×
Post New Topic

Dara's answer to low driver's pay. A bunch of runaround if you ask me.

{{ ratingSum }}
BGraft89
622 Rider Driver
 Posted 4 years, 5 months ago

Did people see the interview with Harry and Dara?  Harry asked some questions on driver earning and basically, Dara's answers were

"If we raise rates, demand falls, so..mumble muble..."

"Instead, let's get more people to take Uber so you will have more rides."

Excerpt:

Harry: What do you think about driver earnings?  I think that’s probably the main thing I hear from drivers: they are not paid enough or they are quitting because they are not making enough money.  Is that something that’s on the roadmap?

DaraI think it’s very important, especially in a growing economy and with gas prices going up.  And we have done some experimentation in some cities around raising the per mile and per minute rate, but any time you do this, you have to be careful because when you raise prices, demand can go down.

But what’s really important is that we balance all this because we don’t always control earnings.  So we have to proceed very carefully when we think about changing time and distance rates, since the more you increase prices, the less demand there will be and then that could cause issues.

But we can’t be religious about that, we have to test things out and see if there are alternative methods or ways to boost income like tipping, for example.

HarrySo what’s the best way to explain that to a driver like me then? Because over the past few years, I’ve seen rates on Uber come down and I’m making less on a trip from Santa Monica to L.A.X. than I used to.

Dara: Really, what we want is for drivers to have less dead time waiting for your next trip, then you can have a win-win or what we call…

Read more...

Did people see the interview with Harry and Dara?  Harry asked some questions on driver earning and basically, Dara's answers were

"If we raise rates, demand falls, so..mumble muble..."

"Instead, let's get more people to take Uber so you will have more rides."

Excerpt:

Harry: What do you think about driver earnings?  I think that’s probably the main thing I hear from drivers: they are not paid enough or they are quitting because they are not making enough money.  Is that something that’s on the roadmap?

DaraI think it’s very important, especially in a growing economy and with gas prices going up.  And we have done some experimentation in some cities around raising the per mile and per minute rate, but any time you do this, you have to be careful because when you raise prices, demand can go down.

But what’s really important is that we balance all this because we don’t always control earnings.  So we have to proceed very carefully when we think about changing time and distance rates, since the more you increase prices, the less demand there will be and then that could cause issues.

But we can’t be religious about that, we have to test things out and see if there are alternative methods or ways to boost income like tipping, for example.

HarrySo what’s the best way to explain that to a driver like me then? Because over the past few years, I’ve seen rates on Uber come down and I’m making less on a trip from Santa Monica to L.A.X. than I used to.

Dara: Really, what we want is for drivers to have less dead time waiting for your next trip, then you can have a win-win or what we call, higher utilization. If we can increase your utilization, then drivers will earn more and we don’t have to increase rates on riders.

Again, we have to be careful because when you raise rates significantly, demand can go down significantly and utilization can go down. So you may be earning more per trip, but you will be actually earning less over a day because you have fewer trips out there.

Read less...

Comments

    {{ ratingSum }}
    thesnowman2020
    Driver
     6 months ago

    I come from the trucking industry where I owned my own equipment. What I have to say about Uber pay is that it is a joke. In the trucking industry as an owner operator, you can only be profitable if the truck is receiving upwards of 70% of what the customer pays. Ultimately most drivers do not take any contracts rated at less than 80%. Except for the few that don't understand trucking and lease a truck from a stupid large carrier.

    Why am I saying this? Well because Uber pays it's "owner operators" less than 40% and in many situations less than 25% of what they charge the customer. Especially during "surge pricing" the money doesn't actually go the vehicle.

    Uber's concept was good, but the way they implemented the concept was wrong. Uber is getting rich while their owner operators are starving. This is the same thing the stupid large carriers do with lease purchase, except Uber isn't leasing you anything.

    Unfortunately, there's not really anothe…

    Read more...

