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If Uber gives a driver a ride at a price that's a guaranteed loss for the driver (like in the example) but never shares in that loss then none of Uber's actions

If Uber gives a driver a ride at a price that's a guaranteed loss for the driver (like in the example) but never shares in that loss then none of Uber's actions are motivated by care for riders or drivers but exclusively for the bottom line. The solution for the $5, 45min ride that comes out of the driver's pocket is to guarantee the trip price covers a profit for the driver and let the rider choose if it's worth it. But that would mean fewer trips and lower guaranteed profit for Uber. Anything else is abuse and a lot of rationalizations to put your mind at ease. And if you think I'm wrong, tell me you'd be OK being treated like this as a customer: never knowing what the price will be and not being able to cancel without being taxed or punished. Wait, that's more or less the taxi industry that Uber is ostensibly fixing by turning the tables and putting the drivers and the wrong end of the shit stick. So what was wrong in the past is ok now because you work for the company who affords your salary because of these practices?

lhorie 5y ago
> The solution for the $5, 45min ride that comes out of the driver's pocket is to guarantee the trip price covers a profit for the driver and let the rider choose if it's worth it. But that would mean fewer trips and lower guaranteed profit for Uber. IMHO, a $5, 45 min trip should just never happen. Algos should price that properly and drivers should get more transparency so they can choose to not accept bad terms before it ever becomes about cancelations.
- antisthenes 5y ago
  The absolute bottom cost of a trip should be 58.5 cents per mile, which is what the IRS allows you to deduct for driving for business purposes. And that should be after Uber's cut, not before. We don't need to subsidize car travel any more than it already is, especially by tricking vulnerable workers to slowly trade their asset value for cash.
  - thfuran 5y ago
    That'd be having the driver earn nominally $0 per hour, which seems a bit low to me.
panda-giddiness 5y ago
> The solution for the $5, 45min ride that comes out of the driver's pocket is to guarantee the trip price covers a profit for the driver and let the rider choose if it's worth it. But that would mean fewer trips and lower guaranteed profit for Uber. I'm glad you wrote this comment, but I have a slightly different solution: Uber should just subsidize the ride. Uber brings in billions of dollars in revenue – not every trip needs to be profitable for them. (Of course, not without limits; if a driver is regularly unprofitable, Uber should stop offering them trips or fire them.)
- fastball 5y ago
  Aren't Ubers algorithmically priced per mile / per minute, whichever is higher? Not sure how you could possible have a $5 45min ride. I've certainly never got such a fantastic deal as a rider.
derangedHorse 5y ago
The general idea is that any business will try to optimize for revenue within the law and certain moral hang-ups (or at least the fear of moral hang-ups being captured by the press). The idea, just like with any business, is that if drivers are unhappy then they can choose another job. If enough of them do, Uber will make a change once the number of resignations start affecting the bottom line. I don't know of many companies that would change a policy just to make the driver's happy in a move that might stymie business.

lhorie 5y ago

> The solution for the $5, 45min ride that comes out of the driver's pocket is to guarantee the trip price covers a profit for the driver and let the rider choose if it's worth it. But that would mean fewer trips and lower guaranteed profit for Uber. IMHO, a $5, 45 min trip should just never happen. Algos should price that properly and drivers should get more transparency so they can choose to not accept bad terms before it ever becomes about cancelations.

antisthenes 5y ago
The absolute bottom cost of a trip should be 58.5 cents per mile, which is what the IRS allows you to deduct for driving for business purposes. And that should be after Uber's cut, not before. We don't need to subsidize car travel any more than it already is, especially by tricking vulnerable workers to slowly trade their asset value for cash.
- thfuran 5y ago
  That'd be having the driver earn nominally $0 per hour, which seems a bit low to me.

panda-giddiness 5y ago

> The solution for the $5, 45min ride that comes out of the driver's pocket is to guarantee the trip price covers a profit for the driver and let the rider choose if it's worth it. But that would mean fewer trips and lower guaranteed profit for Uber. I'm glad you wrote this comment, but I have a slightly different solution: Uber should just subsidize the ride. Uber brings in billions of dollars in revenue – not every trip needs to be profitable for them. (Of course, not without limits; if a driver is regularly unprofitable, Uber should stop offering them trips or fire them.)

fastball 5y ago
Aren't Ubers algorithmically priced per mile / per minute, whichever is higher? Not sure how you could possible have a $5 45min ride. I've certainly never got such a fantastic deal as a rider.

derangedHorse 5y ago

The general idea is that any business will try to optimize for revenue within the law and certain moral hang-ups (or at least the fear of moral hang-ups being captured by the press). The idea, just like with any business, is that if drivers are unhappy then they can choose another job. If enough of them do, Uber will make a change once the number of resignations start affecting the bottom line. I don't know of many companies that would change a policy just to make the driver's happy in a move that might stymie business.