Everyone I know personally that worked for Uber as their primary income had serious financial problems. The arrangement should not be legal. One of our friends vehicles was mechanically junk after a few years of Uber. Another couldn’t pay her regular bills. They also don’t hold taxes for you and most drivers struggle to prepare for that hitting them with unexpected tax bills. The app creates misleading incentives to keep you on the road during times when it is unsafe to do so. I’m not positive but it sounds like you’re not making much more than minimum wage after you factor in vehicle depreciation and fuel. Gig jobs needed to be regulated a decade ago. Let them leave and make bigger investments in public transit.
Comment on Lyft and Uber say they will leave Minneapolis if the mayor signs a minimum wage bill for drivers
ShellMonkey@lemmy.socdojo.com 1 year ago
I’ve never used or worked for either so legitimate question for anyone who has worked with such, what’s the split on a ride between the app owners and the drivers? I should hope that the driver takes the majority since they’re the one taking the risk, time, maintinance, stress and all that. My general understanding is that these services tend to be cheaper than a traditional taxi but less regulated so I get there’s contention there.
Basically I’m hoping that the drivers aren’t in one of those ‘living off the tips’ situations like servers in resturaunts while the companies vacume up all the fees.
andrew@midwest.social 1 year ago
Sestren@lemmy.world 1 year ago
Generally the driver gets the majority of the ride cost, but their earnings vary a lot by region/time. If you’re just asking if it’s a good job, then the answer is a resounding no. I did it for a few months a couple years ago, and I have a friend who has done it as his full time job for the past 6 years or so. No change that Uber/Lyft makes is ever designed around benefiting the driver. You can safely assume that any new policy is going to make you earn less than you were before.
At the end of the day, you are not fairly compensated for vehicle wear and tear, fuel consumption is not factored properly for all rides, certain arbitrary locations pay more or less and require unpaid relocating to actually land rides, etc. The best is when you take a 2 hour trip only to find out after drop off that you aren’t allowed to pick up new rides in that area and that you need to spend nearly the same amount of time getting back to an area you’re qualified to drive in. I think that one at least has been mostly resolved since I drove years ago, but you get the idea…
SHITPOSTING_ACCOUNT@feddit.de 1 year ago
In the beginning when Uber moves into a new region, they pay drivers well to get drivers onboard, and charge riders little to get riders onboard. This also makes competitors like taxis less attractive and makes Uber really popular, making it hard for the city to push back.
So drivers might be getting more than riders are paying, with Uber subsidizing the entire thing! If your city is in this phase, it’s great for riders and drivers.
Once they’re established though, and the competitors have been pushed out, and people learned that Uber is awesome and cheap compared to taxis, they start raising prices and reducing driver pay. To keep enough availability they need to hire new drivers, which means their quality standards drop, and they use increasingly creative strategies down to debt slavery (desperate drivers lease/rent their car - which can be their only vehicle and which they may need to get to work or exist in general in a car centric area - from Uber, at “very favorable” rates. But then they have to keep driving for Uber or lose the car.)
www.theguardian.com/…/uber-loan-program-debt
They also exploit that most people don’t realize the true cost of a car. They only look at gas, not the wear and maintenance of the car. And if you look at what Uber pays, deduct only gas, and consider the rest income, it looks like a good deal, while in reality they might be selling their car to Uber one kilometer at a time and working effectively for free.
As I understand it there isn’t a direct share of the ride price or anything like that. The amounts Uber pays to drivers and charges from riders are decoupled to the point where even way it’s calculated (e.g. actual distance vs. scheduled distance) could differ between driver and rider. The driver side fare system is different per city/region.
cheesemonk@lemmy.world 1 year ago
I’ve told two friends who were considering driving for Uber that it’s sort of like taking equity out of your vehicle (yes I know vehicles aren’t an asset really but for the purpose of this example it helps to think about their value as equity) in the form of lifespan and maintenance and putting it in to your pocket.