Sunday, March 5, 2017

The numbers only work for the Billionaires (Uber and Lyft)

Uber and Lyft:

I've never understood how you can sign up an unlimited amount of drivers when there is only a limited amount of business.

Imagine a restaurant where they have an unlimited number of waiters, Ya you're going to get good service but the waiters aren't going to be able to make a living.

It looks like Uber is headed for a dead end. At some point people are going to wise up and stop signing up to drive for them. Or as their current drivers go bankrupt they will be unable to purchase new cars.

Don't get me wrong, taxi drivers have gotten the shaft for a long time, they drive long hours, usually as independent contractors, with no benefits.

The company I drive for treats their drivers pretty well, but I've heard horror stories from other companies in town. They fine their own drivers when they fail to pick up a customer, and the driver has no way to prove whether or not they actually did anything wrong.

So the cab driver would turn around and take it out on a customer by taking them the long way and running up the meter at every opportunity. Of course this pissed the customers off and that's one of the reasons Uber and Lyft have been successful.

But now there's a crunch. The cab driver can't control how much they charge, and they can't run up the meter, so they're going bankrupt.

Of course all of the personal bankruptcies won't bother the guys like Kalanick that have already gotten rich off the whole thing. Even if Uber fails they will still be filthy rich.

It's almost criminal, but that's just how capitalism works. That's why we need government regulations, to protect the little guy from being crushed by the billionaires.

I'm not trying to complain, I expect very little from the government. Just trying to explain things to people that might be interested.

I'm getting out of the cab game, maybe I'll see you at the drive-thru

Did you want fries with that?

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