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Uber has the data. They know all the trip prices, models of cars (costs can be calculated), and time that drivers are online. This could be figured out, but w

by dpweb 9y ago

Uber has the data. They know all the trip prices, models of cars (costs can be calculated), and time that drivers are online. This could be figured out, but would you trust what they said?

dmoy 9y ago
There's also no upside for Uber to release the numbers if they're not really that high - it'd be discouraging to their future contractor pool.
- ghaff 9y ago
  Costs are going to be a bit squishy but you're right that Uber has a pretty good handle on mileage, time, money paid out, etc. One suspects that if the average driver is making $25+/hr. after reasonable expense assumptions, we'd have heard about it loud and long. My suspicion with some back of the envelope calculations is that it probably ends up somewhere in the minimum wage range most of the time. Especially at the higher end of that range, it sort of makes sense. Assuming at least a reasonable percentage of drivers have some rational handle on what they make and their real costs, that's about where you'd logically expect pay to need to end up. To be clear, I'm sure some drivers don't really understand their costs or know that they're effectively borrowing from their future self who will have to pay maintenance bills--and feel they don't have an option. But it's a bit hard believing it's near universal behavior.
  - dpweb 9y ago
    Seems like the preventative maintenance person would be rewarded. I would also think the car mechanic since they can obtain a car at a lower price. For budgeting, I’ve tried to just arrive at a cost per month of ownership for a car with expected depreciation (not cost to purchase), ins., gas, and expected maintenance.
  - user5994461 9y ago
    >>> My suspicion with some back of the envelope calculations is that it probably ends up somewhere in the minimum wage range most of the time. Especially at the higher end of that range, it sort of makes sense. Assuming at least a reasonable percentage of drivers have some rational handle on what they make and their real costs, that's about where you'd logically expect pay to need to end up. Your assumptions are incorrect. The world is filled with people who can't estimate costs, it's actually pretty difficult. I've worked in online gambling before. I think it has a lot of similarities with Uber. It's entirely possible to have the vast majority of your customers lose money.
davecraige 9y ago
No, Uber is shady as hell.

by dpweb 9y ago

Uber has the data. They know all the trip prices, models of cars (costs can be calculated), and time that drivers are online. This could be figured out, but would you trust what they said?

dmoy 9y ago

There's also no upside for Uber to release the numbers if they're not really that high - it'd be discouraging to their future contractor pool.

ghaff 9y ago
Costs are going to be a bit squishy but you're right that Uber has a pretty good handle on mileage, time, money paid out, etc. One suspects that if the average driver is making $25+/hr. after reasonable expense assumptions, we'd have heard about it loud and long. My suspicion with some back of the envelope calculations is that it probably ends up somewhere in the minimum wage range most of the time. Especially at the higher end of that range, it sort of makes sense. Assuming at least a reasonable percentage of drivers have some rational handle on what they make and their real costs, that's about where you'd logically expect pay to need to end up. To be clear, I'm sure some drivers don't really understand their costs or know that they're effectively borrowing from their future self who will have to pay maintenance bills--and feel they don't have an option. But it's a bit hard believing it's near universal behavior.
- dpweb 9y ago
  Seems like the preventative maintenance person would be rewarded. I would also think the car mechanic since they can obtain a car at a lower price. For budgeting, I’ve tried to just arrive at a cost per month of ownership for a car with expected depreciation (not cost to purchase), ins., gas, and expected maintenance.
- user5994461 9y ago
  >>> My suspicion with some back of the envelope calculations is that it probably ends up somewhere in the minimum wage range most of the time. Especially at the higher end of that range, it sort of makes sense. Assuming at least a reasonable percentage of drivers have some rational handle on what they make and their real costs, that's about where you'd logically expect pay to need to end up. Your assumptions are incorrect. The world is filled with people who can't estimate costs, it's actually pretty difficult. I've worked in online gambling before. I think it has a lot of similarities with Uber. It's entirely possible to have the vast majority of your customers lose money.

davecraige 9y ago

No, Uber is shady as hell.