    I come from the trucking industry where I owned my own equipment. What I have to say about Uber pay is that it is a joke. In the trucking industry as an owner operator, you can only be profitable if the truck is receiving upwards of 70% of what the customer pays. Ultimately most drivers do not take any contracts rated at less than 80%. Except for the few that don't understand trucking and lease a truck from a stupid large carrier.

    Why am I saying this? Well because Uber pays it's "owner operators" less than 40% and in many situations less than 25% of what they charge the customer. Especially during "surge pricing" the money doesn't actually go the vehicle.

    Uber's concept was good, but the way they implemented the concept was wrong. Uber is getting rich while their owner operators are starving. This is the same thing the stupid large carriers do with lease purchase, except Uber isn't leasing you anything.

    Unfortunately, there's not really another option. Lyft isn't any better. Not to mention the company Lyft uses to do background checks purposefully leaves out information on violations to make them look worse. And if you have a commercial driver's license, this company reports it as well as your personal license, but separately. Then if your cdl is on hold, pending a new physical, they report your license was suspended, which it is not. 

    What we need is a rideshare company that pays 90% to the vehicle. If they can't run the company on 10% then the rates are too low. It's really time Uber and Lyft have some real competition.

    Read less...

    {{ ratingSum }}
    AsStibelDude
    668 Driver
     4 years ago

    See, he may have a point on how if we eliminate dead time waiting for rides, we would make more.  However, what I would like to hear is how would you do that? This whole thing hinges on that.

    His argument is how raising rates will lower demand.  So is he saying he will reduce rates to increase demand?  We have been working with such low rates but we still have dead time, so now what?

    Has Dara waited in an airport staging lot?  There's craploads of drivers.  and Dara loves having more drivers.  So, the supply continues to rise but where's the demand?

    Show Hide  1 Reply
      {{ ratingSum }}
      DDominico69
      188 Driver
       4 years ago

      Do you think Dara K has seen the airport staging lots for drivers?  Hells no.

      You make a great point on the supply and demand.  There is a conflict of interest there how Uber wants more and more drivers, but the drivers are suffering due to low demand.  

    {{ ratingSum }}
    DonutDrivers
    246 Driver Driver
     4 years ago

    Haven't you seen the BS he spewed about driverless cars?

    Dara Kosrowshahi: "I strongly believe that some of those miles are going to be automated and some are still going to be driven by people. If you look at other industries, often times, people and machines work together. So in a future, where ridesharing has increased a ton, I think human drivers may still be driving 20-50% of the miles.

    But even if it’s only 20%, that 20% is 20 times bigger than what we have today.  So long story short, I think drivers are always going to be part of the equation."

    I honestly, have no idea what he is saying.  First of all, what machines is he talking about?  Like a factory production line?  Vaccum cleaner?  Second, how is the 20% going to be 20 times bigger?  Are we saying people going to places will increase by 5+x?  Why?

    Show Hide  1 Reply
      {{ ratingSum }}
      Mila
      10
       4 years ago

      I missed the reference about machines and humans living in harmony too.  

      It's a pretty hard sell to say driverless cars will increase the cars driven by humans.  I get what he is saying about how Uber will be bigger 5x or more as they capture a bigger market, but it's the driverless cars that will fulfill that need.  I mean, taht's the whole reason Uber will (or plans to) grow 5x, so there's no merit in saying human-driven cars will increase.  I mean..come on.  That's stupid simple.

    {{ ratingSum }}
    Bigfrank
    447 Rider Driver Driver
     3 years ago

    Dara is a three legged donkey . Dara this !!!

    {{ ratingSum }}
    TravTravTravis
    170
     4 years ago

    This is hilarious.  While I respect Dara for taking on this session, there was no winning here.

    Show Hide  2 Replies
      {{ ratingSum }}
      RacRay79
      142 Driver
       4 years ago

      It's nice of you to join us, Travis.  Dara is doing...marginally better.    

        {{ ratingSum }}
        AsStibelDude
        668 Driver
         4 years ago

        He hasn't yelled at anybody  ...at least not yet.

    {{ ratingSum }}
    JMartensen
    173
     4 years ago

    He just needed a "One more thing..."