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[HEADING=2]
Uber rides and food deliveries will cost more in California to cover new driver protections​
[/HEADING]
By Sara Ashley O'Brien, CNN Business
Updated 3:01 PM EST, Mon December 14, 2020​

(CNN Business)Uber (UBER) said Monday that customers in California will see prices increase this week for rides and food deliveries to help cover the costs of new benefits for its workers.

The new flat fees, which range from $0.30 to $2 depending on the service and location, will take effect Monday. The price hike comes as a controversial new gig economy law, which Uber and its peers spent millions pushing to pass, is set to take effect this week.

Californians voted in November to pass Proposition 22, or Prop 22, which exempts companies like Uber from having to classify their gig workers in the state as employees entitled to basic rights and protections such as workers' compensation, unemployment insurance, family leave, or sick leave.

Under the new law, Uber's drivers and delivery workers are independent contractors with some benefit concessions, including a minimum earnings guarantee based on "engaged time," when a driver is fulfilling a ride or delivery request, but not the time they spend waiting for a gig. In a blog post and an email to drivers about the changes, the company said, "If you earn less than the guaranteed minimum over 2 weeks, we'll pay you the difference automatically."

Drivers will receive $0.30 reimbursement per engaged mile, lower than the IRS' estimated $0.58 per mile cost of owning and operating a vehicle. Its workers will also be enrolled in an injury protection plan beginning this week. And starting next year, those with 15 on-trip hours per week will get a stipend for healthcare.

To fund these benefits, consumers will pay a "California Driver Benefits Fee" that varies by city, and by service, the company said. Rides will cost an extra $0.30 to $1.50. For food deliveries through Uber Eats, fees range from $0.99 per order in Los Angeles to $2 per order in San Francisco.

Uber had previously teased a number of drastic changes it may have had to make to remain in business in the state if the Prop 22 ballot measure had failed and the company was forced to classify its drivers as employees. The company said it might have had to downsize its fleet of drivers, shut down ridesharing in much of the state and tack on fees for riders to cover the more extensive benefits employees would receive in places it continued to operate.

Uber, along with Lyft (LYFT), DoorDash, Instacart and Uber-owned Postmates, spent more than $200 million pushing the ballot measure.

On an earnings call two days after its political win in California, Uber CEO Dara Khosrowshahi said that execution of Prop 22 "may have some implication as it relates to rates," but that the company believes "any effect that it has on rates will not have a significant effect on trip volumes one way or the other based on the kinds of sensitivities that we've seen in the past."

Companies like DoorDash and Lyft have similarly said they expect to tack on some additional costs for customers associated with the changes for workers.

DoorDash spokesperson Taylor Bennett told CNN Business that rather than add a new fee, the company is exploring slight increases to existing service fees on California orders beginning Wednesday in response to new benefits associated with Prop 22.

Lyft notified drivers in an email last Friday that the minimum earnings and compensation for vehicle expenses associated with Prop 22 would go into effect on Wednesday. A spokesperson for Lyft said the company did not have anything to share regarding changes for riders.

Uber and Lyft have a long history of steep losses, and have said that they will achieve profitability on an adjusted basis next year. DoorDash, which went public last week, turned a rare quarterly profit during the pandemic before returning to a loss in the most recent quarter.

 

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well, of course. Uber et al were not going to 'eat' the increased costs. The biggest increased costs will be the benefits and insurance. Not sure how the min fares per 2 weeks will add much. Time will tell.
 

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well, of course. Uber et al were not going to 'eat' the increased costs. The biggest increased costs will be the benefits and insurance. Not sure how the min fares per 2 weeks will add much. Time will tell.
It's been said here, and there and everywhere ... over and over and over.
Companies do NOT PAY TAXES.
None, Zero.

They pass those costs on to the consumer as the cost of manufacturing, or of being in business.
If it costs $2.30 to make a widget then the company can afford to charge you $4.99.
If their cost goes up (energy, taxes, employment, whatever) to $2.68 they pass that $0.39 on to the buyer and mark it up, and charge $5.50.
If the consumer is not able or willing to pay that, then fewer widgets are sold, and employees are laid off or robots are created to do the work cheaper, or the factory moves to a place that doesn't tax so much. The factory also consumes less materials to make their widget, so the steel companies sell less ... the lunch cafe down the street sells less lunches to the employees that are not there any more. The city collects less taxes; so the streets start to go to hell.
All started from "Tax those evil corporations."

