In a past article, I brought many issues to the table about Transportation Network Companies (i.e. Uber, Lyft, Sidecar, etc.) both positive and negative. I explained fully why my belief, as a limo company owner, was generally negative about these types of service, and why consumers should be wary of these types of services. See this clip below from KPRC Local 2 News in Houston, Texas before we continue our discussion!
An Uber user in Houston, Patricia Clark, found out the hard way about these types of companies billing practices. In order to meet “demand” during high peak hours, these companies will insert a rate multiplier in their customer billing called surge pricing. During these periods of surge, a customer’s bill may be multiplied up to 10x the normal rate. That simple $40-$60 fare may easily turn into a $400 to $600 nightmare for unsuspecting customers.
In most other business models, companies looking to meet demand increase supply, not price! This would be the equivalent to a local grocery store increasing the costs of goods sold because they were in high demand rather than increasing the amount of stock on hand to meet their customers needs.
You cannot expect a customer to pay $20 for a gallon of milk because of “high demand” anymore than you can expect your customers to pay 4.4x the regular cost of a car service because of the same reason. You may get them to buy it one time, but you have now lost a future repeat customer, and your cost to your reputation is more than you will make by upping their costs!
At Lone Star Executive Limousine, I am proud of our customer first policy. We do not raise our rates for any events, be it homecoming, prom, RodeoHouston, or any other events that demand increases for our services. I believe in fostering good relations with my customers, providing first rate service and support, and enjoying the repeat business that comes with satisfied clients.
Our clients are our family, and we treat them as such! Call us today at (832) 585 7338 and experience true luxury at a fair price, and save yourself the heartache of the “questionable” bill. I can promise you won’t be disappointed!