New Uber/Lyft policy may make long trips difficult (TPA-WDW, WDW-Port Canaveral, etc)

[JimMIA]

Uber just announced a new policy in some markets, and they appear to be testing two methods of reducing driver pay which will adversely affect riders desiring long trips -- and especially for trips like Tampa-WDW or reverse, WDW - Port Canaveral or reverse, or similar.

The two companies copy each other shamelessly, so Lyft will probably also adopt the same policy.

Here's the deal. Uber and Lyft both allow limited use of "destination filters." These filters allow a driver to set a destination and have their ride requests screened to exclude rides which would take them away from that destination. It is a very important and helpful tool for drivers, and allows us to be much more flexible about which rides we accept.

There are two main uses for destination filters. One is at the end of a driving shift, when the driver wants to try to find rides toward their home. The other is when the driver is far outside of their normal driving area, and doesn't want to make a long trip back with no paying passenger on board -- or the opposite, where the requested ride will take the driver far from their normal area.

That latter (out of area) scenario is by far the most common and important use of the filters.

Without the availability of the destination filter, no savvy driver is going to drive a trip which will take them a long distance with no way to get paid to come back.

So...riders trying to go from TPA to WDW, for example, may well have a driver pull up, find out where they are going, and cancel the trip. Then you'll have to re-order the ride, which is a time-consuming hassle.

The two methods Uber is testing are 1) eliminating the destination filter entirely, and 2) keeping limited destination filters (we currently get 2 per shift), but paying the driver 30% LESS for the ride.

If you are wondering if that means you pay the same and the driver gets 30% less...you are absolutely correct!

So far, I have not seen any notifications that Uber/Lyft are starting this practice in Florida, but it is definitely being tested in Chicago, Pittsburgh, Philadelphia, Charlotte, Dallas, and other cities, starting today.

If we get it in Florida, a lot of WDW visitors are going to have to use one-day car rentals instead of Uber for longish trips.

 

[seashoreCM]

So...riders trying to go from TPA to WDW, for example, may well have a driver pull up, find out where they are going, and cancel the trip. Then you'll have to re-order the ride, which is a time-consuming hassle.

How would things change to the rider after Uber and/or Lyft change their behind the scenes policies and procedures, considering that this already happens today?

 

[JimMIA]

How would things change to the rider after Uber and/or Lyft change their behind the scenes policies and procedures, considering that this already happens today?

Some drivers accept long rides today BECAUSE they have the destination filter option to help them get a paid ride back.

Take that away or pay the driver 30% less, and the percentage of drivers canceling those kinds of rides will go way up.

This change also comes on top of another recent Uber and Lyft pay cut for drivers. They decreased the rate paid per mile considerably, and increased the rate paid per minute. The effect of that is to make long rides less attractive to begin with. In the Miami market, any ride more than 10 miles pays less than it did a couple of months ago as a result of that change.

The loss is a modest amount, but it's on every medium and long ride, so it adds up. We usually automatically get notified if a ride is going to take more than 45 minutes, and a LOT of drivers are now automatically declining ALL of those rides because of the lower pay.

So, putting those two things together...you're going to pay me less to DRIVE, and you're going to take away my chances of getting a paid ride back? No thanks.

 

[JimMIA]

From a rider's perspective, the one thing you should really watch out for is cancellation fees on these rides. If the driver asks you to cancel, don't -- you will be charged a fee.

If the driver cancels because they don't want to do the ride, you should not be charged...but you might be. If you do receive a cancellation fee in that scenario, contact Uber or Lyft support and request a refund. You'll get it.

 

[JimMIA]

A quick update:

The destination filter feature has been eliminated completely by Uber in Dallas, I believe NYC/NJ, and probably in other cities.

The reduced driver pay for destination rides has been implemented in Chicago, Charlotte, Raleigh/Durham, and other cities. The fare reduction is not set at 30%; it is variable.

One Charlotte driver reported that Uber took 50% of the actual pay earned away from him because he used destination.

So far, Lyft has not followed Uber down this path. They are probably waiting to see how Uber's market tests turn out, and what Uber's final decision is. Then, they will copy Uber.

For the time being, this should be good for Lyft because with a choice many drivers will simply turn Uber off and drive Lyft-only in situations where they want to use the destination mode.