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In a true market the pay for a worker with no special skills will trend towards 0. Uber drivers cannot decide what to charge, Uber does. How much an Uber driver
by coldcode 6y ago
In a true market the pay for a worker with no special skills will trend towards 0. Uber drivers cannot decide what to charge, Uber does. How much an Uber driver makes is entirely up to Uber, and Uber is losing money on every ride so in the long run they have to either increase the price or pay the driver less. My (large) employer pays for my health insurance in the US which has to be added to what we charge. Uber has to pay nothing for any benefits and can cut the wages to just barely enough to not die. From an economic standpoint Uber should go out of business but it does not since it is getting almost free labor and just raises money to make a profit. I see no way this is a market that makes any sense.
- randompwd 6y ago> Uber has to pay nothing for any benefits and can cut the wages to just barely enough to not die. Subversively slipping in the term 'wages' is not arguing in good faith.
- mike00632 6y agoIt would make sense if Uber limited the hours employees could work. Make all of these stories about happy part time workers 100% the case. Or if some drivers work full time then pay for their benefits, let Uber lose more money per ride because that doesn't seem to matter.