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Businesses Transportation

Uber and Lyft Can't Find Drivers Because Gig Work Sucks (vice.com) 136

An anonymous reader quotes a report from Motherboard: You may have noticed recently that an Uber ride is more expensive than it used to be. As ride-hail companies Uber and Lyft hike prices to record heights during the COVID-19 pandemic, much commentary has settled on explaining this as a consequence of a "labor shortage" largely motivated by a lack of proper financial incentives. Drivers, the story goes, saw the new cash bonuses offered by companies to lure workers back as insufficient. Some, perhaps, decided they were not worth the risk of getting infected with COVID-19 or one of its budding variants, while other analyses suggested drivers were content with living on stimulus funds rather than money from driving. At the same time, the firms began curtailing subsidies that kept prices low enough to attract riders and work towards monopoly. Together, this has left us with a sudden and massive spike in ride-hail prices; Gridwise, a ride-hail driver assistance app, estimated that Uber has increased its prices by 79 percent since the second quarter of 2019.

While Uber and Lyft are reportedly thinking about offering new perks such as education, career, and expense programs, analysts admit these don't strike at core problems with the gig economy that were driving workers away before COVID-19 hit and are making it difficult to attract them now. In conversations with Motherboard, former and current ride-hail drivers pointed to a major factor for not returning: how horrible it is to work for Uber and Lyft. For some workers, this realization came long before the pandemic reared its head, and for others, the crisis hammered it home. Motherboard has changed some drivers' names or granted them anonymity out of their fear of retaliation.
"If I kept driving, something was going to break," said Maurice, a former driver in New York who spent four years working for Uber and Lyft before the pandemic. "I already go nights without eating or sleeping. My back hurt, my joints hurt, my neck hurt, I felt like a donkey. Like a slave driving all the time."

"I've been driving for six years. Uber has taken at least 10,000 pounds in commission from me each year! They take 20 percent of my earnings, then offer me 200 pounds," Ramana Prai, a London-based Uber driver, told Motherboard. "I don't understand how they can take 60,000 pounds from me, then offer nothing when I'm in need. How can I provide for my partner and two kids with this? My employer has let me down."

"I woke up every day asking how long I could keep it up, I just didn't feel like a person," Yona, who worked for Lyft in California for the past six years until the pandemic, told Motherboard. "I got two kids, my mother, my sister, I couldn't see them. And I was doing all this for them but I could barely support them, barely supported myself."

"I was making even less than my sister and I was probably less safe too," Yona's sister, Destiny, told Motherboard. "She got out back in the spring, I hopped on and was coming back negative some days. I tried UberEats and DoorDash to see if that was any better, but stopped after a friend was almost robbed on a delivery. Okay, so the options are get covid or get robbed, then guess what: I'm doing none of them."

Motherboard argues that the degrading working conditions, as well as the poor pay, "are structurally necessary for ride-hail companies. They were necessary to attract and retain customers with artificially low prices, to burn through drivers at high rates that frustrate labor organizing, and bolster the narrative of gig work as temporary, transient, and convenient. It's no wonder, then, that drivers aren't coming back."
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Uber and Lyft Can't Find Drivers Because Gig Work Sucks

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  • Please bleed owners for all that you can. I reviewed the business plan and it "doesn't involve you".
  • by mbkennel ( 97636 ) on Friday July 09, 2021 @05:47PM (#61567729)

    they could have stopped with the hyper aggressive 'gig-ing' and hired actual employees with predictable schedules and wages, and kept some of them long term. Make it a desirable enough job that people can get promoted to.

    • by inode_buddha ( 576844 ) on Friday July 09, 2021 @05:50PM (#61567749) Journal

      But that would cost money! And we would open ourselves up to Regulation!

      • But that would cost money!

        Yes, it would. That would make the business unworkable because Uber and Lyft are already bleeding cash. Uber is losing $7B/yr.

        And it would NOT help them attract drivers. 80% of drivers work part-time, and many have other jobs. Flexible gig work is exactly what most of them want.

        • > Uber is losing $7B/yr.

          Holy shit, THAT much? I knew it was high but didn't expect it to be THAT high.

          How the hell is Uber still in business? They burning through investor's money?

          • by ShanghaiBill ( 739463 ) on Friday July 09, 2021 @06:42PM (#61567915)

            How the hell is Uber still in business? They burning through investor's money?

