The Uber Bubble
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The Uber Bubble
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Re: The Uber Bubble
#2Uber’s margin gains have not come from efficiency improvements but from its ability to unilaterally cut driver compensation by 40 percent since 2016.
So much more cost-effective than slavery.
Re: The Uber Bubble
#3Uber’s margin gains have not come from efficiency improvements but from its ability to unilaterally cut driver compensation by 40 percent since 2016. So much more cost-effective than slavery.
Slavery is not a trade you choose to practice. Not sure how this is constructive.
Re: The Uber Bubble
#4Uber’s margin gains have not come from efficiency improvements but from its ability to unilaterally cut driver compensation by 40 percent since 2016. So much more cost-effective than slavery.
Unless you're able to show how Uber used violence or threats of violence to force drivers to work, it's not slavery.
Even if it was the only employer on the driver labour market, it still would not be slavery — but it's not even that. In almost any labour market that Uber operates in, it has competition.
Re: The Uber Bubble
#5Easy answer - They are still experiencing rapid revenue growth, they have a clear path to profitability with a simple monetization strategy, and have dominated the market in many territories.
Re: The Uber Bubble
#6Uber’s margin gains have not come from efficiency improvements but from its ability to unilaterally cut driver compensation by 40 percent since 2016. So much more cost-effective than slavery.
Actions possible, when the market is divided between just two companies. Hopefully, some kind of regulatory body, will investigate if there is no collusion.
"Market share of the leading ride-hailing companies in the United States from September 2017 to July 2021"
https://www.statista.com/statistics/910704/market-share-of-r...
"...For years, drivers have seen their earnings decrease despite putting in longer and longer hours behind the wheel. Earnings are decreasing because Uber and Lyft keep changing the rates - keeping prices the same for passengers, lowering pay for drivers and pocketing the difference...As Uber and Lyft continue to make more, drivers continue to make less..."
https://www.coworker.org/petitions/uber-lyft-reverse-the-rat...
Re: The Uber Bubble
#7Uber’s margin gains have not come from efficiency improvements but from its ability to unilaterally cut driver compensation by 40 percent since 2016. So much more cost-effective than slavery.
Slavery is not a trade you choose to practice. Not sure how this is constructive.
Slavery has redefined itself into newer forms. One such manifestation is in the form of worker exploitation.
Re: The Uber Bubble
#8By the measure of growth and market penetration, Uber has been successful.
By the measure of establishing a globally operating business that employs thousands of people, Uber has been successful (mostly).
By the measure of establishing a profitable business we might argue that they likely will never achieve that.
If you look at their SEA competitors who already earlier on introduced financial debt as a tool to create merchant stickiness (to phrase it kindly), their fall from grace was much harsher.
Re: The Uber Bubble
#9The real magic of Uber is that it allows drivers to convert the depreciation of their car into cash at a time and schedule of their own choosing. For the reasons discussed in the story, this may still technically be a net negative in the long term compared to driving a regular cab fulltime, but a) drivers find it far preferable to/cheaper than alternatives like payday loans, and b) many Uber drivers have multiple jobs and are not in a position to drive regular cab shifts.
Re: The Uber Bubble
#10The real magic of Uber is that it allows drivers to convert the depreciation of their car into cash at a time and schedule of their own choosing. For the reasons discussed in the story, this may still technically be a net negative in the long term compared to driving a regular cab fulltime, but a) drivers find it far preferable to/cheaper than alternatives like payday loans, and b) many Uber drivers have multiple job…
I would be curious to see independent citations of these claims.