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Uber make grandiose claims about the amount their drivers can earn, these claims have been demonstrated to be false, Uber drives down the cost of using Uber whi
by citricsquid 12y ago
Uber make grandiose claims about the amount their drivers can earn, these claims have been demonstrated to be false, Uber drives down the cost of using Uber which in turn drives down the amount that drivers earn[1]. Driving for Uber is uneconomical for some drivers in some areas, if the trend continues more and more drivers for Uber are going to find it uneconomical. If the concern the taxi drivers have is that they are going to lose their career, Uber is certainly not a viable alternative, because while it may provide a job right now who knows what it will provide in a years time.
[1] http://uk.businessinsider.com/uber-drivers-say-theyre-making-less-than-minimum-wage-2014-10?r=US http://uk.businessinsider.com/uber-drivers-say-theyre-making...
- kartikkumar 12y agoThat's interesting, and at the same time perplexing. This seems to be a market that is opening up, with multiple options for drivers. If it's truly the case that a significant number of Uber drivers are struggling to make ends meet when working full-time, sure this should lead to an exodus? This is suggested right at the end of the article: > There's no way you will stay with Uber if you want to make ends meet. So either Uber will fix things, or drivers will leave." I don't know what contractual obligations are forced onto drivers so maybe they're tied up for a certain period of time. The following quote from the article though suggests that it shouldn't be the case: > Uber is not obligated to pay its drivers minimum wage; the drivers aren't employees, they're independent contractors. Neither do I know if there is a "non-compete" clause of some sort that prevents them from working for Lyft, Sidecar, or even reverting back to traditional taxi services. The article suggests that at present this is not the case: > "Right now, the TLC is open, so you can work with multiple bases," Diallo tells us. " All in all, I find the business case for Uber intriguing because I don't fully understand the fuss. Admittedly, this is likely to my lack of understanding of the powerplay behind all of this, but I struggle to understand how drivers have gone from the "no-Uber world" to the "I-rely-on-Uber-and-can't-get-away-and-can't-make-ends-meet-world".
- jryle70 12y agoThe question is, why is it unsustainable for Uber drivers? can someone else disrupt Uber down the road and give the drivers a better option, if it's indeed Uber who drives down the earning potential for individual drivers?