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People are waking up to the Uber ripoff. There has to be a solution.
Not really. There is still an incredible amount of people signing up to drive. The public loves the cheap reliable transportation. And as long as new drivers keep on boarding with Uber then there is no reason to raise prices.
People say once the word gets out about how bad driving for Uber really is will lead to a shortage of drivers. Just think about this, the UP Forum has just celebrated its 3rd birthday. In that same 36 month time frame another 12 million Americans have become of legal age to drive for Uber. If only 1/10 of 1% drive for Uber that's another 12,000 new drivers from just the young generation. Add another 12,000 new retired folk and another 12,000 that have lost their employment and another 12,000 that are curious about making some extra money with Uber and now you have a new 50,000 batch of drivers every 3 years. I've said this a hundred times in this forum. The fare for hire industry is ruined. Rates will never be what they should be so a driver can actually make a living. Welcome to a new hobby.
 

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It looks like theories about the dumbing down of American society get closer to being facts every day. That's about the only way I can explain why people would try to do this job full time at the current uber x rates. Part time to augment other income or to pay for one's car I can understand but that's about it. Raise rates by 40 per cent or more and keep the commission percentage about the same and I might understand but at the current rates I don't.
 

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With a direct competitor (Lyft), it becomes a battle of who can keep prices the lowest while still keeping the platform stable. I think they are about as low as they can go. Much lower, driver's will stop. Any higher, the competition has room to undercut. A lot of drivers now drive at operating costs and are ok with it (like myself, as a side gig it's a good way to add about $12k a year and not pay out taxes on it). It's horrible for drivers that are trying to make it a for-profit gig as Uber/Lyft are the ones skimming the profit off the top with their fees. Sure, they can skim less, but it is only a matter of time before one or the other takes less and then drops rates because they know drivers will continue to drive at operating costs since they do already.
 

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While I definitely understand that the pay is much lower than I'd like it to be, the notion that Uber gets all the profit is misleading. Upfront pricing aside, the driver retains 75% of the fare. The problem isn't that Uber is profiting, of course they will because 25% of 150,000 drivers is much better than 75% of 1 driver (you). The owner/boss/general contractor will always make more than the employees/subcontractors.

The issue is, Uber knows that 25% of 150,000 is still a lot of money whether that 25% is on $10 average fares or $5 average fares. It may be less, but it's still a lot.

Just hypothetically, if each of the 150,000 drivers took 25 trips a day at $5 average minimum fares, that's still $18,750,000 in fares. Sure, double that (at $10 min average fare) would be fantastic, but $18kk gross revenue (just under $5kk net for Uber, probably more like $7kk with booking fees) is just as good in my book.

It's unfortunate that for the driver, that lower rate doesn't work out as well for him.
 
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