            How they stay in business is a mystery. Uber's original story was that they would lose money to build market share, and when self-driving cars were ready, they could cut out the drivers and reap the profits.

            But they are no longer working on SDCs. So they have no plausible path to profitability.

            Their stock is at $49/share, so the market thinks they are worth something, but I don't see it.

            • I think it's a lot of people throwing good money after bad, but the figure really ought to put to rest the notion that the company is somehow stealing from or ripping off the drivers. Those two things just don't square, though you could claim that the customers are the ones that are essentially scamming both the drivers and the company, but that usually doesn't play on anyone's sympathies.
              • by TheEyes ( 1686556 ) on Friday July 09, 2021 @11:39PM (#61568457)

                What they're trying to do is put cab companies out of business, then jack up prices when they're the only game in town, similar to the way Amazon is driving malls out of business. It is "working" in that cab drivers are steadily losing money, but not quickly enough to keep Uber in the black so far.

                • by Joce640k ( 829181 ) on Saturday July 10, 2021 @02:29AM (#61568731) Homepage

                  This: The business plan was to kill off traditional taxi cabs by subsidizing the fares.

                  When there were no cabs left? Fire all the Uber drivers and replace them with robots, jack up the prices to recover all that money (plus enough interest to make a 5-year investor happy, ie. 500%).

                  ie. destroy a whole sector of the economy just to line their pockets.

                  If it doesn't work out then they've squirreled away enough investor money to retire on.

                  It's lose-lose for us. Taxis cost more than ever and a whole bunch of people lost their jobs.

                  • by teg ( 97890 )

                    This: The business plan was to kill off traditional taxi cabs by subsidizing the fares.

                    When there were no cabs left? Fire all the Uber drivers and replace them with robots, jack up the prices to recover all that money (plus enough interest to make a 5-year investor happy, ie. 500%).

                    ie. destroy a whole sector of the economy just to line their pockets.

                    If it doesn't work out then they've squirreled away enough investor money to retire on.

                    It's lose-lose for us. Taxis cost more than ever and a whole bunch of people lost their jobs.

                    If you actually can replace the drivers with robots, there's no need for killing off traditional taxi cabs first by subsidising fares.

                    IMNSHO, the gig economy isn't working as it mostly isn't actual side gigs - it's just a way of not having to pay what is actually employees. It's creating a colder, harsher society where security and respect for employees goes out the window. That said: If Uber actually had been able to replace the taxi drivers, this would have been a massive advance for society. As a society

                • by ShanghaiBill ( 739463 ) on Saturday July 10, 2021 @03:32AM (#61568857)

                  then jack up prices when they're the only game in town

                  That doesn't work. The barriers to entry are way too low.

                  When Uber and Lyft had a hissy fit and pulled out of Austin, alternative rideshare companies were up and operating within a week.

              • by sjames ( 1099 )

                It's perfectly possible to steal and still end up in the red. That's why you don't see a bunch of serial petty thieves driving a Ferrari.

            • they're redefining what it means to be an employee. If the Uber model spreads to other industries it'll shift billions (trillions?) of costs to workers and away from Wall Street elites. That's more than worth throwing some money at.
            • They do have a "theoretical" path to profitability. If they zeroed their R&D budget that would save 2 billion (ok fine, instead let's say they slash it drastically, that would save 1.5 billion.) Then, presumably, once people get used to taking Uber rides, they won't need a big marketing budget either. So if they greatly reduced their marketing budget from $5 billion to $1 billion, that would save $4 billion. Finally, they could greatly reduce their General & Administrative Expenses from $2 billion t

              • > So if they greatly reduced their marketing budget from $5 billion to $1 billion, that would save $4 billion.

                $4B would do a lot for self-driving car research programs.

            • by phalse phace ( 454635 ) on Friday July 09, 2021 @07:56PM (#61568101)

              How the hell is Uber still in business? They burning through investor's money?

              How they stay in business is a mystery.

              Actually, it's not.

              Uber has raised over $25 billion [crunchbase.com] in funding (they raised $8.1 billion [bloomberg.com] in their IPO) so they have the cash to cover their billions in annual losses [statista.com].... for the time being.

            • Their stock is at $49/share, so the market thinks they are worth something, but I don't see it.

              GME is still trading for $200 several months after the meme stock rally and even suffered a small crash in between. Just remember that before you write "the market thinks."

