6. They don’t let the driver know where the ride will be ending. Drivers hate this, but it’s an important part of why the experience has improved for consumers.
Sorry for offtopic, but could you elaborate? How does it work with driver not knowing and why is it important?
Taxis make their money off fares based on the distance traveled. Before Uber and Lyft, you would call a Taxi service, they would in turn try to assign your trip to one of the drivers, who are independent contractors and not employees.
However, if you were going a short distance many drivers would refuse to accept the call because to them it’s not worth the trip to come pick you up. Or they might feel there’s an opportunity cost that they could be getting other rides while en route to pick you up.
And economically for each individual driver this makes sense. However, that creates a whole slew of possible trips that no driver would ever accept or rarely accept. If I don’t have a car and the grocery store is two miles away there is a distinct possibility that I either have to make multiple trips carrying groceries (killing half a day if my time in the process) or I have to lie about where I’m going to get a ride (which will make it harder to get a ride next time).
What Uber has done is to basically say: We run a ride service, period. Sure drivers can cancel when they get to a destination and find out what the route is, but Uber will start docking cancellations against the driver. So it creates an expectation that as a driver you will pick up a rider and take them to a destination no matter how short the ride is. Also, Uber has made it worth it to the more regular drivers by giving them incentives by the number of trips in a week or a month.
Still, the mechanic of not knowing what the route will be as an Uber driver is a very positive thing for the consumer.
Let me put it another way. Imagine if servers at restaurants were independent contractors, similar to how Uber and Taxi services work. Also let’s imagine you don’t have a lot of money but you still want to order an appetizer and some water and sit down at the restaurant to relax and talk to a friend.
If upon entering the restaurant you were required to say how much you wanted to spend, it’d be harder to find waiters that would accept to serve you because for them they’d be better off waiting for a larger table or a bigger spender.