Why is my Uber so expensive?

Why is my Uber so expensive?

MISE & Agrave; DAY

Do you feel like you are paying more and waiting longer to travel by Uber than before? You are probably correct.

Saturday night in the wee hours of the morning, my taxi from downtown to Villeray costs me $ 21.50. The Uber app, on the other hand, estimated at $ 28. And it's not just outside the bars that the American multinational costs more. Morning, noon and night, what was previously the exception is becoming more and more the norm. & Nbsp;

The figures for Montreal specifically are not known, but according to a study by research firm Rakuten Intelligence, Uber prices are said to have increased by around 92% on average between January 2018 and July 2021. & nbsp;

There are three main reasons for this increase.

A Driver Shortage That Hurts

Like just about every other industry, Uber is understaffed. And with Uber, the fewer drivers there are on the road, the more expensive the prices users pay, which is part of the reason for the high fares since the start of the pandemic. & Nbsp;

The situation has improved in recent months, the company said in its latest financial statements, thanks to numerous investments to attract drivers. In Montreal, for example, Uber offers them a guaranteed income of $ 1,000 for their first 100 trips or deliveries. If this sum is not reached, the multinational will pay the difference.

But the difficult conditions for drivers who have to work long hours for a small salary and the fact that they can easily find a employment elsewhere harms the company and, by extension, its customers. & nbsp;

Many prefer to deliver food

Even when enough drivers are on the road, users who want to get around cannot always take advantage. Groceries indeed compete with food delivery, which has increased significantly since the pandemic. & Nbsp;

For drivers, delivering with Uber Eats, Eva, Skip, ALCE or DoorDash can not only pay off more than taking a ride, but they can also enjoy added peace of mind. The result: the price for a trip and the waiting time increase, especially at mealtimes. & Nbsp;

Uber needs to make a profit

Uber has also changed since the launch of its UberX service in Montreal in 2014. At the time, the company emptied its bank account to support its global growth, to the point of reaching losses of 8.5 billion dollars Americans in 2019 alone. & nbsp;

The company has been trying to turn the tide ever since. The pandemic has turned plans upside down, but in the first quarter of 2021, Uber posted a “meager” (for its standards, at least) loss of 108 million US dollars, and it expects to be profitable by the end of the year. The artificially low prices of the early years that aimed to attract drivers and customers and decimate the taxi industry are therefore a thing of the past. & Nbsp; & nbsp;

Uber is still often cheaper than a taxi. But the bar opened in the early years is over. & Nbsp;

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