              • by teg ( 97890 )

                Their stock is at $49/share, so the market thinks they are worth something, but I don't see it.

                GME is still trading for $200 several months after the meme stock rally and even suffered a small crash in between. Just remember that before you write "the market thinks."

                Eventually, reality will catch up. As an example, for the long term I have more belief in the Wall Street view on Gamestop than on the Reddit one... I just hope digital tulips go down with them.

                • Absolutely, but my point is that what the market "thinks" and reality are two very different things.

                  I have no doubt reality will catch up with Uber at some point too.

            • by sjames ( 1099 )

              It's much like any pyramid scheme. They just have to keep the balls in the air long enough to squirrel a few million away for themselves before it all crashes and burns.

        • by mbkennel ( 97636 ) on Friday July 09, 2021 @06:41PM (#61567913)

          "And it would NOT help them attract drivers. 80% of drivers work part-time, and many have other jobs. Flexible gig work is exactly what most of them want."

          Really? Even a part time job with predictable hours and guaranteed minimum wage would not attract any drivers? It's reasonable to hire long-term driving veterans to handle the baseload, part-timers concentrated at peak hours, and hire giggers when that isn't enough.

        • And it would NOT help them attract drivers. 80% of drivers work part-time, and many have other jobs. Flexible gig work is exactly what most of them want.

          On the other hand, most of Uber's rides are provided by drivers working full-time hours:

          https://www.businessinsider.co... [businessinsider.com]

      • Regulation is a damper on business. But I think it's worth it if it keeps a business from screwing over the people in the name of profit.
      • But that would cost money! And we would open ourselves up to Regulation!

        I know you are saying this half-in-jest, but it really does cost money to replace workers with consultants or turn stuff into gigs. The cost doesn't really go away. Either we pay salaries up front, or we lose money via worker attrition.

        The difference is in taxation and other operational expenses that result from replacing salaried employees with gig workers and contractors. This was (and still is) a very perverse thing in IT. 30-40 years ago, companies would employ their own IT teams. Now, then certain m

    • by jenningsthecat ( 1525947 ) on Friday July 09, 2021 @06:14PM (#61567837)

      they could have stopped with the hyper aggressive 'gig-ing' and hired actual employees with predictable schedules and wages, and kept some of them long term. Make it a desirable enough job that people can get promoted to.

      Except for not specifying the need for an expensive licence, it sounds like you just invented the taxi company!

      • by ShanghaiBill ( 739463 ) on Friday July 09, 2021 @06:28PM (#61567873)

        Except for not specifying the need for an expensive license, it sounds like you just invented the taxi company!

        Nope. Most taxi drivers are contractors, not employees.

        Rather than receiving an hourly wage, it is the other way around for many taxi drivers: They pay the dispatcher by the hour to rent the medallion.

    • And what would be the difference between that and a taxi company? Uber's entire business model was predicated on being a "technology platform" far removed from any sordid legacy business like "employing drivers". Literally, what would be the difference between Uber as you propose, vs an existing taxi company that adds an app?
    • Comment removed based on user account deletion
    • And they would have failed very quickly. That business model was not working out for taxies or limo services.

  • by twisteddk ( 201366 ) on Friday July 09, 2021 @05:50PM (#61567751)

    With personal security, someone to call if you have problems, an employer who pays vacation and sick days. Who takes care of your taxes, and handles maintenance on your ride. Who pays you a base wage, regardless if you had many customers or few....

    That's the reality in exactly 0 of the many rideshare, fooddelivery services, and other "customer to customer" services that have popped up in the last 10 years.
    We all want to save a few bucks, but noone likes to care about the people doing the work. In reality these portals help to keep the low income people in the low income bracket. It's bad for society, but cheap for the users.

    • by dgatwood ( 11270 ) on Friday July 09, 2021 @06:14PM (#61567839) Homepage Journal

      With personal security, someone to call if you have problems, an employer who pays vacation and sick days. Who takes care of your taxes, and handles maintenance on your ride. Who pays you a base wage, regardless if you had many customers or few....

      That's the reality in exactly 0 of the many rideshare, fooddelivery services, and other "customer to customer" services that have popped up in the last 10 years. We all want to save a few bucks, but noone likes to care about the people doing the work. In reality these portals help to keep the low income people in the low income bracket. It's bad for society, but cheap for the users.

