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Uber's cut, cost of marketing

Discussion in 'Pay' started by KeJorn, Sep 13, 2015.

  1. KeJorn

    KeJorn

    Location:
    Mars
    Driving:
    UberX
    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??
     
    Luberon likes this.
  2. observer

    observer Moderator

    Location:
    long beach
    Because they can...
     
    KeJorn and Luberon like this.
  3. Luberon

    Luberon

    Location:
    Midwest
    Plus you give out promo codes to get more riders...
     
    ArsenalGunner likes this.
  4. KeJorn

    KeJorn

    Location:
    Mars
    Driving:
    UberX
    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.
     
    Last edited: Sep 13, 2015

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