Subsidizing Billionaires - Australian Research pdf

Driver--

New Member
here is some research from Australia.great info in here and accurate for australia.

Drivers Income Below the Minimum,the lower it goes the better for Pax and for Uber ==>> More Pax,Pax spend more as trips are so cheap ==>> More Revenue ==> HIGHER COMPANY VALUATION ==>> pre IPO investors who own some % of the shares are worth more,each share worth more ==>> many billionaires,3 million poorly paid drivers

DRIVERS PAY FOR THIS with no reward of shares or anything else
Yes read that Uber was planning on offering shares to some drivers,but its very little compared to what the drivers have provided free to Uber (loss of income)

THESE BILLIONAIRES ARE BEING SUBSIDIZED BY WORKING PEOPLE
drivers provide excellent service while not getting paid enough so they could become billionaires......
Uber should be providing cash to all its drivers in stead of disrespecting them contunuously and taking advantage of them as they think they are stupid



IF uber had to back pay all the drivers that were underpaid,uber would be BANKRUPT
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IF uber had to back pay all the drivers that were underpaid,uber would be BANKRUPT,says a lot about their valuation
 

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Driver--

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quoted from p18-19:
Another way of understanding the artificially low incomes paid to Uber drivers, is to view their underpayment as a form of subsidy to the business they work for. This subsidy is extracted from drivers, perhaps unwittingly and unwillingly, and is crucial to the company’s aggressive growth strategy (which has relied on a fare structure which undercuts established taxi providers). It turns out, in fact, that the subsidy provided to Uber by its drivers is a crucial component of Uber’s pricing advantage over its traditional rivals.
If Uber drivers were paid according to the weighted average award minimum hourly wage rate, their net income received (after all operating costs and fees) for the benchmark fare simulated above would have to increase by $8.77 – to a total net income of $17.06. That $8.77 represents the value of the subsidy which drivers effectively transfer to Uber on that benchmark fare through their provision of labour at rates below normal minimum standards (see Table 4).
Put differently, in order to pay Uber’s drivers according to the statutory minimum wage, but at the same time preserve Uber’s margin, the total fare for the benchmark ride described above would have to increase by 37 percent (to a six-city average total of over $32). That would wipe out most of the cost advantage which Uber’s current fare structure has provided it relative to traditional taxi operations. In other words, the effective subsidy which Uber drivers provide to the company through their provision of below-award wage rates accounts for almost all of the lower prices which Uber typically charges for its service.
On an aggregate basis, the cumulative value of the subsidy paid to Uber by its Australian drivers (through their below-minimum-wage incomes) amounts to hundreds of millions of dollars per year. Roy Morgan Research estimates that Australians take almost 4 million Uber rides per month, or over 45 million per year.21 Even an average per fare wage subsidy half as large as that estimated in Table 4 above,22 would produce a combined aggregate subsidy for Uber of approximately $200 million per year from its Australian drivers.

i.e. agregate subsidy from Australia alone would be approximately $400m per year

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everythingsuber

Well-Known Member
Been around a while I think the earnings are a little less now than then but you get the general idea of how things work and it shows how important it is that Uber can churn drivers over easily as they fall over.
 

Lee239

Well-Known Member
Billionaires have and always will be subsidized by working people. The middle and working class are the ones who keep the economy going with their spending. The billionaires just take profits and hoard them.
 
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