
Uber made nearly $500M from a 'safe rides fee' – money went to company - pseudolus
https://www.businessinsider.com/uber-safe-rides-fee-500-million-profit-super-pumped-book-2019-8
======
jaclaz
Just in case the Wayback Machine has archived the actual Uber post:

[https://web.archive.org/web/20140420053019/http://support.ub...](https://web.archive.org/web/20140420053019/http://support.uber.com/hc/en-
us/articles/201950566)

>What is the Safe Rides Fee?

>From the beginning, we’ve always been committed to connecting you with the
safest rides on the road. Our new Safe Rides Fee is a $1 fee added to uberX
fares in United States cities with uberX ridesharing. This Safe Rides Fee
supports our continued efforts to ensure the safest possible platform for Uber
riders and drivers, including an industry-leading background check process,
regular motor vehicle checks, driver safety education, development of safety
features in the app, and insurance. For complete pricing transparency, you’ll
see this as a separate line item on every uberX receipt.

It seems clear enough that it is an added fee (or price increase) by any other
name.

Next time - say - a Big Mac will go from 3.99 to 4.99, "for complete pricing
transparency" McDonalds may add a "Hygiene and Environmental fee" to support
their continued efforts to clean the premises and dispose of the plastics,
etc.

~~~
rrix2
This happens at restaurants in cities which increase minimum wage, too. "We've
added a cost of living fee to your meal of 8%, don't forget to tip your
waiter!"

~~~
CaptainZapp
That's good.

A restaurant, which does this winds up instantly on my shit list.

Such passive aggressive behavior is a sure sign that they treat their staff
like crap and I prefer not to give my business to such places.

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sixhobbits
> The company was facing rising costs on insurance and background checks for
> drivers.

I would count this as as part of safety, so if they realised that's where
there costs were and added a fee to offset it, this doesn't seem inherently
unethical.

In Cape Town, South Africa I've taken a lot of Ubers + Bolts (previously
Taxify), and although Bolt is usually cheaper, the difference in how they do
background and quality checks on both drivers and cars is very apparent.

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WMCRUN
“There was just one problem: that fee didn't actually go anywhere except
straight to the company's coiffures”

Coiffures: elaborate hairatyles

Coffers: financial accounts

~~~
Humdeee
> Coiffures: elaborate hairatyles

Hairatyles: an example of Muphry's law in action

Hairstyles: a particular way in which a person's hair is cut or arranged

~~~
etjossem
Murphy's law: "anything that can go wrong, will go wrong"

Muphry's law: "anything that can be mispelled, will be mispelled"

~~~
wgjordan
Misspelled: spelled a word incorrectly

Mispelled: an example of Muphry's law in action

~~~
rad_gruchalski
“Misspelled: spelled a word incorrectly”: and example of a dodgy grammar.

“Misspelled: a word spelled incorrectly.”: better.

~~~
hndamien
Grammar Nazi: One who uses refined vocabulary, correct grammar, constantly
finds themselves correcting grammar and spelling (in forums, chatrooms,
tumblr, YouTube, etc.)

Language change denier: As above, sans "Nazi" reference.

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chrismeller
While perhaps slightly misleading (hence the lawsuit they settled), nothing
says it _has_ to be specifically earmarked for anything... at the end of the
day it was in the company’s bank account either way and could end up being
used for anything, even if they had actually claimed it was specifically for
one particular thing ahead of time.

And maybe, just maybe, they had plans and did eventually use it for all the
things they said, but didn’t have a particular program in place yet? I really
just feel like this is trying too hard to look for something clearly nefarious
when it’s just not there.

~~~
geogriffin
> nothing says it has to be specifically earmarked for anything

Lawsuits in the US about deceptive fees like [1] come to mind.

[1] [https://blog.ticketmaster.com/schlesinger-v-
ticketmaster/](https://blog.ticketmaster.com/schlesinger-v-ticketmaster/)

~~~
chrismeller
Sure, but as I said they already settled a lawsuit over the deceptiveness. So
arguably that complaint is already out the window...

~~~
geogriffin
True, and it seems as though to avoid this kind of litigation Ticketmaster
simply had to disclose more information about the purpose and intent of the
fees in the fine print. I also remember them changing the name "processing
fee" to "convenience charge" maybe 10 years ago as result of (maybe this)
lawsuit, but I can't find anything about that now.

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rory096
This Business Insider link is a reblog of
[https://www.nytimes.com/2019/08/23/business/how-uber-got-
los...](https://www.nytimes.com/2019/08/23/business/how-uber-got-lost.html)

------
pseudolus
It would be pretty amusing to see other transportation providers such as
airlines and train services follow suit and institute a "safe ride fee". I'm
sure some consultant somewhere is dreaming up such an idea right now, totally
unaware that most consumers assume that the ticket price includes some kind of
assurance that they'll get to their destination unharmed.

~~~
chrismeller
Have you flown recently? I just went to book a flight with American from
Phoenix to LA. $248.30 (which they rounded to $249 for reasons unknown).

Of that $217 is actually the ticket, the rest are taxes and fees, including:

US SECURITY FEE (UNITED STATES) $5.60 USD

~~~
kritiko
This fee goes to TSA, not the carrier.

"The Passenger Fee, also known as the September 11 Security Fee, is collected
by air carriers from passengers at the time air transportation is purchased.
Air carriers then remit the fees to TSA. The fee is currently $5.60 per one-
way trip in air transportation that originates at an airport in the U.S.,
except that the fee imposed per round trip shall not exceed $11.20."

~~~
chrismeller
That’s fine, not what he was suggesting. There already is a security fee, so
consultants don’t need to dream up how to apply one.

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timoth3y
These kinds of fees should really be considered deceptive advertising.

Unless a fee is specifically required to be levied by the government or it
represents something that the consumer can opt-out of, then it is part of the
price and should be listed as such.

Hotels, airlines, and cable companies are the worst offenders, but it's only
going to get worse unless we put a regulatory stop to it.

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29_29
Since there is no profit, the money certainly isn't going to shareholders. And
I wouldn't be surprised if Uber actually does spend 500m/year on trust and
safety.

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alephnan
Has anyone else been scammed by the Uber pass? I spent $25 on it, and saved a
grand total of $1.27. It’s misleading that it would save you money, unless you
do hundreds of rides a month just to break even.

~~~
brokensegue
how is it a scam? they told you what it did

~~~
alephnan
It claimed you can save up to $3-4 on the first ride, then gave me a 10 cent
discount. I understand it says up-to, but it knew then and there exactly how
much I can save on that ride.