      And in spite of that, the cost is still exorbitant. They charge fees based on the cost of the purchase, rather than based on the actual driving, so it can actually cost me more to get a large order of food from a restaurant two miles and three traffic lights away than to take a taxi all the way to the airport (6.8 miles on a busy freeway) and back.

      And I'm sure almost none of that money actually goes to the driver. So where does all that money go?

      I'm not certain, but my best guess is that a lot of it gets wasted on unnecessary driving, because they fail to batch orders and deliveries by proximity, fail to schedule pickups near the last delivery to minimize excess driving, etc. Doing this sort of thing well requires deep integration with stores' websites, machine learning on a massive scale, etc., and I'm pretty sure these companies just don't have what it takes to do it right.

      • by cstacy ( 534252 ) on Friday July 09, 2021 @10:16PM (#61568335)

        And I'm sure almost none of that money actually goes to the driver. So where does all that money go?

        I'm not certain, but my best guess is that a lot of it gets wasted on unnecessary driving, because they fail to batch orders and deliveries by proximity, fail to schedule pickups near the last delivery to minimize excess driving, etc.

        No, that's not it -- the company does not pay for that excess driving. Drivers are not paid anything for driving to the pickup location: those miles are just part of their personal overhead. This is why drivers often lose money on rides. Uber dispatches you to a location miles away, and the ride turns out to be for only a short distance. It cost you $6 just to get there, then it cost you $4 for the ride, and Uber pays you $5. (Remember that drivers are never allowed to know anything about the customer's destination until the the rider is in the vehicle and the driver is committed to the ride. Only after that point does Uber let the driver know where they are going.) Pretty sure that's the same way they operate for Uber Eats.

        The ride-share companies DO have proximity and common-route technology, though. The normal dispatching algorithm has myriad factors, though. But it is explicit in the "car pool" versions of their services (aka "Uber Pool" or "Lyft Line", where customers share the ride along multiple pick-up points.

        And also for food delivery: you have to pay an extra fee on Uber Eats if you want your food to come straight from the restaurant to you. Otherwise, the driver will stop at other restaurants for other customers along the way. (Doordash, however, does not do that: they seem to always go direct.)

        By the way, as you say, "the (exorbitant) money doesn't go to the driver", but it also doesn't go to the restaurant, either. The food delivery service takes 30% from the cost of the order. Since the profit margin is much less than that, most restaurants lose money on every order. (If you want to "help keep you local restaurant alive", then don't use these services at all. Call the restaurant with your order and drive there and pick it up yourself.)

        But didn't restaurants use these services before the pandemic? Were they always losing money? Yes and Yes. But it was a small percentage of the business and considered a marketing loss-leader That is, they assumed if you liked the food, you would convert into being an in-person dining room or self-pickup customer. Hence the proliferation of drive-thru service for sit-down restaurants. That predated the pandemic by a few years. For pizza delivery type joints: they had their own drivers and their own web sites. Well, anyway, this is what local restaurant owners tell me - I didn't audit their books. During the pandemic, they are losing money but trying to maintain their business presence. Government funding (which I suppose amounts to free money for Uber, in the end) has helped. But many have not made it.

        When the pandemic is over, and people start coming back in to dine like before, the idea is that the Uber and Doordash deliveries will lessen. But if too many people just got used to it and stay home, the numbers may be different than before. If the in-person diners cannot subsidize the delivery service enough, it won't work.

        But getting back to the point: Yes, these services totally screw their drivers. And when another third party is involved (a restaurant), they screw the fuck out of them, too. So where does all the money go?

        And with no realistic plan to profitability, losing increasing billions per quarter since creation, why do investors keep giving them money to burn? I asked this question for years. I figured the answer was "rich people must know something I don't!". But around the time of the Uber IPO, many articles in business and financial magazines were published asking this same question. And their analysis was that the emperor had no clothes, it was all hype and good money after bad. This had consequences that made the IPO unique in history.

        • Comment removed based on user account deletion
          • by cstacy ( 534252 )

            And the reason there is no path to profitability is that Uber loses money on every ride.

            They pay the drivers hardly anything - that's not where it goes. (And I won't here go into how the drivers are even making less than they think.)

            The customer price for a ride is almost totally decoupled from what the driver is paid. It is not a percentage basis of anything. And it's not much.

