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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsOnly 4% of Uber drivers remain on the platform a year later, says report
Only 4% of Uber drivers remain on the platform a year later, says reporthttp://www.cnbc.com/2017/04/20/only-4-percent-of-uber-drivers-remain-after-a-year-says-report.html
Chantel McGee | 8 Hours Ago
Add to the list of problems at Uber: Driver retention. Only 4 percent of people who sign up to drive for the ride-hailing service are still driving a year later, according to a report in The Information.
The company's accelerating driver drop off rate is partially due to increased competition from companies like Lyft. But the number one complaint among Uber drivers is the pay, according to undisclosed data seen by The Information. Many Uber drivers have complained about unfair compensation for long trips, and not being able to accept tips.
An Uber spokesman told The Information: "We recognize we need to improve our relationship with drivers and their experience using Uber. We're working on a range of improvements across our products, our policies, our customer support and how we communicate."
The company is considering things like better targeting financial bonuses to certain drivers and allowing tipping, which could allow drivers to earn more, according to The Information. Lyft, its main competitor, already gives riders the option to leave a tip.
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Fortunately, they will NEVER run out of desperate people willing to run the wheels off of their cars for sub-minimum wage.
FrodosNewPet
(495 posts)flamingdem
(39,313 posts)Which is not always comforting..
FrodosNewPet
(495 posts)People have gotten burned by buying or leasing new cars to drive Uber. You generally have to drive a mile or more for free for every paid mile. Thus, more frequent maintenance, repairs, faster depreciation. Then, to top that off, sometime in your driving career, you will encounter a passenger straight from the depths of Hades who will lie about you so they can score a free ride (or who just wants to hurt someone), which may get you deactivated.
It's a rough life working for an Ayn Rand fan who wants to conquer and rule the world of transportation.
Response to FrodosNewPet (Reply #4)
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FSogol
(45,485 posts)taken out? Could the reason so many stop is because at the end of the year, the taxes come due and the profits don't look so good then?
crazycatlady
(4,492 posts)Which is probably not legal. Not sure how they get paid, but they're probably getting a 1099 (aka no taxes taken out).
FSogol
(45,485 posts)They could have made quarterly payments, but probably weren't aware. The tax bill comes due and they have already spent their profits. No wonder so many leave.
fescuerescue
(4,448 posts)They don't have a big tax bill because once they calculate vehicle depreciation and other costs, most uber drivers lose money.
I signed up to be a driver, did 4 trips and realized it was a huge money loser. Drove a total of about 120 miles (including the free miles to pick people up, made about $40. I calculated that it cost me about $60 to earn that $40.
Uber is basically a scheme whereby you convert the equity of car into weekly payments, while giving uber a 20% "cut".
MarvinGardens
(779 posts)SoCalNative
(4,613 posts)I always tip my Uber drivers.
FrodosNewPet
(495 posts)Yes, you can give a cash tip, but unlike Lyft, there is no option to tip though the app. At first, Uber was completely committing fraud by saying that the tip was included. They got in trouble for that, so they backed down to "tipping not required", and were deactivating drivers who in any way asked for tips. They finally fell back to discouraging tips, but they no longer deactivate drivers for it.
Hulk
(6,699 posts)I'm closing in on 70. I'm a retired school teacher living on a half teacher's pension, 30 years of a teacher's salary and SS contribution pension after 7+ years of college and raising four wonderful kids that all graduated from college; and there are no extra nuts buried in the garden.
Uber and Lyft allowed me to be able to afford a 5 year old Prius, and allows me to work/drive when I want to and am able to.
I gross anywhere from $12-22 an hour. Options are damned few at my age. I'm not willing to stand in a doorway and say hello to people, and rental car companies and other employers ignored my applications for work for over a year.
It's Uber o nada. Tips make a big difference, and although I enjoy most of my rides, I probably get a tip for every 20+ rides. Lyft is much better. Uber really doesn't care about their endentured work force at all.
I owe about $2000 more on the Prius, and then I'll make up my mind if I want to do this more or not.
Like when I hear people say "thank you for your service", I am also offended by people mocking those of us who desperately try to make ends meet as though we are objects to be made fun of. My 401k is drying up. There aren't many alternatives. At least I provide a service for my crumbs. Beats standing at an off ramp.
FrodosNewPet
(495 posts)You are right that our society has no respect for people as they get older.
