• UberPeople.NET - Independent community of rideshare drivers. It's FREE to be a person and enjoy all the benefits of membership. JOIN US! CLICK HERE

How do drivers COST rideshare companies thus nearly bankrupting them....

BeansnRice

Well-Known Member
Can some one show the accounting that shows drivers as a liability and NOT an asset or at least revenue?

I fail to see the great expense I COST U/L on a per ride basis.

What am I missing?

In fact autonomous vehicles won’t pay a platform fee now charged to riders and drivers on every ride.

U/Lwon’t be able to double charge the pax to make it up either.

Anyway, please show the math if you know it.
 

BeansnRice

Well-Known Member
  • Thread Starter Thread Starter
  • #3
L=B-(R*.42)-(V+F)-J

Translated: If there were no drivers giving rides then U/L would be losing less money. Not necessarily making money, but losing less.
1) who would be giving the rides then?
2) getting drivers to contribute the vehicle expenses already puts U/L way up
3) you can’t GET MONEY if no one goes and gets it .... We provide a service therefore it will always cost something

So where is the net loss the human driver causes again?
 

TheDevilisaParttimer

Well-Known Member
Can some one show the accounting that shows drivers as a liability and NOT an asset or at least revenue?

I fail to see the great expense I COST U/L on a per ride basis.

What am I missing?

In fact autonomous vehicles won’t pay a platform fee now charged to riders and drivers on every ride.

U/Lwon’t be able to double charge the pax to make it up either.

Anyway, please show the math if you know it.
All drivers are technically liabilities since we cost Uber money.
 

hrswartz

Well-Known Member
Can some one show the accounting that shows drivers as a liability and NOT an asset or at least revenue?

I fail to see the great expense I COST U/L on a per ride basis.

What am I missing?

In fact autonomous vehicles won’t pay a platform fee now charged to riders and drivers on every ride.

U/Lwon’t be able to double charge the pax to make it up either.

Anyway, please show the math if you know it.
L=B-(R*.42)-(V+F)-J

Translated: If there were no drivers giving rides then U/L would be losing less money. Not necessarily making money, but losing less.
1) who would be giving the rides then?
2) getting drivers to contribute the vehicle expenses already puts U/L way up
3) you can’t GET MONEY if no one goes and gets it .... We provide a service therefore it will always cost something

So where is the net loss the human driver causes again?
Does ANYONE understand humor these days? just askin'
 

jaxbeachrides

Well-Known Member
When you subsidize any product to the extent of giving it away for free or below marginal cost, you will perpetually operate at a loss.

There is a reason there was not already a nationwide or worldwide monopoly on transportation.

Its a tough business with inconsistent earnings. Not like food, alcohol or real estate where people eat, drink, and habitate all of the time.

People can get free rides. And we're giving it to them. Buy a car for 5k, put license tag title registration insurance gas oil change / maintenance / cleaning + your time, money and still get sued / liable if anything goes wrong.

On top of all that you're going to give away free ride vouchers for a decade and offer unlimited referral bonuses.

You see where this is going. Its a bottomless money pit and always has been. Always wil be.

Only way to make any money in this business is to charge 20-30 dollars for every ride. No matter where it goes. Thats the only way to effectively cover your cost of doing business plus labor. Its not the length of the ride that is expensive. Its everything else.
 

TheDevilisaParttimer

Well-Known Member
1) who would be giving the rides then?
2) getting drivers to contribute the vehicle expenses already puts U/L way up
3) you can’t GET MONEY if no one goes and gets it .... We provide a service therefore it will always cost something

So where is the net loss the human driver causes again?
You miss understand what is an asset and what is a liability. Just say Uber needs us and keep it simple.
 

hrswartz

Well-Known Member
Only way to make any money in this business is to charge 20-30 dollars for every ride. No matter where it goes. Thats the only way to effectively cover your cost of doing business plus labor. Its not the length of the ride that is expensive. Its everything else.
I know you really don't mean EVERY ride do you... Had a ride recently from PA to NYC... damned if I'd taken that trip for $30.00... just sayin'
 

Friendly Jack

Well-Known Member
So where is the net loss the human driver causes again?
As mentioned previously, if there were no drivers giving rides then Uber and Lyft would be losing less money because they are losing approximately 30 cents per dollar of human driver ride revenue realized. They would not be growing their business, but they would be losing much less money.

Think of drivers as cake mix. If it costs your bakery $1 worth of cake mix to bake a cake that you forever sell for 70 cents, then you would be much better off not ever using any cake mix. If no one else in town baked cakes, however, and you could therefore better control the cost of the cake mix, you could eventually raise the price of your cakes (to make a profit) and hope that people would continue buying cake at the higher price. But for now, there are other bakeries in town using the same or similar cake mix so you keep selling your cakes at a loss, hoping to put the other bakeries out of business before you go out of business yourself. "If I could just make cake without cake mix", you say, "I could stop losing money on every cake I sell. That cake mix is ruining me!" So, your baker scientists continue working on a substitute for cake mix that you can produce yourself and costs only half of what the current cake mix costs. That will solve all of your problems. Until then, you have to keep using the current cake mix and losing money on every cake.
 

2Cents

Well-Known Member
As mentioned previously, if there were no drivers giving rides then Uber and Lyft would be losing less money because they are losing approximately 30 cents per dollar of human driver ride revenue realized. They would not be growing their business, but they would be losing much less money.

Think of drivers as cake mix. If it costs your bakery $1 worth of cake mix to bake a cake that you forever sell for 70 cents, then you would be much better off not ever using any cake mix. If no one else in town baked cakes, however, and you could therefore better control the cost of the cake mix, you could eventually raise the price of your cakes (to make a profit) and hope that people would continue buying cake at the higher price. But for now, there are other bakeries in town using the same or similar cake mix so you keep selling your cakes at a loss, hoping to put the other bakeries out of business before you go out of business yourself. "If I could just make cake without cake mix", you say, "I could stop losing money on every cake I sell. That cake mix is ruining me!" So, your baker scientists continue working on a substitute for cake mix that you can produce yourself and costs only half of what the current cake mix costs. That will solve all of your problems. Until then, you have to keep using the current cake mix and losing money on every cake.
What you failed to mention is that after you sold cake mix at .70 driving out all local businesses you raised the prices and still had the same number of customers (actually increase in customers) and kept all of the increases for your self and did not pass any of the increased earnings to your baker. Remember you don't have any employees, even though they perform the civic duties of employees the bakers get paid by each unit they produce. So in essence , you never really lost money it was done so that your competitor Mr Yeasty Buys up the street who has been in business for 30 years paying his employees, paying his duties, paying for his insurance can close shop.
Forgot that part.
 

FLKeys

Well-Known Member
Some drivers are assets and some drivers are liabilities. Just like at any business some employees are assets and some are liabilities.

In theory drivers should be assets without drivers what funnels earnings into the company?
Just because a company loses money year after year does not mean it is going bankrupt.
 

mbd

Well-Known Member
L=B-(R*.42)-(V+F)-J

Translated: If there were no drivers giving rides then U/L would be losing less money. Not necessarily making money, but losing less.
Lyft is losing 1.50 a ride, down from 2 , few quarters back . They can cut autonomous project, cut advertising cost and stop giving out free S***= close That 1.5 gap big time
 

Top