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I believe that people will take deals that don't benefit them. But that's not the point here. The numbers are made up, but say Uber makes 10$ per ride and the d
by karpierz 6y ago
I believe that people will take deals that don't benefit them. But that's not the point here. The numbers are made up, but say Uber makes 10$ per ride and the driver makes 10$ per ride.
If the drivers get together, they might be able to negotiate 15$ per ride, leaving 5$ per ride for Uber. However, it might be hard for the people to do that, so the government can step in to improve conditions for riders by negotiating for them as a block.
- AnthonyMouse 6y agoAll of this labor theory only applies when you're negotiating with a monopolist. Otherwise the company already has thin margins as a result of needing to compete with other companies -- remember all that stuff about Uber losing money? -- and there is little more they can give you without trading it against something else you want, like flexibility or number of hours. The primary way they could pay drivers more is by charging higher fares. But then there is lower demand for rides, so they need fewer drivers, so some of the drivers lose their jobs. If you think that's a good trade off then take it now -- quit and go do something else. It will cause the remaining drivers to be able to command higher compensation. Everybody wants to be the one to get paid more and not the one who loses their job, but some of them will necessarily be wrong.