Uber Needs Regulation!

All you Drivers out there opposing regulation are failing to realize how much Uber needs regulation. The only way you will ever make a fair days wages is by regulation of Uber.

travis_thumb.pngUber intentionally keeps rates so low that drivers are barely scraping by so that they can control you by manipulation in the form of “surges,” “Guarantees,” and “Other Incentives.” And then, they screw with them so no matter what you do you likely fail to meet their requirements to get the additional pay. And, this is what is wrong with Uber.

The TNC’s by hook or by crook, have manipulated their way into every major city in the world with promise to make transportation a wonderful thing. What they are actually doing is turning jobs that pay workers into jobs that pay the Corporation, at the expense of the worker. Today in most markets, UberX Drivers take home less than Uber does.

Think I am joking? Deduct all of your expenses from an UberX Drivers take home pay. Then look at the amount Uber takes. Uber takes a “Booking Fee,” plus 20 to 30% of the fare. Quite often the Driver even goes into a negative earnings while Uber still collects their fees. Yes you ARE paying Uber while you DO NOT bring home a damn penny, and nobody is doing a thing about it.

The reason Uber is so opposed to regulation of any sort, is because it will slow their endless supply of drivers waiting to be hired. Why do you think spending 9 million dollars to fight against regulation that would only cost a few hundred dollars per driver makes sense to Uber? Regulation gives value to the Driver. Presently UberX drivers are a disposable commodity. (Uber’s words, not mine) In other words, Drivers are of no true value.  In today’s economy there are plenty of people struggling to get by that fall for Uber’s lies of big money, that there is no value to the Drivers. The second the Drivers have value, or cost, then Uber will have to do something to retain the Drivers they have, or shut their doors.

Uber loses thousands of Drivers every month because the Drivers discover they have been lied to, that they are not making money, but being paid the equity in their cars and barely enough to cover their expenses. You think you made $1000,00 this week? No you didn’t. You made your expenses and the equity in your car that is supposed to be put in your savings to buy a new car. YOU MADE NO REAL INCOME! That equity is your expense, not income.

Now, you can turn on your heels and leave before you lose your financial butt to Uber or you can stop Uber from doing this to everyone else. And, regulation of Uber is one of the ways to stop the exploitation of Drivers. None of us want Uber, Lyft, or any of the other companies we work for to fail. I retract that. All of us want them all to fail at taking advantage of Drivers.

Uber claims they are not making money. BULLSHIT! They are raking in money hand over fist and pissing it all away on fighting regulation instead of paying Drivers. And, Drivers presently provide the only true income made by Uber. So, why can’t we get a piece of the pie that we work to produce? Because Uber lies and solicits Drivers stand up for Uber and fight against regulation because regulation prevents growth of free enterprise. The only thing regulation is going to do to Uber is make Uber start paying a true income to Drivers. There is no free enterprise because Uber isn’t paying you.

Yes, there are Uber cars making money. Those in a regulated market such as New York City, and all of the cars regulated by a Transportation Authority make money. Why? Because they are regulated. The Drivers are of value, they cannot be replaced easily. But, even they are not being paid fair market value for their services. Do you really find all of this acceptable?

Allow me to explain to you, your future. Drivers are going to carry the TNC’s to the “Autonomous Cars” and then the TNC’s are going to remove you from the Application. It won’t matter to them at all if you still have a car you are required to make an $800.00 per month payment on, a family to feed, or even if you don’t have enough money to pay your electric bill, you will suddenly be unemployed. Your meager earnings up to that time will not have allowed you to build up a little nest egg to carry you through until your next job. You won’t be able to collect “Unemployment” because per Uber you are an Independentr Contractor and you have no such benefit.

You may think this situation ends here, but does it? What happens when you lay off 37,500 Drivers ( The amount of Drivers working San Francisco ) all at the same time that have no benefits or savings to support them? Now multiply this by the markets we serve. The only choice they have is to seek the support of our Welfare System. Yes, the Tax Payers are going to love paying for this while Uber makes billions with their autonomous cars.

I think back to Austin, Texas and look forward to Chicago . . . How much money did Uber waste on Austin? 9 million dollars? How much is being wasted on Chicago? Wouldn’t that money be better spent paying Drivers?

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7 thoughts on “Uber Needs Regulation!

