@shacktime I have a very simple fix for this issue: let the drivers choose their rates and bid for jobs. There could be a 3-5 minute bidding window that closes with the lowest bid and Uber gets a standard percentage, or they could even change to a monthly subscription fee to use their infrastructure. No one forces anyone to drive for Uber.
I'm an uber driver and I've noticed the "reduction in incentives" for months already. It's truly not worth it most of the time anymore, they're trying to pay as little as $15 an hour which is more like $10 an hour after gas and car costs.
Uber had a policy of cutting driver pay every 6 months when I finally gave up. At a point where the car was costing more to operate than I could make after taking into account all vehicle expenses. That was before the pandemic. At this point all these companies are operating on the idea that drivers and their vehicles are easier to replace than maintain.
Yep, Uber and Lyft kept the prices really low until they destroyed all the local cab companies. Then they put the screws on us. It's dirty and rotten. I'm glad states and cities are banning the apps. Rich people suck😊, eat them!
@@rrmackay technically illegal. Taxi drivers can do that but not Uber or Lyft Drivers. This is a huge part of the problem. Drivers for these companies do not have commercial licenses, are not subject to state or federal regulations on licenses for driving passengers and do not even have to conform to rules about criminal background checks. That is not even getting into all the fake accounts where one person signs up, but another person does the actual driving. The entire plan (like airbnb) is to not have any overhead or responsibility as they don't own the vehicles or owners' properties but to profit like they are real hotels or other actual businesses. It is the new way to scam the middle class for major profits for you or your stockholders.
@@Garywhitetrumphobgobbler Saying anything should be illegal is lame, our nation is run by criminals, they craft laws to protect their criminal cronies from the public not the other way around.
Go ahead and try build a cheap and fair version of Uber. It seems like you already got a lot of willing drivers in this comment section. Next up you just need to offer cheap rides to consumers
@midas5694 Building a platform like Uber is not really a big challenge, the barrier to entry would be government regulation and law enforcement. Uber has spent much more on Lawyers than they have on engineers.
They undercut taxis to create a monopoly using investor money, then start screwing everyone over now they have that monopoly. Everyone saw this coming.
@@FuelDropforthewin No, that's not capitalism. That's profiteering. Just one more way that people can mislead others to blame their actions on something else.
A 'monopoly'? Uber doesn't have any competition? It's more like Uber drivers are looking for the 'get rich quick scheme' but don't read the contract. "A monopoly is characterized by a single company supplying a good or service, a lack of competition within the market, and no similar substitutes for the product"
It’s not just drivers they take advantage of. They hire A LOT of contractors on the tech side too, overwork them, and then lay them off before their contracts are over. They do this regularly.
As a former Uber driver I can say that they screw the drivers. 6 years working for gig businesses from driver to regional management I can say confidently that the system is rigged.
Yup. If you ain't rich, powerful, influential, and well-connected, then you ain't nothin'. Get rich. Be rich. Else, you must serve, suffer, submit... and OBEY.
Uber has found a way to pay drivers less than minimum wage, no overtime, no benefits. Stopped using Uber a few years ago and returned to using cabs. Cab service has improved, you don’t have to sign a list of terms and agreements to ride, drivers are happier and help you with your luggage, price isn’t much different.
My friends visited Boston for 3 days and racked up 285 dollars on Uber. If they had gone with Green Cab, they would have saved 175 dollars. It didn't even occur to them to check local taxi prices. When I pointed out the difference, they were astonished. They paid a hundred dollars to take an Uber 5 blocks away. They literally could have walked to the place in ten minutes.
@@ddlang2514 unlike cabs. I know the fare when I hail the ride. Taxis you never knew if one was available or what it would cost. If Uber drivers want wages and benefits, are they willing to have fixed schedules, uniforms, and other requirements of an employee?
@@DasBoot69er Actually, some taxi services here use apps and also give the fare price in advance. None of the drivers I’ve come across wear uniforms. But you are right. There are pros and cons to both. As with everything. I worked for a time delivering Uber Eats and the pay got worse and worse. In the end, not a great way to make an income and terrible for the car and gas bill.
As an ex driver, I’d say neither Uber or Lyft will work in the long run. While taking 35-50% of the fairs they’ve done nothing to improve basic mapping function, which leads me to believe all the money is going to shareholders, city negotiations, and financial trickery. The drivers are now making less than they did driving cabs.
They’re taking 55-63% of fares. Current driver, here. The only way for us to determine the actual take rate is to ask passengers what they’re paying for their rides. I began asking over the course of this last month, and can confirm that their take rate has increased exponentially. It’s out of control! The fact that he lies with such ease reveals everything you need to know about his character, morality and ethics. I’m leaving and focusing on my own business.
@@Cope_M I ask passengers all the time, it’s all over the place. I make $37.50 passenger paid $8.50, I make $12 pax paid $15, I make $60 passenger paid $100, I make $189 passenger paid $214, I make $64 passenger paid $22. Those are some examples
Uber drivers are actually not contractors. They’re employees that are misclassified as contractors. More like employees on flexible schedule. They don’t have the full autonomy to do their jobs like contractors do.
Contractors - TRUE contractors - should be allowed to be what they are. Temps/Seasonal/Part time should have a limit of 90 days. After 90 days (not consecutive) it should be required by LAW that they be taken on as W2 employees. The whole 'part time with zero benefits' should be illegal. Even if they can't find use for an employee more than 20 hours they should be given the same benefits as those who work full time. And executive pay should be limited to no more than 200x that of the lowest paid employee in the company. (for a $10/hr minimum employee wage that's 2 million a year - MAX - for executives). What's left goes into the corporate coffers and are then taxed appropriately - and can allow reduced cost of product, improved employee benefits & wages. So, for the executives to get a raise they have to raise the lowest wage in the company - TO INCLUDE UNPAID POSITIONS SUCH AS INTERNS. Which means if they employ interns they get paid 200x that... All benefits such as stock and profit sharing should follow the same multipliers, with 'consultants' and other non-corporate positions maxing out at 25x.
"The answer will NOT surprise you, it's capitalism, it's using investor capital to dominate market share and then squeezing". Come on guys, is this video title for people who've been in a 50-year coma?
Came to the comments to say this. It's been said, so I'm just going to leave a thought. The elites are eating up the country from the inside out. Leaving America hollow and weak.
yup..... Who would have thought? companies making profit by screwing over employees? damn.... the actual definition of profit is "Salaries that have not been paid"
It always baffled me how uber/lyft could loose money when their only fixed cost is insurance and servers and labor, vehicle wear/upkeep and fuel are all covered by the "independent contractors".
yeah it would be nice if the engineers of this company just ran these in each city for a small profit it could be called Austin Rideshare or NYC Rideshare, becuase this is a software company that's it, but if someone did that they would probably end up like the guy who used to work for Boeing.
Uber and Lyft can’t make money keeping almost 50% of the fair but the drivers are supposed to be able to Pay all the vehicle expenses and still have a wage?
Yes, Uber is not a value add and only exists due to regulatory capture and anticompetitive practices. They are a technology platform that could be replicated for zero cost, and has in the past been subsidized by the state, meaning the source code should be seized and implemented on a public chain with 100% revenues going to drivers.
I gave 5000 rides for lyft from 2016 to 2019. They cut the pay rate 30 days after i started and continued to cut driver pay, each time attempting to disguise the pay cut as a benefit. It's sad that neither if these companies has an ounce of integrity. Both treat their drivers as if they are a valueless commodity.
the stock market demands you treat your employees as a valueless commodity. as long as shareholders are involved, they will be the true reason for all business decisions
It's not a valuable skill. That's why the best advice is to get out. In order for both of them to stay competitive they both have to have the same business model.
Drivers become a valueless commodity the moment they say yes to their shitty deals, then expect "help" from the outside in the form of regulations or unions. It's absurd. I quit the moment I saw my profit going down because of competition from other drivers that they purposely hire there. People need to grow common sense!
@@japprivera3129 Exactly, being an uber driver is like being a fast food worker. You are not a valuable member of the team, just a commodity to be used to make a profit.
Fact 8- If a driver is driving a XL car, which is a a comfortable full size sedan or SUV, the Uber denies them of the XL status for the bogus reasons like cloth seats. But then Uber books passengers Uber XL in the same drivers car. Where customer is paying for Uber XL and driver is getting paid Uber X. They are screwing over both by directly lying and stealing from both.
More like charging uber suv price and driver getting uber x fare Yes, that's happening coz stoopid drivers buy a leather seated car for uber x and xl where the riders actually paying for uber black and suv
The wealthy, powerful, influential, and well-connected control everything. If you're poor, weak, and unknown... you ain't sheet! 😂 You gotta serve, suffer, and SUBMIT. There's a word for what that is, too. 💪😎✌️
It’s literally like a 2 dollar difference. And you rarely get XL requests. I was doped into getting a SUV thinking I’d get more money. Boy was I wrong. Just paid more for gas. Uber are thieves!
we need to start looking at any company with over 10% of the marketshare to be dangerous, and not allow it to happen. if monopoly isnt the right word, then we need a new word.
