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Uber is dropping rates for drivers down from 80 cents/mile to 60 cents/mile

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Re: Uber is dropping rates for drivers down from 80 cents/mile to 60 cents/mile

#141
post #65

Earlier quoted context omitted.

Huh? For most people the delay from paycheck to rent payment is weeks to months, and the inflation suffered on that money is less than one percent. How would locking the amount of money affect that in any notable way? And a housing bubble can still happen in a deflationary economy. Money can still move from the workers to the rich. The effective price goes up even if the dollar amount doesn't.

Inflation was not the point, cheap loans = cheap mortgages = expensive houses.

You don't need to print money to have cheap loans. And isn't a very large amount of the pressure behind property prices people trying to invest?

Re: Uber is dropping rates for drivers down from 80 cents/mile to 60 cents/mile

#142
post #106

Earlier quoted context omitted.

So would the tech workers cut 10% of their salary and gift it to those working for low pay in other roles? I think it's overwhelmingly no. The option where the company shareholders take less profit is not even on the table - and that's what needs tackling, and the only way to tackle that is via a mix of govt welfare and unions. But the cultural narrative has shifted to the right so much that even mentioning the word…

If I gave up 10% of my salary and someone else making much less got to raise of the equivalent of my 10%, I'd do it in a heart beat.

I can start a Patreon account right now if you want and you can put your money where your mouth is...

Re: Uber is dropping rates for drivers down from 80 cents/mile to 60 cents/mile

#143
post #139

I just got back from Brazil. There is a startup ride sharing service called 99 that is interesting. As a comparison, a ride that costs 40 R$ (~$12 USD) on Uber will cost half that on 99. And, I heard while I was there that incredibly 99 pays the drivers more. I don't know if this is a technical advancement that 99 hasn't needed to make the massive investment that Uber did now that lots more is understood about the ri…

in Colombia, there's an app that allows the person soliciting the ride to offer a price, then various drivers can either counter offer or take the fare as bid

Re: Uber is dropping rates for drivers down from 80 cents/mile to 60 cents/mile

#144
post #26

The IRS deduction for business vehicle use in 2019 is 58 cents per mile. So they have effectively reduced the per mile payment to the cost of operating the vehicle. Seems like they are on the verge of turning driving for Uber into a reverse mortgage for your car.

And quite frankly the business model might be to just bank on a steady supply of ex-criminals who have a hard time getting other work and may not understand the financial arrangement they are entering into. Exploit them for a while and when they realize they aren’t making money, just chalk it up to built-in turnover and on to the next unwitting driver.

> Exploit them for a while and when they realize they aren’t making money

Between all the happy drivers who you begin to notice are just 2 weeks in, and also knowing they are homeless while they are driving in this area makes it harder to support the service

But there is also a reason they drove 100 miles from Sacramento and turned on the app.

Re: Uber is dropping rates for drivers down from 80 cents/mile to 60 cents/mile

#145

Earlier quoted context omitted.

It doesn’t need to, but that same developer that will jump ship for a pay rise will also jump ship if their pay is cut to afford higher rates for the workers bringing the actual value to the company. Why should I take a 50% pay cut just so the people driving the cars earning our incomes can afford to eat?

Because the people that pay your income so that you can afford to eat also make an income so that they can afford to eat. As a developer who could "jump ship" to get a pay raise, I feel like I'm at a point where I understand too much is too much and there are a billion other people who need out attention. You don't need seven figures, no one does. We all want different things. So why not let people respectfully wish…

honest question, would you be willing to do exactly that - jump ship then give your too much to e.g. charity?

won't help systematically but it seems like a way to personally work towards the mission you've outlined.

Re: Uber is dropping rates for drivers down from 80 cents/mile to 60 cents/mile

#146

My brother works for uber, He is 54 years old smokes a pack day and has had 2 heart attacks. He drives a Cadillac and pays $500-month for commercial insurance and has a monthly payment for his car. He has TLC plates to work in NYC ( fees apply) he makes about $300 a day works like a dog 12-14 hours a day. All of his friends are the same (uber drivers in NYC) Here you have the typical uber driver who does this for a l…

I’m sorry about your brother, but I’m not going say Uber’s responsible for his heart attacks and pack a day cigarette habit. Uber might be short changing him on money but you can’t blame them for poor lifestyle decisions.

