Main

Did you know: Uber, Lyft charge extra for advance reservations

Uber and Lyft let travelers reserve trips in advance but the service comes with extra costs some people aren't aware of. Lyft says riders can lock in the price and avoid surges. Uber assures users can see the fare calculation breakdown, including the reservation fee, before booking and says the process is beneficial to drivers. Clint Henderson, managing editor for The Points Guy, joined CBS News to talk about his views of the impact on riders. CBS News Streaming Network is the premier 24/7 anchored streaming news service from CBS News and Stations, available free to everyone with access to the Internet. The CBS News Streaming Network is your destination for breaking news, live events and original reporting locally, nationally and around the globe. Launched in November 2014 as CBSN, the CBS News Streaming Network is available live in 91 countries and on 30 digital platforms and apps, as well as on CBSNews.com and Paramount+. Subscribe to the CBS News YouTube channel: https://youtube.com/cbsnews Watch CBS News: https://cbsnews.com/live/ Download the CBS News app: https://cbsnews.com/mobile/ Follow CBS News on Instagram: https://instagram.com/cbsnews/ Like CBS News on Facebook: https://facebook.com/cbsnews Follow CBS News on Twitter: https://twitter.com/cbsnews Subscribe to our newsletters: https://cbsnews.com/newsletters/ Try Paramount+ free: https://paramountplus.com/?ftag=PPM-05-10aeh8h For video licensing inquiries, contact: licensing@veritone.com

CBS News

10 days ago

it's time now for what to watch uh Uber andyt let Travelers Reserve trips in advance a feature that can bring up peace of mind and people hoping to ensure they make it to their destinations on time but there is a catch the service comes with an extra cost that some people aren't aware of Clint Henderson managing editor for the Points Guy joins us now to help understand those costs so Clint uh people just think that you want to book a ride tomorrow morning let's say early 6:00 a.m. you before you
go to bed you book The Car in Uber what's with the fee what's the fee so essentially they're not disclosing this fee ahead of time and they're usually charging you more than it would cost if you just open the app and book the ride so especially for those early morning rides in major cities like New York you're going to pay more if you reserve the ride in advance in general and those fees are not passed onto the driver so it's sort of a double loss for you uh and even if you reserve a in your yo
u're in a place like Detroit or Cleveland where there's not a lot of drivers just because you reserve that ride does not mean that a driver is going to pick up that ride in the morning so so you have to be really careful using this feature yeah I have not had good luck with this feature I know other people have but what's happened with me is that I get accepted everything's fine I go and then the next morning I see when I wake up I see oh it's been canceled right so there's really no guarantee u
m but these fees it's basically the same service but in advance you're requesting a car why do why do we have to pay extra for this how is the company justifying this so the company says that you're paying for convenience but as we just discussed it's not always convenient if the writer can just cancel on you so I'm not sure what you're getting out of this you know we're seeing more and more junk fees as as I like to refer to them I think the President Biden's going to make this campaign issue b
ut essentially Uber and Lyft prices have gone up up up up up and those costs or those saving those prices are not being passed on to the driver they're pading the bottom line for the ride share companies and so I think it's really interesting we'll have to see I think we've sort of come to a breaking point where the prices of uber and lift are actually higher in many places than it is just to get a cab so I think you're better off getting a cab in advance than you are trying to do an Uber or a l
ift Reserve yeah like in New York right this would give me aa because there's nothing that I hate more than booking for peace of mind and then waking up ored to be stressed so I'd rather just try to do it in the moment um you say that the drivers are not benefiting from these fees uh let's talk about the 20% of Uber's airport pickups that are reportedly now from rides reserved in advance so is that the target audience people who need to get to the airport because presumably there's a time crunch
right yeah that's exactly it I think people think that they're gonna they're going to lock in a price they're going to lock in a reservation and that's not really the case essentially they're just paying more uh for a service that may or may not be there and remember if you're paying more for the ride you're less inclined to tip the driver so it's actually not great for the driver either because the Rider figures oh I'm already paying so much money a lot of this must be getting passed on to the
driver and that's just not the case all right Clint thank you very much appreciate it

Comments

@vandescinema

Prices are going up, drivers are getting paid less. Uber and Lyft reaping the rewards while everyone else eats dirt.

