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Oops, Uber has done it again!

This time in Sacramento, a 30% fare reduction and again without warning or the decency of some kind of notification to its partners I mean drivers.

Starting today, yes today Uber is dropping its rates once again to $1.30 a mile yes that’s a buck 30 a mile! An as usual according to their email “Whenever uberX lowers fares in Sacramento, we see spikes in demand that more than make up for it. That’s why we’re lowering uberX prices in the Capital, effective Thursday, November 6.” This is, again, why we consistently pick Lyft over Uber every time.

Do they really believe that their drivers will fall for this nonsense over and over again? I feel bad for the drivers that got caught up in their shady  subprime loans they have been pushing. It seems to us these drivers are forced to work and have to stay the course even if they’re making less than minimum wage.  Here’s how Uber fits into all of this. The company’s financing program connects drivers with poor credit to auto lenders and dealers, promising better rates. Uber doesn’t finance the loans itself. Rather, Uber introduces drivers to partners like General Motors, Toyota, “and several unnamed financial institutions.” Why? The startup wants drivers with nicer cars, but it badly needs more drivers overall to meet demand and feed its growth spurt. Uber then takes the money directly from their partners paychecks, leaving some with less than 200 bucks for a 40 hr week.

The company has been bombarding drivers in San Francisco with email offers encouraging them to sign up for Uber’s vehicle financing program—including one sent days after the latest subpoena. The most recent ones, obtained by us, with the image of a car with cash literally flying out of the backseat. Uber promises drivers that it’s “Easy to qualify, even with poor credit or no credit history at all.” Nice work Uber, hit in the front and the back but that doesn’t surprise us with your unethical track record.

Anyways back to the fare cuts, it seems Uber will stop at nothing to become the cheapest possible car service in the world even if that means continuously screwing its own drivers. Even with the protests,bad publicly, driver complaints nothing deters this company’s race to the bottom. I think their obsession on beating Lyft is ultimately going to be their Achilles heel but why make their drivers suffer and stop using them as pawns in your game!  1.30 in Cali, no way Jose!

12 Comments on Oops, Uber has done it again!

  1. How do the drivers make money with these new rates? I like their idea get more customers and hire more drivers, it’s a win win for Uber.

  2. Smells like the brewing of loan shark slavery to me… Suck drivers in for a car loan, then lower the fare rates (i.e., sales). What happens when the economy enters a severe correction/recession, which is due and coming as the FEDERAL RESERVE BANK just closed the spigot of “money-printing” last week? Aha…

  3. Joe L. Jordan // November 6, 2014 at 3:20 pm // Reply

    UBER is a bunch of liars, thieves and crooks. They just hired away the
    COO from Lyft and he downloaded all the company secrets to his personal laptop before jumping ship. In Philly, UBERx is encouraging drivers to break the law and agreeing to pay the $1,000 fine
    and car impound fee if they get caught(Standard Mafia policy). UBER couldn’t obey the law if their life depended on it. Anybody who uses UBER or works for them is stupid.

  4. Good for me I’ll be paying less for my UBER. Uber on my good peeps

  5. The Feds and the SEC are investigating these garbage vehicle loans as they are sub/sub prime loans to people who can not possibly qualify for high dollar brand new luxury sedans and SUVs. These loans are packaged and bundled into securities and sold on the secondary markets. Securities violations occur. Loan to value ratios are upside down and usually the institutional investors buy based on a firm’s good name without doing any due diligence. For example, Goldman Sachs, a primary Uber investor/stockholder, has techniques to peddle these securities quietly and make a ton of money for both Uber and the firm. There are many loopholes in these type bundles just like the sub-prime mortgage bundles that collapsed the housing industry. Automobile loan security bundles have been in existence for years and most are quality loans. In this case they are not and must be investigated by Mary Jo White, Chairman of the SEC as well as the California SEC. Add all these improprieties to the Federal and State RICO violations, The IRS and DOL violations, the FAA, FTC, and banking law violations, are waking up America to these rogues and their refusal to obey any law anywhere.

  6. They claim the driver will make more money. Totally BS and impossible. Lets say you take 10 rides to the airport for example and each ride is $10, so thats $100. Now they reduce the fee by 30% down to $7 a ride that’s $70. Uber still gets 20% regardless of their fair reduction, the driver still has the same expenses. So he makes less money. There is no way in hell the driver can make up that lost money even working longer hours, he still loses on every ride. Oh well. will thousands of Uber drivers out there and many just doing it for extra cash here and there, they will always have drivers willing to get screwed here and there.

  7. They don’t own the cars or anything else for that matter, so they could probably cut those fares even lower to attract even more riders. Screw it charge .50 a mile and you’ll have 10x the customer base and you’ll always find drivers even at those rates. Driver have zero say on uber’s rates.

  8. I had 6 different drivers cancel on me the other night. They would get within a minute of my location and then cancel, and I have no idea why. I was trying to do the responsible thing and not drive home, but they kept leaving this girl hanging. Eventually I was able to catch a Lyft.

    I reported this to Uber’s customer service, who said they were looking into it, but it sounded like a pretty BS non-committal response. I haven’t heard anything since.

    I’m going back to Lyft or the trusty old-fashioned taxi cab, even if it ends up being a bit more.

  9. I dont understand why some people is so shabby
    Im a uber driver and when I heard the rumor about the new price cuts by uber i was a little upset and dissapointed but then I realize the great strategy of our uber team
    To tell you the truth I dont talk yet with any executive in our uber headquarters in SF but is obvious; if uber reduce the prices as we already did, nobody could compete with us, so all the people that love to ride with us will ride with more passion and enthusiasm and for instance we would attract tthe rest if the market and most of the cab companys if not all going to quit accepting that is impossible compete with us; then we can manipulate the marker in any desireble way and we the drivers associated will be benefiated with great compensations.
    Our uber team is a group of smart, intelligent pepple with a clear sight of the future
    In the mean time we as associates should give them all of our support and may be a little sacrifice, tide up our butget a little bit for short period of time until the competition give up to help our uber team achieve our goals

    • When uber reduced the customer rates, how much did uber reduce it’s fee to the driver?

    • Panchito

      I hope your car is still driving by that time. You are a fool if you think Uber is going to care for what the drivers make. To them we are disposable and there is always fresh supply. But do keep driving, when I see a fat drunk chick puking at the bar I’l be sure to request her an Uber.

  10. The driver loses due to the reduction in Uber rates. Uber claims the drivers will make more money. How is that possible? Lower rates means lower profits. The drivers will not get any more rides, even if they do, they will have more expenses, which the expenses do not change.

    If you drive 100 miles a day and say earn $50, now drive 100 a mile at the lower rate and you make $35 dollars. Your gasoline rate is the same…etc

    Uber is just lowering prices to get more riders, the only people making money is Uber!

    Commonsense people!! Use commonsense.

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