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Uber's cut, cost of marketing

KeJorn

Well-Known Member
I was thinking about this today while driving... Uber is far too savvy at marketing for their own good...

In most businesses, discounts are part of the marketing cost. Correct? You offer a sale or special pricing to drum up more business. The cost is paid by the company because the company wants to establish their brand and market share. Neither the sales team nor the ones performing the services (regardless whether they are employees or independent contractors) pay for the discounts.

Yet when Uber lowers fares to draw more business, they are not paying the cost... WE ARE, the drivers. As a result, not only do we get paid less, we have to drive further to get the same pay, thereby also incurring more operational costs. Last, we already pay Uber 20-30% of the gross sales we produce for access to their system AND MARKETING... So why the TRIPLE WHAMMY??
 

observer

Well-Known Member
Moderator
I was thinking about this today while driving... Uber is far too savvy at marketing for their own good...

In most businesses, discounts are part of the marketing cost. Correct? You offer a sale or special pricing to drum up more business. The cost is paid by the company because the company wants to establish their brand and market share. Neither the sales team nor the ones performing the services (regardless whether they are employees or independent contractors) pay for the discounts.

Yet when Uber lowers fares to draw more business, they are not paying the cost... WE ARE, the drivers. As a result, not only do we get paid less, we have to drive further to get the same pay, thereby also incurring more operational costs. Last, we already pay Uber 20-30% of the gross sales we produce for access to their system AND MARKETING... So why the TRIPLE WHAMMY??
Because they can...
 

KeJorn

Well-Known Member
  • Thread Starter Thread Starter
  • #4
Because they can...
Exactly.
The two things we should be focused on changing:

(1) Demand Fair Uber fares (that do not change at Uber's whim)

(2) Demand that Uber be responsible for marketing costs (including discount rates they want to pass along to drum up business)

One suggestion where the drivers would pay, would be if Uber gave us the ability to provide our best customers a discounted rate at times. THEN, I can see the driver absorbing that cost.
 
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