Our world is changing rapidly. Many services become closer to us through the Internet and mobile applications. American company Uber has created a program that allows you to search, call and pay for the services of private drivers. Now this application works in many cities around the world.
The customer gets the opportunity to reserve his car online, and then to follow the movement directly on the map. Payment is made using an attached bank card, part of the funds goes to the account of the developer company.
The idea of such a business appeared in 2008 in Travis Kalanik, who still could not catch a taxi in Paris. Today, the application has become so popular that the entire business of the company is estimated at $ 40 billion. Uber already comes to Russian cities.
True, the business model is not yet fully understood by many users, so the service is frankly afraid to use. But he proved his viability in many countries. Many people even if they heard about the Uber taxi, still believe in the many myths about this service.
Working on Uber drivers can be successful, earning in America up to 90 thousand dollars a year.
Even for America, this is a large figure of income. This myth began to spread itself Uber in May 2014, wishing to attract more independent contractors. They were promised the opportunity not only to make money, but also to change the whole world. In New York, independent drivers with their car promised a salary of 90 thousand dollars a year, and for San Francisco – up to 74 thousand. Licensed taxi drivers can count on earnings three times smaller. However drivers UberX (cars of an economy class) began to complain, that actually receive less even the established limit of the minimum payment. It is not clear how it is possible to increase the driver’s earnings so sharply. And the promised sum is rather vague. It is not confirmed by any calculations or calculations, but simply figures, as a fact, in which one must be believed. In this case, we are talking about revenue, not net profit. That is, from this amount you still have to give part to the service itself, and considerable. It’s unclear how many days or hours you have to work. If the driver will have to drive 100 hours a week to get this income, then this company does not paint. In addition, Uber often reduces its tariffs for some time. As a result, the driver can get an unexpectedly lower amount. This question interested the journalists who tried to find out the real income of the driver Uber. However, they prefer to hold back information about their earnings.
Uber partially pays drivers their costs.
Uber keeps low prices due to the fact that all costs are borne by the driver. As a result, he has to pay for the repair of the car, fill it, carry out maintenance, carry out insurance. Given that all contractors are, in fact, private entrepreneurs, they still have to pay taxes. If the tires explode in the usual taxi driver, the company will pay for repairs. Driver Uber will have to do repairs for their money.
The surge in Uber prices is associated with the desire to make additional money on customers.
The pricing policy of the company is quite flexible. Prices for taxis can increase during peak hours or on holidays. In theory, this is due to the increased demand for cars at this time, and the number of drivers remains the same or even decreases. But the impact on tariffs is determined by both the patented decision-making algorithm and the human collaborator. Sometimes the decision is against the company itself. For example, at the end of 2014, in the heart of Sydney, the terrorist seized hostages, and Uber immediately increased tariffs four times for those wishing to leave the area. The company claims that the tariff hike really does happen. But this is done to encourage drivers to work actively at such intervals and to take more orders. Usually independent taxi drivers go home before the bars are closed.And to keep the opportunity to provide customers with machines, Uber offers its contractors more money. Basically it works, but not always. You can recall the same Sydney or New Year’s Eve 2012 with a 6-fold increase in prices. For ordinary people, this looks ridiculously expensive, it seems that the company is manipulating prices. In most US states, this method is considered illegal.
Every Uber driver is insured for 1 million dollars.
This is indeed done, but for the purposes of secondary politics. The main responsibility lies with the driver. And the insurance is valid only in a situation where there is a passenger in the car. At the moment when the car is going to order or just circling in anticipation, the driver is not protected by the company. Insurance for group trips is not quite obvious from a legal point of view. That’s why many insurance companies are changing their policy towards Uber drivers. It is believed that they violate the conditions of use of the vehicle, which is intended for personal use. Secondary insurance for a million dollars can be paid in the event of an accident, however, the driver is likely to have to sue the insurance company for this.
Technically, Uber is illegal because it provides transportation services without a license.
Again, we will have to talk about a vague area from the point of view of law. Similarly, you can argue about medical marijuana, and about services to provide group trips. It is likely that this violates some local or state laws. The legality of UberX is a complex issue that does not have a simple answer depending on jurisdiction. But other services Uber, such as black limousines, are legal. The drivers have a license and taxes are paid to the state. In many states and countries, Uber was simply banned as soon as it was discovered. And South Korea directly accused the founders of the service in launching an illegal taxi service. As in everything related to Uber, the risk rests with drivers. The passenger can not be fined or removed from him more money, but some drivers were fined financially.
Drivers earn mainly on numerous short trains.
They refuse long routes that take a long time. In fact, the situation is just the opposite. Because of the prices and the Uber commission, it is better for the driver to get one long trip – to the airport or to the outskirts of the city, than a bunch of short ones, taking visitors to clubs. Service takes from each trip the dollar as a payment for the safety of driving and 20% of the remaining amount. A trip for $ 40 from the airport will bring the Uber dollar and 20% of the remaining 39, that is, $ 8.8. And the transportation of four visitors to the bar for $ 10 will bring the company a dollar from each trip and 20% of the remaining 9 dollars, that is, in the amount of 11.2 dollars. Drivers quickly master such mathematics and understand how much they really earn and what type of trips they benefit.
