Monday, June 27, 2016

The true consequence of mass recruiting

So I've been driving with Uber since October 2015 (1280 trips to date) and one thing I've noticed over and over is the mass recruiting and massive turnover in drivers.  I realize that to drivers who have been at this for any significant length of time the churn is not big news.  But I want to point out a few consequences I (and other drivers) have observed.

If you're new or considering driving for a TNC (rideshare) company you might want to check some of this out.  And if you already drive, this may be an "aha!" moment that will motivate you to help change the way things are done.

First, what are the issues that cause drivers to quit driving (the reason that Uber has to continually recruit new drivers):
  • Number one, in my opinion, is the drop in rates.  Uber is the only company I know that offers a "sale" and at the same time drops the pay they are giving the very people providing the service.  You sure don't see this happening in any other consumer situation.  While Uber says the price cuts lead to more fares for drivers, that isn't really the case as this recent article shows.
  • Second, Uber recruits so many drivers that, at least in this market, there are too many drivers and not enough passengers.  Their main goal is to keep recruiting without putting effort into advertising for new customers.  In the Summer the number of drivers automatically increases because the part-time teacher drivers are now available full time and the college students take up driving part time.
  • Finally, other economic factors make driving no longer feasible like an increase in gas prices, cars getting less miles to the gallon (like during summer when AC is in full use).  Although this issue is closely related to a drop in rates.
Now that you see where the turnover originates, here are the consequences of this massive recruiting (or the churn and burn mentality) and the trickling down:

  1. New drivers come onto the platform who don't meet Uber's required level of excellence (a nice way to say they can't manage to stay much above the cut off of 4.6).   These are the drivers who smoke in their cars, don't have clean vehicles and etc.  When these drivers start picking up passengers it gives the whole service a bad name (leading to a potential loss of passengers overall).

    The drivers who have more time in with Uber then have to listen to these stories of poor service and educate riders on how the system works, hoping the riders will continue to use Uber despite the bad experiences.
  2. Uber seems to be in such a hurry to onboard drivers that they aren't truly checking out the vehicles.  In our area in particular there have been reports of new drivers who have vehicle damage just coming on to the platform.  We've also had reports of vehicles misclassified as XL, and cars with only 2 doors. There is no vehicle inspection done.

    Passengers are then disappointed with the vehicle appearance or when they aren't able to all fit in one vehicle.
  3. Uber is very misleading when it comes to how much a driver will make which leads to people eagerly wanting to work for Uber.  But when new drivers start and they don't get the money that they saw in the ad they begin cutting corners: not providing basics like AC,  taking rides for cash, and sniping rides from other drivers in high traffic areas.  This leads to driver dissention and anger among the ranks.

    There was a good article recently on how much an Uber driver really gets paid.  And it's barely above minimum wage in most cases.

    When passengers are in the vehicle with no AC on a hot day, with a driver who is not operating in the best interest of the customer, Uber risks losing the customer for life.
  4. Finally, an excessive number of drivers means that each driver has to be on the road more hours to make up for the loss in income.  If there aren't as many passengers but twice as many drivers then the potential money is spread more thinly.   Driving extra to catch up financially leads to more wear and tear on the car with regular maintenance and repairs that drivers often can't afford between taking the time away from driving and the lack of sufficient income to begin with.

    Of course if a vehicle is not properly maintained then passengers are put in a potentially risky situation.  Here is a recent article regarding tire conditions on taxis and Ubers.  While Uber fares better overall, think of the cost of replacing tires more frequently. 
Overall, it comes down to how much you (Uber) value your passengers.  The mass recruiting is a disservice to the customer base in many ways.  Everyday I meet more passengers who are aware of the unethical conditions under which Uber drivers are working.  They love the concept, but don't love the company.  Uber should take a page from Richard Branson's playbook.  Take care of your employees (drivers) and they will take care of the passengers.

It's no wonder that drivers are actively seeking other, more responsible, TNC companies.  We love what we do, just not who we're working for.  

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