No no. See 40% IS monopoly territory unless it is a duopoly. At 40% you get to set the prices for every service hands down, and the standards too boot. Again, unless someone has more market share nationwide. We should be worried when anyone has 2% of the market share by area covered. (I.E. to adjust for population and local costs by only looking at area covered and what percentage of that total landmass is served by the companies in question) That might sound absurd. Until you look at US history. From before the declaration of independence was signed until 1979 multi-State companies where fully illegal. For a reason. You had to export across state lines. the reason? STATES ARE NATIONS. The united states are a collection of 50 Vassel nations. Not pick an choose when its convienent 50 vassel nations, but always 50 vassel nations, under whats supposed to be... leaderless governance of treaties, by treaties and constitutions.. plural. with mutliple constitutions and each nation is supposed to be a true democracy at beck and call to the popular voice therin. The only things States aint supposed to be allowed to do is limit rights prior granted to people, leave the US, and violate the constitions amd treaties, and those treaites are the highest law of the land period end of story. Like. fricken heck the entire US went slowly crazy these past 45 years. And its all been over greed. And its all just a repeat of 1890-1930. And its all just increadibly stupid. and that include Uber. Sorry to vent.
any type of completely free market will 100% of the time tend to a monopoly. Competition is nice while no one has won it... but somewhere down the line, someone will.... and even if "someone comes and beat them" comes true someday, the monopoly will still be there, just being exercized by someone else. Competition in free market is a myth.
Its really hard to find a taxi service in medium sized cities and small towns now. Uber subsidized fares just long enough to destroy the competition. Gaming the "free" market is now the norm.
This is what I hate about monopolies. They destroy all the small business competition and then your forced to use the service or go without. It is a ridiculous practice and should not be allowed. We all knew what would happen after Amazon took over. There are fewer places to shop outside of the biggest stores to buy anything and prices are the most unaffordable they have ever been.
@@margaritoamargo6347Uber is also burying public transit too…so it’s worse because of all this too. And traffic is worse because of all the deadheading that rides gare causes (driving without a fare).
I just learned about this a couple of weeks ago. I was using Uber for the first time after moving to the suburbs. My drive got reassigned three times. My wait time went from 4 to 7 to 17 minutes with each new driver. So I cancelled and tried again. This time I texted the 1st driver, who also dropped me after confirming. I called the next driver to make sure she would not drop me. We had a great conversation on the ride after I asked whether drivers could get other Uber requests after picking up mine. She suggested that they were probably picking up a Lyft client instead. Many of the drivers sign up for both. But Lyft pays them for the ride to get the customer. Uber does not. So between the fact that Uber had significantly slashed their pay and that it would not pay for the pickup, it makes sense to the drivers to take the Lyft customer instead. Specially since in the suburbs, they are less likely to get their next customer close to the drop off location. Needless to say, I'm ditching Uber and switching to cabs or Lyft.
Lyft is HORRIBLE for drivers. Even worse than uber. Not to mention they do not insure properly, so both you and the driver are screwed IF you get in an accident.
I drove Uber rides one time. When they offered $300 boost plus fares for 5 rides. After that, it dropped to $7 “opportunities “. Never again. Plus too many scary fares. No more. I’d rather take a bus if I have to.
Austin call their bluff over background checks and when Uber left Austin locals started ride share companies to fill the vacuum. Any large city will see this happen. We don't need Uber.
The state government and city council called Uber's bluff and as expected Uber finally bent the knee and kissed the ring and said they will stay after the state voted on legislation codifying the fare into law. The fares will increase but it is a little less than what Minneapolis initially proposed but the good thing is all ride share companies have to ensure drivers make at least $15/hr after expenses or else face lawsuits and fines for wage theft. I think the fare is 1.30/ mile and 0.35/ minute. Basically a 15 min 10 mile ride will earn a driver 17 dollars. Now it's 9-11 dollars.
Side note. Their venture into driver-less cars failed because they "relaxed" some of the safety protocols in pursuit of scaling up the service. The "safety driver" in their fatal accident was on her phone watching videos and the collision avoidance had been nerfed. They weren't even fully autonomous yet. To this day, the sole fatal accident involving a self-driving car was Uber. They almost killed an entire emerging industry in the pursuit of fast money. (source: I know people who worked there back then)
Part of their scam is getting the drivers to cover the cost of ownership, insurance, maintenance, gas, etc. If they owned self driving cars they would have to cover these costs.
@@gordonmills2748 There is no real self driving car yet. It's divided in 5 levels and the highest we achieved so far is level 4, where self driving is possible in very specific roads. Tesla is level 2. I think Mercedes had level 3 and stopped R&D on it, as level 5 is not feasible at the moment. The truth is, and most people who know anything about AI will concur - true FSD requires a GP-AI, and we have no idea how to get there. There is no prototype, no paper, no public hypothesis on how we can reach general purpose level in AI. We have to get there first, before we can talk about level 5 FSD.
I only ever drove for these apps when they were running "promotions." No promotions, no work. The pay just doesn't math out. The US government is failing everybody who has not had the luxury of leaving this line of work.
The US government is failing the working class, PERIOD, FULL STOP. Until those holding the money have it stripped away and redistributed (which would never have been necessary prior to Reagan and all of the polices that have been carried down ever since - by BOTH parties) the working class will always get f*cked over.
4:20 I can agree with this. I've only done uber eats, but when I started skipping too many fares because they literally weren't paying minimum wage, I started getting fewer and fewer offers.
Capitalism exploitation of the working class is the problem. ‘Socialism never took root in America because the poor see themselves not as an exploited proletariat but as temporarily embarrassed millionaires.’ John Steinbeck
Also, exploitation of their customers. They don't give a crap about any of the people who actually use their services. They only care about scamming as much money as possible for their shareholders, who they see as their REAL customers.
Ubers is one of the most unethical companies in existence. I started ten years ago when they paid a fair wage, now they take over 60 percent of the ride and I’m barely making ends meet.
@@joegug4751 first they are not breaking any laws. And second, you are a crony. You want the government to use force to obtain from others something you can t earn on your own. The proper response to not getting the deal you want is to decline it, not to use the government to extort what you want.
This is a financial model called blitzscaling, plenty new companies do it. In short, you start a company with a promise, get a massive finding by venture capitalists, and keep operating at loss until you captured enough of the market to be "too big to fail," and then start racking up prices to start making money. Uber, lyft, airbnb, wework, spotify, the list goes on. They start by offering a great deal, and progressively get worse to pay back the initial investors. That's how they appeared out of nowhere and were suddenly everywhere. And most vanish just as fast, leaving wreckage behind
The 'gig' economy is all about eliminating the costs for labor by making everyone a contractor. When you work for a company your compensation, the total amount your employer pays for your labor, includes not only your wage but also your benefits as well as the overhead to put you in an office or similar. Uber doesn't pay you any of these and as an independent contractor YOU are responsible for covering these additional expenses. It's not just gas, oil, maintenance, insurance and depreciation, but you also have to account for social security and Medicare. People working in this place in the economy receive compensation from the company and wages account for about 65%-75% of those costs so if you're only getting paid the wages then your effective pay is 25%-35% less than it appears.
Thank you for being a voice for us drivers who have been getting robbed by Uber for too long. I've been a driver for the for 9 years come October. The pay has dropped insanely over those 9 years. I don't know of any other job, where you, over the years, get pay decreases, instead of pay raises. Literally insane.
Thanks for doing a video on Uber. They're the WORST. This "gig economy" is the WORST. And, INCREASE THE PRICES!!! If your company cant turn a profit, that's a YOU problem, Uber!!! What kind of company criws "poor me" for not even paying the bare minimum!!
@echooscar5241 Yes, we designed global software structure with localization, which means SaaS . Some people call it MaaS. Indeed there are difficulties to name the model because it is not commercial. Btw, where r u located?
@@Shei-vei Most drivers I know are on multiple apps at the same time. If all uber usage goes to a different app they'll either already get the same ride or just install that one too.
If you want to help drivers, don't stop taking rides, support alternative ridesharing apps that treat drivers fairly and use them when they become available.
Or maybe because of the government involvement in creating a medallion market in the first place that costed millions of dollars ! I never understood why someone has to pay a million bucks to drive other people around !
@@dontbeafool Without the medallion system, NYC would have been drowning in taxis and fares would be undercut. It wasn't a perfect system but it did ensure that cabbies got reasonable fares and there weren't too many of them to undercut one another.
@@nikidelvalle Uber spent the first two or three years very, very diligently and carefully training their passengers they did not have to tip. Drivers made more than enough. After that it was set in stone.
Uber is perhaps a leading example, but this is the exact idealized business model for most big tech startups 1. Have a potentially killer idea, hire some engineers and get a prototype going 2. Get angel investors and venture capitalists to invest millions or billions of dollars in your idea 3. Use that investment money to operate at a loss for 5-10 years, giving consumers something that seems like a great new affordable product/app/service/whatever 4. Create a monopoly or pseudo-monopoly by driving the comparable businesses that need to operate at a profit out of business(i.e. everyday taxi drivers, delivery services, etc.) 5. Once you've cornered the market, turn on the monetization. Consumers (and workers) will now have no other options, making you incredibly rich and everyone else worse off. Doesn't always work out that way, but that's the ideal goal. Venture capitalists love this b/c if it works out, they basically get to own the world.
