UBER

[Stantucker]

Any idea why I can use the Uber app successfully in Santiago and the US but not in BA? My Argentine cell number is the phone number on the account.

 

[chris]

Ok thanks everyone. Sounds horrible. I won't even try.

 

[TheDonald]

I had a detailed chat with an Uber driver and he explained to me how it works:

When a BA passenger pays for an Uber ride in cash, the driver temporarily keeps 100% of the fare. When the ride is completed, Uber creates a liability in the driver's account based on that cash fare. That liability is unpaid.

As the driver continues to accept only cash fares, she/he temporarily keeps 100% of the fare. Meanwhile, Uber keeps adding to the driver's liability with every fare, for Uber's cut.

For those of you who love accounting, consider a 100 peso ride. The driver debits cash 100, credits Uber liabilty 10 and equity 90 (my estimates - I don't know what the actual percentages are).

When the driver finally accepts and completes a credit card fare, Uber collects the accumulated liability from the driver. Depending on the size of the liability and the amount of the fare, the driver may get a credit with Uber for future cash fares, the driver and Uber may be all square, or the driver may continue to owe Uber. It all depends on how big that liability is and how much the credit card fare is.

As a result, drivers prefer to capture as many cash fares as possible. It's money today and they don't have to pay Uber until the figurative "tomorrow" arrives. Every once in a while, all Uber drivers in BA will accept a credit card fare in order to reduce or eliminate that liability with Uber - based on all those past cash fares.

Uber drivers cannot cancel a hail immediately. They must have some legitimate reason for cancelling, like the passenger looked suspicious, or the area of town was sketchy, or there was a cow in the road that prevented access. And all those excuses mean the driver must be in proximity to the passenger. This is why the Uber driver won't cancel immediately if they don't want the ride - especially if its a credit card fare. They have to pretend like they are trying to make the hail. Then they can cancel with Uber, no questions asked.

If you want to maximize your chances of Uber fulfillment, be a cash payer. Simple as that.

Any questions?

 

[rickulivi]

Thank you, The Donald, for your excellent explanation. Now I realize why Uber's in BA make me wait ten minutes, and then cancels. As usual, Argentine's have figured out how to cheat the system for their own gain.

 

[elhombresinnombre]

Since Uber is unlicensed in BsAs and local financial organisations are unable to service it, I presume that when a driver picks up a ride, locally based insurance is null and void. So who pays out when there's an accident, injury or loss?

I asked this question in a previous thread but nobody here at the time seemed to know.

 

[semigoodlookin]

Since Uber is unlicensed in BsAs and local financial organisations are unable to service it, I presume that when a driver picks up a ride, locally based insurance is null and void. So who pays out when there's an accident, injury or loss?

I asked this question in a previous thread but nobody here at the time seemed to know.

It's one of the problems Uber has brought to many markets where it operated illegally, such as in Canada. Uber does have insurance coverage, but from what I remember (it's been a while since I checked), it is very limited. I guess the driver would be on the hook to pay from his own pocket but can't understand how that would be possible under some loss scenarios.

 

[semigoodlookin]

Ok thanks everyone. Sounds horrible. I won't even try.

I think you misunderstand, or maybe I do. Uber itself is as easy to use here as anywhere else, you just pay cash instead of pay by card. The system is still the same, fares are still pre-agreed etc.

Trying to pay by card or going to the airport seem to be issues that limit the service here. .

 

[Johnny]

I think you misunderstand, or maybe I do. Uber itself is as easy to use here as anywhere else, you just pay cash instead of pay by card. The system is still the same, fares are still pre-agreed etc.

Trying to pay by card or going to the airport seem to be issues that limit the service here. .

Indeed. UBER is great for a commute between Vicente Lopez and downtown. Fast and relatively cheap. Pay cash.

 

[camel]

Ironically, it seems like the way to reduce Uber activity is to legalize it. Because then many the drivers who have negative balances due to cash rides would probably stop driving, since they would stop getting income from Uber until they clear their negative balance. At least until the next wave of virgin Uber drivers show up.

 

[TheDonald]

Ironically, it seems like the way to reduce Uber activity is to legalize it. Because then many the drivers who have negative balances due to cash rides would probably stop driving, since they would stop getting income from Uber until they clear their negative balance. At least until the next wave of virgin Uber drivers show up.

You are theoretically correct. But I forgot to include one detail: Uber caps the liability. The drivers will take a credit card fare every once in a while to pay down their liability to Uber. If they don't and the liability grows too large, Uber stops sending them hails.

Another detail I forgot to include: Uber keeps the payment method hidden from the driver until they get a certain distance from the passenger. So cancellation of a ride by the driver is a two step process. As the driver approaches the passenger, Uber indicates to the driver whether it is a cash or credit fare. If it's a credit fare and the driver wants to cancel, she/he must then contrive an excuse. This is why in BA, Uber drivers accept the rides, play it out for a while, then cancel close to last moment.