For you and I, we are not living below the poverty line. However, there are a tremendous amount of people that need Uber. An UberX driver typically makes above minimum wage, but when factored with vehicle expenses, the driver makes below minimum wage… In order to do UberX… Actually, the only logical way to do UberX, is that you don’t mind making minimum wage and use an economical car that is old and barely qualifies. There are alot of people that fit into this category.
This is the way they are going. If you live in a metro area there is really no need to have a car. When I see how many Uber drivers there are on the rider app, I realize how easy it would be to get rid of my car and Uber everywhere. Frankly, it would be much less of a headache to not have to worry about owning a car, and if I had to pay for a parking spot it would be a no brainer for me.
That might be their stated plan, but it’s not going to work and it’s more PR bs than anything else. Do you realize how much of a shortage of Uber vehicles there would be if everyone ditched their car and took a Uber instead?
Uber’s plan will not be successful overnight. It will be a progression, through time. Uber would like every major city to eventually be like San Francisco. It’s just a matter of time before people realize the cost and hassle of owning and operating a vehicle.
Actually, I have the “ridesharing insurance rider” attached to my insurance policy through Farmers Insurance. I pay an extra $30 a month for it. The good news is that I can now cancel it since I am no longer driving “pax for money”.
It’s seems that everyone in this thread is forgetting just one minor detail. For Uber to be so cheap the costs are passed down to a driver that is barely making it in life and will eventually go broke and eventually have a dangerous poorly maintained vehicle.
The company is propped up by drivers subsidizing everything and “Cheaper than owning a car” mantra rest solely on taking advantage of the people providing the actual transportation…hence the new phrase “Uber Slaves”.
Farmers (and two other companies) have offered a very limited amount of insurance policies that do cover ride share in a effort to collect some real data on exactly what is going on. The rates they set initially did not reflect any experience in this sector.
When the loss data is gathered and analyzed those same insurance companies will adjust their rates to insure that they do not lose money writing these policies.
However, in this society that we live in, there are and will always be a tremendous amount of people that can’t find a job or hold on to a job. Not to mention, those that will always be in need to make some extra cash. Uber will always have excess drivers at their disposal.
On an individual basis, rates should increase, but it will also vary depending on the driver’s driving history. That means if I was paying $30 a month with a clean record, in the future it would be somewhere between $40 to $50 with a clean record.
Can’t say they will have an unlimited number simply based on the theory of no free lunch. The income is so meager where every driver takes a substantial loss, hence more tax write offs to where the IRS is losing substantial revenue.
The leases on these cars will eventually default to where the banks lose big money over time. The insurance companies lose money because of un or under insured drivers out there “ubering” and getting into accidents.
Fluber will pay nothing bc they have nothing. Their VC, or gambling $$$, is about 8 Billion, include China, but it´s not endless. Maybe it works in the daily business, but not in a long term.
In order to do UberX… Actually, the only logical way to do UberX, is that you don’t mind making minimum wage and use an economical car that is old and barely qualifies. There are alot of people that fit into this category. That’s why there will always be drivers willing to suffer.