• Earn Airline Miles/Points for every dollar you spend with Carmel

    Blog articles contributed by Carolyn Castro, and Praveen Narra. Contributor URL: Praveen Narra
    By: Steven
    Posted on: April 7, 2017
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    A livery base is required to give a binding price quote. In other words, when you use the app, website booking engine or call the livery base call center and seek transportation from point B, the customer is given a binding price quote. There are no games at price manipulation or hidden fees. The livery driver is also aware of the binding price quote and they rely upon such quote to determine how much money they are going to make.

    On the other hand, Uber and other ride hailing apps are not required to give a binding price quote. In a class action lawsuit recently filed in California it is alleged that Uber has created a sophisticated scheme in which it manipulates navigation data used to determine “upfront” rider fare prices while secretly short-changing the driver. In other words, when a rider uses the Uber app, the fare the app immediately shows to the passenger is based on a slower and longer route compared to the one displayed to the driver. The software displays a quicker, shorter route for the driver. But the rider pays the higher fee, and the driver’s commission is paid from the cheaper, faster route, according to the lawsuit.

    In the end, the rider pays a higher fee because the software calculates a longer route and displays that to the passenger. Yet the driver is paid a lower rate based on a quicker route. Uber then keeps the difference charged to the User and the fare reported to the driver, all in addition to Uber’s service fee and booking fee.

    Of course, all companies are in business to make money, but income should not be generated at the expense of the persons who make your business thrive. The drivers who enable Uber to operate and the customers who pay for the service deserve better. While some people may not care about what happens to the driver and what they get paid, the truth of the matter is that without drivers, we would not have for-hire transportation. Drivers deserve better and so do the riding public.

    Whether a rider uses a livery base or some other service, they deserve to be treated fairly and honestly. For Hire Drivers deserve better too. They work hard and earn the money they make. They deserve to be paid based upon the amount charged to the customer and not based upon the manipulation of navigation data, which is akin to a scheme to defraud. Time for drivers and the riding public to wake up to the ills that have come to this industry as a result of the entry of Uber and its ilk.

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