I drive Uber in Austin. I recently gave a ride during a busy weekend from the downtown Marriott on Congress and 2nd to the airport, a distance of about 10 miles. The passenger's upfront fare was $82, my upfront fare was $36.
It's the same with every "gig economy" company. They get the consumer used to deeply subsidised services, but then it's only sustainable if you don't pay your workers. Taxis are simply more expensive than that. Something's gotta give, and ultimately we're gonna have to go back to paying the true price of taxis -- like we did before the apps showed up.
You don't need data to prove drivers are making less. You just have to ask drivers directly. Some days I could drive around for 8 hours and not even make enough to cover the tank of gas after burning through half a tank.
As someone who's never thought of driving for Uber myself, what is making you and other drivers stick with it? Because you are actively losing money on that, after all the car, insurance etc costs money too. It feels like you'd be doing better covering some shifts in a minimum wage job - not that I'd recommend that, but it does serve to point out just how bad a deal it is.
Yes Uber is taking to much money from each fare. However, why are you driving around without a fare? Drive to the nearest hot area after dropping off a fare. Park and sit there and wait with your car off. Driving around doesn't make you more likely to get a ride. Heck, honestly, I bet you'd still make more money if you just even drove a block away from the dropoff spot and parked there. ... as long as the drop off spot wasn't in BFE.
@@csr7080 Uber runs very elaborate scams to lure drivers. For the first month or two you actually make decent money. Then they rip the rug out from under you and leave drivers who invested in the job to twist in the wind. Also, Uber’s (and Lyft’s) executive boards are staffed to the gills with former Democratic appointees and the like. Look up Tony West.
@@Wesley-rn7oc The data can be found in their trip receipts and ride manifests. Then you run that against their operating costs. Many drivers operate in the red, which is why the churn rate in “ride share” is among the highest ever in any industry. That fact alone proves there’s no money in the job.
According to the Uber statement shown in the video they openly discriminate based on gender and national origin (among other things). That is illegal when employers do it. The "independent contractor" loophole needs to be closed.
What kills me is the sheeple who watch this and still don't go beyond" I worked since I was 8 months old, 10 days a week for a nickel a week, but you don't hear me complaining!"
please excuse the unsolicited advice but i really want your message to get out. In the future, don't make videos that are 7:57. Either go over 8 or under 6. 8 minutes is when youtube allows mid roll ads, so they stand to make more money on 8 min and longer videos, so the alg is going to push the long videos. Some creators even let a blank screen play for several seconds at the end just to hit that mark. That's why you're other uber video (that was over 10 min long) did almost 5x views as this one
They list uber driver's gender, age, skin color, eye color, hair color, etc. ........so that end users can discriminate against them or something? What does it have to do with the payment algorithm? You gotta be more clear about this, man.
Damn it's almost like divesting in public transit in favor of for-profit ride sharing services has resulted in a system where everyone gets screwed while the rich get richer 🤷
... Ya know Uber aint much cheaper then a taxi. And the taxi companies pay for the cabs, maintain the cabs, pay for the gas in the cabs, maintain customer safty, pay the full insurance on the Taxi cabs, require thier drivers to obtain a higher level of license, pay for a live human dispatcher who can help with ride hic-ups, and also a garage to house the taxi cabs, pay the cabbies decent enough wages plus all the tips. Oh ya, and the cabs come with safty shields. And taxi companies where profitable before Uber came along and used V.C. money and played shell games with finances to drive them outta buisness. Uber is a case of zero value added if there ever was a case study in it. Should be in every textbook, how to get rich being worse in every possible way then your compitetion.
They’re getting sued in every city, state and country that they operate. Uber and Lyft have to pay hundreds of millions in settlements. There’s something wrong when your getting sued everywhere you operate.
The thing I never hear any of these stories talking about is wait time. I used to drive for Lyft and Uber in Seattle, and the city (then state) instituted a minimum fare law, but they failed to restrain capacity in any way. So the companies flooded the market, and even though I'd make more for a given trip, I'd have less trips. If there isn't a passenger in my car, I'm not getting paid. As a whole, I made less with the higher fares. Any of these minimum fare laws need to include all time the driver has the app open and available for rides, and yes that likely means that the companies will need to tell drivers that they're being logged out or they have to work on a schedule, but thats how responsible companies operate. Oh, and this'll also mean passengers have to wait a bit longer, since there will not be as many drivers waiting around for their trips.
As I said in my post, using Min Wage laws is a losing battle. You're "mixing apples with oranges"...Demand detailed information on fares and cuts to drivers and keep drivers as contractors. Win for drivers/No more "stealing"/gouging drivers and customers....
Tried to explain to people that Uber is now taking all of the surges. I've seen Uber take as high as eighty percent of the trip. They're also using trip radar to bid on other drivers at lower pay. I've watched them cancel rides that i've already accepted to, then give it to a different driver at a lower pay. Wasting driver time. All for their profits.
As a former cab driver, I was troubled that Uber was totally able to circumvent the safety, training and certification process for their drivers that cab drivers had to undergo, including things like criminal background checks, and even professional driver licensing.
All Uber does, is run a bunch of computers. But they require a 40% margin to turn a "profit" ? Let's see if I can deduct 40% from my income as "computer expenses".
I used to work for DiDi in Mexico, Ubers main competitor in Latin America, what you guys are saying is true. While I dont know the exact data from the US, the main way to make the P/L of a city profitable is to reduce driver incentives, they tend to be the n.1 expense that every city has in order to reach profitability. The other lever being moved is also Take Rate. For me its crazy how high Take Rates are in the US, in Mexico for instance, depending on the city they tend to be between 15% and 25%, for both Uber and DiDi. It shocks me to see the 35%+ I see in the States. The main reason for those Take Rates going up is without a doubt Uber gaining market share from Lyft. A golden rule from ops in Ride Haling: The more market share you have in a city, the lest investment you put in it (incentives, discounts, take rate, etc) Since Uber is killing Lyft slowly, so will the investment they make and in turn, reduce driver earnings
I'd like to see Uber's expenses. It's an app, why do they need 40% of a ride to make a profit when their only expenses should be a few programmers, servers, and lawyers (to navigate governmental requirements). All of the big tech companies seem to claim or forcefully generate unreasonable expenditures. Is this just to avoid paying taxes on the profit or is it CEOs investing in high risk high reward expansions to try for huge bonuses or what?
Uber was paying for a good portion of each ride, paying the drivers more than the riders paid so that they could monopolize the market. Once they have a monopoly, they can do whatever they want with prices.
The only needed thing is an open source non-profit system for drivers and riders. Everywhere outside of the USA there are a ton of alternatives. Maybe not as good as Uber, but they take much less than Uber.
Lyft is over charging my credit card for rides I didn't request. One month Lyft charged me $250, and $ 350, and $500 this month. I'm retried and don't need rides that cost me that much money. I'm filing a huge credit card fraud claim. Psst off big time. 😡🤮😡.
I'm an analyst too, I would like to comment. In my country Uber is great for delivering food, I still use it and try to tip my drivers all the time. The Uber app that act as a taxi has problems. Business model isn't sustainable and Uber has an increasing trend of Underpaying Their own drivers. I guess using a normal taxi might be more simpler than asking for a ride on Uber.
We need to crowdfund the creation of a ride sharing app and get out from under these folks. They have every right to exploit the system they created especially when the governing agents offer the people little to no protection.
Driving passengers for Uber was an interesting experience but not worth it when I did it back in 2017. In my midsize town you're either driving around drunks or people that don't have much money because they can't afford a car. Neither generally tip well. I switched to delivering food instead and never looked back. Turns out people tip more for you to deliver their hamburger happy meal than to deliver them alive to their destination.
That was the catch when Uber started. All I ever heard was, " you don't have to tip". An I thought to myself it's a service industry, so why wouldn't you tip ? It was a hook , line and sinker move obviously.
This month Uber increased the fee for instant cashout for drivers. Now it's $1.25 to do it. Previously it was like 75 cents. Yet another example of Uber squeezing as much money as they can. It's pathetic and disgusting.
Uber isnt profitable. I am not sure what this video is talking about. How dare uber take money from drivers rides? They are a company facilitating the action. They need to make money in order to operate. They already have razor thin margins of 2%-4% per ride. If you dont like the wage, dont drive for them. They literally have one of the worst business models of all time. It doesnt make any money.
The company lost $33 billion over 14 years before they turned a profit in 2023. You think those investors just want to eat those costs forever like it is some crazy money pit charity? Drivers are paid around 60% of each ride fare. Uber keeps 40% but that doesn't go directly into their pocket. They are running massive applications all globally. They have to build, innovate, and maintain them. They have a ton of corporate employees and they have a ton of overhead. They have a shit ton of overhead. So after factoring all that into that 40% that uber keeps, they end up making 2% to 4% in profit on every ride. Previous to raising prices on consumers and lowering the wage that they pay the drivers, 40% of the cost of each ride was supplemented by investor capital (that $33 billion that was essentially being flushed down the drain in ghe hopes that one day uber might actually turn a profit). So, the do not make large margins. Their business model does suck. The consumer has taken a large brunt of the burden of making uber profitable. Drivers also have taken a hit, but the more the drivers demand more, the worse it gets for the consumer because uber will have to continue jacking up prices to try to stay profitable. Eventually people will stop using the service because it is too expensive. The business won't have capital investment to save it anymore and it will go bankrupt. The drivers are just making this happen at a much faster pace than it otherwise would. The only other way that their business can be saved is if driverless cars do gain a large foothold. Then you will be right about their profit margins, but of course, at that point they won't need drivers anymore.