Economics 101
 

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They pass those costs on to the consumer as the cost of manufacturing, or of being in business.
D'oh? You made my point, tho not sure your reply had anything to do with reply. I think. Maybe. For certain. :rolleyes:
 

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[HEADING=2]

Uber rides and food deliveries will cost more in California to cover new driver protections​
[/HEADING]
By Sara Ashley O'Brien, CNN Business
Updated 3:01 PM EST, Mon December 14, 2020​

(CNN Business)Uber (UBER) said Monday that customers in California will see prices increase this week for rides and food deliveries to help cover the costs of new benefits for its workers.

The new flat fees, which range from $0.30 to $2 depending on the service and location, will take effect Monday. The price hike comes as a controversial new gig economy law, which Uber and its peers spent millions pushing to pass, is set to take effect this week.

Californians voted in November to pass Proposition 22, or Prop 22, which exempts companies like Uber from having to classify their gig workers in the state as employees entitled to basic rights and protections such as workers' compensation, unemployment insurance, family leave, or sick leave.

Under the new law, Uber's drivers and delivery workers are independent contractors with some benefit concessions, including a minimum earnings guarantee based on "engaged time," when a driver is fulfilling a ride or delivery request, but not the time they spend waiting for a gig. In a blog post and an email to drivers about the changes, the company said, "If you earn less than the guaranteed minimum over 2 weeks, we'll pay you the difference automatically."

Drivers will receive $0.30 reimbursement per engaged mile, lower than the IRS' estimated $0.58 per mile cost of owning and operating a vehicle. Its workers will also be enrolled in an injury protection plan beginning this week. And starting next year, those with 15 on-trip hours per week will get a stipend for healthcare.

To fund these benefits, consumers will pay a "California Driver Benefits Fee" that varies by city, and by service, the company said. Rides will cost an extra $0.30 to $1.50. For food deliveries through Uber Eats, fees range from $0.99 per order in Los Angeles to $2 per order in San Francisco.

Uber had previously teased a number of drastic changes it may have had to make to remain in business in the state if the Prop 22 ballot measure had failed and the company was forced to classify its drivers as employees. The company said it might have had to downsize its fleet of drivers, shut down ridesharing in much of the state and tack on fees for riders to cover the more extensive benefits employees would receive in places it continued to operate.

Uber, along with Lyft (LYFT), DoorDash, Instacart and Uber-owned Postmates, spent more than $200 million pushing the ballot measure.

On an earnings call two days after its political win in California, Uber CEO Dara Khosrowshahi said that execution of Prop 22 "may have some implication as it relates to rates," but that the company believes "any effect that it has on rates will not have a significant effect on trip volumes one way or the other based on the kinds of sensitivities that we've seen in the past."

Companies like DoorDash and Lyft have similarly said they expect to tack on some additional costs for customers associated with the changes for workers.

DoorDash spokesperson Taylor Bennett told CNN Business that rather than add a new fee, the company is exploring slight increases to existing service fees on California orders beginning Wednesday in response to new benefits associated with Prop 22.

Lyft notified drivers in an email last Friday that the minimum earnings and compensation for vehicle expenses associated with Prop 22 would go into effect on Wednesday. A spokesperson for Lyft said the company did not have anything to share regarding changes for riders.

Uber and Lyft have a long history of steep losses, and have said that they will achieve profitability on an adjusted basis next year. DoorDash, which went public last week, turned a rare quarterly profit during the pandemic before returning to a loss in the most recent quarter.

Not only are the fees a money-grabbing scam, these slimebag companies are once again throwing the drivers under the bus by making it appear that the extra money being paid by the pax is going into the pockets of the drivers, which is a big fat lie.

The consumer advocates and govt of California should be informed that this is a money-grabbing scam.
 

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man, we should strike. Take to the streets. Drivers lives Matter. :rolleyes:
 

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D'oh? You made my point, tho not sure your reply had anything to do with reply.
That's ok, there's a few people here 'listening' to our conversation.
Some of them need to have this lesson repeated.
When they voting for a tax increase on 'those rich people' they really need to understand who that effects.
I will say it often.
 

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yeah, on this forum, still at a loss what a 'rich' person is. Seems to be no definite answer to that.

Think a whole bunch of readers confuse income & cash flow, methinks.

My snarky answer is a rich person pays all their bills on time. :rolleyes: :thumbup:
 

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Had a snooty boss ask me once if I was rich.
I said, "I do what and who I want, whenever I want. Is that rich?"
 

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It's been said here, and there and everywhere ... over and over and over.
Companies do NOT PAY TAXES.
None, Zero.

