It was maybe true in the beginning when payouts were subsidized by VC, but the most recent rounds of driver payout cuts have led to a situation where a lot of drivers are recent immigrants who “lease” cars on a daily basis (at a rate around 75% of what they make a day). Many speak next to zero English; but that’s ok because Google Maps is localized in their native tongue. I’d say most of the drivers on the east coast fall into this category.
Does that sound familiar? Because it’s exactly how the legacy taxi industry worked. People would bring their relatives over, have them drive a taxi they owned, and collect nearly all of their earnings from providing a room to sleep in and a car to drive. It’s exploitative, yet it’s often one of the only jobs available to these communities. And Uber has zero disincentive to just pretend this old business model hasn’t just carried over into the new world where there’s no government regulation to address it.
Yes, and yet people still do that voluntarily. Because it beats staying in their home countries. It provides them with the means to adapt to the new place of living, and then move to a better job. Without this step on the ladder, they would live much more miserable lives.
I am an immigrant, from Russia to Switzerland. I don’t have any right to Swiss social security and welfare (despite paying taxes here). I am happy that I have at least something by default if I won’t be able to work in my profession for any reason anymore. Uber is my safety net — if I still can drive a car, I can sustain my living. It works the same for other immigrants.
And yes, I much prefer driving an Uber here to living and working in Russia.
It was maybe true in the beginning when payouts were subsidized by VC, but the most recent rounds of driver payout cuts have led to a situation where a lot of drivers are recent immigrants who “lease” cars on a daily basis (at a rate around 75% of what they make a day). Many speak next to zero English; but that’s ok because Google Maps is localized in their native tongue. I’d say most of the drivers on the east coast fall into this category.
Does that sound familiar? Because it’s exactly how the legacy taxi industry worked. People would bring their relatives over, have them drive a taxi they owned, and collect nearly all of their earnings from providing a room to sleep in and a car to drive. It’s exploitative, yet it’s often one of the only jobs available to these communities. And Uber has zero disincentive to just pretend this old business model hasn’t just carried over into the new world where there’s no government regulation to address it.