For those of you who haven’t heard of UBER, and because of the name, think it’s some funky, hip device, think again. UBER is a car service that is as simple to use as calling a taxi. Many higher end car services require you to call them well in advance and they’re often fairly pricey.
While UBER is definitely more expensive than a taxi (roughly about double in my experience), it’s incredibly useful when you need a more formal sedan for business purposes, when it’s late and taxis might take too long to get to you or you’re in a location where taxis are tough to find.
I ran into the CEO Travis Kalanick recently on my flight to Paris for the LeWeb conference, the annual renowned Internet, social media & technology event held in Europe every December. The news was that while UBER had already been announced in San Francisco and other cities, Paris was to be unveiled that week as their first European location. And so, I had an opportunity to use their newly launched service in the world’s most romantic city.
It was a simple free download onto my iPhone. Once you have the app, you can quickly request a car by telling Uber where you are. If you don’t have an iPhone or Android app, you can text them your address. Cars typically arrive within 5-10 minutes. In Paris, it ranged from 6 minutes to 18 although most of the time, it was around the 8-10 minute mark and the accuracy of arrival times was spot-on nearly all the time.
As your driver is nearing your location, you can see exactly where he or she is on the map on your phone (the geo-visual element is part of the UBER app and you can see literally where the driver is down to the street corner, providing constant updates of the estimated arrival time). UBER also tells you the name of your driver and includes a photo so when you walk outside of your venue, you can recognize them more easily.
I also tried UBER to the airport and while taxis charge roughly E65-70, UBER costs around E120 for your black sedan, which of course has a bottled water waiting for you in the seat. For a taxi that may cost around E8-10, I found that UBER charged around E20 but bear in mind that the final cost which is automatically charged to your credit card, does include the tip.
That was mid-December. Since then, they were hit by customer complaints on New Year’s Eve and write-ups by All Things D and more recently the Huffington Post followed as a result.
They apparently raise prices for major holidays where demand is going to be high, and did so on both New Years and Halloween. According to the D post, ‘when prices are about to surge, Uber sends a mass email out to its users, puts up a blog post detailing the pricing changes, and, barring technical issues, users should also get notifications through the app during times that surge pricing is in effect.’
Uber institutes a “surge pricing” system with the idea that they need to keep cars available for the customers who really want them, so as demand grows, prices would too. From UBER’s blog about how surge pricing works:
“Without a surge pricing mechanism, there is no way to clear the market. Fixed or capped pricing, and you have the taxi problem on NYE — no taxis available with people waiting hours to get a ride or left to stagger home through the streets on a long night out. By *raising* the price you *increase* the number of cars on the road and maximize the number of safe convenient rides. Nobody is required to take an Uber, but having a reliable option is what we’re shooting for.”
My experiences in Paris were nearly flawless but then again, bloggers and press were given credits so we didn’t have to face $200 surge pricing rides and because the service was brand new, there was a lot of availability (60 cars on the ground at launch), which meant that I never had to stand in the Paris winter rain waiting for a half an hour for a car that may never come. We’ve all been in those situations before and they’re not pretty.
So, while my experience was great (and btw, all the drivers were professional, courteous & shared useful information; one even brought me to a local place he knew for a crepe), the economics don’t make sense for me to use it at home. That’s the issue said a VC friend when I asked him what he thought of UBER. “The economics just don’t work.”
That said, UBER also gives you a sense of empowerment as well as freedom and control. If you’re still at a dinner and don’t want to disturb the flow of a conversation, you can simply push a button on your phone to see how far away your UBER car is…based on that information, you can either decide to push the button and order or wait for awhile.
For example, I just opened the app to see how many cars were available in San Francisco and was told that a driver was a mere 2 minutes away.
There’s no interruption or need to tell your colleague, business contact or the restaurant manager to call you a cab. Most of the time, you haven’t a clue when that cab is going to arrive, not to mention the fact that often you’re on hold for far longer than you want, with horrible elevator music playing in the background.
I find that most of the time, particularly in foreign cities, the accuracy of when a taxi will arrive isn’t great. UBER can be particularly useful in a business meeting where timing and flow is critical.
I can also see UBER being useful in cities like Los Angeles and Miami where there’s more of a “late night” scene and you could share an UBER car with friends to go to your next destination. Other cities where UBER is currently operating is: San Francisco/Palo Alto, New York City, Seattle, Chicago, Boston, Washington DC and as noted, Paris, as of mid-December 2011.
Two other things to note: you can rate the driver immediately after the drive and provide real-time feedback if it didn’t go well, which increases the likelihood of the service and quality of the drivers remaining high and improving over time.
Also, in my experience to-date, their customer service has been very responsive. I think if they can get their markets and target audience right and market to them effectively, UBER can be a dream app at just the right (or rather wrong) times.
Here’s a link to a video that Bloomberg’s Emily Change & Cory Johnson did where they share their own experiences using UBER in San Francisco.
Below is the video of Travis on stage with Loic LeMeur at LeWeb talking about their Paris launch. (note: they also announced $32 million in new funding at the time).
Renee Blodgett is the Founder and Managing Editor of We Blog the World, a global travel, culture and lifestyle publication exploring the world through the lens of meaningful experiences, human connection and cultural depth. Having lived in 10 countries and traveled to 95, Renee has spent much of her life immersed in the people, traditions, landscapes and ideas that shape how we experience the world.
Since launching We Blog the World in 2007, she has written and produced extensive editorial coverage spanning boutique and luxury travel, culinary experiences, arts and culture, wellness, adventure, technology, spiritual traditions and transformative travel. Her work is rooted in the belief that travel is about more than where we go—it is also about what a place, culture or encounter awakens within us.
Renee brings more than three decades of experience across journalism, photography, media, brand strategy, technology, wellness and global storytelling. She has worked with companies and organizations around the world on brand positioning, communications, product launches, media strategy, speaker positioning and storytelling. Through Blue Soul Media, she works with authors, entrepreneurs, thought leaders and purpose-driven brands to clarify their message and expand their impact, which includes speaker coaching/training for high-profile stages such as TED and bringing authors’ work to market while retaining authors rights.
She is also the co-founder of Blue Soul Earth, an educational platform exploring consciousness, ancient wisdom, spirituality, healing and the intersection between science and the nature of reality. Renee is the producer and host of the award-winning Blue Soul CHATS, a conversational series bringing together leading voices in science, technology, consciousness, wellness and spirituality.
Her growing body of work also includes Blue Soul Living, which extends her interest in consciousness and well-being into the spaces we inhabit, exploring how intentional design, energy and environment can support greater harmony and connection.
Renee is the award-winning co-author of the bestselling Magdalene’s Journey and founder of the Magdalene Collection, inspired by women’s voices, stories and wisdom across cultures and generations.
A longtime photographer and storyteller, Renee has documented people, places and cultures around the world and produced photographic collections focused on destinations including the Galápagos Islands, London, South Africa, Rome and Ecuador. She also co-founded Traveling Geeks, an international initiative that brought entrepreneurs, journalists, creators and technology leaders together with their counterparts in other countries to exchange ideas and explore innovation across cultures.
Renee’s work has been recognized by Forbes, the United Nations and others for her influence in media and social storytelling. Across her work in travel, media, consciousness and culture, a common thread remains: curiosity about the world, the stories that connect us and the ways meaningful experiences can change how we see ourselves and one another.
