-Mart ize the ground transportation industry.

  10. #40
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    Uber is to the passenger transportation industry as CH Robinson is to the trucking industry. they simply find people that are not business people, get them to do their hauling for them, make killer profits and they simply have a revolving door of people simply too dumb to know they are not making any money until it is too late.

  11. #41

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    Quote Originally Posted by Wade Randolph View Post
    Steve, unfortunately I think Uber's second phase will be advance reservations and as directed runs. Their front man in Atlanta had 2 airport permits last year and now is applying for 75. Goldman Sachs, Google and Amazon aren't going to stop until they Wal-Mart ize the ground transportation industry.
    I'm not so sure about this. Uber has no control over how many drivers are logged into the system or when they log out. How can they take X amount of reservations when they don't have control over the drivers and can't say for certain they can cover the jobs?

    The other problem is what happens when a car doesn't show up or is late? There is no one to call. Uber distances itself from human interaction. This would alter their business model quite significantly which I don't feel they have any intention on doing.

    I just don't see it as happening. Rather, I see them attempting to change consumer behavior into their strong suite by convincing people that there is no need to ever prearrange transportation and only do on-demand transportation.
    Andrew Armitage
    Vintage Chauffeuring LLC
    Andrew@VintageChauffeuring.com
    www.VintageChauffeuring.com

  12. #42
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    Quote Originally Posted by Vintage Limos View Post
    I'm not so sure about this. Uber has no control over how many drivers are logged into the system or when they log out. How can they take X amount of reservations when they don't have control over the drivers and can't say for certain they can cover the jobs?

    The other problem is what happens when a car doesn't show up or is late? There is no one to call. Uber distances itself from human interaction. This would alter their business model quite significantly which I don't feel they have any intention on doing.

    I just don't see it as happening. Rather, I see them attempting to change consumer behavior into their strong suite by convincing people that there is no need to ever prearrange transportation and only do on-demand transportation.
    Why is it so hard for them to push out a message to the drivers in that area to commit to a job that is in the future? If the driver doesn't show up, they are in a position to penalize the driver. And it would certainly blow the driver's rating if they don't show up. They also have an avenue to confirm the driver as the date comes up, and find another driver if something changes.

    Their tech can handle this stuff more more easily than a traditional limo business.

  13. #43

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    Quote Originally Posted by FamilyLimo View Post
    Why is it so hard for them to push out a message to the drivers in that area to commit to a job that is in the future? If the driver doesn't show up, they are in a position to penalize the driver. And it would certainly blow the driver's rating if they don't show up. They also have an avenue to confirm the driver as the date comes up, and find another driver if something changes.

    Their tech can handle this stuff more more easily than a traditional limo business.
    It comes down to the fact that they will be more dependent on a driver actually looking ahead and scheduling time to be logged in and in a particular location at a certain time. That goes against everything their current business model is based off of, which is making things as easy as possible with as little human interaction / thinking / planning as possible. And it's making them money hand over fist.

    Prearranged pickups have the potential to be a disaster. Right now, consumers love Uber. Check on your phone, a car is available, great! If cars are getting scarce... Increase rates. Cars aren't available, it's your fault for not prearranging a ride with someone else. Right now, it's NEVER their fault. If you start prearranging service, how do they adjust for the rate multipliers which is based on usage and demand compared to drivers available? Charge someone a rate multiplier for the future when they perceive that you control the supply and you will upset a loyal customer base.

    Here's another example of it going awry... So a driver has a prearranged pickup at 8am and is logged in at 7am because it's morning rush hour and they want to, you know, make money. Uber sends them a job at 7:05am and you pick up the person and they want to go to the north side of the city, a 35 minute drive. Now it's 7:40am and you are 40 minutes away from your prearranged pickup. Whoís fault is it that the car is late? Or do you tell the person that hailed you at 7:05am you can't do the job after you find out where they are going and drive away from them after they waited for you? Right now, if your Uber car is "late," it's only because you requested a car "late." Uber can say that they have never been late because they never have a time that they need to be there and they never have to take the blame for you getting a car later than you wanted because you, the client is at the controls.

    If a driver doesn't show up, yeah, the driver's rating goes down but so does the perception of the reliability of Uber. I just don't think that Uber wants to be in the scheduling business anytime soon. And it just has the potential for being a disaster.

    I think the people there are smart enough to recognize that you can't be all things to all people. They know their customer base and itís the on-demand type, not the planning type.

    This also assumes that everyone views chauffeured transportation as a commodity. McDonaldís sells a hamburger for $1, TGIFriday sells a hamburger for $8, and a steakhouse sells a hamburger for $12. All hamburgers, but really nothing alike. Just the same, McDonald's does a great job of selling meat, but it's not going after Ruth's Chris Steak House nor is Ruthís Chris worried about McDonaldís.

    If you donít want Uber to put you out of business, you better start figuring out how to give your clients more value than Uber can give them.
    Andrew Armitage
    Vintage Chauffeuring LLC
    Andrew@VintageChauffeuring.com
    www.VintageChauffeuring.com

  14. #44
    Senior Member Wade Randolph's Avatar
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    Do you really believe that a company that has a $350 million dollar credit line, 1 billion in sales per year and is valued at 4 billion cannot duplicate what we do?

  15. #45

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    I didn't say that they couldn't do it. I said I don't see them wanting to do it. All they need to do is build up a network large enough that there isn't a time or location that doesn't have coverage. Then it's all on demand requests and never a need to prearrange service. When was the last time you called your order in ahead of time at McDonald's? And yet McDonald's always has hamburgers available regardless of how many people show up at any given time on any given day.

    Uber will track and analyse where and when requests come in. Areas that have a low concentration of cars per requests will be targeted by Uber to recruit owner / operators or just drivers. Uber has already started a program where they are financing livery vehicles to those that want to be drivers but don't have a car. On top of that, I heard that in New York, a new driver is given a $1,000 bonus after the first month.
    Andrew Armitage
    Vintage Chauffeuring LLC
    Andrew@VintageChauffeuring.com
    www.VintageChauffeuring.com

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