It's funny how some of the business people I pick up ask about how things are going... And I start my responses rather cautiously, giving only a hint of the truth. But as they ask more questions, I give them more real details. At first they are surprised, but then begin defending Uber's logic, even suggesting they should keep the rates low
These passengers are clueless and do not understand Uber at all. Most drivers don't get it either.
Uber only cares about market share. The end game is to have their app on as many cell phones as possible. This is what they need to pump up their stock price for their IPO. Drivers are an expense and therefore expendable. Uber churns drivers every time they slash rates. Uber slashes rates to increase market share. They make it so affordable that junkies, thieves. *****s and bottom feeders download the app.
The downside for Uber is that their service is suffering, because the only people left driving are people who are unable to do anything else in society. Those of us who understand mathematics have either quit or drive very little. The point is that most of us keep the driver app installed on our phone. Uber's driver base, those who work endless hours, are bottom feeders with shitty cars and shitty service. Uber doesn't care, because as long as us older drivers have the driver app on the their phone, we look good for their IPO. Uber can tell investors that they have X amount of drivers and Y amount of passengers. Uber doesn't care that many of those drivers don't hardly ever drive anymore, as long as they have brain-dead ******ed masses willing to work endless hours to pick up the passengers.
Uber cares very little about profit right now, because they are spending investor money lining the pockets of those on the top, while getting ready for their IPO payday. This trend is beginning to change and drivers will feel more heat.
Rates will continue to drop as long as they can find drivers willing to work for pennies. You are now seeing Uber's cut getting raised in many markets because they are having trouble finding investors willing to write blank checks for their house of cards.
If every driver had the balls to stand up for themselves, we could all get paid an honest rate.