Kalanick: UberX Could Become Cheaper Than Owning A Car
Uber wants to do more than disrupt the traditional taxi service, seeking to bring its pricing low enough to replace your own vehicle, period.
Jalopnik reports CEO Travis Kalanick spoke with The New York Times about a 20 percent cut in pricing on UberX rides in New York, and explained what he’d like to see happen as far as his service is concerned:
The whole point of price cuts is to get UberX pricing below the cost of owning a car. Let’s say you take three or four trips a day on average. If we can get the price of UberX low enough, we can get to where it’s cheaper to take Uber than to own a car.
He adds that while that’s currently easier said than done — there are only so many drivers to go around — and that the cuts are temporary, if Uber can expand its reach through lower pricing, the service would turn a profit even if it makes the cuts permanent. Kalanick also claims his vision would benefit all involved, from providing more jobs in New York to riders getting more for their dollar.
Seattle-based writer, blogger, and photographer for many a publication. Born in Louisville. Raised in Kansas. Where I lay my head is home.
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I'm still unclear how insurance is handled for these vehicles. I thought, for example, that my own automotive policy does not cover me if I carry passengers for hire? As with AirBnB, these concepts seem predicated on ignoring limitations to insurance and other contractual factors already in play between the drivers (or in the case of AirBnB, apartment tenants) and their insurers, landlords, etc. So the old adage seems to apply, unless I misunderstand something: it's all fun and games until somebody gets hurt.
I'm an Uber driver in the Hampton Roads area of VA and the sign up process was actually pretty intense. First off, all Uberx cars have to be 2005 or newer and a 4 door vehicle of some type for the most part. Part of the process is sending them photos of insurance, DL, and multiple photos of the exterior and interior of your vehicle. You then go through a backround check and DMV record check. In order to continue to be an Uber driver, your first 20 rides are immune from ratings, your 20-50 rides, you must maintain at least a 4.2 driver rating and after you've completed 50 rides, you must have maintained a 4.6 rating or your service gets cut off.
Seems we have heard the "Period" thing before.
How can ANYONE who lives in a city defend the current taxi system??? -Polite drivers with good hygiene NOT TALKING ON THEIR PHONES This shit now happens 70% of the time. Cell Phone usage loudly in foreign tongue. Polite and hygiene ... a bonus if you get it. In Chicago, in isn't the tax. It is the medallions -- which are now up to $350k. City only gets money when they sell a few. Medallion holders are rent seekers. The chances of a driver buying a medallion and working his way up the food chain ??? Zero. Driving in a city is not fun. OK ... can be fun in a totally demented way. No one with a decent car would try though. Only shitmobiles. Anyone with any real money uses car services and would never drive. Even if you have a parking spot @ condo, you gotta park anywhere else you go. I have found my usual places where valet fees are negotiable, but does anyone really want to do that. On and on and on