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Strategy to Beat Uber's Drivers Low Pay

Discussion in 'Advice' started by FrankG, Sep 10, 2018.

  1. FrankG

    FrankG

    Location:
    Potomac, MD
    Driving:
    Lyft
    If you have been driving for Uber for a while, you know by now that your pay has been sliding downward. The latest is Uber's ingenious survey asking people questions they already know the answer to about Uber surges. On that basis, they implemented a surge system that pays drivers far less than before (They paid me $1.50 surge on a $28 ride. That's 6% instead of the usual 20% or more).

    There is a strategy that if implemented with enough drivers might reverse this trend.

    First, some background info.

    Uber hired its present CEO Dara Khosrowshahi to set the company to go public in 2019. It's almost a guarantee DK has a highly incentivized contract with Uber that would pay him tens of millions if he turns a healthy profit. For DK to accomplish this, he must do three 3 things:

    1) Increase riders' fares without going over Lyfts' fares.
    2) Decrease Drivers' pay, which is the largest cost.
    3) Streamline company operations by firing people and lowering operational costs.

    This is what DK must do so to prepare Uber to go public. Higher earnings and lower costs will fetch a high valuation for its shareholders and DK will exercise his contract rights to make his millions. Decreasing our pay looms large. The less we make, the more DK will make.

    Because the Uber system is based on supply and demand (Supply of drivers met by rider demand), if supply is affected, it will affect demand. When riders have to wait a while to find a car, they switch to other options.

    Here is the strategy.

    If enough drivers switch to another rideshare like Lyft of Via or any other, it will deplete the supply. Uber will be forced to counter with one of two responses. One is short-term and one is medium-term.

    The medium-term is Uber paying more for existing drivers to tap into friends and families to drive for them. This takes weeks to implement when in fact Uber needs to replenish the supply almost immediately.

    The short-term is that Uber will be forced to provide much better incentives to persuade its base of drivers to rejoin. Thus, the driver pay will improve. If we create a supply shortage, we will make much more money than we are making today.

    For this to work, lots of drivers must switch for a week or two to other rideshares. This week, I am switching to Lyft and abandoning Uber all together. Lyft might not have better pay and their incentives usually suck but this temporary move will dictate new incentives and new income by Uber to offset against DK's move against Drivers' pay. DK will have to settle for less earnings for Uber when the company goes public.

    In the next few months, I will be switching back and forth to disrupt the market's supply. Only then can we be paid better. Follow that strategy and you will see your income rise.

    I welcome any comments.
     
    Babooshka, LyftNewbie10 and MoreTips like this.
  2. Wow you had a well thought out big picture that then became ....I'll show them and not drive for a week.

    Drives should experi2nce other services. In the end passengers will dictate demand based on the best experience and drivers will follow.

    Also unemployment is record low. Even a flat economy will push driver supply way up and passenger miles down.
     
  3. FXService

    FXService

    Location:
    Phoenix
    Driving:
    UberBLACK
    Um a few things.

    1.) There has been attempts at driver strikes since Uber first lowered rates.

    2.) When it comes to CEOs, DK is an absolute all-star. You should really look at his work with Expedia. That man knows how to make a company work very well and make its shareholders happy at the same time.

    3.) For your idea you need a platform with significantly more outreach than UP.
     
    emdeplam likes this.
  4. Y0d4

    Y0d4

    Location:
    New jersey
    I’d rather suffer then just do lyft
     
    Ubering My Life Away likes this.
  5. JimKE

    JimKE

    Location:
    Miami
    This is the REAL strategy for those of you who drive full-time to support your family. Companies are having huge problems finding workers with the right skills. If you have marketable skills, you should have no problem finding a real job, with good pay, and good benefits.

    The idea of a strike is just silly. You couldn't organize a dozen Uber drivers in any market to strike, except maybe in some desperate place in South America or Africa. And even there, the longterm effect would be zero.
     
    Ramblin' Rose, 1.5xorbust and disp350 like this.
  6. disp350

    disp350

    Location:
    SE PA/NJ
    Another newbie to the forum, out to the save the Uber world, is living in a dreamworld and who thinks he's telling us **** that we dont already now....
     
  7. FrankG

    FrankG

    Location:
    Potomac, MD
    Driving:
    Lyft
    You think so? The idea was to expose how collective action (Not strike) could lead to better pay. In this instance, a coordinated effort.
    Will watch my language next post. Thanks for your constructive criticism.
     
    KellyC likes this.
  8. Merc7186

    Merc7186

    Location:
    Buffalo NY
    Driving:
    UberXL
    Man....I just feel bad for this dead horse that we keep beating...havent they had enough already.
     
    Solid 5 and New2This like this.
  9. FrankG

    FrankG

    Location:
    Potomac, MD
    Driving:
    Lyft
    I was not advocating a strike, but a collective effort to influence supply and demand.
    DK is just another CEO with a good success record. At Expedia, DK never had to peg employee salaries against pricing of airlines or hotels. Uber is different. Nonetheless, all indications are that our earnings are inversely affected by an IPO he is aiming for in 2019.

