
As Uber gears up for IPO, many Indian drivers talk of shattered dreams - howard941
https://www.reuters.com/article/us-uber-ipo-india-drivers/as-uber-gears-up-for-ipo-many-indian-drivers-talk-of-shattered-dreams-idUSKCN1SE0OP
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googlemike
"To be sure, many drivers from Uber are still earning more than they could get
in other blue-collar jobs in India. The national minimum wage in India is only
about $2.50 a day."

No substantial article here folks. Just negative sounding clickbait because
"Uber" is in the title.

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aadityachauhan1
"Mounting debt from taxi loans was a key concern. Many drivers took loans to
buy cabs, while some leased cars from the companies themselves."

I think this is the aspect the article is trying to point out. The earnings
have halved from what they used to be. The drivers went all in based their
lives/future on sustainable earnings from Uber and then were all but abandoned
by Uber.

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MuffinFlavored
Why did Uber change the rates? Was it driven by an influx in drivers coupled
to a relatively stable demand for rides?

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adjkant
It was driven by Uber needing to become profitable and either having to raise
ride prices (and lose customers) or lower driver cuts. If there was an
abundance of drivers you'd see Ubers/Lyfts waiting around with no one in them
constantly, which is not my experience based on wait times in major
metropolitan cities (NYC, Boston, SF, LA), where drivers usually are booked
for the next ride before they even drop me off.

It's also misinformation and deceptive advertising by Uber and others that
don't educate drivers on the real costs of driving for them when it comes to
gas, car wear and tear, surge pricing models and how it affects them, etc.

~~~
rightbyte
It was a similar story in London where people borrowed money for cars, then
Uber cut pay stranding people with loans.

Uber seems to use "incentives" and some kind of quest system rather than just
paying the drivers the full amount. It's similar to bonus systems on casinos,
where the goal is to keep the player hooked.

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h0l0cube
The bias in many of the comments here is towards social darwinism and personal
responsibility. But before we blame the drivers for taking out loans on the
'foolish' assumption that their pay would remain constant, remember that Uber
benefited from their naivete with having extra drivers on the road. This breed
and cull strategy is par for the course in the business world, but you can't
say it's 'not immoral', it's just that the business world so rarely has any
incentive to be moral. One incentive is that people hold them to account when
they do something crappy like this.

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zwieback
I like Uber but I'm scratching my head. How do so many people buy into what's
clearly an unsustainable business model? I get that right now they have a huge
base but isn't it just bought with incentives? I don't really see a huge
competitive edge in their app and all the non-core businesses they are
competing in are already crowded.

~~~
adjkant
But self driving is just around the corner!*

[*] This will be true year after year (and Waymo will beat them to it even if
it happens soon)

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chriselles
Isn’t this largely a case of early adopter Uber drivers planning on, and
feeling entitled to, temporary market launch subsidies being made permanent?

It reminds of a friend who put together a few of the first Subway franchises
here in NZ.

I suggested he consider selling.

He asked why.

I responded by sharing with him how Subway will not stop adding new franchises
until there is one on every corner of every intersection.

Subway makes money on franchise fees and incremental sales,NOT average store
sales(which plateau and sometimes collapse depending on cannibalisation).

Uber is not a franchise, but I think the gig economy might require some
similar plain language disclosure on how launch market subsidies are temporary
and ethereal, not sustainable.

Expecting launch market subsidies to remain indefinitely is dangerously naive
and foolish.

But companies like Uber could probably do a better job of communicating that
and managing driver expectations in the market they manage.

Trust comes in a lot of flavours.

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grwthckrmstr
I remember Uber offering $1000-$2000/mo to drivers in India back in 2016-17.
Many left their other jobs, bought cars, took a loan.

Then, bait and switch, those same drivers struggle to earn $500-$1000. They
can't leave their jobs because of their loans. They sleep in the cabs, shit in
public toilets, eat in the roadside stalls, and go home about once a week.

I get reminded of all this every time I take a cab.

I realise I'm ready to pay a bit more for my convenience so that someone
doesn't literally suffer despite working all day.

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lostmsu
How do you know this article is not by Uber to mislead potential investors
into thinking they can reduce expenses at will by cutting driver pay?

The examples in it are very selective.

