The title of "partner" certainly implies much more than it actually is in the case of Uber. Normally in a business partnership the partners meet, are included in business strategy planning and decision making. But in the case of Uber, the "partners" aren't a part of the decision making process at all.
Partners are held mute at arms length.
Uber doesn't seem to consider any part of the driver partner's situation when arbitrarily cutting the price of an Uber ride, and cutting the Uber driver's pay at the same time. How is anyone supposed to make ends meet when the pay is less than minimum wage? Sure we can make our own decisions about whether or not to drive for Uber, but many people have situations that prevent making a sudden move. For some there is no plan B.
The recent drop in prices for Uber rides across 80 cities (many cities suffered price drops previously) was touted as a way to "increase riders" during the slow season. So it's a "promotional" effort to increase sales right?
When other businesses run a "sale" to promote services / get others to try a service they don't undercut the people providing the service. Instead they (business owners) hope that there will be profit from the additional sales either up front, in the long run or both. This whole "we're running a sale to get you more business" (and we're cutting your pay) thing is counter to what any other entrepreneur would do, myself included. And believe me, I need to make a profit - as does every other "partner."
So what is Uber trying to accomplish here? Well according to quotes from Travis himself, they eventually want to run Uber without drivers altogether.
"I love [self driving cars] all day long," he said. "The Uber experience is expensive because it's not just the car but the other dude in the car. When there's no other dude in the car, the cost [of taking an Uber] gets cheaper than owning a vehicle."
When an audience member asked how drivers might feel about his dream of making them all redundant, he responded: "I would say to them this is the way the world is going... We have to find a way to change with the world."
Sounds peachy right?
How are you, Travis, going to get people to pay more for those self driving cars? They aren't cheap! And you're training your customers to pay less and less for an Uber ride by constantly reducing the fares.... explain to me how you're going to justify the increase in fares with your fancy self driving cars when the time comes? Sure it's cool to be in a "self driven car" but the people who use Uber are not idiots, they know about managing finances and will eventually say no. You're training your customer base to be on the cheap so you get the cheapest customers - and they won't pay for your expensive cars.
By the way, this isn't "Total Recall" - and if you saw that movie you know how useless a "Johnny Cab" self driven car can be. Human interaction is necessary in some cases - like when that mad driver comes sweeping past you cutting between you and the next car that makes everyone exclaim "Wow... did you see that?"
And face it, there are some instances when people WANT to talk to a human. Can you imagine your "morning after" rider trying to explain to "Johnny Cab" where he left his car the night before when he doesn't know the address or nearest cross street?
Anyway you look at it the result is going to be self implosion. Either, (A) the good drivers with decent vehicles will be forced to quit. No drivers, no Uber. Or (B) the self driven car idea never takes off or is too expensive for riders.
So am I frustrated that something I really enjoy is getting ripped to shreds? Absolutely! And at this rate, yes the bottom will come where I have to say no more. So I work hard each day on my "plan B" to make sure I'm set. You should too.
Feel free to leave your comments!
Also Read:
How much do Uber Drivers Make
Post on Medium.com by former Uber Driver Dave Craige
Not So Fast on those Self Driving Cars
Pando: Uber is Never Going to Stop Abusing it's Drivers
No comments:
Post a Comment