We own trucking company if we are contracted workers we should see rates we have to see rate cons for the loads we do to no what we are getting a percentage of delivery drivers should be treated same way
@piku5637 Yes I totally agree. Yet I put to you that you are part of the reason that doesn't happen if you are like JT on Second Thought who unintentionally destroys Economic Class Solidarity, rather than someone like Christian Smalls or Shaun Fain (head of UAW) or More Perfect Union Channel that refrain from the temptation to break Solidarity and thereby are more successful with further reach and power to help. Namely, the former assumes all people of the same economic class must be either culturally FAR Left wing in all things, or be made that way. Thus it is far less as effective as it could be, and also counter productive in influence. Which is a HUGE shot in your own foot. I understand the temptation to destroy Solidarity, I would have the same temptation, we all do. The latter - as far as I can tell - focus solely on economic class matters and are thus more successful. Which one are you?
This year I have experienced more gains than losses in the crypto/stock market. Thanks to some knowledge I acquired from my financial advisor and I have managed to flip the market..
I totally understand, i have seen this too, but before working with anyone you need to do your research, possibly meet them in person, my financial adviser is Gabriel Alberto William , he is not just a broker, he is a financial adviser that gives advice on any financial matters not just on stocks or crypto
They tricked everybody into focusing on per hour when it was supposed to be per gig. And based on what you did. How much time and how many miles. You're basically an employee of an algorithm. You're getting a percentage of your per hour based on the ride you did. That doesn't include wait time or pick up time. Uber basically created a problem so they could sell a solution. By making wait times longer. People are impatient. So they'll use the express pick up to pay more money, but they don't pay the drivers for it.
Uber and Lyft is taking 60% of the total fee. Even the cleaning fee that has absolutely nothing to do with damage to any property of Uber will be 100$ to the greedy animals and 150$ to the person who has to stop an entire day to clean vomit and miss rides.
I seriously work hard to engage myself in someway of earning more income. My family are happy once again and can now afford anything for my family even with my Retirement.$57k k weekly returns has been life changing, after so much struggles.
YES!!! That's exactly her name (Maria Angelina Alexander) so many people have recommended highly about her and am just starting with her from Brisbane Australia.
OMG thank you thank you thank you. I’ve been showing other drivers the math behind the offers and percentages that Uber is taking from drivers. This video is gold.
Yes, this is exactly what we experience. I would like to see more on the use of illegal immigrant licensing to drive for Uber. How Uber recruits its drivers from the immigrant community. Second, on how the apps are causing drivers to go broke!😢
Started driving for Uber a year ago I was doing well. Now, I don’t take the rides they’re offering anymore 99% of the time. Not even $1 a mile. Disgusting. I hope they like all the desperate drivers they have because anyone with a brain knows what they’re up to. Hoping this goes viral. Highly unfair terribly unsatisfactory.
Would be better if you cancel your order and pay cash. If Uber charged you 40$ driver get around 15-18. So pay the driver 30 and all of you would be happy
I have one year old daughter. Today I was driving in Chicago for 8 hours. I earned 118$. 100 miles. We have to sleep on one bed in one room. Tomorrow I go to the shop and buy cheapest food for my daughter. Thank you Uber
When companies threaten to leave the city when mandated wages are put in place, laugh in their face. "Byeee! Don't let the door hit you on the way out!"
People complain that they literally LOSE money driving for these companies, but continue to do so… at that point it’s not even entirely the company’s fault.
*Hallelujah!!!! The daily jesus devotional has been my a huge part of my transformation, God is good 🙌🏻🙌🏻🙌🏻🙌🏻🙌🏻was owning a loan of $47,000 to the bank for my son's brain surgery (David), Now I'm no longer in debt after I invested $12,000 and got my payout of m $270,500 every months,God bless Christy Fiore🇺🇸🇺🇸🇺🇸..*
Wow that's nice She makes you that much!! please is there a way to reach her services, I work 3 jobs and trying to pay off my debts for a while now!! Please help me.
I'm a bit perplexed seeing her been mentioned here also, Didn't know she has been good to so many people this is wonderful, I'm in my fifth trade with her and it has been super.
If your business model requires you to underpay your employees to turn a profit, your business is a failure.
Slave owners and land owners did as such for centuries. That is how the big house and lavish lifestyles were paid for.
It doesn't though: their business model is connecting drivers to customers for a percentage of the fee.
@@seriouslyshortofnormal925 That’s pure Kool-Aid speak.
that's every corporation in america
@shacktime
I have a very simple fix for this issue: let the drivers choose their rates and bid for jobs. There could be a 3-5 minute bidding window that closes with the lowest bid and Uber gets a standard percentage, or they could even change to a monthly subscription fee to use their infrastructure.
No one forces anyone to drive for Uber.
I'm an uber driver and I've noticed the "reduction in incentives" for months already. It's truly not worth it most of the time anymore, they're trying to pay as little as $15 an hour which is more like $10 an hour after gas and car costs.
Don't forget your employer taxes as well. (Social Security and Medicare)
Uber had a policy of cutting driver pay every 6 months when I finally gave up. At a point where the car was costing more to operate than I could make after taking into account all vehicle expenses. That was before the pandemic.
At this point all these companies are operating on the idea that drivers and their vehicles are easier to replace than maintain.
Yep, Uber and Lyft kept the prices really low until they destroyed all the local cab companies. Then they put the screws on us. It's dirty and rotten. I'm glad states and cities are banning the apps. Rich people suck😊, eat them!
I hope you have been building a little black book of customers who can contract with you directly ?
@@rrmackay technically illegal. Taxi drivers can do that but not Uber or Lyft Drivers.
This is a huge part of the problem. Drivers for these companies do not have commercial licenses, are not subject to state or federal regulations on licenses for driving passengers and do not even have to conform to rules about criminal background checks.
That is not even getting into all the fake accounts where one person signs up, but another person does the actual driving.
The entire plan (like airbnb) is to not have any overhead or responsibility as they don't own the vehicles or owners' properties but to profit like they are real hotels or other actual businesses.
It is the new way to scam the middle class for major profits for you or your stockholders.
That's american corporate discipline in an nutshell: F*CK the employees and consumers to turn a profit.
why should they subsidize customers and drivers forever?
@@Garywhitetrumphobgobbler Saying anything should be illegal is lame, our nation is run by criminals, they craft laws to protect their criminal cronies from the public not the other way around.
What this country needs is competition for the market.
Go ahead and try build a cheap and fair version of Uber. It seems like you already got a lot of willing drivers in this comment section. Next up you just need to offer cheap rides to consumers
@midas5694 Building a platform like Uber is not really a big challenge, the barrier to entry would be government regulation and law enforcement. Uber has spent much more on Lawyers than they have on engineers.
They undercut taxis to create a monopoly using investor money, then start screwing everyone over now they have that monopoly. Everyone saw this coming.
Now in bed with those taxis companies to make more
@@christhayer5498 Of course. Because that's capitalism baby!
Facts
@@FuelDropforthewin No, that's not capitalism. That's profiteering. Just one more way that people can mislead others to blame their actions on something else.
A 'monopoly'? Uber doesn't have any competition? It's more like Uber drivers are looking for the 'get rich quick scheme' but don't read the contract. "A monopoly is characterized by a single company supplying a good or service, a lack of competition within the market, and no similar substitutes for the product"
It’s not just drivers they take advantage of. They hire A LOT of contractors on the tech side too, overwork them, and then lay them off before their contracts are over. They do this regularly.
Yup. Rich gotta rich. 💪😎✌️ Poor gotta serve, suffer, and submit.
They need to he reigned in
I wish there were uber whistle-blowers
@@SalamHerbs-db5ntthey might get the Boeing treatment
@@ZetaMoolah😬
As a former Uber driver I can say that they screw the drivers. 6 years working for gig businesses from driver to regional management I can say confidently that the system is rigged.
Yup. If you ain't rich, powerful, influential, and well-connected, then you ain't nothin'. Get rich. Be rich. Else, you must serve, suffer, submit... and OBEY.
@@Novastar.SaberCombat Taxi cab driver i used to be able to pay my own bills and everything. Never needed nor wanted. Uber is not profitable at all
Sorry you chose that as a career move, says more about you than them.
Uber has found a way to pay drivers less than minimum wage, no overtime, no benefits. Stopped using Uber a few years ago and returned to using cabs. Cab service has improved, you don’t have to sign a list of terms and agreements to ride, drivers are happier and help you with your luggage, price isn’t much different.
My friends visited Boston for 3 days and racked up 285 dollars on Uber. If they had gone with Green Cab, they would have saved 175 dollars. It didn't even occur to them to check local taxi prices. When I pointed out the difference, they were astonished. They paid a hundred dollars to take an Uber 5 blocks away. They literally could have walked to the place in ten minutes.
