The problem with tipping is that employers pay employees less than they should. I much prefer the way things work in Japan, where there is no tipping and no uncertainty. That said, until restaurants, delivery services, and ride hailing apps in the US start paying their workers a fair wage, it's best to tip workers. This Vox video explains why tipping for ride-hailing services remains confusion and contentious.
Image: Vox/YouTube Read the rest
Spotted today in my Lyft app: a new set of terms and conditions that require you to "agree" to binding arbitration (an onerous condition heretofore reserved for downtrodden drivers), through which you agree to waive your right to join class action suits or pursue legal redress through the courts should Lyft, through its deliberate actions or negligence, cause you to be killed, maimed, raped or cheated -- something that, not coincidentally, Lyft is in a lot of trouble over at the moment. Read the rest
I hear endless stories of grief from the friends I have who try to make ends meet working for these services.
Jalopnik's Dhruv Mehrotra and Aaron Gordon share the terrible economics:
Read the rest
But Dave, who was granted anonymity out of fear of being deactivated by the ride-hail giant for speaking to the press, had no real choice but to wait. The passenger had requested the stop through the app, so refusing to make it would have been contentious both with the customer and with Uber. The exact number varies by city, but drivers must maintain a high rating in order to work on their platform. And there’s widespread belief among drivers that the Uber algorithm punishes drivers for cancelling trips.
Ultimately, the rider paid $65 for the half-hour trip, according to a receipt viewed by Jalopnik. But Dave made only $15 (the fares have been rounded to anonymize the transaction).
Uber kept the rest, meaning the multibillion-dollar corporation kept more than 75 percent of the fare, more than triple the average so-called “take-rate” it claims in financial reports with the Securities and Exchange Commission.
Had he known in advance how much he would have been paid for the ride relative to what the rider paid, Dave said he never would have accepted the fare.
“This is robbery,” Dave told Jalopnik over email. “This business is out of control.”
It's rough out there for Uber and Lyft contract drivers. And getting rougher. Read the rest
Uber says it can be profitable someday: all it needs to do is corner the "total addressable market" for all transportation and food delivery, which will give it $12t in annual revenue, which is 15% of all global transactions. Read the rest
Veteran transportation economics Hubert Horan has consistently published the best-informed, deepest critiques of Uber and Lyft, explaining how the companies can never, ever be profitable, and warning investors away from becoming the "greater fools" that allow Uber/Lyft's early investors to cash out at their expenses, while cataloging the many ways that Uber and Lyft's legislative strategy, coupled with predatory pricing, is destroying the cities they operate in. Read the rest
Mike Moffitt sums up the empirical work on the impact of rideshare companies like Uber and Lyft for cities: an increase in congestion, especially downtown, especially during "surges" (Uber and Lyft insist that they reduce congestion, especially in downtowns, and especially during surges!); lower wages, longer hours and more precarious work for drivers (accompanied by the slow death of the taxi/limo businesses); huge losses for car-rental companies; and less walking, cycling and use of public transit (awithnd accompanying cuts to transit). Read the rest
Update: Shona from Gig Workers Rising clarifies: "Gig Workers Rising isn't organizing the national day of action. Drivers in each of the 6 cities taking action are coordinating the day of action together. Drivers in LA with Rideshare Drivers United Los Angeles called a strike and asked other cities to take action on the same day. Gig Workers Rising supports and educates drivers who are organizing across the state. We are not organizing drivers."
On May 8, Uber drivers are organizing a nationwide shutdown of Uber, with drivers turning off their apps in protest over low pay: so far, seven cities' drivers are signed up: Philadelphia, Chicago, San Francisco, San Diego, Minneapolis, LA and DC. Uber and Lyft have both slashed pay for drivers and raised prices as they try to assuage the capital markets. Read the rest
The public markets are hungry: as Uber and Lyft look to IPOs to let their investors -- who have been subsidizing 40-50% of every ride -- redeem their shares through sales to the public capital markets, the companies are desperate for ways to reduce their unprofitability and increase those share prices. Read the rest
Whether you love them or hate them, rideshares like Uber and Lyft have become a daily part of life for millions of New Yorkers. These app-based services make it easy to pay for your ride, but while the privacy cost isn’t always as clear, it’s about to get a lot larger. These apps have tracked our movements since they launched, but as of this month, the Taxi and Limousine Commission (TLC) started tracking us too. Read the rest
Angie Schmitt's list of "all the bad things" about Uber and Lyft only touches on transportation, leaving aside the companies' labor, taxation, regulatory and other issues, but it's still quite a damning document. Read the rest
If you live in an area where grocery stores are easily accessible, count yourself lucky. There are large areas of the United States where food choices are limited to what can be found at fast food joints or the highly processed, canned and frozen "foods" available in corner shops. These areas are called food deserts and they suck. Read the rest