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Fri Apr 21, 2017, 12:34 AM

Only 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 report

http://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.

~ snip ~


[hr]
Fortunately, they will NEVER run out of desperate people willing to run the wheels off of their cars for sub-minimum wage.

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Reply Only 4% of Uber drivers remain on the platform a year later, says report (Original post)
FrodosNewPet Apr 2017 OP
FrodosNewPet Apr 2017 #1
flamingdem Apr 2017 #2
FrodosNewPet Apr 2017 #4
Name removed Apr 2017 #9
FSogol Apr 2017 #15
crazycatlady Apr 2017 #16
FSogol Apr 2017 #17
fescuerescue Apr 2017 #34
MarvinGardens Apr 2017 #29
SoCalNative Apr 2017 #3
FrodosNewPet Apr 2017 #5
Hulk Apr 2017 #6
FrodosNewPet Apr 2017 #7
Name removed Apr 2017 #13
sharedvalues Apr 2017 #14
Johnny2X2X Apr 2017 #25
crazycatlady Apr 2017 #28
Hulk Apr 2017 #33
eShirl Apr 2017 #8
FrodosNewPet Apr 2017 #21
KittyWampus Apr 2017 #24
NCTraveler Apr 2017 #10
leftynyc Apr 2017 #11
cbdo2007 Apr 2017 #12
kcr Apr 2017 #20
barbtries Apr 2017 #18
kcr Apr 2017 #19
Demonaut Apr 2017 #23
kcr Apr 2017 #26
FSogol Apr 2017 #32
Demonaut Apr 2017 #22
NewJeffCT Apr 2017 #27
MarvinGardens Apr 2017 #30
MarvinGardens Apr 2017 #31
AngryAmish Apr 2017 #35

Response to FrodosNewPet (Original post)

Fri Apr 21, 2017, 12:37 AM

1. Recode's Kara Swisher: Most Of Uber's Problems Are 'Self-Inflicted'

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Response to FrodosNewPet (Original post)

Fri Apr 21, 2017, 12:37 AM

2. The drivers keep getting younger

Which is not always comforting..

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Response to flamingdem (Reply #2)

Fri Apr 21, 2017, 12:45 AM

4. And the cars are getting older

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.

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Response to FrodosNewPet (Reply #4)


Response to FrodosNewPet (Reply #4)

Fri Apr 21, 2017, 08:50 AM

15. Question. How do the drivers get paid? A check or direct deposit in an account? Are taxes taken

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?

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Response to FSogol (Reply #15)

Fri Apr 21, 2017, 09:23 AM

16. I believe they're 'independent contractors'

Which is probably not legal. Not sure how they get paid, but they're probably getting a 1099 (aka no taxes taken out).

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Response to crazycatlady (Reply #16)

Fri Apr 21, 2017, 09:31 AM

17. So for many, when they add the 1099 to their taxes, they are hit with a big unexpected tax bill.

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.

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Response to FSogol (Reply #17)

Fri Apr 21, 2017, 06:01 PM

34. Not if they have their taxes done professionally

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".



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Response to FSogol (Reply #15)

Fri Apr 21, 2017, 11:00 AM

29. Direct deposit weekly. 1099 independent contractors. (nt)

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Response to FrodosNewPet (Original post)

Fri Apr 21, 2017, 12:42 AM

3. Since when have they not allowed tipping?

I always tip my Uber drivers.

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Response to SoCalNative (Reply #3)

Fri Apr 21, 2017, 12:49 AM

5. You cannot tip through the app - YET

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.

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Response to FrodosNewPet (Original post)

Fri Apr 21, 2017, 03:26 AM

6. Been driving for Uber/Lyft just over a year.

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.

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Response to Hulk (Reply #6)

Fri Apr 21, 2017, 06:46 AM

7. Driving people for a living can be a lot of fun, and it can really be lousy

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.

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Response to FrodosNewPet (Reply #7)


Response to Hulk (Reply #6)

Fri Apr 21, 2017, 07:56 AM

14. Good for you! You'd do better with better labor laws

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.

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Response to Hulk (Reply #6)

Fri Apr 21, 2017, 10:19 AM

25. You do both at the same time?

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.

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Response to Johnny2X2X (Reply #25)

Fri Apr 21, 2017, 10:50 AM

28. I've seen many cars with Uber and Lyft decals on them

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.

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Response to Johnny2X2X (Reply #25)

Fri Apr 21, 2017, 05:35 PM

33. Many drivers do both.

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.

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Response to FrodosNewPet (Original post)

Fri Apr 21, 2017, 07:03 AM

8. They're just going to be replaced by self-driving cars eventually.

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Response to eShirl (Reply #8)

Fri Apr 21, 2017, 10:03 AM

21. Eventually, perhaps

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.

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Response to FrodosNewPet (Reply #21)

Fri Apr 21, 2017, 10:15 AM

24. Not getting hacked is the biggest.

 

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Response to FrodosNewPet (Original post)

Fri Apr 21, 2017, 07:20 AM

10. I would think many of them are going to places like Shipt...

That allow for tips directly on the platform itsel, among other reasons.

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Response to FrodosNewPet (Original post)

Fri Apr 21, 2017, 07:24 AM

11. Here in NY Uber faces

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).

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Response to FrodosNewPet (Original post)

Fri Apr 21, 2017, 07:26 AM

12. For the drivers who enjoy it, it isn't about the money

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.

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Response to cbdo2007 (Reply #12)

Fri Apr 21, 2017, 09:52 AM

20. That's nice for them.

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.

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Response to FrodosNewPet (Original post)

Fri Apr 21, 2017, 09:36 AM

18. i've never had an uber driver refuse a cash tip.

this is why i offer it

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Response to FrodosNewPet (Original post)

Fri Apr 21, 2017, 09:45 AM

19. Wow. That's pretty bad.

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.

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Response to kcr (Reply #19)

Fri Apr 21, 2017, 10:06 AM

23. purely a stopgap, not a means of full employment..you'll wear out your car

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Response to Demonaut (Reply #23)

Fri Apr 21, 2017, 10:35 AM

26. Stopgap is a great way to put it.

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.

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Response to kcr (Reply #26)

Fri Apr 21, 2017, 11:25 AM

32. +1 Totally agree. n/t

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Response to FrodosNewPet (Original post)

Fri Apr 21, 2017, 10:05 AM

22. Thanks FrodosNewPet, I left before a year was up due to the low compensation

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Response to FrodosNewPet (Original post)

Fri Apr 21, 2017, 10:42 AM

27. How much do Uber drivers keep of the fares charged?

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.

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Response to NewJeffCT (Reply #27)

Fri Apr 21, 2017, 11:09 AM

30. Depends on the city. In Atlanta it's 75% to drivers from UberX.

UberPool is handled differently and drivers make 10% less per mile on them versus UberX.

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Response to FrodosNewPet (Original post)

Fri Apr 21, 2017, 11:18 AM

31. I do it part time.

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.

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Response to FrodosNewPet (Original post)

Fri Apr 21, 2017, 06:06 PM

35. Last week I got an Uber that was a full size Suv

Driver's second day. Nice kid. Will lose his shirt.

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