@@ddlang2514 unlike cabs. I know the fare when I hail the ride. Taxis you never knew if one was available or what it would cost. If Uber drivers want wages and benefits, are they willing to have fixed schedules, uniforms, and other requirements of an employee?
@@DasBoot69er Actually, some taxi services here use apps and also give the fare price in advance. None of the drivers I’ve come across wear uniforms. But you are right. There are pros and cons to both. As with everything. I worked for a time delivering Uber Eats and the pay got worse and worse. In the end, not a great way to make an income and terrible for the car and gas bill.
As an ex driver, I’d say neither Uber or Lyft will work in the long run. While taking 35-50% of the fairs they’ve done nothing to improve basic mapping function, which leads me to believe all the money is going to shareholders, city negotiations, and financial trickery. The drivers are now making less than they did driving cabs.
They’re taking 55-63% of fares. Current driver, here. The only way for us to determine the actual take rate is to ask passengers what they’re paying for their rides. I began asking over the course of this last month, and can confirm that their take rate has increased exponentially. It’s out of control! The fact that he lies with such ease reveals everything you need to know about his character, morality and ethics.
I’m leaving and focusing on my own business.
@@Cope_M I ask passengers all the time, it’s all over the place. I make $37.50 passenger paid $8.50, I make $12 pax paid $15, I make $60 passenger paid $100, I make $189 passenger paid $214, I make $64 passenger paid $22. Those are some examples
@@KMK623I highly doubt uber will pay you more than what the passenger paid 😂
taking 30 to 35%? Where do you work at? They take like 75 to 80% here in New Jersey.!
Contractors, Temps, Seasonal Workers, and Part Timers: Different titles with a singular purpose: screwing over workers!!!
Damn straight!!! Full time, Union, or bust!
Please boycott these industries. Their employees should have 0 income
Uber drivers are actually not contractors. They’re employees that are misclassified as contractors. More like employees on flexible schedule. They don’t have the full autonomy to do their jobs like contractors do.
Contractors - TRUE contractors - should be allowed to be what they are.
Temps/Seasonal/Part time should have a limit of 90 days. After 90 days (not consecutive) it should be required by LAW that they be taken on as W2 employees. The whole 'part time with zero benefits' should be illegal. Even if they can't find use for an employee more than 20 hours they should be given the same benefits as those who work full time.
And executive pay should be limited to no more than 200x that of the lowest paid employee in the company. (for a $10/hr minimum employee wage that's 2 million a year - MAX - for executives). What's left goes into the corporate coffers and are then taxed appropriately - and can allow reduced cost of product, improved employee benefits & wages. So, for the executives to get a raise they have to raise the lowest wage in the company - TO INCLUDE UNPAID POSITIONS SUCH AS INTERNS. Which means if they employ interns they get paid 200x that...
All benefits such as stock and profit sharing should follow the same multipliers, with 'consultants' and other non-corporate positions maxing out at 25x.
And all while completely violating the employment guidelines that define each of these categories.
The title for this video should be "exactly what you would expect" not "will shock you"
Gotta give an exciting title for the youtube numbers. The system incentivizes scandal.
I would have been shocked if they planned to look after workers and pay taxes. Anything else is not shocking.
"The answer will NOT surprise you, it's capitalism, it's using investor capital to dominate market share and then squeezing". Come on guys, is this video title for people who've been in a 50-year coma?
Came to the comments to say this. It's been said, so I'm just going to leave a thought. The elites are eating up the country from the inside out. Leaving America hollow and weak.
yup..... Who would have thought? companies making profit by screwing over employees? damn....
the actual definition of profit is "Salaries that have not been paid"
It always baffled me how uber/lyft could loose money when their only fixed cost is insurance and servers and labor, vehicle wear/upkeep and fuel are all covered by the "independent contractors".
yeah it would be nice if the engineers of this company just ran these in each city for a small profit it could be called Austin Rideshare or NYC Rideshare, becuase this is a software company that's it, but if someone did that they would probably end up like the guy who used to work for Boeing.
Most of their losses are legal fees to keep drivers pay low. That how shitty elites are they rather lose money than help anyone out.
Uber and Lyft can’t make money keeping almost 50% of the fair but the drivers are supposed to be able to Pay all the vehicle expenses and still have a wage?
Yes, Uber is not a value add and only exists due to regulatory capture and anticompetitive practices. They are a technology platform that could be replicated for zero cost, and has in the past been subsidized by the state, meaning the source code should be seized and implemented on a public chain with 100% revenues going to drivers.
@@dustinbicknell2690 Yes , they would rather spend billions looking for new drivers rather than paying the current drivers
I gave 5000 rides for lyft from 2016 to 2019. They cut the pay rate 30 days after i started and continued to cut driver pay, each time attempting to disguise the pay cut as a benefit. It's sad that neither if these companies has an ounce of integrity. Both treat their drivers as if they are a valueless commodity.
the stock market demands you treat your employees as a valueless commodity. as long as shareholders are involved, they will be the true reason for all business decisions
They are predatory
It's not a valuable skill. That's why the best advice is to get out. In order for both of them to stay competitive they both have to have the same business model.
Drivers become a valueless commodity the moment they say yes to their shitty deals, then expect "help" from the outside in the form of regulations or unions. It's absurd. I quit the moment I saw my profit going down because of competition from other drivers that they purposely hire there. People need to grow common sense!
@@japprivera3129 Exactly, being an uber driver is like being a fast food worker. You are not a valuable member of the team, just a commodity to be used to make a profit.
Fact 8- If a driver is driving a XL car, which is a a comfortable full size sedan or SUV, the Uber denies them of the XL status for the bogus reasons like cloth seats. But then Uber books passengers Uber XL in the same drivers car. Where customer is paying for Uber XL and driver is getting paid Uber X. They are screwing over both by directly lying and stealing from both.
XL vehicles must hold minimum 6 passengers plus a driver.
More like charging uber suv price and driver getting uber x fare
Yes, that's happening coz stoopid drivers buy a leather seated car for uber x and xl where the riders actually paying for uber black and suv
The wealthy, powerful, influential, and well-connected control everything. If you're poor, weak, and unknown... you ain't sheet! 😂 You gotta serve, suffer, and SUBMIT. There's a word for what that is, too. 💪😎✌️
It’s literally like a 2 dollar difference. And you rarely get XL requests. I was doped into getting a SUV thinking I’d get more money. Boy was I wrong. Just paid more for gas. Uber are thieves!
75% of a market is dangerously close to the M-word
we need to start looking at any company with over 10% of the marketshare to be dangerous, and not allow it to happen. if monopoly isnt the right word, then we need a new word.
@@ohiasdxfcghbljokasdjhnfvaw4ehr "Oligopoly"
No no. See 40% IS monopoly territory unless it is a duopoly.
At 40% you get to set the prices for every service hands down, and the standards too boot. Again, unless someone has more market share nationwide.
We should be worried when anyone has 2% of the market share by area covered. (I.E. to adjust for population and local costs by only looking at area covered and what percentage of that total landmass is served by the companies in question)
That might sound absurd. Until you look at US history. From before the declaration of independence was signed until 1979 multi-State companies where fully illegal. For a reason.
You had to export across state lines. the reason? STATES ARE NATIONS. The united states are a collection of 50 Vassel nations.
Not pick an choose when its convienent 50 vassel nations, but always 50 vassel nations, under whats supposed to be... leaderless governance of treaties, by treaties and constitutions.. plural. with mutliple constitutions and each nation is supposed to be a true democracy at beck and call to the popular voice therin.
The only things States aint supposed to be allowed to do is limit rights prior granted to people, leave the US, and violate the constitions amd treaties, and those treaites are the highest law of the land period end of story.
Like. fricken heck the entire US went slowly crazy these past 45 years. And its all been over greed. And its all just a repeat of 1890-1930. And its all just increadibly stupid. and that include Uber.
Sorry to vent.
@@AnonymousAnarchist2 no need to apologise. It's perfectly understandable and you comment extremely informative
any type of completely free market will 100% of the time tend to a monopoly.
Competition is nice while no one has won it... but somewhere down the line, someone will.... and even if "someone comes and beat them" comes true someday, the monopoly will still be there, just being exercized by someone else.
Competition in free market is a myth.
According to some analysts, the drivers are not making much money when considering all the real costs of using your own car. Like very little money.
Its really hard to find a taxi service in medium sized cities and small towns now. Uber subsidized fares just long enough to destroy the competition. Gaming the "free" market is now the norm.
This is what I hate about monopolies. They destroy all the small business competition and then your forced to use the service or go without. It is a ridiculous practice and should not be allowed. We all knew what would happen after Amazon took over. There are fewer places to shop outside of the biggest stores to buy anything and prices are the most unaffordable they have ever been.
@@margaritoamargo6347Uber is also burying public transit too…so it’s worse because of all this too. And traffic is worse because of all the deadheading that rides gare causes (driving without a fare).
The market was never free
Misleading is such a kind term. They are lying.
Don't they also pass off most of the tax burden onto drivers? I thought that was the biggest part of their scam.
100%
They are independent contractors, which means the drivers can make deductions on business expenses.
Yeap.
@@ryantetreault3447 , yes but those deductions are less then 1/2 the cost of doing business.
