Uber Car Dealer Alliances
One of the many interesting features that add to any major ventures success are the partnerships and deals with third parties that add to the company's corporate success. With Uber, it means making deals with car suppliers, insurance companies, car maintenance shops, electronic goods suppliers, application developers and more. With all of these additional deals going on, it is natural to consider that some deals will be south out by less ethically minded companies and individuals.
This article will look at the more shadier deals made between Uber and New York car dealers.
One of the major financial issues that a driver faces is how to own a car. The driver can either buy one with cash or take a loan or lease. Uber recognizing this fact made some deals with various car dealerships that all specialize in offering finance packages to the economically challenged individual. Uber's sign up package makes for a quick platform for dealers to accept even the shakiest of drivers, offering car deals that would normally not be included in the driver's sphere of ownership.
Why is this a problem? Simple; its do with ethical marketing. Applicants to Uber are drawn in by fabulous promises of quick income and high earnings, the expense and dangers involved in these issues are hidden. Also, many individuals don't consider taking medical insurance and paying good ride-share coverage, which means they are open to all sorts of financial challenges when illness, accident or car problems occur.
Car dealers are in for a buck and not for a dime; they don't care what the buyer's status is if the driver defaults on a deal the car will be repossessed. The driver's personal problems are his own. This might seem unethical, but when dealing with a "poor" clientele the onus on understanding what is going on is up to the driver, not the dealer. Don't expect a car dealer to suggest medical insurance or teach the driver when and where to drive.
The fact that Uber pairs itself with "shady" dealers is just a way to get more drivers from different economic spheres, and the poorer the individual, the more incentive they have to try and work for Uber. Supplying them with a fast car solution is the only possible way to assure that the new driver can provide a service.
What Will the New Uber bring to Drivers?
Uber has been going through a much sought-after change, ever since the old CEO and founder were removed and replaced. Drivers are still faced with a non-driver centric company. Take into account the fact that drivers are still being treated as independent contractors and driver expectations must be balanced with reality.
Uber's 180-day change has provided many new upgrades, some are great others not so, and some are just a waste of time, of which they were scrapped or replaced. One driver hit the nail on the head when he stated that Uber did not want to change the passenger's taxi driver experience, they just wanted to change the options offered to a passenger. Introducing ride-sharing was a direct by-product of the standard employee's ride-sharing experiences all over the world, where people in the same company would prepare a daily shift for one driver to carry many, add to that the mobile device and the fact that a lot of people owned their own car. Throw in the unemployed as well, and you get an immediate private transportation service that was not regulated. Travis Kalanik basically realized that he could create a perfect private taxi service on a global scale by creating an app that would coordinate and manage individuals with cars and those seeking rides. Kalanik was not interested in the individual, only in the car.
Whether the new Uber executive will change how the driver – company interaction will change is yet to be seen.
Using Driver input to turn around Profits
After losing every year 2-3 billion dollars, it's about time Uber finds ways of streamlining and expanding without generating more expenses and creating an income model that makes a profit. One of the options viewed was discussed with the SEC, in which Uber will become a big co-operative, all the drivers will be offered equity. If the Sec approves, this could generate an immediate income from drivers paying even a small sum of money for a set amount of equity. There are currently around 2 million drivers around the world, Uber is valued at $69 billion, so if every driver were to invest only $100 from his earnings, it would generate $200 million only, which is a lot of money, but not enough to solve all of Ubers issues. At the same time, Uber is considering a major IPO, perhaps one of the largest in the world. What would be giving equity to drivers do for the company? It would basically set the stage for a major co-operative company before IPO, after which the drivers with equity would have a psychological loyalty to Uber and remain longer and provide a better service. That is at least the basic idea behind the concept; it would also enable many drivers with free cash to consider buying up a larger share of the equity too.
Uber's Social Media Status
With so many antics going on behind the scenes, sexual allegations, Travis's escapades and "greyballing" not to forget the 2 million "independent contractors" some of which think they should be considered employees (a big mistake on their part). It's no wonder that Uber is constantly in the media as well as in social media. What we want to ask is why Uber's app doesn't have a social media platform as a feature. Connecting all the drivers in one place, consider the impact of becoming an Uber driver with a social media app and then add advertising and selling power. Can you imagine how many holiday savings deals can be sold online via the platform, with the money being taken out of the earnings rather than through other payment forms? Uber could be a major social media and e-commerce club platform and raise much-needed income from every deal.