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Why would Uber want to incentivize drivers during high demand periods, versus just taking that additional money themselves? The driver has little bargaining pow
by tzier 11y ago
Why would Uber want to incentivize drivers during high demand periods, versus just taking that additional money themselves? The driver has little bargaining power as an employee, so would be forced to work Uber-defined shifts anyway. Uber has enough data now to get pretty close to market equilibrium if they schedule drivers.
Agreed on flexibility being more important when it's not the primary source of income. 'Different drivers have different needs and desires' is really the takeaway here.
And agreed. It's unfortunate that the sharing / on-demand economy are just now bringing light to the nearly 40% of the workforce that is contract/contingent labor. Honestly, I don't think most people appreciate the significant implications the Uber/Lyft lawsuits might have on the labor markets.
- mrxd 11y ago> Why would Uber want to incentivize drivers during high demand periods, versus just taking that additional money themselves? Consumers would revolt, because they hate surge pricing. It is only acceptable because Uber argued that it was necessary to get drivers on the streets. If Uber starts setting shifts, then it looks to the consumer like pure greed. A probable outcome is regulation to cap fares. The main reason to set shifts is to maximize asset utilization, but Uber doesn't own the assets (vehicles), so this isn't an issue.