@@ryantetreault3447 If you think the drivers are genuinely treated like independent contractors you have no idea what that actually means and entails.
I just learned about this a couple of weeks ago. I was using Uber for the first time after moving to the suburbs. My drive got reassigned three times. My wait time went from 4 to 7 to 17 minutes with each new driver. So I cancelled and tried again. This time I texted the 1st driver, who also dropped me after confirming. I called the next driver to make sure she would not drop me.
We had a great conversation on the ride after I asked whether drivers could get other Uber requests after picking up mine. She suggested that they were probably picking up a Lyft client instead. Many of the drivers sign up for both. But Lyft pays them for the ride to get the customer. Uber does not. So between the fact that Uber had significantly slashed their pay and that it would not pay for the pickup, it makes sense to the drivers to take the Lyft customer instead. Specially since in the suburbs, they are less likely to get their next customer close to the drop off location.
Needless to say, I'm ditching Uber and switching to cabs or Lyft.
Lyft is HORRIBLE for drivers. Even worse than uber. Not to mention they do not insure properly, so both you and the driver are screwed IF you get in an accident.
@ thanks for the info
I drove Uber rides one time. When they offered $300 boost plus fares for 5 rides. After that, it dropped to $7 “opportunities “. Never again. Plus too many scary fares. No more. I’d rather take a bus if I have to.
Drive the bus instead, its more fun.
Hope Minnesota calls their threat to leave the State. Hope other cities and states follow Minneapolis' lead.
Austin call their bluff over background checks and when Uber left Austin locals started ride share companies to fill the vacuum. Any large city will see this happen. We don't need Uber.
From what I read, Minneapolis is also establishing some alternate rideshare companies. Three have been approved.
@@puggirl415Yes , they need to go out of business.
The state government and city council called Uber's bluff and as expected Uber finally bent the knee and kissed the ring and said they will stay after the state voted on legislation codifying the fare into law. The fares will increase but it is a little less than what Minneapolis initially proposed but the good thing is all ride share companies have to ensure drivers make at least $15/hr after expenses or else face lawsuits and fines for wage theft. I think the fare is 1.30/ mile and 0.35/ minute. Basically a 15 min 10 mile ride will earn a driver 17 dollars. Now it's 9-11 dollars.
Side note. Their venture into driver-less cars failed because they "relaxed" some of the safety protocols in pursuit of scaling up the service. The "safety driver" in their fatal accident was on her phone watching videos and the collision avoidance had been nerfed. They weren't even fully autonomous yet. To this day, the sole fatal accident involving a self-driving car was Uber. They almost killed an entire emerging industry in the pursuit of fast money. (source: I know people who worked there back then)
And they’ll spend all of their profit trying to build Machines to replace humans rather than just paying humans a decent wage.
Part of their scam is getting the drivers to cover the cost of ownership, insurance, maintenance, gas, etc. If they owned self driving cars they would have to cover these costs.
There have been many fatal Tesla FSD crashes. Not to mention Chinese cars...
@@animusadvertere3371 A Tesla is not a self-driving car. Despite the name of the feature, it needs someone behind the wheel at all times.
@@gordonmills2748 There is no real self driving car yet. It's divided in 5 levels and the highest we achieved so far is level 4, where self driving is possible in very specific roads. Tesla is level 2. I think Mercedes had level 3 and stopped R&D on it, as level 5 is not feasible at the moment.
The truth is, and most people who know anything about AI will concur - true FSD requires a GP-AI, and we have no idea how to get there. There is no prototype, no paper, no public hypothesis on how we can reach general purpose level in AI. We have to get there first, before we can talk about level 5 FSD.
I only ever drove for these apps when they were running "promotions." No promotions, no work. The pay just doesn't math out. The US government is failing everybody who has not had the luxury of leaving this line of work.
The US government is failing the working class, PERIOD, FULL STOP.
Until those holding the money have it stripped away and redistributed (which would never have been necessary prior to Reagan and all of the polices that have been carried down ever since - by BOTH parties) the working class will always get f*cked over.
Look up who Tony West is.
Keep exposing what rideshare companies are doing as they increase profits explore loopholes and treat their workers like trash.
The gig economy is a failure. Terrible.
it is good for Democrats and bad for Americans or bad for America it takes away commerce and takes away American jobs
@@arcatacompanyexactly. democrats love this
@@arcatacompany👏🏼👏🏼
@@michelep9477100%
4:20 I can agree with this. I've only done uber eats, but when I started skipping too many fares because they literally weren't paying minimum wage, I started getting fewer and fewer offers.
Uber eats is a joke.
They dangle that carrot and people keep chasing it.
Capitalism exploitation of the working class is the problem.
‘Socialism never took root in America because the poor see themselves not as an exploited proletariat but as temporarily embarrassed millionaires.’
John Steinbeck
Except these CEOs are devout Marxists
I feel like we need more Steinbecks and Upton Sinclairs
Criminalize the poor and defend the rich.
Also, exploitation of their customers. They don't give a crap about any of the people who actually use their services. They only care about scamming as much money as possible for their shareholders, who they see as their REAL customers.
Uber is a centralized business indirectly sponsored by the state and a middleman overcharging everyone, it's as Soviet as it gets.
Ubers is one of the most unethical companies in existence. I started ten years ago when they paid a fair wage, now they take over 60 percent of the ride and I’m barely making ends meet.
Then stop dealing with them
Why don’t you quit your job too ? Why should I have to not deal with them when their the one’s breaking labor laws. They need to change not me.
@@joegug4751 first they are not breaking any laws. And second, you are a crony. You want the government to use force to obtain from others something you can t earn on your own.
The proper response to not getting the deal you want is to decline it, not to use the government to extort what you want.
@@maximemeis2867 They are in fact breaking many laws, but the government refuses to hold them accountable.An they obviously have you fooled.
@@maximemeis2867this guy all over this thread defending uber lol what a LOSSSSERRRRRRRRRRRR
They dc about you toolbag
This is a financial model called blitzscaling, plenty new companies do it.
In short, you start a company with a promise, get a massive finding by venture capitalists, and keep operating at loss until you captured enough of the market to be "too big to fail," and then start racking up prices to start making money.
Uber, lyft, airbnb, wework, spotify, the list goes on. They start by offering a great deal, and progressively get worse to pay back the initial investors. That's how they appeared out of nowhere and were suddenly everywhere. And most vanish just as fast, leaving wreckage behind
The 'gig' economy is all about eliminating the costs for labor by making everyone a contractor. When you work for a company your compensation, the total amount your employer pays for your labor, includes not only your wage but also your benefits as well as the overhead to put you in an office or similar. Uber doesn't pay you any of these and as an independent contractor YOU are responsible for covering these additional expenses. It's not just gas, oil, maintenance, insurance and depreciation, but you also have to account for social security and Medicare. People working in this place in the economy receive compensation from the company and wages account for about 65%-75% of those costs so if you're only getting paid the wages then your effective pay is 25%-35% less than it appears.
When a business is starting out there is often an “employee first” mentality.
Once the business goes public, it’s all about the shareholders.
Thank you for being a voice for us drivers who have been getting robbed by Uber for too long. I've been a driver for the for 9 years come October. The pay has dropped insanely over those 9 years. I don't know of any other job, where you, over the years, get pay decreases, instead of pay raises. Literally insane.
Thanks for doing a video on Uber. They're the WORST. This "gig economy" is the WORST.
And, INCREASE THE PRICES!!! If your company cant turn a profit, that's a YOU problem, Uber!!! What kind of company criws "poor me" for not even paying the bare minimum!!
Hear you, except if they increase the prices, it will go to the exec's and the shareholders.
Drivers union in a state in India made their own app which is cheaper than Uber and doesn't take cuts.
Drivers will do that in the US also
@@ErkanAkaltun I really hope you guys do. And make it open source so that unions in other states or countries can also use it.
@echooscar5241 Yes, we designed global software structure with localization, which means SaaS . Some people call it MaaS. Indeed there are difficulties to name the model because it is not commercial. Btw, where r u located?
@@ErkanAkaltun😯 what is it called? I hope it gets widely adopted! I'm from the southern part of India.
@echooscar5241 only taxis can work on rideshare platforms in India, right? Private cars already banned?
Yep stop using Uber cause of what they doing to drivers
I try to!
@@Shei-vei the pay is horrible I would rather use a cab. At least the person gets more. Here in Atlanta a cab is cheaper anyway.
@@Shei-vei Most drivers I know are on multiple apps at the same time. If all uber usage goes to a different app they'll either already get the same ride or just install that one too.
The drivers are doing it to themselves.
If you want to help drivers, don't stop taking rides, support alternative ridesharing apps that treat drivers fairly and use them when they become available.
I had a passenger Saturday that paid $100 for a trip, I only received $43 of that
Good god that's robbery
Which makes you bad at math. After a leased is paid a taxicab driver would keep a whole lot more after expenses.
@@serafinacosta7118 k
i thought employers taking your tips was illegal
@@ohiasdxfcghbljokasdjhnfvaw4ehr it technically is. They didn't tip tho
So many NYC medallion owners literally ended themselves because of undercutting regular taxi service there. The human toll is awful.
Or maybe because of the government involvement in creating a medallion market in the first place that costed millions of dollars ! I never understood why someone has to pay a million bucks to drive other people around !