@Bernie1968

They use to pay a fee to the driver and I use to do reservations. But due to the greed of these pimps drivers will cancel these... even if en route to the reservation if the competing Rideshare company sends a better offer we will cancel. I can assure you if the driver gets 100% of that fee you will get a driver on time and smiling. There yno reason why the companies steal that money at all. It's disgusting!

@tjr4459

Yep, when you schedule in advance it cost more. Uber has also added a bunch of miscellaneous fees like a “black car “ fee. Ridiculous.

@C.P.C3719

Yup, I realized this when I would prebook a car to pick me up and take me to the airport. Never again

@stumpjumper5561

And the driver pay is going down,down,down.

@Cookinboy05

I knew it! In December I took a trip to LA to go to Disney. Prebooking was over $26 for a .5 mile ride. I chose to book the next morning. The ride cost 10.50 before tip! I thought maybe they were giving the driver a higher fee for accepting the ride. NOPE!

@jw77019

Rideshare is not working because they’re not paying the drivers proportionately to what they are charging the consumer. Pay the drivers, and they will be there. They have destroyed the taxi and limo business as it was and now charging as much as they can while paying the drivers as little as possible.

@DJNANNU559

Uber/Lyft their system will cancel ride and get other driver because other driver accepted lower upfront offer so Lyft/Uber can make more profile. Uber/Lyft DO NOT CARE ABOUT DRIVER AND RIDER. they care about how they increase profit. Thats all very simple and their system design to do this by auto algorithm. As driver i witness that rider and i did not cancel ride when its time for the pickup ride, scheduled ride gone from my app with no cancelation fee and with no explanation.

@RSPBK

I'm glad riders are waking up to the fact that what they pay for a ride is not what the driver gets for that ride. The driver will get around 30 percent on average. It fluctuates between an average of 30 to 50 percent. It's one of the reasons for the recent driver protest/strike on February 14, 2024. Don't be fooled by Lyft CEO's "70% of 75%" accounting/number salad. (What he said was, drivers make 70% AFTER Lyft fees of 25%. He didn't emphasize the, "after Lyft external fees" part in the media).

@taivo2520

I am a Lyft and Uber driver (part-time). Those “advanced schedule” trips are rip-off to Riders and Drivers. I did that trip once for my curiosity, I get paid $6 and riders paid $34 for that trip. Yeah, advance..advanced rip-off.

@Novastar.SaberCombat

I used to drive for both prior to the pandemic. There is NO way I'd ever go back to it. I'd rather starve, and I probably will (given my current situation). And to hear these rich people discussing how rich corporations go about their rich business... is pretentious.

@timmy2310

You wanna ride for sure contact a private limo service and don't get burned. Drivers constantly cancel and you/ll miss your flight.

@TahoeMacedon

prices go up, always extra charges, drivers get $8 from the $50 you paid as a passenger. expenses for the drivers car goes up 50% in the past few yrs

@alexanderromero9701

Can this news networks mention about only have of the fares goes to the drivers

@victorrodriguez8917

Why is the media just emphasizing on this issue now ?? This is been going on for years. 😂 (( we the driver )) here in NYC “” are been robbed “” AND NOONE ARE DOING NOTHING.,

@LightSkinBadiee

Remember when u could get a taxi and just pay the fare

@gtavskitboyz

You are aware if u reserve a trip driver may get $15 for a airport run and will have to be on a hr before the reserve or it goes to a driver thats on ....so it should be more

@williamerazo3921

As suppose to be. If you want drivers out and pick you up that’s extra fee

@snow-uq4gx

The driver is arriving on time usually 20-30 minute before schedule time

@aliceseger7108

Well you Can’t count on them. I had one booked for the airport. It was canceled but yes all the new fees are crap.