    I have started this week and it is not like Uber at all. Lyft riders are a bit more stressed out I think. Even angrier. No idea why.
     
    KellyC likes this.
  10. disp350

    disp350

    Location:
    SE PA/NJ
    Cuz, the problem is how will you convey these thoughts to everyone. Maybe a few percent of the Rideshare drivers read these forums (their loss). I am all in for changing the way things are. If you can figure a way to reach everyone, I'll be there helping you. And as Merk7186 said, this idea has been stated hundreds of time. I cant get interested or excited til someone figures out a way to make it go. If you can, I'll listen then.
     
  11. FrankG

    FrankG

    Location:
    Potomac, MD
    Driving:
    Lyft

    Share your wisdom with this newbie the
    This newbie is hungry for the wisdom of that oldie. Share it instead of cursing this silly newbie.
     
  12. disp350

    disp350

    Location:
    SE PA/NJ
    Its not that what you saying is wrong, its just that its been talked about forever and there aint **** we can do about it. There is no wisdom to share, you go out and through trial and error do what works for you. That one of the few advantages of this - you get to do this your own way regardless of what anyone else tells you. They lowered rates, we're screwed. They changed the surge - we're screwed. Until the demand for drivers exceeds the supply, your choices are to live with it or find something else to do.

    And you should understand that sarcasm is a way of life in these forums.
     
    New2This and Mista T like this.
  13. HotUberMess

    HotUberMess

    Location:
    Orlando
    Lyft and Uber are so similar in my market that I often forget which platform I picked a rider up under.

    I noticed Lyft has switched to American-based help operators and they are extremely friendly and accomodating.

    Also; those unemployment numbers are bogus. If unemployment were so low, then the number of rideshare drivers would also be low as drivers would turn to better jobs.
     
    gaijinpen likes this.
  14. 1) There is an almost unending supply of drivers for Uber to churn.
    2) They will not, and cannot, raise driver's pay or they will lose more money than they are now.
    3) Rates for pax will keep rising and they'll pay it because they are now used to Uber and won't go back to taxis.
    4) Uber is valuable because of the enormous amount of data they hold about pax behavior, destinations, traffic patterns, etc. This will help the IPO.
     
    uberinatltrafficsux likes this.
  15. There are so many drivers that even if 1,000 drivers in my market (out of just over 10,000 total) were to stop driving for a week, it would not make a difference.

    Uber controls the info, try to get ahold of 30 drivers let alone 1,000, and then getting them to not drive Uber for a week when they have bills to pay, is like pulling teeth.

    Suppose you did somehow get 1,000 drivers to switch to Lyft for a week. Lyft is already oversaturated (just like Uber) and within hours the majority of those drivers would turn Uber on out of necessity.

    I agree with what you say about the economics of Dara, we all know the company has goals that are opposite the drivers.
     
    Solid 5 and New2This like this.
  16. mbd

    mbd

    Location:
    Dallas
    Lyft is doing over 1 million rides per day, and if the growth continues wages will be low
    They did 180 million rides 2016
    They did 360 milliOn rides 2017
    They doubled driver count also
    They are signing up more drivers and doing more runs 2018
    People might pay uber surges at night, but more and more will switch over to lyft for savings, and they have the drivers.

    Looking at the lyft corporate structure thinking , I think you will see them giving little more to the drivers ( either price increase or less takeout) , this way they will keep increasing market share.
     
  17. Christinebitg

    Christinebitg

    Location:
    Houston
    Driving:
    UberX
    I'm going to make a guess. But since I've never driven for Lyft, my guess could be complete silliness.

    My guess is that Lyft riders thought things would be better when they stopped using Uber. "Uber is evil!" right? But then it turns out that nothing is different. Except maybe the waiting times are longer.

    And then there are the riders who got outright banned by Uber for bad behaviour. Stuff like harassing female drivers, or threatening their drivers with bodily harm. Where did they go to? To Lyft, of course.

    Anyhow, those are my uneducated guesses.

    Christine
     
  18. henrygates

    henrygates

    Location:
    TX
    Driving:
    UberXL
    Lyft riders are the worst. I guess their marketing demographic is millennials and crazy people.
     
    Solid 5 and Christinebitg like this.
  19. As I read this, I think one major problem with Uber and Lyft is they buy up companies once they get some cash. I understand invest for the future, but when you use your cash flow to buy "toys" and increase executive pay, it's easier to cut the pay of drivers than take a pay cut yourself or stop buying companies you really don't need.
     
  20. MadTownUberD

    MadTownUberD Moderator

    Location:
    Madison, WI
    Driving:
    UberX
    So ya. The best way to limit driver supply is for everyone who drives full time to realize that it's better to get a "real" job (even if it only pays $10/hr) and drive Rideshare only during the high demand hours each week.

    I've gotten into the habit of driving when it's profitable (surge and/or low dead miles), and when I'm going the same direction as pax (DF), and when I just plain feel like it...and staying offline otherwise. I encourage more drivers to do the same.

    And what the heck is the B*, Mista TMista T ?

    Screenshot_2018-09-13-23-04-41-1.png
     
    Trafficat likes this.

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