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Most drivers prefer Uber. Uber takes value away from the middlemen, takes a smaller share of the middleman cut, and redistributes the remaining value to the dri
by dkural 11y ago
Most drivers prefer Uber. Uber takes value away from the middlemen, takes a smaller share of the middleman cut, and redistributes the remaining value to the driver and the passenger. Hence its popularity.
Most of the profit in the old system accrues to the taxicab company + medallion holder. Uber does hurt these folks, by giving more of the pie to the driver, who can now drive without owning a medallion & is not hurt by this barrier-to-entry, and Uber provides the rest as a discount to the passenger, who receives a better overall service at the same time (you see where the car is + estimated time, ratings, GPS, etc.)
- smileysteve 11y ago> Most drivers prefer Uber. Uber takes value away from the middlemen, takes a smaller share of the middleman cut, and redistributes the remaining value to the driver and the passenger. Hence its popularity. This is a primary result of the "fragmentation" caused by the corruption of the medallion and taxi corporations. If drivers had continued (in some cases) to be direct owners of the medallions or if Taxi corporations had not directed many of the profits to the top, then the answer of driver and consumer choice would be less known. More drivers likely prefer Lyft if the market of riders exists (Lyft takes a lower cut and is less harsh), and that eventually lower cost (even free / open source) alternatives are taking over (Spain).