            But the customer prices are equivalent to the taxicab fares from 40 years ago. This is great for customers and is the main reason

            • by djinn6 ( 1868030 )

              It's not that taxis can't compete with a company that charges less. They can't compete with a company that's not constantly fucking over their customers.

              The last time I took a taxi from the airport, it cost me $22. He took the long way, wasted my time, and made me feel dumb for not screaming at him as he blew past the correct exit at 80 mph (apparently "hey, that's our exit" spoken in a conversational volume is not enough). Then he had the galls to ask for a tip. The last time I used Uber for the same ride,

        • The food delivery service takes 30% from the cost of the order.

          Uber Eats also takes 15% off of what it pays the driver. So if the delivery cost is $5, the driver only gets paid $4.25

          • by cstacy ( 534252 )

            The food delivery service takes 30% from the cost of the order.

            Uber Eats also takes 15% off of what it pays the driver. So if the delivery cost is $5, the driver only gets paid $4.25

            The restaurant has a menu that if you dine-in has certain prices on it for items. The service then takes those prices and makes an on-line menu. The prices may or may not be the same, because Uber will sometimes raise the prices. In that case, Uber takes the entirety of the difference for itself.

            (The restaurant usually doesn't even know that Uber is charging more for items than they are supposed to.
            (Conversations with restaurant owners where I asked about the differing prices--and they were unaware of t

        • by cstacy ( 534252 )

          And I'm sure almost none of that money actually goes to the driver. So where does all that money go?

          Well, I can to some degree answer that question.

          Uber loses money on every ride.

          The amount paid to the driver is not based on a percentage of the price the customer sees. (When Uber first started, it used to be, long long ago.)

          Driver pay is pretty complicated, but mainly it is a small amount per-mile, from the pickup point to the rider drop-off. There can be various kinds of incentives added; this varies greatly from driver to driver.

          The pricing of the ride for the customer is also complicated, and it has also changed over time. But I won't go into that here.

          It used to be that Uber really really screwed drivers and treated them very badly. These days, because of court decisions, they screw them somewhat less.

          Rideshare driving is now more of a very poor business decision, than the complete slavery hell that it used to be. However, the fundamentals have not changed. Drivers are independent contractors who get no benefits. They have to buy/lease and maintain a suitable vehicle, carry commercial driving insurance (many illegally and foolishly do not), and they pay for all the wear and tear on the car (esp. brakes and suspension and tires and more frequent oil changes etc.), their cars get somewhat torn up and abused (upholstery damaged, vomiting in expensive-to-clean places, and other repairs that normal cars don't have). They pay for all the gas (the only thing that most account for).
          And as I mentioned before, they are never paid for driving to the pick-up point.

          I think the only people who drive for these companies are ones who never calculate their true operating expenses. They just see cash flow and think, "I am making money!" Cash goes into their bank account or debit card the moment the ride is over. And they are generally people who are desperate for money.

          There are also some people who do it on a very limited basis for entertainment. They're also not considering their expenses, but they are driving so little that it is more on the marginal side. There are not a lot of those people.

          Most Uber drivers do it every day (and/or night) for a desperate living. They wold do better working at McDonalds and would you like fries with that. But they feel more free. Even though they may have a grueling schedule and can't afford a day off. And make on average, if full-time (at least 50 hours/week) about $3/hour.

          Never mind fear of infection, it is no wonder that Uber can't get drivers back to work. They are getting unemployment payments that generally exceed (often double) the amount they earned killing themselves and their cars driving. When all that money ends at the end of July, probably there will be plenty of drivers again.

          I haven't had any trouble hailing an Uber in the major city/burbs where I live: 2 to 6 rides a week.

    • With personal security, someone to call if you have problems, an employer who pays vacation and sick days. Who takes care of your taxes, and handles maintenance on your ride. Who pays you a base wage, regardless if you had many customers or few....

      That's the reality in exactly 0 of the many rideshare, fooddelivery services, and other "customer to customer" services that have popped up in the last 10 years. We all want to save a few bucks, but noone likes to care about the people doing the work. In reality these portals help to keep the low income people in the low income bracket. It's bad for society, but cheap for the users.

      Consumers aren't jumping to gig services to save a buck, but because of the convenience. They'd pay more if they were charged (at least I would.)

      Whatever extra we pay is nothing compared to the savings of not having to drive to wherever it is to get said service.

