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The drivers are for sure making money now. But there was a long period where the rides were like 80% cheaper than they are now, in which they clearly were not,
by steveBK123 3y ago
The drivers are for sure making money now.
But there was a long period where the rides were like 80% cheaper than they are now, in which they clearly were not, all-in if they ran the math.
The problem is between the variability, Uber sign on bonuses, insurance arb, bad bookkeeping on their vehicle wear&tear.. it likely wasn't transparent for them.
Basically they had positive looking cashflow I'm sure, but had large unpredictable costs that likely set their hourly rate below minimum wage.
- monocasa 3y agoAlso, the rate the drivers get is pretty much inversely related to the rates the consumer has been seeing. I've heard from many drivers that their pay has dropped considerably podt-IPO. When the services were trying to corner the market with investor money, they subsidized both consumer and driver. Now that money has dried up and the services are predictably squeezing both sides of the equation.