4 ms·

This is interesting. So why are there so many Uber/Lyft drivers? Is it because there is a glut of unused cars in America and they provide a way to monetize it

by chubot 9y ago

This is interesting. So why are there so many Uber/Lyft drivers? Is it because there is a glut of unused cars in America and they provide a way to monetize it? That is, if you aren't actually paying for the car's costs, then it IS your profit.

toomuchtodo 9y ago
Not a glut of unused cars, a huge deficit in good, stable jobs. That’s what enables the gig economy to exist.
astura 9y ago
Because 1) People don't understand the true costs of ownership and driving and think they are yielding the entire cost of the fair. Or 2) They enjoy driving, getting paid for it is a bonus. Or 3) They don't/can't have "regular employment" for whatever reason and want to make some money in their spare time, even if it's just a little. Like some in college who only works during breaks or weeks when the courseload is smaller. Or 4) Someone who is employed but only drives when they are bored on the weekends rather than watching Netflix or going to the pub. Of course #3 becomes self perpetuating at scale. For #1 - story time: I had already decided I was going to buy a new car, which car I would buy, and that I was going to finance it. I was trying to squeeze another year out of my current car first tho. My sister was absolutely baffled by this and couldn't understand that this would save me money. No matter how much I tried to explain it she didn't "get" it. From TFA: >"Imagine developing a company specifically to take advantage of people’s ignorance of how expensive it really is to drive their own car. What would this company look like?“ (the answer is of course that it would look like very much like Uber or any other ridesharing company)
- chubot 9y ago
  But my question is how people live in the Bay Area on $5 an hour. Where is the difference coming from? Debt, parents, unused car etc.?
  - nikanj 9y ago
    They don't live there, they just come there to drive. http://www.sfgate.com/business/article/When-Their-Shifts-End-Uber-Drivers-Set-Up-Camp-10876374.php http://www.sfgate.com/business/article/When-Their-Shifts-End...
  - deleted 9y ago
    [deleted]
  - s0rce 9y ago
    When I ask where there are coming from it's rarely from around the bay, usually Stockton or as far as Reno and coming for the weekend.
  - xbzbanna 9y ago
    They could have rent control or prop 13 housing (often via parents).
- mmanfrin 9y ago
  I think you're missing 5) Because it is hard to find a reliable 2nd job where the hours do not impinge on a 1st job, especially when low-wage/unskilled jobs tend to schedule in ways to make having a 2nd job difficult (e.g. not consistent, last minute changes, etc). 6) Because it is harder for some to find as many unskilled jobs as most due to their age, race, or education.
- redler 9y ago
  I imagine many of these drivers do it simply because, despite the costs that may be coming down the line, they can't pay their rent with future dollars.
ghaff 9y ago
The cynical answer, which is absolutely valid, is that a lot of people don't accurately estimate the marginal costs of operating their vehicles. That said. You need to compare to not minimum wage but minimum wage that takes into account commuting and random scheduling BS. As a somewhat counterexample, I was talking to a recent grad at a Meetup a couple weeks ago who was looking to get into CS things who was going out to drive for a few hours after the Meetup. Not something you can do with a McD's job. I'm no fan of the gig economy in general but there are some advantages to on-demand work so long as every agrees that there isn't a lot of money to be made. As a full-time job I fully agree with MMM.
chubot 9y ago
Addendum: On second thought, I shouldn't have been so quick to agree with MMM. Some of the other commenters pointed out flaws in his calculations and logic. Good job HN :)

by chubot 9y ago

toomuchtodo 9y ago

Not a glut of unused cars, a huge deficit in good, stable jobs. That’s what enables the gig economy to exist.

astura 9y ago

Because 1) People don't understand the true costs of ownership and driving and think they are yielding the entire cost of the fair. Or 2) They enjoy driving, getting paid for it is a bonus. Or 3) They don't/can't have "regular employment" for whatever reason and want to make some money in their spare time, even if it's just a little. Like some in college who only works during breaks or weeks when the courseload is smaller. Or 4) Someone who is employed but only drives when they are bored on the weekends rather than watching Netflix or going to the pub. Of course #3 becomes self perpetuating at scale. For #1 - story time: I had already decided I was going to buy a new car, which car I would buy, and that I was going to finance it. I was trying to squeeze another year out of my current car first tho. My sister was absolutely baffled by this and couldn't understand that this would save me money. No matter how much I tried to explain it she didn't "get" it. From TFA: >"Imagine developing a company specifically to take advantage of people’s ignorance of how expensive it really is to drive their own car. What would this company look like?“ (the answer is of course that it would look like very much like Uber or any other ridesharing company)

chubot 9y ago
But my question is how people live in the Bay Area on $5 an hour. Where is the difference coming from? Debt, parents, unused car etc.?
- nikanj 9y ago
  They don't live there, they just come there to drive. http://www.sfgate.com/business/article/When-Their-Shifts-End-Uber-Drivers-Set-Up-Camp-10876374.php http://www.sfgate.com/business/article/When-Their-Shifts-End...
- deleted 9y ago
  [deleted]
- s0rce 9y ago
  When I ask where there are coming from it's rarely from around the bay, usually Stockton or as far as Reno and coming for the weekend.
- xbzbanna 9y ago
  They could have rent control or prop 13 housing (often via parents).
mmanfrin 9y ago
I think you're missing 5) Because it is hard to find a reliable 2nd job where the hours do not impinge on a 1st job, especially when low-wage/unskilled jobs tend to schedule in ways to make having a 2nd job difficult (e.g. not consistent, last minute changes, etc). 6) Because it is harder for some to find as many unskilled jobs as most due to their age, race, or education.
redler 9y ago
I imagine many of these drivers do it simply because, despite the costs that may be coming down the line, they can't pay their rent with future dollars.

ghaff 9y ago

The cynical answer, which is absolutely valid, is that a lot of people don't accurately estimate the marginal costs of operating their vehicles. That said. You need to compare to not minimum wage but minimum wage that takes into account commuting and random scheduling BS. As a somewhat counterexample, I was talking to a recent grad at a Meetup a couple weeks ago who was looking to get into CS things who was going out to drive for a few hours after the Meetup. Not something you can do with a McD's job. I'm no fan of the gig economy in general but there are some advantages to on-demand work so long as every agrees that there isn't a lot of money to be made. As a full-time job I fully agree with MMM.

chubot 9y ago

Addendum: On second thought, I shouldn't have been so quick to agree with MMM. Some of the other commenters pointed out flaws in his calculations and logic. Good job HN :)