      Uber gigs are shitty, and the gig economy - as it exists - is harmful. But the gig economy took off because of the technology that turn these things into services that connect a customer with a provider (in this case, a gig worker.)

      There's not

  • Honestly, this "gig" stuff reeked of and "IPO and go" scheme where only the founders and their investors get rich quick, then everyone else gets burned when they cash out.
  • by Opportunist ( 166417 ) on Friday July 09, 2021 @05:55PM (#61567771)

    When the amount of time, money and energy I invest in an endeavor is higher than what I draw out of it, I'm better off not doing it. And when you calculate your time, your money and devaluation of your car, along with the inherent risk you have to take, you will easily notice that it just ain't worth it.

    • I rem reading another article that ride hailing purposely didn't provide workers an easy way to calculate the depreciation of their car. The reason why is because almost all of the drivers would realize they're losing money each ride.
      • What do you mean by "almost"? There's a reason normal cabs can't compete at the rates that the ride shares work at, because that covers at best gas and a little pocket money for the driver.

        I'm not even talking about the risk of losing your car in an accident, but simple repairs and maintenance are already not covered by the ride fees.

      • The original "idea" behind ride-sharing services was that you didn't do it as a job. Instead of making your regular drive (to the store, work, school, etc.) with empty seats you could take someone else and make a few bucks for your trouble. The company was just the facilitator.

        But that didn't work out, so they ended up basically just being another type of taxi service.

        • by Bigbutt ( 65939 )

          Basically slug rides when I commuted to DC. People would pick up riders so they could use HOV.

          [John]

      • I rem reading another article that ride hailing purposely didn't provide workers an easy way to calculate the depreciation of their car. The reason why is because almost all of the drivers would realize they're losing money each ride.

        The ride share company doesn't need to provide workers with a way to calculate depreciation on their cars. The workers, being independent contractors, do that themselves by keeping track of their mileage and using the IRS guidelines. The workers should also be keeping track of the cost of gas, oil, tires, maintenance, cleaning, etc. to include them as tax deductible work expenses.

  • by spikesahead ( 111032 ) on Friday July 09, 2021 @06:03PM (#61567791)

    I actually do it and I love it. I drive a couple hours a day and I usually pull in $30-40. I like driving and I like talking to people, and I have a day job that pays my bills fine, but it's nice having that extra grand in my account at the end of the month. That's after taxes.

    Having an electric car probably makes the difference, I'm not constantly pouring gas in my vehicle, I just drive until the battery is pooped then plug it in until I'm full again. No sweat.

    • In a world of cheap money, Uber and others should take that money and build out electric vehicle infra. Fast-chargers and company-provided EVs could help make their models work.
      • But how would they prevent rival companies from using that infrastructure without being total and visible dicks about it?

      • In a world of cheap money, Uber and others should take that money and build out electric vehicle infra. Fast-chargers and company-provided EVs could help make their models work.

        Explain how that would benefit the company.

    • by SirSlud ( 67381 ) on Friday July 09, 2021 @06:36PM (#61567897) Homepage

      The differt is quite obvious. You don't need to do it. There are not enough yous to supply the amount of drivers they need. The demand for drivers is such that it implies a lot of people doing it as their only job.

    • Same here.... (Score:4, Interesting)

      by King_TJ ( 85913 ) on Friday July 09, 2021 @06:42PM (#61567917) Journal

      I, too, own an EV - and I started driving for Uber (and doing food deliveries) last year, with the realization it was a great way to earn a little extra cash during windows of free time I had. Maybe I had a few hours on a weekend before plans I made to hang out with friends and BBQ, or I had a bit of time after my day job....

      I still think the same thing I did back then though; it's crazy trying to pretend these gig jobs are a substitute for real, full-time employment. For all the work you'll have to do to earn a decent paycheck, you'd be FAR ahead putting that effort into starting your own business of some sort!

      Also? If they keep raising prices on fares, they're going to start losing a lot of the customers who benefited from these services the most. People like my own daughter don't have a drivers' license and live in a small town. She can walk to her job and back, but not to things like doctor's appointments or even trips to the grocery store in bad weather. She can't afford Uber or Lyft if the rates go sky high, but it's a good option if it's only $5-6 to go to the other end of town to the grocery store or what-not. In a bigger city, you'd just take a bus -- but small towns don't have those.

