Can we create a system where drivers keep all of their pay?

Hi Guys,

Does anyone have any ideas on how we can help drivers keep all of the fare?

I have some ideas, but wanted to here what you have to say?
 
  • Thread Starter Thread Starter
  • #4
Well, I was thinking something like this... I run an app company that does Rideshare Advertising, something we have thought about is allowing drivers to collect all the fares, and in return we are allowed to advertise in the vehicle, we would run the app and drivers would be independent. Thoughts?
 

painfreepc

Well-Known Member
Who is going to pay for and do marketing,
Who is going to pay for and admin the servers,
Who is going to pay for the lawyer, sorry lawyers,
Who is going to pay the csr's,
Who is going to pay for the gov pay-offs, sorry i live in the real world,
Who is going to pay for the (driver errors) refunds,
Who is going to pay for the changebacks,
Who is going to pay credit card processing fees,
(I had my own merchant account with wireless terminal long before SquareUp, many fees the CC processing company can hit you with.)
 
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UberHammer

Well-Known Member
Past Sponsor
Who is going to do marketing,
Who is going to pay for the servers,
Who is going to pay for the lawyer, sorry lawyers,
Who is going to do for the csr,
Who is going to pay for the servers,
Who is going to pay for the changebacks
Who is going to pay for the (driver errors) refunds
The above is why have no issue surrendering 20% of the fare in exchange for not having to deal with any of those things. Just the credit card processing alone is 3% of the fare, so TNC is already down to 17% to provide those things.

My issues with Uber are:
1) The rates are TOO LOW!!!
2) The SRF was introduced so Uber could lower rates without surrendering it's own income. Uber doesn't take 20% anymore. It takes 20 to 40% now. I typically only get 70% of the fare.
3) too many more to list. The two above are enough to establish where Uber is failing, and why 20% is a fair exchange for those services.
 

Another Uber Driver

Well-Known Member
Moderator
Who is going to do marketing,
Who is going to pay for the servers,
Who is going to pay for the lawyer, sorry lawyers,
Who is going to do the csr,
Who is going to pay for the gov pay-offs, sorry i live in the real world,
Who is going to pay for the changebacks
Who is going to pay for the (driver errors) refunds,

If the advertising firm is going to run the application, I would guess that it would pay for the servers. That would be the easy part, and, cheap part, at least "cheap" compared to everything else that you list.

The lawyers will get expensive. If you are in the transportation business, you will be sued. Scream and holler about being an "advertising" or "technology" company all that you will. You are sending drivers to pick up passengers, therefore you are a transportation company, regardless of what you choose to call it. If you plan on going nationwide, you will need high powered lawyers; those are even more expensive than rinky-dink lawyers, who are expensive enough. Can advertising revenues pay for high powered lawyers?

CSRs must be paid, as well. Even if you outsource it, you will pay. If the drivers are not satisfied with the CSRs, they could leave.

Your statement about payoffs is more true than you suspect. It matters not if the payoffs come in the form of outrught bribes, "campaign contributions" or anything in between; payoffs are payoffs.

If you make drivers eat the chargebacks, you could lose them. To be sure, some of the companies will delay payments to the drivers in the event of a bad card or a false dispute from the customer, but, eventually, they do pay the driver. The TNC eats the bad card. The TNC will suspend the customer's account until he makes it good, but, I suspect that each TNC does wind up eating more than one bad card trip in a year.

Someone must handle customer complaints and you will need to pay for that.

You forgot to add "who pays for the credit card processing fees?" In the cab e-Hail business, only Uber pays the credit card fees, although, it does cover those fees in the funds deducted from the driver payouts.. MyTaxi used to charge the drivers a fee if the customer paid through the application. Hail-O used to charge both driver and customer a fee. The only way to use Hail-O was to pay through the application.


Can in-car advertising revenues pay for/cover all of this? If so, go for it. Let me know when you come to the Capital of Your Nation. As long as I do not have to do fist-bumps and call my passengers "Jimbomeister" and "Debster", I will sign up.
 
  • Thread Starter Thread Starter
  • #9
I just wanted to say, great feedback.

I don't have answers to all of your questions, but I do think that it is possible and appreciate the feedback.

James
 

Lack9133

Active Member
Hi Guys,

Does anyone have any ideas on how we can help drivers keep all of the fare?

I have some ideas, but wanted to here what you have to say?
It sounds like you're trying to recreate the current taxi business model. Drivers pay a weekly lease plus a few other costs to driving but get to keep the entire fare. The taxi company pushes the trips through their dispatching and smartphone application systems to get passengers and drivers into vehicles and in turn make money off both drivers and advertisers.
 
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