  1. $9 million split between 10,000 drivers is only $900.
    Even if it was half that number of drivers, it’s still only $1,800. That’s like $150 a month.
    Uber is smart. When they come back to Austin, the drivers will again get to make their money. It may not be this year, or next, but they will, and presuming autonomous cars are not on the market by then, drivers will again make money. Meanwhile, the riding public suffers. More importantly, some of the Austin riding public has opted to using the Arcade City Facebook pages which is completely unregulated, and scary, in my opinion. Not to mention it may very well be illegal. I’m hoping someone doesn’t get hurt.

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    • But, of that money only a few hundred would have been necessary to comply with regulation and the matter would have been resolved. And, Uber has done this 400 times world wide. What is truly a problem is like the “Gap Insurance” which is Uber’s responsibility pushed off onto drivers, so will the costs of regulation also be pushed onto drivers.

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  2. Rich, you posted a link to this page on an Uber Las Vegas Facebook page. However, in your article above, you state, “Those in a regulated market such as New York City, and all of the cars regulated by a Transportation Authority make money.”
    Las Vegas, and all of Nevada, actually HAS a Transportation Authority. The Nevada Transportation Authority. When Uber originally came to Las Vegas in 2014, they were unregulated. A court order had them shut down until they went to the Nevada State Legislature and got the laws created for Transportation Network Companies. They are regulated, including business licenses for drivers. The TNCs themselves have to get permits and report who the permits are assigned to, and many other regulations.

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    • Agreed, to an extent all markets do have a regulating transportation authority, but they are not truly regulated. In California and most cities the Transportation Authority says they regulate the TNC’s, but we are not regulated to be in compliance with the same requirements as the other transportation services. Contrary to our own popular opinion we are nothiing more than a Cab Company now. We didn’t start out that way, but we have achieved such position over the past year or so. All that is missing is that old modem sound in your ear after you push the button on your phone for the App.

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    • I guess I need to further clarify “Regulated” as far as Transportation Authorities go. Here in California regulated are the cars that have TCP numbers or PUC Authority authorization to operate. Limousines, Taxis, Buses, and an assortment of others are actually regulated so that they regardless hired to Uber have to meet certain obligations and in the case of New York even the amount the fares are required to be. I guess I am trying to say we are all the responsibility of a transportation authority, but we are not regulated as the others are.

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      • I don’t know about anywhere else. Here in Nevada, in was quite the contentious debate in the State Legislature to allow for TNCs. Eventually they made them legal and now have all sorts of stipulations, such as drivers required to have a Nevada State Business License.
        The same government organization oversees TNCs that does buses, taxis, etc. Different requirements and regulations exist for bus drivers versus cab drivers, limousine drivers versus TNC drivers, etc. Maybe Nevada just did it right, as you say New York did.

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        • What you are describing is true in most States. Most have a Transportation Authority that the TNC’s are supposed to be regulated by, but do not or have not yet begun to regulate the TNC Drivers. In California we have the CPUC which regulates taxis, buses, limousines, rideshare, shuttles, and even ride-hail but I believe almost of the aforementioned are assigned a number which designates the service they provide and in the case of some the regulation dictates the amounts they charge for their services. When Uber was writing the Senate Bills that now govern the TNC.s they slipped in stuff like this: “c) receives, in exchange for providing a passenger a ride, compensation that exceeds
          the individual’s cost to provide the ride.” and in my opinion that is exactly what they are trying to pay UberX. You will note that there is no designated amount that the payment should exceed the drivers costs in providing the ride. What we need is regulation that requires the TNC companies pay the drivers a set rate over the drivers cost for providing the ride. That is the Transportation Authority’s job. Presently nation-wide, drivers are working taking riders wherever and the end result is the driver has a negative earning for the trip, but the TNC companies not only collect their 20 to 30% rioght of the top, but also collect a “booking fee.” Now, understand what I just said. The driver takes home a NEGATIVE EARNINGS while the TNC Company takes in probably a minimum of $2.00 or more for the trip. In a City with a whole bunch of $5.00 trips, the driver after expenses makes nothing. This is where regulation by a Transportation Authority is a necessity and the governments failure to do so is nothing less than negligence on their behalf. The problem is you need to have somebody like an Association or Union with adequate membership to take a stand to get this fixed to cause change. This is not a local issue but a National issue, and that is why I post to your local pages also . You see, somebody from your local should be calling me up and asking me to demonstrate what I am saying is true, then you guys in your neighborhood should be either joining me, or starting your own and speaking out about it. UberX is not receiving a reasonable compensation for the services provided except in a few select markets where the Transportation Authority has set the rates for UberX and new markets that have yet to suffer Uber’s rate reduction plans. It is Lyft that says “Your friend with a car.” What do you pay your friend with a car to drive you somewhere? “Gas money!”

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