Personally, I respect good, polite, conscientious rideshare drivers, and wish them well. Unfortunately, the high turnover of drivers is indicative of how poorly Uber treats them. Indeed, Uber's goal is to completely eliminate them ASAP. But that is going to be a lot harder than they thought.
Roll safe.
Response to FrodosNewPet (Reply #7)
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sharedvalues
(6,916 posts)It's good you're working hard and doing the job
The scary part is Uber could take away your job tomorrow - by cutting rates or changing the app.
Uber is skirting labor laws by claiming falsely drivers are contractors. And they are undercutting competitors with low VC-subsidized rates to establish a monopoly, after which they will raise rates again. (Uber loses great gobs of money).
Im Pro-Uber workers, anti-Uber management.
Johnny2X2X
(19,066 posts)I thought they Uber didn't allow you to work for Lift at the same time? I guess if you have 2 phones they couldn't stop you.
Know that the driver is a temporary part of the Uber equation, they've always had the aim of using Uber for self driving cars and that's just a few years off.
Most people aren't aware yet, but self driving cars are going to change the American Way of life as much as or more than Smart Phones have.
crazycatlady
(4,492 posts)I've only been in an Uber (company paid) once and never a Lyft. I'd prefer to use my own car or public transportation.
Hulk
(6,699 posts)I turn on both apps, and when I get a call from one, I simply turn off the other.
If I'm going to be sitting in my car, I may as well be busy.
On the subject of "self driving cars", I see that as coming long after I give it up; and even then I wonder how many passengers are going to be comfortable with that one.
I'm heading back to San Miguel, Mexico long before that happens. Living on $3k a month is "poverty level" up here. I can live comfortably with my wife and dog south of the border. With dRumpf insulting humanity, it looks better every day.
eShirl
(18,492 posts)FrodosNewPet
(495 posts)But the challenge in producing a car that can go anywhere is very difficult. Lane keeping, maintaining distance in clear,, dry conditions is only a small part of the equation.
KittyWampus
(55,894 posts)NCTraveler
(30,481 posts)That allow for tips directly on the platform itsel, among other reasons.
leftynyc
(26,060 posts)competition from Lyft, Via, Juno and those are only the ones I know about. One Uber driver out in CA told us when there Uber really screws over their drivers. Perhaps more competition will put the drivers in the "drivers seat" (I honestly couldn't think of another way to put it).
cbdo2007
(9,213 posts)I am in IT and know three guys who I work with who drive Uber, none of them do it for the money. They all do it because they are really outgoing and that's a fun way for them to meet people and they are bored.
kcr
(15,317 posts)But should the area of study on labor and worker's rights be oriented around people who don't need the money and the jobs are just a hobby? Because I'm thinking their needs are probably a bit different.
barbtries
(28,795 posts)this is why i offer it
kcr
(15,317 posts)Interesting to note though given a common defense of Uber. Many defenders will claim it's a great source of employment for people who need the work. Well, not so much, it seems.
Demonaut
(8,917 posts)kcr
(15,317 posts)Jobs in the gig economy are stopgap for workers. It is the fast track to further widening the income inequality in our country. It saddens me that so many even in progressive circles don't get it. Labor as an issue just isn't discussed or fully understood enough anymore. More and more are losing the good, stable living wage paying jobs they had, and all they can find are the stopgap because companies don't have to play by the rules anymore. Instead of defending that, we should fight.
FSogol
(45,485 posts)Demonaut
(8,917 posts)NewJeffCT
(56,828 posts)Is it a 50-50 split, 75-25 or something else?
I work near the main airport in Connecticut, so was thinking of doing something like this to earn a little extra cash. But, if it's not at least 75-25 with me getting 75% or more, I don't think it would be worth it.
MarvinGardens
(779 posts)UberPool is handled differently and drivers make 10% less per mile on them versus UberX.
MarvinGardens
(779 posts)I drive for Uber a few nights a week after my day job. It's fine as a part time gig, during busy times and in busy areas. I drive an older car with good fuel economy. For me it seems feasible to supplement my existing income. Trying to do it as a full time gig would be a rough life, I think. I sure wish they paid better. I'd say that's my number one complaint, too. They could start by paying the same for UberPool as they do for UberX. UberPool is more work for less money.
AngryAmish
(25,704 posts)Driver's second day. Nice kid. Will lose his shirt.