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In many cities uber is paying drivers a guaranteed $40 per hour to drive regardless of fares during peak times. In many places uber is currently an unsustainab
by 2anon4this1 11y ago
In many cities uber is paying drivers a guaranteed $40 per hour to drive regardless of fares during peak times.
In many places uber is currently an unsustainable, heavily subsidised operation which would fail in free market conditions, but because of their big stash of VC $$ they are able to survive while eating away at taxi driver market share.
- geofft 11y agoYup, in NYC, Uber is paying a guaranteed $35K/6 months revenue to new drivers (provided they're online 200 hours per month and accept 90% of trips, but you know). I don't know how much of this they expect to pay out, but taxis work really well in this city (compared to, say, SF), so my guess is that they're competing aggressively. If they raised prices instead of subsidizing the shortfall to $35K, would the popular response to Uber be different?