
Underpaying drivers is essential to Uber business model – new study on low wages - SirLJ
http://www.businessinsider.com/australia-uber-drivers-make-less-than-minimum-wage-2018-3
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poster123
On the contrary, since Uber is losing money, isn't every ride getting a
subsidy from the company, shared by the driver and the passenger?

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dragonwriter
> On the contrary, since Uber is losing money, isn't every ride getting a
> subsidy from the company, shared by the driver and the passenger?

That the average ride is subsidized by Uber is inherent in the loss, yes; that
the subsidy is shared by the driver and passenger is not. It's possible that
one side gets the full subsidy, or that one side is subsidized by both Uber
and the other side.

Given that the driver side net costs/pay are less obvious up front to drivers
than the passenger side economics are to passengers, I would expect the Uber
subsidy to be focussed more on passengers.