      • it's crazy trying to pretend these gig jobs are a substitute for real, full-time employment.

        And that's why they should not exist in a society without UBI.

        I'm not going to turn this comment into a rant about why we should have UBI, everyone knows the arguments already. Instead it's a rant about why Uber should not be permitted to exist without it.

        Lots of people, whether through fault of their own or not, are in desperate straits — especially now, thanks to the disruption of Covid-19. In our society, shelter is a privilege of the employed. Even if a job doesn't cover all of someone's bills, it

        • I've got to say, I'm completely not following your train of logic here. (I should start by saying I'm not a supporter of the UBI, though -- so we're starting off on opposite sides on this topic.)

          Jobs that fail to pay a "living wage" have always and WILL always exist -- because there's always a willingness to pay some money to do some relatively "low value" labor/work. Not everything worth paying to have done is worth paying enough to cover a person's cost of living to do!

          When these "gig" jobs came about,

        • it's crazy trying to pretend these gig jobs are a substitute for real, full-time employment.

          No, that is why people shouldn't be pretending that their gig jobs are a substitute for real, full-time employment. The problem isn't that the gig jobs exist and UBI doesn't. The problem is that people are trying to live off gig work instead of getting a real job.

    • I actually do it and I love it. I drive a couple hours a day and I usually pull in $30-40. I like driving and I like talking to people, and I have a day job that pays my bills fine, but it's nice having that extra grand in my account at the end of the month. That's after taxes.

      Having an electric car probably makes the difference, I'm not constantly pouring gas in my vehicle, I just drive until the battery is pooped then plug it in until I'm full again. No sweat.

      Might be a good side gig regardless.

      I delivered pizza some while I was in the military, ages ago. I realized that I was spending a lot of my free time just driving around anyway, listening to the radio, and spending money ... so driving around making a little could hardly be worse.

      Would have made a terrible main gig though. There were one or two guys I worked with for whom it was a main gig, and I don't know how they did it. Probably by living poor, and driving cheap beater vehicles that you probably can'

  • by bobstreo ( 1320787 ) on Friday July 09, 2021 @06:07PM (#61567807)

    When there really aren't any people willing to work for lousy wages, you either pay them more, give them benefits, or just close your business. And there appear to be way less people without a job to abuse.

    If your business model depends on low wages, like gig workers, waitstaff, or kitchen help, most of them will run, not walk to a better paying job as quickly as they can.

    Add in "asshole" bosses and managers, and the running becomes quicker.

  • Stick a fork in it (Score:5, Insightful)

    by pierceelevated ( 5484374 ) on Friday July 09, 2021 @06:16PM (#61567843)

    It's done. It's gotten uncompetitively expensive in our city. Rides are slow to get or just unavailable. Half the drivers are downright surly. We've gone back to using regular cabs - the experience isn't any better, but it's about 30% cheaper.

    They said the business model was unsustainable. It appears they were right.

    • In many places of the world where taxis were regulated more as a general business rather than a supply constrained medallion monopoly, if you call an Uber a taxi arrives. Seriously in western Europe I can't remember the last time I called an Uber where I wasn't picked up by someone with a legitimate taxi license and taxi registration.

    • by mjwx ( 966435 )

      It's done. It's gotten uncompetitively expensive in our city. Rides are slow to get or just unavailable. Half the drivers are downright surly. We've gone back to using regular cabs - the experience isn't any better, but it's about 30% cheaper.

      They said the business model was unsustainable. It appears they were right.

      Well fuck me, if this isn't what I predicted years ago.

      The shine of Uber has worn off and they've run out of starry-eyed suckers who think they'll earn a packet (not)working for an abusive company. So now they're left with people who can't get a job anywhere else.

  • In related news, two of Amazon's last mile carriers in Portland, OR, employing 155 drivers between them, have stopped delivering.

  • The first time I saw the neon pink frilly moustache on a car was in San Francisco, back in 2015 or so, can't quite remember. It sounded pretty neat.

    But the more I learned, the more I realized it was a complete and total scam. The only people making any real money are the company, while the...*ahem*..."workers" take on ALL THE RISK.

    I wonder when Dara Khosrowshahi and Logan Green will be hopping on a plane for New Zealand?

    • The only people making any real money are the company

      The company isn't making money, they lose money every year.

  • Raise their wages.

