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The argument I read was that they're charging a higher percentage than the previously-profitable taxi, yet still losing money overall.
by lallysingh 4y ago
The argument I read was that they're charging a higher percentage than the previously-profitable taxi, yet still losing money overall.
- UncleEntity 4y agoPlus, I might add, the drivers are responsible for 100% of the expenses of operating the vehicle. Back when I drove cabs the company owned the car and was responsible for all maintenance and insurance requirements. I just had to put in gas and if it broke down they’d send out a tow truck and give me another car. It was more expensive this way but once I got the lease + gas paid I kept everything I made. Some days I’d have the car paid off in the first couple trips and some days I ended up working for free but I always ended up making enough to pay my rent and eat. I have to take Lyft whenever I’m in Phoenix because they destroyed the taxi industry there and I have a pretty good general idea how much it costs to get places in a cab and Lyft is currently charging as much if not more than the cabs charged while giving the drivers a smaller slice of the pie. Last time I went to visit my parents Lyft charged me ~$50 while giving the driver (IIRC) $18 plus a whole $0.50 gas surcharge for a 23 mile trip. In a cab it probably would have cost $56 (I’m really good at estimating it turned out) which would have all gone to the driver to do with what the will. Beginning of the shift that’s half their lease, end of shift it’d be all profit. The last company I drove for the owner was really good to the drivers and would do things like adjust the lease price depending on the market conditions and he had no problems turning a profit up until Covid hit.