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Uber admits driver 'dissatisfaction' and workplace culture are IPO risk factors

SLuz

Well-Known Member
311374

From the article
(Disgruntled drivers

The giant elephant in the room with Uber has always been its treatment of drivers, which it has long classified as “independent contractors”, making them ineligible for minimum wage, overtime, worker’s compensation insurance and other benefits. In the disclosures, Uber notes that if it is forced to start classifying drivers as employees, it will have to “fundamentally change” its business model.

The company acknowledges that many of its drivers are unhappy, writing: “While we aim to provide an earnings opportunity comparable to that available in retail, wholesale, or restaurant services or other similar work, we continue to experience dissatisfaction with our platform from a significant number of Drivers.”

And it points out that it is likely to make the drivers even more unhappy in the future, both because it is investing in autonomous vehicles to reduce the numbers of drivers it needs, and because it plans to reduce payments to drivers in order to increase its chances of turning a profit: “As we aim to reduce Driver incentives to improve our financial performance, we expect Driver dissatisfaction will generally increase.”)
 

SatMan

Well-Known Member
And it points out that it is likely to make the drivers even more unhappy in the future, both because it is investing in autonomous vehicles to reduce the numbers of drivers it needs, and because it plans to reduce payments to drivers in order to increase its chances of turning a profit: “As we aim to reduce Driver incentives to improve our financial performance, we expect Driver dissatisfaction will generally increase.”)
 

dnlbaboof

Well-Known Member
independent contractor is way better, keep it that way. you can write off miles, work when you want, not accept pool.....being an employee will ruin that. What I fear is they will never increase the rate per mile, just increase the cut uber takes from the driver as their growth is somewhat based on giving dirt cheap rides
 

father of unicorns

Well-Known Member
independent contractor is way better, keep it that way. you can write off miles, work when you want, not accept pool.....being an employee will ruin that. What I fear is they will never increase the rate per mile, just increase the cut uber takes from the driver as their growth is somewhat based on giving dirt cheap rides
Uber can increase what drivers receive per mile, by lowering what Uber earns per trip. These self driving vehicles will see limited rollout in big cities. Uber will still need real people to drive to earn profit.
 

touberornottouber

Well-Known Member
The company acknowledges that many of its drivers are unhappy, writing: “While we aim to provide an earnings opportunity comparable to that available in retail, wholesale, or restaurant services or other similar work, we continue to experience dissatisfaction with our platform from a significant number of Drivers.”
This is corporate code for "we only want them to make minimum wage no matter how much revenue they are generating".

IOW they want to charge the passenger $100 but pay you $5.
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How low can they go? There’s a point where drivers will not be able to drive. In many cases that point has been reached.
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They say that If Driver classification shifts from independent to Employee it will change entire business model.
I know I have already been losing lots of motivation. Absent a long 45+ trip it really doesn't seem worth it anymore. I don't see the point of giving a bunch of $3-$5 rides. Especially not with gas going up. My profits are miniscule on these trips and unfortunately most of the trips they try to give me are these crap runs.
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And it points out that it is likely to make the drivers even more unhappy in the future, both because it is investing in autonomous vehicles to reduce the numbers of drivers it needs, and because it plans to reduce payments to drivers in order to increase its chances of turning a profit: “As we aim to reduce Driver incentives to improve our financial performance, we expect Driver dissatisfaction will generally increase.”)
But leave it to the idiots here to not support a union or trade organization because tthe GOP tells them it is "Socialism". Yeah, so let's just all work for 30 cents a mile then, eh?
 

Pegasus

Member
How low can they go? There’s a point where drivers will not be able to drive. In many cases that point has been reached.
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They say that If Driver classification shifts from independent to Employee it will change entire business model.
This is already underway here in the UK. Read: https://www.theguardian.com/technology/2018/dec/19/uber-loses-appeal-over-driver-employment-rights

The Court of Appeal in London granted leave to further appeal this majority decision, and the case now moves to the Supreme Court.

We shall see what happens. AFAIK the first case of its kind involving UBER.
 

I_Like_Spam

Well-Known Member
Achieving loyalty with both the drivers as well as the passengers are the keys to Uber's future success. Failure to do this could definitely mean failure to the enterprise.

If Uber could sign the pax to longterm contracts and impose involuntary servitude on the drivers, that could resolve these problems. But actual implementation of these ideas poses problems too.
 

Superuser

Active Member
The price of fuel has been constantly going up so we are already making less. If Uber drops the driver pay, this gig will definatley not be
worth it. But you still have thousands of Uber ants that will drive for any amount. Wow, It just keeps getting better and better.
 

applesvt

Member
they are in the business of making mone and now making money for shareholders. Any compnay that is publiclay traded has that goal in mind, make money for the shareholders. Tthey don't care how they do it. this is not surprising at all.
 

Toocutetofail

Well-Known Member
This is corporate code for "we only want them to make minimum wage no matter how much revenue they are generating".

IOW they want to charge the passenger $100 but pay you $5.
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I know I have already been losing lots of motivation. Absent a long 45+ trip it really doesn't seem worth it anymore. I don't see the point of giving a bunch of $3-$5 rides. Especially not with gas going up. My profits are miniscule on these trips and unfortunately most of the trips they try to give me are these crap runs.
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But leave it to the idiots here to not support a union or trade organization because tthe GOP tells them it is "Socialism". Yeah, so let's just all work for 30 cents a mile then, eh?
Los Angeles and Orange County forum is full of Uber corporate shills or employees whose sole purpose is to have drivers internalize Uber BS
 

sadboy

Well-Known Member
They can go as low as they want, ants will be ants...
People will do just about anything out of desperation....
 

I_Like_Spam

Well-Known Member
They can go as low as they want, ants will be ants...
People will do just about anything out of desperation....
I don't know about this. I have a feeling that this may just be a fad.

When I was driving a cab, it was in post-steel-collapse Pittsburgh where jobs were hard to find. Many of my age peers skipped town.

But Yellow Cab had a helluva time keeping warm bodies behind the wheels of their taxis. I did not do bad at all, I was using their vehicle, everyone tipped and the payments were all in cash. No GPS, the supervision was minimal.

For some reason, hacking was just something people didn't want to do.

Uber made driving people around so popular that they are willing to use their family cars as cabs in record numbers.

But that popularity is likely to fade, just like those who invested in the Beanie Baby fad of the late 1990's for their retirement found out when that bubble bursted.
 
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