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Probably, people are expensive. Minimum wage + employer taxes for a 25 year old in the UK is roughly £78,000 for 24 hour coverage assuming no overlap and no ill
by IanCal 10y ago
Probably, people are expensive. Minimum wage + employer taxes for a 25 year old in the UK is roughly £78,000 for 24 hour coverage assuming no overlap and no illness, no hiring cost, no management.
I'd be interested to see what TCO they'd need to have to no longer be cheaper.
- smallnamespace 10y agoUber doesn't necessarily need 24-hour coverage though, because demand peaks during commute hours. However, self-driving vehicles can end up being a 'base load' that runs 24/7, and then Uber just pays drivers to appear during peak times, so they can avoid paying for (labor + driver's car) during unnecessary times.
- IanCal 10y agoAnd as the cars become cheaper, the trade-off shifts until it's easier and cheaper to have self driving cars at all times. I think there's a reasonable level of demand that would mean that even at several hundred thousand pounds/dollars, they'd still sell quite well. Every £50000 is an absolute maximum of 710 eight hour shifts.
- sib 10y agoTIL: Minimum wage for a 25-year-old is ~30% higher than for a 20-year-old in the UK.
- IanCal 10y agoIt's a fairly recent addition, announced at the same time as a cut to in-work benefits that were mostly targeted at over 25s and a cut to corporation tax.
- pbhjpbhj 10y agoI've never understood this. Hour does a under-25 need less as a basic income. They have the same costs and are giving up the same time. It's really wrong IMO to value 16-25yo lower when considering minimum wages.