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Uber and Lyft gouge their drivers

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I hear endless stories of grief from the friends I have who try to make ends meet working for these services. Jalopnik's Dhruv Mehrotra and Aaron Gordon share the terrible economics: But Dave, who was granted anonymity out of fear of being deactivated by the ride-hail giant for speaking to the press, had no real choice but to wait. The passenger had requested the stop through the app, so refusing to make it would have been contentious both with the customer and with Uber. The exact number varies by city, but drivers must maintain a high rating in order to work on their platform. And there’s widespread belief among drivers that the Uber algorithm punishes drivers for cancelling trips. Ultimately, the rider paid $65 for the half-hour trip, according to a receipt viewed by Jalopnik. But Dave made only $15 (the fares have been rounded to anonymize the transaction). Uber kept the rest, meaning the multibillion-dollar corporation kept more than 75 percent of the fare, more than triple the average so-called “take-rate” it claims in financial reports with the Securities and Exchange Commission. Had he known in advance how much he would have been paid for the ride relative to what the rider paid, Dave said he never would have accepted the fare. “This is robbery,” Dave told Jalopnik over email. “This business is out of control.” Read the rest

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