Not just NYC.
Why was there mdeaillion if not to reduce supply and capture a market by regulation?
The medallion system was a monopoly as well.
@@dontbeafool Without the medallion system, NYC would have been drowning in taxis and fares would be undercut. It wasn't a perfect system but it did ensure that cabbies got reasonable fares and there weren't too many of them to undercut one another.
I feel so bad for the drivers.
Meanwhile, make sure you tip your drivers.
@@Arthur-Silvano
@@Arthur-Silva I wish your answer was less tipping. Tipping is out of control and we need to make that clear.
@@rarephoenix Whether tipping is out of control or not, if you take rides without tipping: you are the problem.
@@nikidelvalle Uber spent the first two or three years very, very diligently and carefully training their passengers they did not have to tip. Drivers made more than enough. After that it was set in stone.
Uber is perhaps a leading example, but this is the exact idealized business model for most big tech startups
1. Have a potentially killer idea, hire some engineers and get a prototype going
2. Get angel investors and venture capitalists to invest millions or billions of dollars in your idea
3. Use that investment money to operate at a loss for 5-10 years, giving consumers something that seems like a great new affordable product/app/service/whatever
4. Create a monopoly or pseudo-monopoly by driving the comparable businesses that need to operate at a profit out of business(i.e. everyday taxi drivers, delivery services, etc.)
5. Once you've cornered the market, turn on the monetization. Consumers (and workers) will now have no other options, making you incredibly rich and everyone else worse off.
Doesn't always work out that way, but that's the ideal goal. Venture capitalists love this b/c if it works out, they basically get to own the world.
I never use Uber. Such a ripoff. Lyft is always cheaper when I check. The prices have become so expensive that you could just pay a taxi driver.
I drive Uber in Austin. I recently gave a ride during a busy weekend from the downtown Marriott on Congress and 2nd to the airport, a distance of about 10 miles. The passenger's upfront fare was $82, my upfront fare was $36.
So profit after exspenses is ? 20$ 15 $
Your cut should have been $55 (2/3), AT LEAST! Quit man, you're giving your car away!
It's the same with every "gig economy" company. They get the consumer used to deeply subsidised services, but then it's only sustainable if you don't pay your workers. Taxis are simply more expensive than that. Something's gotta give, and ultimately we're gonna have to go back to paying the true price of taxis -- like we did before the apps showed up.
As a German, I would actually like to sue them for misusing the word “űber”. There is nothing “above/exceptional” with their business.
This is crazy. Like even people working side gigs after 2 jobs just to pay for a room in an apartment they share with strangers, can't get a break.
I drove for Uber for about 3 months and now I work for walmart and actually make enough to pay bills again.
You don't need data to prove drivers are making less. You just have to ask drivers directly. Some days I could drive around for 8 hours and not even make enough to cover the tank of gas after burning through half a tank.
As someone who's never thought of driving for Uber myself, what is making you and other drivers stick with it? Because you are actively losing money on that, after all the car, insurance etc costs money too. It feels like you'd be doing better covering some shifts in a minimum wage job - not that I'd recommend that, but it does serve to point out just how bad a deal it is.
Yes Uber is taking to much money from each fare.
However, why are you driving around without a fare? Drive to the nearest hot area after dropping off a fare. Park and sit there and wait with your car off. Driving around doesn't make you more likely to get a ride.
Heck, honestly, I bet you'd still make more money if you just even drove a block away from the dropoff spot and parked there. ... as long as the drop off spot wasn't in BFE.
@@csr7080 Uber runs very elaborate scams to lure drivers. For the first month or two you actually make decent money. Then they rip the rug out from under you and leave drivers who invested in the job to twist in the wind. Also, Uber’s (and Lyft’s) executive boards are staffed to the gills with former Democratic appointees and the like. Look up Tony West.
No, anecdotes aren't proof. Data is proof
@@Wesley-rn7oc The data can be found in their trip receipts and ride manifests. Then you run that against their operating costs. Many drivers operate in the red, which is why the churn rate in “ride share” is among the highest ever in any industry. That fact alone proves there’s no money in the job.
Monsters !!
I never took a Uber in my life -- only good old taxis (3 to 5 times a year)
You did well.
No Uber, no Skip the Dishes, no Air BnB and no Hello Fresh for me.
@@nadinegriffin5252 same here sister :)
@@nadinegriffin5252 old fashioned gal.
Lyft is 3 times worse than Uber, Uber is still decent honestly
This is what a libertarian utopia would look like, except it’s reality, not an utopia.
According to the Uber statement shown in the video they openly discriminate based on gender and national origin (among other things).
That is illegal when employers do it. The "independent contractor" loophole needs to be closed.
Jobs will pay your bills, business will make you rich but investment makes and keep you wealthy! I pray everyone here becomes successful
This makes me glad ive scammed Uber Eats out of hundreds in $20 coupon codes.
😂
What kills me is the sheeple who watch this and still don't go beyond" I worked since I was 8 months old, 10 days a week for a nickel a week, but you don't hear me complaining!"
please excuse the unsolicited advice but i really want your message to get out. In the future, don't make videos that are 7:57. Either go over 8 or under 6. 8 minutes is when youtube allows mid roll ads, so they stand to make more money on 8 min and longer videos, so the alg is going to push the long videos. Some creators even let a blank screen play for several seconds at the end just to hit that mark. That's why you're other uber video (that was over 10 min long) did almost 5x views as this one
As a Minnesotan I am proud of us probing Uber and Lyft, solidarity forever!
They list uber driver's gender, age, skin color, eye color, hair color, etc.
........so that end users can discriminate against them or something? What does it have to do with the payment algorithm? You gotta be more clear about this, man.
Damn it's almost like divesting in public transit in favor of for-profit ride sharing services has resulted in a system where everyone gets screwed while the rich get richer 🤷
... Ya know Uber aint much cheaper then a taxi.
And the taxi companies pay for the cabs, maintain the cabs, pay for the gas in the cabs, maintain customer safty, pay the full insurance on the Taxi cabs, require thier drivers to obtain a higher level of license, pay for a live human dispatcher who can help with ride hic-ups, and also a garage to house the taxi cabs, pay the cabbies decent enough wages plus all the tips.
Oh ya, and the cabs come with safty shields.
And taxi companies where profitable before Uber came along and used V.C. money and played shell games with finances to drive them outta buisness.
Uber is a case of zero value added if there ever was a case study in it. Should be in every textbook, how to get rich being worse in every possible way then your compitetion.
People need to start calling in to uber with their complaints. Let them know that we are done with their games.
"Call in", are you KIDDING? They do NOT answer the phone....
They’re getting sued in every city, state and country that they operate. Uber and Lyft have to pay hundreds of millions in settlements. There’s something wrong when your getting sued everywhere you operate.
DT would NOT agree with you, LOL!
The thing I never hear any of these stories talking about is wait time. I used to drive for Lyft and Uber in Seattle, and the city (then state) instituted a minimum fare law, but they failed to restrain capacity in any way. So the companies flooded the market, and even though I'd make more for a given trip, I'd have less trips. If there isn't a passenger in my car, I'm not getting paid. As a whole, I made less with the higher fares.
Any of these minimum fare laws need to include all time the driver has the app open and available for rides, and yes that likely means that the companies will need to tell drivers that they're being logged out or they have to work on a schedule, but thats how responsible companies operate.
Oh, and this'll also mean passengers have to wait a bit longer, since there will not be as many drivers waiting around for their trips.
As I said in my post, using Min Wage laws is a losing battle. You're "mixing apples with oranges"...Demand detailed information on fares and cuts to drivers and keep drivers as contractors. Win for drivers/No more "stealing"/gouging drivers and customers....
Tried to explain to people that Uber is now taking all of the surges. I've seen Uber take as high as eighty percent of the trip. They're also using trip radar to bid on other drivers at lower pay. I've watched them cancel rides that i've already accepted to, then give it to a different driver at a lower pay. Wasting driver time. All for their profits.
Tried that using my own vehicles for my job ..ended up driving further and making less. And tires oil.. gas forget that
As a former cab driver, I was troubled that Uber was totally able to circumvent the safety, training and certification process for their drivers that cab drivers had to undergo, including things like criminal background checks, and even professional driver licensing.
All Uber does, is run a bunch of computers.
But they require a 40% margin to turn a "profit" ?
Let's see if I can deduct 40% from my income as "computer expenses".
I used to work for DiDi in Mexico, Ubers main competitor in Latin America, what you guys are saying is true. While I dont know the exact data from the US, the main way to make the P/L of a city profitable is to reduce driver incentives, they tend to be the n.1 expense that every city has in order to reach profitability. The other lever being moved is also Take Rate. For me its crazy how high Take Rates are in the US, in Mexico for instance, depending on the city they tend to be between 15% and 25%, for both Uber and DiDi. It shocks me to see the 35%+ I see in the States. The main reason for those Take Rates going up is without a doubt Uber gaining market share from Lyft. A golden rule from ops in Ride Haling: The more market share you have in a city, the lest investment you put in it (incentives, discounts, take rate, etc) Since Uber is killing Lyft slowly, so will the investment they make and in turn, reduce driver earnings
I'd like to see Uber's expenses. It's an app, why do they need 40% of a ride to make a profit when their only expenses should be a few programmers, servers, and lawyers (to navigate governmental requirements). All of the big tech companies seem to claim or forcefully generate unreasonable expenditures. Is this just to avoid paying taxes on the profit or is it CEOs investing in high risk high reward expansions to try for huge bonuses or what?