  • Don't put all types of gig work into the same category. I know someone who used to make a living doing document translations until California made it illegal for her to work. She enjoyed her work and loved the flexibility. She wasn't getting rich, but she paid her bills and wasn't a leech on society.

  • Working in a dangerous and degrading way, paid by the episode, and with no career development, advancement, or ownership or equity in the work enterprise. Prostitution.
  • Ever.

    And no truer word was spoken.
  • by adfraggs ( 4718383 ) on Saturday July 10, 2021 @02:45AM (#61568767)

    It's laid out in black and white for investors: Uber doesn't make money so long as it has to use human drivers. It's been like this from day one. All they are doing is destroying the competition with agressive over investment and hoping some magical future technology will make them rich. Of course the drivers are going to get screwed over in this absurd mess, they are the ones least able to defend themselves. Meanwhile consumers and governments have let it happen, fooling ourselves with the deluded notion that Uber was doing something different. Sure, there are a few neat ideas on show, but for the total investment it's pathetic.

    I would be quite happy to see uber crash and burn. No one involved deserves to get their money back.

  • by aepervius ( 535155 ) on Saturday July 10, 2021 @03:15AM (#61568833)
    "Uber has increased its prices by 79 percent since the second quarter of 2019" meanwhile my taxi service , which I took even during Covid 19, has set up plastic protection for taxi driver, but the cost per KM did not change. taxi regulation is good and has advantage - if only price stability.
    • by mjwx ( 966435 )

      "Uber has increased its prices by 79 percent since the second quarter of 2019" meanwhile my taxi service , which I took even during Covid 19, has set up plastic protection for taxi driver, but the cost per KM did not change. taxi regulation is good and has advantage - if only price stability.

      Taxi regulation done well results in a better experience and decent prices. The UK is a prime example of that.

      The London Black Cabs have a high standard for entry (the infamous "knowledge") and as such, have a high premium on services. However a private hire driver (mini-cabber) just needs to hold a valid drivers license and drive a vehicle registered for private hire. The difference between the two is that the private hire taxi must be pre-booked, only liveried taxis can pick you up on the street. Given

  • It will go away with the extended/loosened unemployment benefits. Of course gig workers will be the first to go on the dole if they can ... and when the US retreats to its usual socially Darwinist way, they will be chased back into gig work unless the economy finds proper jobs to provide as an alternative.

  • I work at a manufacturer and we can't find enough unskilled laborers. I have acquaintances at other manufacturers with the same problem. We'll pretty much hire anybody. The job starts a couple dollars above minimum wage, comes with benefits including a (small) pension, and has opportunities for advancement. It's not the best job, for sure, but it's a hell of a lot better than working as a non-employee without benefits, and wearing out your vehicle in the process.
    • Yeah, but you will expect your laborers to, well, labor. These people would rather "work a non-employee without benefits, and wearing out your vehicle in the process" than do actual work.
  • The UK can't find the needed 100.000 heavy truck drivers to deliver their goods to distribution centers and supermarkets and it's far, far away from Gig work.

  • Uber was originally sold to the cities and towns as a ride share app. Find people going the same route to work and share the expense. No, not competing with Taxis. No need for all the regulations that go with Taxis. They are not employees, they are just ride Sharers. The investors want growth and more and more money. So, more clients are needed and more drivers, with lower pay. They are now unregulated Taxis. The drivers started out trying to screw the taxis, now wonder how they ended up getting scr
    • by cstacy ( 534252 )

      Uber was originally sold to the cities and towns as a ride share app. Find people going the same route to work and share the expense. No, not competing with Taxis. No need for all the regulations that go with Taxis. They are not employees, they are just ride Sharers. The investors want growth and more and more money. So, more clients are needed and more drivers, with lower pay. They are now unregulated Taxis. The drivers started out trying to screw the taxis, now wonder how they ended up getting screwed. The rules are for YOUR protection.

      There are very few problems with Uber drivers. There have been problems of some young people getting into fake Ubers driven by crazy rapists. So I don't buy the "regulations for your safety" line. I think there have been more incidents (certainly per capita) with licensed regulated taxi cabs.

      However, let's be accurate. Uber is not an unregulated taxi service. It is an unregulated limo service. Ubers cannot pick people up off the street. They have to be pre-booked. (Which is what the app does.)

      I am a seriou

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