Re: Uber is dropping rates for drivers down from 80 cents/mile to 60 cents/mile

#147

Earlier quoted context omitted.

They aren't profitable because they're burning money on crap outside of matchmaking riders with drivers.

Do you actually have numbers to support that assertion? I have a hard time believing it.

What do you need to support the assertion? The operating costs of a 'match x with y' service are negligible compared to Uber's revenue take.

They're pissing all that money away on loosely related r&d and their hopes/dreams of an autonomous future. They now also need to somehow continue justifying their mind boggling 72 billion dollar valuation.

I expect in the coming years Uber will die and be replaced by a service that works exactly the same way but for a far smaller revenue take and without any of the lofty ambitions.

Re: Uber is dropping rates for drivers down from 80 cents/mile to 60 cents/mile

#148
post #139

I just got back from Brazil. There is a startup ride sharing service called 99 that is interesting. As a comparison, a ride that costs 40 R$ (~$12 USD) on Uber will cost half that on 99. And, I heard while I was there that incredibly 99 pays the drivers more. I don't know if this is a technical advancement that 99 hasn't needed to make the massive investment that Uber did now that lots more is understood about the ri…

in Colombia, there's an app that allows the person soliciting the ride to offer a price, then various drivers can either counter offer or take the fare as bid

Sounds pretty similar to Flywheel

Re: Uber is dropping rates for drivers down from 80 cents/mile to 60 cents/mile

#149
post #78
post #21

This must impact quality at some point. Either driver competence will decline or vehicle maintenance will be dangerously put off.

When I take a Lyft or Uber ride the vehicle is frequently showing some sort of warning light or overdue maintenance indicator on the dashboard.

Speaking as a tire/lube shop technician, a large percentage of the general populace has a warning light of some sort on at any time... Maybe %20 (that we see, if course) in our coverage area, which is a 20k population city and the surrounding rural area.

Re: Uber is dropping rates for drivers down from 80 cents/mile to 60 cents/mile

#150
post #37

Earlier quoted context omitted.

> A slave owner gives an otherwise hungry man food and housing. That doesn't mean slavery is at all justifiable. Slave by its very definition implies lack of choice by the other person. > Uber pays people who otherwise might not have a job at all. That doesn't mean paying them incredibly low wages is something that should be free of criticism. Yes, actually, it does mean that. That's the nature of choice . If someone…

I'm not following your logic, are you suggesting you wouldn't ask for a raise? There are a lot of moving pieces. The abolishment of slavery didn't end slavery and it's conditions. It changed the name and the rules. Many slaves became trapped in indentured servitude without enough pay to cover the cost of housing. https://en.m.wikipedia.org/wiki/Indentured_servitude Eventually this became illegal as well, another tact…

> I'm not following your logic, are you suggesting you wouldn't ask for a raise?

A raise is a negotiation. You ask for a raise, they say yes or no. If they say no, you go find another job that pays what you want, and you take that one instead. Which is why, when you have that option, they may say yes to begin with.

> That may mean better services to provide jobs or providing a minimum pay with which basic needs can be guaranteed.

Expecting this to be provided by the employer of last resort is ridiculously inefficient.

The underlying problem is that the cost of living is more than the value of the labor of some people. The two main solutions that are to reduce the cost of living (e.g. housing costs), or to give up and subsidize their compensation somehow as a humanitarian gesture. The first is vastly preferable, but even when you resign yourself to the second, you want something like a UBI rather than price controls because it spreads the burden more evenly across everyone rather than imposing it only on the companies who employ the people at the bottom.

Price controls, by contrast, create a bunch of weird cliffs and perverse incentives. They cause reductions in hours or unemployment, and they're arbitrary lines. So if you raise the minimum to $10 then you do nothing for someone who is currently making $10, even though they're struggling too and it would be preferable for them to have some assistance as well. e.g. because they receive the same UBI but since they make more money than the person making $6 they also pay proportionally more taxes and give a small amount of it back. The person making $25/hour ends up paying even more taxes, and so on, until the taxes exceed the UBI.

Whereas if you raise the minimum to $25 to try to also help the person at $10 then you cause a lot more unemployment.

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