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> Setup incentives (e.g. bonuses) so that drivers get paid better after they have offset the overhead costs for a month. A bonus increases cost, meaning the dr

> Setup incentives (e.g. bonuses) so that drivers get paid better after they have offset the overhead costs for a month. A bonus increases cost, meaning the drivers need to work even more hours. > Reward (but do not mandate) drivers for scheduling certain times/dates in advance (e.g. to optimize driver supply) Again, offering rewards to drivers for driving in certain scheduled times means that drivers need to bring in even more revenue to break even to offset the price of these rewards. Either that, or the overall average pay is reduced during non-peak hours to offset the cost of rewards. I think it's more likely is that this takes the form of Uber and Lyft giving drivers blocks of time during which they need to drive, and quotas to meet. Paying drivers during non-peak hours, and giving benefits to drivers that are not bringing in much money are things that ride share companies are going to have to take steps to avoid. If drivers start getting employee benefits, then it's a largely inevitable consequence that they'll lose the flexibility provided by contract work.

xpe 7y ago
Re: "I think it's more likely is that..." I'm struck by how many times you refer to rather blunt instruments (e.g. "scheduling drivers in advance" / "blocks of time in which they need to drive" / "quotas to meet"). There is a much wider canvas of tools available to guide and shape behavior, as I would guess you understand. (You seem to use language like an economist or business analyst, so you likely know about various incentive structures.) Given how cutting-edge and innovative the ride-sharing companies claim to be, I don't think they can also authentically claim that they cannot find smart, incentive-based ways to work within slight adjustments to the business and regulatory environment. Market-making and matching algorithms are powerful, interesting, and applicable here, in a wide variety of regulatory configurations. In my view, the "ride-sharing" companies (after all, the driver is "sharing" her car with the passenger... right!) should leverage their people and infrastructure as a competitive advantage and, well, innovate.

xpe 7y ago

Re: "I think it's more likely is that..." I'm struck by how many times you refer to rather blunt instruments (e.g. "scheduling drivers in advance" / "blocks of time in which they need to drive" / "quotas to meet"). There is a much wider canvas of tools available to guide and shape behavior, as I would guess you understand. (You seem to use language like an economist or business analyst, so you likely know about various incentive structures.) Given how cutting-edge and innovative the ride-sharing companies claim to be, I don't think they can also authentically claim that they cannot find smart, incentive-based ways to work within slight adjustments to the business and regulatory environment. Market-making and matching algorithms are powerful, interesting, and applicable here, in a wide variety of regulatory configurations. In my view, the "ride-sharing" companies (after all, the driver is "sharing" her car with the passenger... right!) should leverage their people and infrastructure as a competitive advantage and, well, innovate.