[Dhi]

What do you this about this article http://jalopnik.com/uber-is-doomed-1792634203 ?

The Contractor Problem
One of the biggest issues that has left Uber's business model hanging in the balance is its resistance to classifying its drivers-there are reportedly 600,000 in the U.S.-as employees, not contractors. If Uber is a house of cards, this is a key part of the foundation that, once removed, would demolish the structure.

Indeed, the company has said reclassifying drivers could "force Uber to restructure its entire business model." The result of its opposition to readjust has been entirely expected. Without the perks and protections that an employee may enjoy-health care, benefits, gasoline and work reimbursements, vehicle maintenance, all of which could reportedly total as much as $730 million-complaints from drivers have piled up, ranging from low pay to new services like UberEats (a loathed food delivery service that's reportedly set to lose over $100 million annually) and UberPOOL, its carpool option which increases the company's take per-ride, lowers the take-home pay for drives, and is understood to be quite a drag for drivers and passengers alike. Drivers themselves said as much in a recent, disastrous question-and-answer session with Uber's president.

This is funny but true:
"And then contrast that with now with uberPOOL, a driver can be getting paid just 80 cents for a ride, and all the sudden you have these people who might've been taking the bus, and now all the sudden they're your boss for 80 cents and you better hop to and do what they say with a smile, or you're going to get a 1 star rating, if not [physically] assaulted in some cases.""And then contrast that with now with uberPOOL, a driver can be getting paid just 80 cents for a ride, and all the sudden you have these people who might've been taking the bus, and now all the sudden they're your boss for 80 cents and you better hop to and do what they say with a smile, or you're going to get a 1 star rating, if not [physically] assaulted in some cases."

 

[pizza guy]

Wow! Harsh but honest. Long but worth reading. Even if a lot of the financial details aren't totally accurate it still shoes how precarious the situation is.

 

[ckvlasity85]

This has been coming for awhile. Just a matter of how long Uber holds off the legal problems before that house of cards goes boom.

 

[ABC123DEF]

Just let them crash and burn. They've played with fire for years with lots of chances to fix things for everyone involved on all sides of the company. I like a good Enron story.

 

[Pooooobear]

What do you this about this article http://jalopnik.com/uber-is-doomed-1792634203 ?

The Contractor Problem
One of the biggest issues that has left Uber's business model hanging in the balance is its resistance to classifying its drivers-there are reportedly 600,000 in the U.S.-as employees, not contractors. If Uber is a house of cards, this is a key part of the foundation that, once removed, would demolish the structure.

Indeed, the company has said reclassifying drivers could "force Uber to restructure its entire business model." The result of its opposition to readjust has been entirely expected. Without the perks and protections that an employee may enjoy-health care, benefits, gasoline and work reimbursements, vehicle maintenance, all of which could reportedly total as much as $730 million-complaints from drivers have piled up, ranging from low pay to new services like UberEats (a loathed food delivery service that's reportedly set to lose over $100 million annually) and UberPOOL, its carpool option which increases the company's take per-ride, lowers the take-home pay for drives, and is understood to be quite a drag for drivers and passengers alike. Drivers themselves said as much in a recent, disastrous question-and-answer session with Uber's president.

This is funny but true:
"And then contrast that with now with uberPOOL, a driver can be getting paid just 80 cents for a ride, and all the sudden you have these people who might've been taking the bus, and now all the sudden they're your boss for 80 cents and you better hop to and do what they say with a smile, or you're going to get a 1 star rating, if not [physically] assaulted in some cases.""And then contrast that with now with uberPOOL, a driver can be getting paid just 80 cents for a ride, and all the sudden you have these people who might've been taking the bus, and now all the sudden they're your boss for 80 cents and you better hop to and do what they say with a smile, or you're going to get a 1 star rating, if not [physically] assaulted in some cases."

The only way Uber can survive is by focusing on its core business, which is getting riders from point A to B in a way that creates value for riders and drivers. They should forget bullshit ideas like self-driving cars, Ubereats, flying Uber or whatever THEY think makes them look smart. Self-driving cars?! Are you stupid?! Not in your lifetime.....

 

[NadZrag]

I said it from the time they came up with pool, and eats. They are digging their own grave, and it's just a matter of time before something drastic gets done, or all those billions of dollars raised in the private sector will be burned trying all these stupid new ideas.
UberX is a genius concept, a private car willing to give you a safe ride almost anywhere in the planet, order it in your phone and is cashless, should it had stay as a premium service. If they had focus on just that, I guarantee you, they will be double the value right now.

 

[Andretti]

Thanks for posting this!

I really don't know that much about Kalanick personally, but when I read his penchant for "Ayn Rand" and his being "Libertarian", that said it all for me.

Neither Ayn Rand's philosophy, nor Libertarianism, has ever been found to work. But they do make for a cold, uncaring, harsh, bitter society.

I thought it was a good article, though. But Jaloponik hinges a great deal of their positing the failure of Uber, by claiming the implausibility of self-driving cars. I'm not sure I agree. I believe self-driving cars are coming soon in some form. We just don't know the exact form or market penetration. I wouldn't doubt they initially take the form of some type of basic bus route. I can't guarantee success, but there's the distinct possibility these cars work in some form or fashion.

In discussions with my pax, most seem to welcome the idea of self-driving cars. Which is understandable.

 

[NaviGod]

I think uber is on the verge of failing with all the self inflected wounds they're experiencing lately. I wouldn't be surprised to hear it being on the market for sale some time in the near future.