UBER, Goldman Sachs & Subprime Lending

[joec]

[quote=treehugger]Driving for Uber is a choice, I don’t understand the controversy? Go get a job at a regular taxi service and/or only use regular taxi service if you feel so strongly against Uber. As a driver you sign up to drive for a service where tips are not expected, so why am I taking a flat fee service and putting a tip on top of it? Like anything in the service industry a tip should be earned not expected.

I have an app, I type in where I want to go, it tells me how much the ride will cost and someone comes and picks me up. There is a picture w/description of driver and reviews, I appreciate that a lot more than a regular taxi service (which I have taken in the past and been scared by my non-English speaking drivers). I have used it in various cities to get around, few miles here or there it was convenient and cheap, even with surge pricing. If we had a really engaging driver we gave them a tip otherwise no I did not tip nor did I feel obligated to. If drivers don’t like that don’t drive for Uber.

I am not sympathetic to the lawsuit.[/quote]

I think the overall problem is there are very few decent jobs now for most folks so some people do Uber just because they don’t see any/much other options in terms of work…

I’d think most people wouldn’t do Uber if they didn’t have to honestly. No benefits, pay gets cut without ANY control to you (I think this is where they should lose in any lawsuit as realtors or consultants can definitely setup their pay rates, etc…and have more freedom as independent contractors…)

The problem was cabs were a rip off and didn’t drive everywhere. Uber comes and messes everyone up and skirting all the labor laws IMO and the pay for these guys BEFORE any car expenses is pretty pathetic IMO.

As I have family driving full time for Uber, I think the company is a crock and until you do the math or know people personally who drive it full time, you really don’t know what it’s like and from reading your post, just come off as elitist and with the mindset of, don’t like it, then don’t drive it (which is true to a point though…)

I honestly hope the company crashes and burns.

[livinincali]

This is some interesting information about Uber’s app.
[quote]
One of the things you may not realize is that Uber can tell when your phone battery is about to die. In an episode of NPR’s The Hidden Brain, Uber’s head of economic research Keith Chen says when you hit accept to download, you give Uber the permission to know this in order to tell when to switch to low-power mode.

While that’s interesting, what’s even more revealing is how much people are willing to pay surge pricing depending on their phone’s battery level. Chen says users will pay up to 9.9 times in surge if their battery is critical just so they’re not stranded wherever they are (of course, assuming that your driver doesn’t cancel on you after your phone’s dead.)
[/quote]

http://thenextweb.com/insider/2016/05/20/uber-riders-will-pay-9-9-times-surge-pricing-phone-battery-low/#gref

[Escoguy]

svelte,

If you’re in a high density “drinking zone” like OB/PB, Little Italy. Many rides are short and that’s not a problem because I might do 10 of those. It is just be aware that a few dollars tip is greatly appreciated for those short rides.

In some areas the short rides just don’t work, like when I get off the freeway to take a kid to High School or a guy home from the gym.

I wouldn’t want to make you not use the service, but just be aware of the economics so it works for everyone.

[treehugger]

[quote=joec][quote=treehugger]Driving for Uber is a choice, I don’t understand the controversy? Go get a job at a regular taxi service and/or only use regular taxi service if you feel so strongly against Uber. As a driver you sign up to drive for a service where tips are not expected, so why am I taking a flat fee service and putting a tip on top of it? Like anything in the service industry a tip should be earned not expected.

I have an app, I type in where I want to go, it tells me how much the ride will cost and someone comes and picks me up. There is a picture w/description of driver and reviews, I appreciate that a lot more than a regular taxi service (which I have taken in the past and been scared by my non-English speaking drivers). I have used it in various cities to get around, few miles here or there it was convenient and cheap, even with surge pricing. If we had a really engaging driver we gave them a tip otherwise no I did not tip nor did I feel obligated to. If drivers don’t like that don’t drive for Uber.

I am not sympathetic to the lawsuit.[/quote]

I think the overall problem is there are very few decent jobs now for most folks so some people do Uber just because they don’t see any/much other options in terms of work…

I’d think most people wouldn’t do Uber if they didn’t have to honestly. No benefits, pay gets cut without ANY control to you (I think this is where they should lose in any lawsuit as realtors or consultants can definitely setup their pay rates, etc…and have more freedom as independent contractors…)

The problem was cabs were a rip off and didn’t drive everywhere. Uber comes and messes everyone up and skirting all the labor laws IMO and the pay for these guys BEFORE any car expenses is pretty pathetic IMO.

As I have family driving full time for Uber, I think the company is a crock and until you do the math or know people personally who drive it full time, you really don’t know what it’s like and from reading your post, just come off as elitist and with the mindset of, don’t like it, then don’t drive it (which is true to a point though…)

I honestly hope the company crashes and burns.[/quote]

If the company crashes and burns then your family that drives for Uber is out of a job. Nice.

Uber is a luxury to me and as an elitist I can choose to indulge in a luxury or not. If I needed to I could drive myself, walk, ride a bike, take a bus/cab/train……

You are trying to argue from the drivers perspective and I don’t know anyone that drives for Uber you are correct, although most of the drivers I have experienced were exceptionally nice and really seemed to enjoy what they did, everyone I met did it as a part time gig many to off-set the car payment of a nice car by working a few hours here or there when their schedule permitted. I maintain that they have a choice and the choice is someone sitting around without a job or wanting extra income decides to drive for Uber (known for non-tipping) or not….I choose to take Uber and I appreciate the way it works, if I get good service I will give a good tip, otherwise no I do not feel a tip is required.

Life is all about choices, if that makes me an elitist so be it I will own it.

[Escoguy]

treehugger,

You’re touching on the real issue.

Some of us drive for Uber/Lyft part time and would never dream of trying to making a living doing it with a family/mortgage and real obligations.

The social interaction is fun and the rough economics are exactly as you said, it pays for the car plus a little extra as long as Uber doesn’t squeeze too hard.

Given, a single person can make $800/week doing it full time and for those who have a choice of minimum wage or nothing it is clearly a better choice. Many drivers are semi retired and like having company.

I spoke with one Lyft driver who mentioned he makes more driving than being a care giver which paid $13/hour.

He also mentioned he couldn’t get a loan as the bank said, Uber can be gone tomorrow. This goes back to the original topic, that Uber becomes a subprime lender for vehicles with the accompanying credit risk. It would be interesting to know just how many vehicles are being purchased with the idea of ride share paying some or most of the payment.

If a person is in a situation where they depend on Uber/Lyft to make a living, then my advice would be to get more skills as sitting in a car 40-60 hours/week isn’t healthy even if the conversation is fun etc.

For drivers who started over 2 years ago, the rates were much higher and it may have led some to conclude this would last and make plans around it, alas that isn’t the case.

I am convinced it will be better one day once this price war stops and the app improve with better options for matching riders and drivers.

If the payment was roughly $1.50/mile that might be fair but for now it’s about 1/2 that.

Due to the low payment, it is easy to get emotional and react negatively about Uber, but that underscores my point. It is not a full time job.

I certainly hope none of this discussion puts anyone off from using the service.

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