They pass those costs on to the consumer as the cost of manufacturing, or of being in business.
If it costs $2.30 to make a widget then the company can afford to charge you $4.99.
If their cost goes up (energy, taxes, employment, whatever) to $2.68 they pass that $0.39 on to the buyer and mark it up, and charge $5.50.
If the consumer is not able or willing to pay that, then fewer widgets are sold, and employees are laid off or robots are created to do the work cheaper, or the factory moves to a place that doesn't tax so much. The factory also consumes less materials to make their widget, so the steel companies sell less ... the lunch cafe down the street sells less lunches to the employees that are not there any more. The city collects less taxes; so the streets start to go to hell.
All started from "Tax those evil corporations."

Economics 101
Very good and if anyone wants to know more about the cost of making widgets here's a great lesson on making them...

 

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Not only are the fees a money-grabbing scam, these slimebag companies are once again throwing the drivers under the bus by making it appear that the extra money being paid by the pax is going into the pockets of the drivers, which is a big fat lie.

The consumer advocates and govt of California should be informed that this is a money-grabbing scam.
In a way, I am glad to see them raise rates. The money to fund the new "benefits" had to come from somewhere, and I am glad to see that these features may not be adding to Uber's losses. And since the flat fees are theoretically funding the benefits it makes sense that Uber keeps 100% of that. That just makes sense.

That does not mean for one moment though that Uber is not a sneaky, patronizing, self-serving, entity with no scruples (gee, I just described most every large corporation in America). I just got a thank you from them for supporting the efforts to pass prop 22. I did no such thing. Every time I was inundated with one of those support prop 22 polls when going online, there were two choices, remember; YES and DISMISS (I forget what the exact wording was). But it was not YES or NO. I never once voted YES. So basically Uber denied drivers the ability to vote NO on their support for 22, resulting in Uber's completely erroneous claim the seventy something percent of drivers supported 22.

And, rather than receiving these questionable "benefits" I would have preferred to see Uber simply raise rates and pass the lion's share of the increased take to the drivers to spend as each one sees fit. I already have health insurance.
 

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In a way, I am glad to see them raise rates. The money to fund the new "benefits" had to come from somewhere, and I am glad to see that these features may not be adding to Uber's losses.
What flavor of Uber Kool Aid are you drinking?

You overlook the likelihood that Eats drivers, who are heavily dependent on tips will probably see a reduction in tips from some customers.

Let the costs (what little they actually are) go to Uber's alleged "losses". Why in the world would you care? You think the Uber bigwigs and investors give a rat's ass about your losses?

That does not mean for one moment though that Uber is not a sneaky, patronizing, self-serving, entity with no scruples (gee, I just described most every large corporation in America).
When Uber apologists are cornered, their last resort defense is that "every company mistreats their workers." BS.

As far as their mistreatment of their drivers, Uber and these other "gig" companies have few equals in the corporate world.
 

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You overlook the likelihood that Eats drivers, who are heavily dependent on tips will probably see a reduction in tips from some customers.
Just my opinion sir. But I do hear you on Eats.

They have changed we no longer get 75% of the cost of the trip minimum.
Mole, I see you are in California. This could be huge, and everyone has been waiting for the other shoe to drop in CA. Have they changed the fare split? Is that what you are seeing? Do they no longer take a flat 25% from the fare (minus marketplace fee)?

Any other changes? Can you still see all the trip information prior to accepting the request?
 

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They have changed we no longer get 75% of the cost of the trip minimum.
That's correct, you get 75% of the pax "rate card" or "list price".

In 2018, Uber and Lyft raised the rate card prices in Florida, North Carolina, and some other markets but kept driver pay rates the SAME.

Thus, in those markets, drivers are being paid approximately 68% of rate card prices.
 

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Just my opinion sir. But I do hear you on Eats.


Mole, I see you are in California. This could be huge, and everyone has been waiting for the other shoe to drop in CA. Have they changed the fare split? Is that what you are seeing? Do they no longer take a flat 25% from the fare (minus marketplace fee)?

Any other changes? Can you still see all the trip information prior to accepting the request?
So I did a test run today my first drive in a long time it looks like they have not started 22 pricing yet but I did notice I did not get 75% it was a little short. They gave me miles and minutes and a base rate then took out 25% I can still see where I'm going it also told me this ride was between $10-$11 net in my pocket.
 

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Thanks for the screen shots. That looks pretty much like it's been since they instituted the new pricing model earlier in 2020. They are carving 25% off the fare earned from time and distance. (mine shows 20% due to driving an EV).

I might add that several times I have compared my ride earnings with what the pax actually paid. Although Uber is hiding what the pax paid, and that could bite us at any time if they raise rates, so far the numbers have matched up pretty good, with Uber only subtracting the marketplace fee. In other words, I was earning 80% of what the pax paid, minus the nominal marketplace fee.

1608186900204.png
 
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