Computing the Social Value of Uber. (It’s High.)
Computing the Social Value of Uber. (It’s High.)
Perhaps because it’s a new and novel business model, drivers for rideshare companies like Uber and Lyft have come in for considerable scrutiny. Who are these people? Are they safe, responsible, reliable? Am I putting my life at risk when I punch up an Uber ride?
Uber is known, and mostly loved, for its on-demand ridesharing service. Need a lift? Launch the Uber app on your smartphone, and within minutes a car and driver will be idling at the curb, at your service.
Although Uber has relationships with several airline and hotel loyalty programs, it has so far stopped short of launching its own program. That changes this week, with the announcement of a simple buy-nine-get-one-free offer in conjunction with Capital One.
Beginning today at 8:00 a.m., travelers arriving at Los Angeles International Airport will be able to book Uber rides to their homes or hotels.
Part of what has made Uber the undisputed leader in ride-share services is its no-tipping policy. As recently as a year ago, the following promise was featured front and center on the company’s website: “No cash, no tip, no hassle … When you arrive at your destination, just hop out—we’ll automatically charge the credit card on file. And there’s no need to tip.”
When Hilton and Uber connected in September 2015, that connection was notably tentative. Unlike the Starwood-Uber link, which allows Starwood Preferred Guest members to earn points for Uber rides, the Hilton-Uber tie-up was limited to reminding Hilton customers to book an Uber ride during their hotel stay. Hardly a game-changer, for either of the two companies or their customers.
It’s been a bad week for Hertz. And it could be just the first of many bad weeks to come.
Whether you’re arriving at an airport for the first time or at one that’s familiar, you may not know the lowest-cost way to get to your in-town destination. Even if you thought you knew, developments in ride-sharing regulations can change your best airport transportation options quickly, and without announcement.
The European Union’s Court of Justice this week rejected Uber’s claim that it is merely a digital service provider, connecting travelers with independent drivers. Instead, Uber is properly classified as a transport company, and must be regulated accordingly.
It has long been a centerpiece of Uber and Lyft’s self-promotion that the proliferation of such ridesharing services was a boon to the country’s most congested cities. The idea was that by giving people an alternative to firing up their own cars for every trip, no matter how long or how short, the net amount of city traffic would be reduced.
Remember when Uber was a tip-less service? Indeed, part of what made Uber the undisputed leader in rideshare services was its no-tipping policy, as featured front and center on the company’s website: “No cash, no tip, no hassle … When you arrive at your destination, just hop out—we’ll automatically charge the credit card on file. And there’s no need to tip.”
You’re leaving for the airport in an hour, so you check your Uber app and see that there are plenty of cars in your area—perfect. Except that when you actually go to order your Uber, it winds up being a 15-minute wait, making you nervous about catching your flight.
Uber might have convinced us to willingly accept rides from strangers, and to get into driverless cars, but can it talk us into using an electric scooter as a mode of transportation? We’re about to find out, because the rideshare company just partnered with e-scooter startup Lime.
Uber and Lyft simultaneously announced new reward programs this week, with both set to roll out in the coming weeks. Like the respective services themselves, both programs are similar but offer some nuanced differences—so users of both might be wondering which is more worthwhile.
Rely on Uber and Lyft when you land in a new destination? You might want to reconsider, as many airports are ending curbside pickup for rideshare apps admid construction and traffic woes.
It will soon be more expensive to take a rideshare service such as Uber and Lyft from one of the busiest airports in America. On August 1, Orlando International Airport will raise the built-in fee for airport pick-ups by 20 percent, to $7 per ride. The timing of the fee increases will be spread out through the fall, with the first 10 percent taking place on August 1, and the second increase of 10% taking place on October 1, according to a local media report. In a statement to Travel + Leisure from Uber, the rideshare company said that the airport is unfairly passing along a surprise charge to airport passengers and impacts its drivers. “At a time when Floridians are facing higher costs due to inflation and the increasing price of auto insurance, it is unconscionable that the Orlando Airport is targeting Uber drivers and riders with a proposal to increase the pickup tax by 20 percent to $7 per pickup–the highest pickup tax of any airport in the country,” a Uber spokesperson shared with Travel + Leisure. Uber also says they are committed to working with the Airport’s Board to find a solution, and points out that taxis only have to pay $4 per pickup (in comparison for the $7 for rideshare).
As a New York City resident, ordering an Uber to get around town — or whenever I land in a new city — is pretty much second nature at this point. But upon arrival in Athens, Greece, the options in the app were at a whole new level.
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