{"id":2218,"date":"2015-01-27T11:09:57","date_gmt":"2015-01-27T16:09:57","guid":{"rendered":"http:\/\/www.taxifarefinder.com\/newsroom\/?p=2218"},"modified":"2015-06-02T10:10:53","modified_gmt":"2015-06-02T14:10:53","slug":"is-uber-screwing-over-its-drivers","status":"publish","type":"post","link":"https:\/\/www.taxifarefinder.com\/newsroom\/2015\/01\/27\/is-uber-screwing-over-its-drivers\/","title":{"rendered":"Is Uber Screwing Over Its Drivers?"},"content":{"rendered":"

For those who’ve been wondering, I wanted to let things cool\u00a0down a bit before I posted anything about\u00a0Uber’s recent fare cuts<\/a>.\u00a0 Some of my worst decisions in life have been made impulsively and if given the opportunity, I think it’s always better\u00a0to ‘sleep on it’.\u00a0 And as we all know with the internet, once you write, tweet or post something, it can’t be deleted.<\/p>\n

\n

Well,\u00a0I’ve slept on it long enough and I still can’t help but feel like, as drivers, we’re\u00a0getting screwed over by Uber right now.\u00a0 I mean there are only so many times you can handle getting your pay slashed and be expected to go out there on the road and stay positive.\u00a0 For most drivers, this is their second pay cut in just the past 6 months.\u00a0 And although Uber claims lower fares means higher earnings for drivers, I think we all know\u00a0by now that statement is bullshit.<\/p>\n

Compare\u00a0declining driver pay with the growth at Uber and the salaries\/equity of Uber employees and that will probably make you even madder as a driver.\u00a0 Uber recently raised\u00a0another $1.2 billion<\/a>\u00a0and is currently valued at just over $40 billion.\u00a0 My hope has always been that ‘partners’ would see parallel growth, but it appears we’re headed in very different directions.<\/p>\n

The Rate Cuts Have Hit Hard<\/h2>\n

The rate cuts in 48 cities have been tough on drivers and they even hit home last week when rates in the LA\/OC area were dropped down to 90 cents\/mile.\u00a0 Over the past two weeks, there has been\u00a0a lot of anger on social media, driver forums and even my own\u00a0site (normally a safe haven against this kind of stuff), but I don’t blame those drivers.\u00a0 It’s human nature to be upset knowing that you have to go out and do the same job\u00a0that you did last week but for less pay.<\/p>\n

Over the past year, we’ve seen\u00a0fare cuts of up to 50% in cities across the US.\u00a0 Maybe drivers were paid too much a year ago but the overwhelming sentiment right now is that drivers are not paid enough.\u00a0 As you guys know, I’m a part-time driver so I have the luxury of scaling back my hours if I’m not making enough, but not everyone is so fortunate.<\/p>\n

There are also ‘partners’\u00a0who have made life-altering decisions to drive full-time and they are now at the mercy of Uber.\u00a0 Looking back now, that obviously seems like a poor decision but there was\u00a0a lot of promise<\/strong>\u00a0at one point with rideshare and I don’t think anyone ever figured rates could drop this low.\u00a0 And there are others who just enjoy driving and don’t want to give it all\u00a0up because Uber won’t pay them a fair wage.<\/p>\n

Let’s Dispel The\u00a0Earnings Myth Once And For All<\/h2>\n

Uber loves to cite the ‘fact’ that lower fares means higher earnings for drivers.\u00a0 But as any seasoned driver can tell you, they are now working harder than ever, putting more miles on their car and most definitely making less money.<\/p>\n

Correlation Does Not Imply Causation<\/strong><\/h3>\n

Uber seems stuck on the notion that lowering prices increases ridership (thus increasing earnings for drivers) but maybe they should pick up a copy of the book\u00a0Freakonomics<\/a>.\u00a0 I read this book a few years ago and one of the biggest takeaways I got\u00a0was that just because there is a correlation between two variables that doesn’t mean one necessarily causes the other.\u00a0 There could easily be a third variable that causes this correlation.<\/p>\n

In this case, it is beyond clear to me that lower prices are not the only thing causing increased ridership.\u00a0 Unlike Uber HQ, I actually get out on the road and drive.\u00a0 I listen to passengers and I talk to hundreds of other drivers on a weekly basis.\u00a0 One of the reasons why my site has struck such a cord with\u00a0drivers is because I know what it’s like to be in their\u00a0shoes.\u00a0 There is a huge disconnect between drivers and Uber HQ because they don’t know what it’s like to be a driver.\u00a0 I do.<\/p>\n

Do Riders Even Care?<\/strong><\/h3>\n
\"\"<\/a>
Uber Screenshot Passenger View<\/figcaption><\/figure>\n

A majority of\u00a0riders actually don’t even know how pricing works half the time.\u00a0 Here’s a screen shot (to the left) from my phone taken just a few days ago.\u00a0 There aren’t any prices listed per mile, per minute or even the base fare.<\/p>\n

The only way to get this information is to log on to Uber’s website, find your city and then look up the rates manually.\u00a0 I can guarantee you there aren’t too many riders\u00a0willing to go through that trouble just to figure out whether their fare is going to be $7 or $8.50.<\/p>\n

Lower pricing may have helped increase ridership but it’s definitely not the only reason:<\/p>\n