For the past week, Naked Capitalism has run a series of articles by transportation industry expert Hubert Horan on the economic shenanigans of Uber, which cooks the numbers it shows investors, drivers and the press to make it seem like something other than a black box that uses arrogance and lawlessness to make a bet on establishing a monopoly on transport in the world's major cities.
To simplify just a bit, the Uber strategy was to (1) jumpstart rapid growth with driver pay premiums that would get lots of drivers to switch from traditional operators; these premiums were real but not as large as they seemed because drivers hadn’t figured out how to properly deduct vehicle costs to determine true take home pay, and by willful falsehoods (our drivers make $90,000) (2) gradually cut back driver pay once Uber was clearly a large established play by eliminating incentive programs and increasing the percentage of fares Uber retained; but drivers can’t do anything about pay cuts because they’ve locked themselves into car payments (3) At some point—and according to the study quoted in the second article in the series, it may have already happened—true Uber take home pay (after vehicle costs) is no better or slightly worse than what Yellow Cab paid before (4) Uber achieves industry dominance, drivers have no alternatives, and take home pay falls to (or even below) minimum wage level.
Petition demands recall of 500,000+ cars over alleged defect Electric car maker Tesla said on Monday there was no unintended acceleration in its vehicles, as petition signature-gatherers demanding a federal safety investigation have claimed.
Frontier is the bottom-rung of the top-tier of US ISPs, serving customers in 29 states. Despite enjoying monopoly control over its customers' online lives, and despite massive government handouts and a lackadaisical approach to maintenance, and despite out-and-out theft from customers, the company is filing for bankruptcy, having accumulated $16.3b in debt through mismanagement.
Bees are big business. Almonds are in big demand as a cash crop in California, ever the more so as the almond milk trend grows. Growers use bees to pollinate the trees. The bees are already challenged enough as it is — now there are bee stealing criminals who drive around stealing them. One such […]
From OneDrive to Slack, there are numerous ways to store files online. Because many platforms offer a certain amount of free storage, it makes sense to mix and match. However, spreading your files across multiple apps can make things very confusing. Rethink Files offers a simple solution. By connecting to all your other cloud storage […]
Winter can be a difficult time of year for golfers. Between the freezing temperatures and frequent snow showers, maintaining your handicap can seem almost impossible. When the fairways are frozen solid, the PhiGolf simulator lets you practice at home. This device captures every nuance of your swing to provide virtual coaching. Better still, you can […]
Photoshop is one of the most widely used photo editing tools out there, to the point that it’s the default program designers think of whenever they need work done. Small wonder, too: The flagship software in Adobe’s creative suite is very powerful — if you know how to use it. There is a lot to […]