Thanks for the add just wondering if someone had any true thought on why Uber’s rates are cut so much I’ve never had a single complaint in over a 1yr driving on price and it’s obvious this won’t work for drivers.
If you tried to understand Uber. You’d lose the rest of your hair
Driverless cars are closer than we think
Here’s a theory on rate cuts: Some economists believe that there is currently a push from corporate America to create a 4th economic class. While some world economies have just rich and poor, the USA economy still has 3 classes (poor, middle, rich).
By misclassifying low-income workers as “independent contractors”, corporations avoid paying benefits and a minimum wage. As 40% of all workers in the USA are expected to be reclassified as “ic’s” in the next 5 years, this could effectively create a 4th economic class: Sub-minimum wage workers.
So how do rate cuts play into this? Some believe that the cuts are an experiment to see how much of the human population is willing to accept sub-minimum wage in exchange for “flexibility” and “being your own boss”.
Slavery still exists. It is no longer in the form of racial slavery… It is in the form of wage slavery and can be seen in places like India and Indonesia. In short, worker misclassification and rate cuts are part of a much bigger problem: the creation of USA sweatshops and a sub-minimum wage class of workers.
more and more drivers are showing earnings of below-minimum wage after the rate cuts. Yet drivers are working as they may have few options or need the money. It is what it is, but here’s the bigger picture in all this:
“IC” was created 100+ years ago for skilled trade like accounting and construction work that paid well above average.
Today, new companies (uber, lyft, postmates, etc) are applying “IC” to already low-paying positions (taxi drivers who now use their own cars, delivery drivers, taskers, etc) to avoid minimal requirements while shifting most of the risk to the “IC”.
Last month I saw a new app called “super”. They hire janitors and window washers and classify them as “IC’s”. People who were in already low-paying positions but were at least getting minimum wage + benefits are now “IC’s” and can legally get paid below-minimum wage.
See where this is going?
I just don’t believe there is a giant conspiracy of corporate and worldwide attempt to create a new economic category. I do however believe that our President wants the majority of America in poverty so that they are dependent upon the government for most of their services and life. He has written what he believes, but somehow people chose to ignore what he wrote and believe the Democrats hype instead.
think about the growth of “IC” in the app-worker industry: “IC” has grown 10% since uber and in 5 years economists are predicting that up to 40% of all USA jobs will become “IC”. If corporations don’t have to pay a minimum wage, then why would they?
Not only are rate cuts designed to undercut and eliminate the competition, but in this case, I believe that rate cuts are also made for these companies to determine what # of workers are willing to work for below-minimum wage.
Do you think uber cut prices to 30 cents/mile because 30 is a nice round number? No. At 30 cents, you’re cutting prices to see how many people are still willing to work.
The 2 biggest factors here are deregulation and “IC” classification. This is what corporate America is relying on to create the cheapest labor that the USA has seen in nearly a century: The sub-minimum wage worker. (The 4th economic class in the USA)
there are not enough Uber drivers to even make a blip on the US economic numbers. Your theory sounds good, but your math is just way wrong Sir.
Businesses have turned to IC because of government regulations, high taxes, and liability. When government dictates increasing minimum wage, health insurance, unemployment insurance, workers comp, etc. And with a federal tax rate of 35%, a matching 6.2% for Social Security, and 1.45% for FICA, potential employers save tons by using ICs. But, IC status also offers opportunity to own your own business where you are your boss. It offers savings on taxes. And it allows business owners to seek additional opportunity. IC is not for everyone. In the same way 60% of all new businesses fail in the first year, I’m guessing many IC will also fail. That there is some deep conspiracy is really hard to nderstand. Why would someone who owns a company that is just going through the IPO stages want to gamble on stock value losses by trying to initiate a social strategy?
The lack of regulations is one of the reasons why so many uber drivers can’t make a living wage and are in financial trouble right now.
New York is the only market in which uber is regulated. $2.15/mile and no price cuts ever.
it’s actually not a social strategy, it’s a business strategy to cut labor costs and shift liability and risk to the worker.
Why is your clothes mostly produced in China, India, and Indonesia? Because those countries have some of the poorest labor standards on earth. Corporations use the labor to avoid paying minimum wage and benefits to workers that they would have to provide here.
The new “IC” model takes an already low-paying job and misclassifies the worker as an “IC” so that corporations can pay less than minimum wage and avoid paying benefits. No different than the worker in Indonesia.
The 4th economic class will be made up of sub-minimum wage “IC” workers (app-workers, uber drivers, taskers, delivery, janitors, and more coming soon). Corporations will no longer rely as heavily on oversees labor if they are able to get sub-minimum wage labor at home.
Reference to the social strategy was aimed at the claim of the 4th class, not IC in my post. But I do agree, it is a business strategy. I also agree that excessive rules, regulations, and taxes is what drove a lot of manufacturing jobs over seas and has helped U6 unemployment remain at about 9.9%.It’s the people between the U3 number of 5.9% and the actual 9.9% that are looking to TNCs for income. But the TNCs are operating within the law and there are a great many drivers who like their independence and do not want to be classified as employees.
They have created a brand in which they know nobody will stand together the crabs will pull the crabs down. So therefore drivers will always drive and it’ll never stop production
This cuts won’t last. Just wait guys!!! Drivers need to stop working more and more. Look for others jobs and don’t spend day, morning and night trying to make cents… Go away and work only profitable days and hours. uber and Lyft pay little so drivers don’t go home soon and that way they cover almost all the rushes . Here in Seattle the city passed a new legislation for Union for all commercials drivers,limo,taxi and rideshare drivers because those cuts. In the next 3 to 6 months Uber and Lyft they must sit down with Union to pay us a decent price per mile. Hopefully we can stop this in every city.
Uber hasn’t cut prices here in Seattle yet. We’re not sure if they will, but last time they tried last year to go to $1.10 the majority of drivers stopped working and other went to Lyft app, uber was on surge 24 hours everyday. Only last 1 to 2 weeks. Later they went back to 1.35
the answer is “Safe Rider Fee”. It makes a $6 ride more profitable than a $12 ride. It makes 10 $10 rides far more profitable than 1 $100 ride.
The only city with high rates is the only city without a SRF.
It doesn’t have to work for drivers. Enough drivers just have to be willing to drive.
Uber hires until an area is saturated with X drivers. Uber needs to scale back on hiring in my area, Houston, sometime before or during the holidays instead of dropping rates so “everyone” can keep driving. Like every other business hiring for the holidays, Uber should deactivate those hired during the holiday season.
why should they do that when it does not benefit the company?
That their game throw huge hire bonus then the new hires who never pay attention will drive during pay cuts cause they have not calculated the cost of driving
The plan is to make it cheaper to rideshare than own a car. They are well on their way to success.