CEO’s and shareholders have a lifestyle to maintain
Uber was paying for a good portion of each ride, paying the drivers more than the riders paid so that they could monopolize the market. Once they have a monopoly, they can do whatever they want with prices.
Need to add the incompetent customer service people they hire in India to handle problems drivers or customers have
Marginal cost of a ride to Uber/Lyft: $Zero!
The only needed thing is an open source non-profit system for drivers and riders. Everywhere outside of the USA there are a ton of alternatives. Maybe not as good as Uber, but they take much less than Uber.
i would be more shocked that Uber *isnt* doing something shady.
Seriously it is taking a big toll on. Recently reservation rides are paying 25% less .
Lyft is over charging my credit card for rides I didn't request. One month Lyft charged me $250, and $ 350, and $500 this month. I'm retried and don't need rides that cost me that much money. I'm filing a huge credit card fraud claim. Psst off big time. 😡🤮😡.
Most likely a company that is just using the Lyft name charging your CC they got ahold of.
I'm an analyst too, I would like to comment. In my country Uber is great for delivering food, I still use it and try to tip my drivers all the time. The Uber app that act as a taxi has problems. Business model isn't sustainable and Uber has an increasing trend of Underpaying Their own drivers. I guess using a normal taxi might be more simpler than asking for a ride on Uber.
5:17 Yooooooo, they said the quiet part out loud.
We need to crowdfund the creation of a ride sharing app and get out from under these folks.
They have every right to exploit the system they created especially when the governing agents offer the people little to no protection.
Driving passengers for Uber was an interesting experience but not worth it when I did it back in 2017. In my midsize town you're either driving around drunks or people that don't have much money because they can't afford a car. Neither generally tip well. I switched to delivering food instead and never looked back. Turns out people tip more for you to deliver their hamburger happy meal than to deliver them alive to their destination.
That was the catch when Uber started. All I ever heard was, " you don't have to tip". An I thought to myself it's a service industry, so why wouldn't you tip ? It was a hook , line and sinker move obviously.
More Perfect Union is amazing. Learning so much.
Of course Uber it’s screwing its drivers. Terrible.
This month Uber increased the fee for instant cashout for drivers. Now it's $1.25 to do it. Previously it was like 75 cents. Yet another example of Uber squeezing as much money as they can. It's pathetic and disgusting.
Uber isnt profitable. I am not sure what this video is talking about.
How dare uber take money from drivers rides? They are a company facilitating the action. They need to make money in order to operate. They already have razor thin margins of 2%-4% per ride. If you dont like the wage, dont drive for them. They literally have one of the worst business models of all time. It doesnt make any money.
2-4% per ride? What are you talking about? It's more like 40-80%!! Zero marginal cost per ride....
The company lost $33 billion over 14 years before they turned a profit in 2023. You think those investors just want to eat those costs forever like it is some crazy money pit charity? Drivers are paid around 60% of each ride fare. Uber keeps 40% but that doesn't go directly into their pocket. They are running massive applications all globally. They have to build, innovate, and maintain them. They have a ton of corporate employees and they have a ton of overhead. They have a shit ton of overhead. So after factoring all that into that 40% that uber keeps, they end up making 2% to 4% in profit on every ride.
Previous to raising prices on consumers and lowering the wage that they pay the drivers, 40% of the cost of each ride was supplemented by investor capital (that $33 billion that was essentially being flushed down the drain in ghe hopes that one day uber might actually turn a profit). So, the do not make large margins. Their business model does suck. The consumer has taken a large brunt of the burden of making uber profitable. Drivers also have taken a hit, but the more the drivers demand more, the worse it gets for the consumer because uber will have to continue jacking up prices to try to stay profitable. Eventually people will stop using the service because it is too expensive. The business won't have capital investment to save it anymore and it will go bankrupt. The drivers are just making this happen at a much faster pace than it otherwise would.
The only other way that their business can be saved is if driverless cars do gain a large foothold. Then you will be right about their profit margins, but of course, at that point they won't need drivers anymore.
We own trucking company if we are contracted workers we should see rates we have to see rate cons for the loads we do to no what we are getting a percentage of delivery drivers should be treated same way
Isn't there a Cooperative version of Uber somewhere?? I heard there was. User Workers joining that would be better than a Union.
Or, you can say it'd be a more perfect union.
There are several companies spread across various cities. You just have to find out which one is in the city you’re in.
Co-ops really need to go mainstream worldwide.
@piku5637
Yes I totally agree. Yet I put to you that you are part of the reason that doesn't happen if you are like JT on Second Thought who unintentionally destroys Economic Class Solidarity, rather than someone like Christian Smalls or Shaun Fain (head of UAW) or More Perfect Union Channel that refrain from the temptation to break Solidarity and thereby are more successful with further reach and power to help.
Namely, the former assumes all people of the same economic class must be either culturally FAR Left wing in all things, or be made that way.
Thus it is far less as effective as it could be, and also counter productive in influence.
Which is a HUGE shot in your own foot.
I understand the temptation to destroy Solidarity, I would have the same temptation, we all do.
The latter - as far as I can tell - focus solely on economic class matters and are thus more successful.
Which one are you?
@@piku5637
I don't know for sure, but I reckon Mondragon would be more in the 2nd type - Esp when it was first forming.
$3.80 for a 34 minute ride, minus $2.50 in expenses , paying drivers $2.60 per hour after expenses . Thanks Dara !!!
unsustainable business model that won't last.
Seattle 5 mile trip from Airport to my home $87. Lyft? $65 Booked taxi? $37
This year I have experienced more gains than losses in the crypto/stock market. Thanks to some knowledge I acquired from my financial advisor and I have managed to flip the market..
I have seen something like this on countless videos and i find it misleading. I do not trust most advisors as the last time I did, it didn't end well
I totally understand, i have seen this too, but before working with anyone you need to do your research, possibly meet them in person, my financial adviser is Gabriel Alberto William , he is not just a broker, he is a financial adviser that gives advice on any financial matters not just on stocks or crypto
Okay, how do I get in touch with him?
look his name up online, please do your research, he is very good at what he does and has been in various financial market interviews
look his name up online, please do your research, he is very good at what he does and has been in various financial market interviews
They tricked everybody into focusing on per hour when it was supposed to be per gig. And based on what you did. How much time and how many miles. You're basically an employee of an algorithm. You're getting a percentage of your per hour based on the ride you did. That doesn't include wait time or pick up time. Uber basically created a problem so they could sell a solution. By making wait times longer. People are impatient. So they'll use the express pick up to pay more money, but they don't pay the drivers for it.
Uber and Lyft is taking 60% of the total fee. Even the cleaning fee that has absolutely nothing to do with damage to any property of Uber will be 100$ to the greedy animals and 150$ to the person who has to stop an entire day to clean vomit and miss rides.
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How can I contact her directly?
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OMG thank you thank you thank you. I’ve been showing other drivers the math behind the offers and percentages that Uber is taking from drivers. This video is gold.
Yes, this is exactly what we experience. I would like to see more on the use of illegal immigrant licensing to drive for Uber. How Uber recruits its drivers from the immigrant community. Second, on how the apps are causing drivers to go broke!😢
indeed
Started driving for Uber a year ago I was doing well. Now, I don’t take the rides they’re offering anymore 99% of the time. Not even $1 a mile. Disgusting. I hope they like all the desperate drivers they have because anyone with a brain knows what they’re up to. Hoping this goes viral. Highly unfair terribly unsatisfactory.
If I ever have to use uber again I'm going to let the driver know what the ride cost me
Would be better if you cancel your order and pay cash. If Uber charged you 40$ driver get around 15-18. So pay the driver 30 and all of you would be happy
I have one year old daughter. Today I was driving in Chicago for 8 hours. I earned 118$. 100 miles. We have to sleep on one bed in one room. Tomorrow I go to the shop and buy cheapest food for my daughter. Thank you Uber
@@kalebvp8522 That's $118 BEFORE costs or after?
When companies threaten to leave the city when mandated wages are put in place, laugh in their face. "Byeee! Don't let the door hit you on the way out!"
Unfortunately politicians won't allow that. You know they are on the pay roll
How about stop driving for Uber if you don’t like what they pay? It’s not rocket surgery
What is the end ? Stop living if you don’t want slavery ? Pathetic
@@petlovers1780 whoa yikes with the exponential strawman there buddy
People complain that they literally LOSE money driving for these companies, but continue to do so… at that point it’s not even entirely the company’s fault.
Attention Uber drivers if you want to make money, try selling toilet paper with Uber printed on it
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@Jessica-uv8wu????
Meanwhile drivers been making profit for years while uber didnt get paid and lost money
Don’t use Uber until they pay their drivers a living wage
just did two videos breaking down how ridiculous the costs are. would love to help spread this message if i can
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Translation: put the taxis out of business with low rates for passengers and decent pay to drivers. Once Taxis are gone, jack rates and screw drivers.