Uber, whose Q3 financials show a company flush with $ has recently been employing a tactic that's oftentimes beneficial to pax, always beneficial to Uber, and always TERRIBLE for the drivers...
Uber is selling many of their off-peak/non-surge rides at super cheap prices. Occasionally those rides end up at or below cost (most likely due to drivers balking at the initial offers).
At the same time Uber is raking in big bucks from surge rides thanks a combination of higher fares and lower driver pay.
Who's ultimately paying the massive bill for all this? The DRIVERS, as usual.
Thanks to Covid pax are much more tolerant of being kept waiting than they were before. The dirt cheap prices are making pax even more tolerant which allows Uber to play even more hardball against the drivers by offering lower and lower payouts.
The basic scenario is Uber sells a non-surge ride at a cheap price and then posts a dirt cheap offer to drivers. If Uber finds a sucker to quickly accept the offer it's a huge win for Uber. But thanks to the low fare Uber has bought themselves extra time to find a sucker. This extra time is a major loss of leverage for the drivers.
This one-two punch is devastating for the drivers.
Uber is selling many of their off-peak/non-surge rides at super cheap prices. Occasionally those rides end up at or below cost (most likely due to drivers balking at the initial offers).
At the same time Uber is raking in big bucks from surge rides thanks a combination of higher fares and lower driver pay.
Who's ultimately paying the massive bill for all this? The DRIVERS, as usual.
Thanks to Covid pax are much more tolerant of being kept waiting than they were before. The dirt cheap prices are making pax even more tolerant which allows Uber to play even more hardball against the drivers by offering lower and lower payouts.
The basic scenario is Uber sells a non-surge ride at a cheap price and then posts a dirt cheap offer to drivers. If Uber finds a sucker to quickly accept the offer it's a huge win for Uber. But thanks to the low fare Uber has bought themselves extra time to find a sucker. This extra time is a major loss of leverage for the drivers.
This one-two punch is devastating for the drivers.