Uber Is Ripping Off Frequent Riders and Here’s How to Avoid It

Re:Uber Is Ripping Off Frequent Riders and Here’s How to Avo... by klenwell on Thursday March 29, 2018 @01:34PM (#16709065)

Well put. I think I saw this very dynamic in action with my car insurance this year. AAA tried to bump it 40% over the previous year with no claims in previous 5 years and no changes in major underlying parameters.

I think mileage may have gone up slightly but I'm still well below the norm.

Well, I guess AAA finally hit that "gap between your changes and the long term change in churn" for me. I dropped them for GEICO. But even before I left, I called them back and gave them a chance to match the GEICO quote. Their phone agent seemed to have no path in her script to consider or escalate this offer.

It sounds like we may need a catchy term for that gap you mentioned, the one where as a consumer I'm ready to jump but the alternatives (if any still exist) don't feel like they're worth the trouble. (I'm at that point with my cable internet provider.) Something like the "Recurry" or "Gamey Valley".

[ Parent | on HN ]

Re:Uber Is Ripping Off Frequent Riders and Here’s How to Avo... by Vibrelli on Thursday March 29, 2018 @05:31PM (#16711235)

I call it "Loyalty Tax", Australia is terrible for it. Shop around every year as most of these brands are just identical white labeled policy underwritten by the same insurer. One trick I stumbled across last year was comparing prices on an aggregator (eg I used iSelect), and not buying. Then the agent called the next day and offer a 15% discount on my already cheaper price.

[ Parent | on HN ]

Re:Uber Is Ripping Off Frequent Riders and Here’s How to Avo... by angry_octet on Thursday March 29, 2018 @06:28PM (#16711696)

Same with electricity retailers. And if your existing company sees you are churning they will call in the cool off period to (a) entice you to change with a slightly better offer, and (b) find out the competitor's price. (I always give them a lower price to match than what I've been offered, because price matching enables the incumbent vendor to rip everyone off with bad list prices and private deals).

Be careful with iselect though, I think all their resellers use the same underwriter. I.E not real competitors.

[ Parent | on HN ]

Re:Uber Is Ripping Off Frequent Riders and Here’s How to Avo... by Scoundreller on Thursday March 29, 2018 @09:16PM (#16712819)

Usenet subscriptions are like this too.

[ Parent | on HN ]

Re:Uber Is Ripping Off Frequent Riders and Here’s How to Avo... by themarlzy on Friday March 30, 2018 @04:38PM (#16719614)

I like “loyalty tax” as a term

[ Parent | on HN ]

Re:Uber Is Ripping Off Frequent Riders and Here’s How to Avo... by GFischer on Thursday March 29, 2018 @02:23PM (#16709615)

I worked in insurance that kind of increases do work (for the insurer), but we did it in the "boiling the frog slowly" way so there was no 40% trigger to wake you up.

We had little churn, if you stayed a customer after a slight rise, 90% stayed for the next slow rise.

[ Parent | on HN ]

Re:Uber Is Ripping Off Frequent Riders and Here’s How to Avo... by Scoundreller on Thursday March 29, 2018 @09:17PM (#16712824)

The big pharma approach vs. the Martin Shkreli approach.

[ Parent | on HN ]

Re:Uber Is Ripping Off Frequent Riders and Here’s How to Avo... by rm_-rf_slash on Thursday March 29, 2018 @04:34PM (#16710796)

I call it a friction trap. Somethings gotta change and it’s certainly possible, but the friction is discouraging so you stay in the trap.

[ Parent | on HN ]

Re:Uber Is Ripping Off Frequent Riders and Here’s How to Avo... by confounded on Thursday March 29, 2018 @03:28PM (#16710308)

> It sounds like we may need a catchy term for that gap you mentioned, the one where as a consumer I'm ready to jump but the alternatives (if any still exist) don't feel like they're worth the trouble.

Captive customers? Rubes?

[ Parent | on HN ]

Re:Uber Is Ripping Off Frequent Riders and Here’s How to Avo... by gambiting on Monday April 02, 2018 @03:30PM (#16738328)

I was with Admiral here in UK last year, then literally got a quote that was 100% higher for renewal, with no claims and no changes to the car or my coverage - Aviva gave me a lower price than the original one with Admiral was, and when I called them to ask if they will price match there was literally nothing they could do to match it. Insane.

[ Parent | on HN ]

Re:Uber Is Ripping Off Frequent Riders and Here’s How to Avo... by aioprisan on Thursday March 29, 2018 @10:14PM (#16713129)

There are more cars on the road, cheaper gas prices means more miles driven per car, and we have fewer total accidents but the accidents we have are more expensive due to more expensive parts (i.e. bumpers these days are thousands of dollars due to sensors and cameras vs a few years ago). All combine to create ~10% rate increase year over year.

[ Parent | on HN ]

Re:Uber Is Ripping Off Frequent Riders and Here’s How to Avo... by mcny on Friday March 30, 2018 @04:50AM (#16714693)

I know this sounds like conspiracy theory and I can't tell you if this is a trend or not but I've heard about it from several people. To add to your point, the inspector has more incentive and justifiable reason to scrap the car altogether (salvage title).

Then, the inspector can buy the salvage car for pennies on the dollar, fix it, and sell it with a salvage title.

[ Parent | on HN ]