Uber drivers should not be trusted, because no one checks them.
The fact that Uber is a new, popular and famous phenomenon, attracts a lot of attention to it. Any crime committed by the driver of this service will immediately get into the news. So there is a myth that Uber – roulette, in which lawlessness reigns. Taking a mobile device to make an order, a person risks his life every time. In fact, this is not entirely true. Uber makes background checks of their drivers: did they have experience of drunken driving, violent crimes, sex crimes over the past seven years. But all these checks are carried out online, whereas the official taxi even takes fingerprints from employees to check. The same 7 years – the statute of limitations for applications for violation of carrying weapons or crimes on the roads. But in the official taxi this period is only 5 years. So the chance for a passenger to be a victim in this service is great.In fact, there is no official data on whether a normal taxi is more or less safe than Uber. But the moral fears of passengers regarding group trips are clear. A trip with a stranger in the car always requires caution, whether an online application or an official service is behind it.
The driver does not have to give a tip, he has no right to take them.
Since Uber appeared on the market relatively recently, the customs for it are all new. In the usual taxi, we usually leave a tip, but in this case, the money is withdrawn from the card without an additional fee. Uber intentionally accentuates customers with the slogan “There is no need to tip” and does not even offer in its application the option of monetary incentives for the driver. But the competitor, the Lyft company, has such an opportunity. But drivers Uber have nothing against cash and gladly take them. This is a private matter for every passenger. But it is worth remembering that the driver has to give a lot to the company for its services. Why not compensate him for at least part of these expenses, since you managed to save with the help of Uber.
The driver rating is unimportant. For drivers, the rating is very important.
In UberX, drivers are required to maintain an average score of at least 4.7 to be able to work on. A few bad reviews can end a career as a taxi driver in Uber. The passenger can not order the car again until he appreciates the previous driver. Yes, and the taxi driver himself also puts points to his passenger. If the client accumulates bad reviews, then he can be ignored in the future when calling a taxi. So, both sides have reasons to behave civilized during the trip.
Uber is the transportation of passengers.
At one time the service was launched with the slogan “Personal Driver for Everyone”. Using the application in the smartphone, the client asks for a trip. It is chosen by the driver, and the navigation systems automatically calculate the distance and the fare. And then the application withdraws money from the card. As a result, everything happens faster than in public transport, it is more convenient than in a taxi. Uber convinces that it is also cheaper than using your own car. However, now the company sees itself not only as an intermediary in the organization of trips. Yes, and its investors believe the same. One of them, by the way, was Jeff Bezos, the founder of Amazon and the owner of The Washington Post. It is believed that the constructed complex system can allow to transport not only passengers, but also cargoes. And the company has already begun to experiment with this complex idea. The courier service in New York and trial deliveries in Washington were launched, offering such day-to-day things as tampons and toothpaste. The company plans to arrange transportation of not only people, but also in general things necessary for them – furniture, diapers, dog food. So Uber will leave from the image of a personal taxi alone. Such a long-term plan will compete with powerful rivals: UPS and Amazon. A clash with traditional taxi services will eventually look like a trifle. Uber hinted at his aspirations when he updated his slogan to: “Where the lifestyle meets with logistics.”
Uber – service for the rich.
You could say that when the company just started. Luxury black cars were offered as an alternative to traditional taxis. However, since then Uber has put forward a number of services intended for a wide audience. For example, UberX, is the most democratic option. A trip is offered in the back seat of a private car of a stranger. And it can become even cheaper than in a conventional taxi. The company has launched a new service, UberPool, which will make travel even cheaper by transporting several strangers to each other in one car. In terms of demographics, Uber claims that it provides more reliable service to minorities and at the same time works in under-served areas that historically have been ignored by traditional taxi services.And user reviews confirm this. Uber comes to the orders to places where other carriers refuse to go. The passenger only needs a smartphone and a credit card.
Uber opposes the regulation of this market.
At the very beginning of the project’s development, this was indeed the case. The company believed that excessive regulation of the market would strangle all innovations on it. She believed that the free market could solve the regulator’s problems on its own. Consumer ratings would remove dangerous drivers, and flexible tariffs allow you to adjust the time of delivery of the machine. However, soon in this dispute there were questions without answers. They concerned, above all, the insurance protection of non-professional drivers UberX. In this case, the cars were used private, and background checks were carried out. In many markets, the UberX service, which allows almost any driver with a vehicle to become a taxi driver for a while, turned out to be illegal. That’s why in some cities: Portland, Philadelphia, Brussels and New Delhi tried to sue Uber or even ban him. In such a situation of legal uncertainty, Uber admits that it will have to resort to regulation of the service. This is the price you will have to pay for your own survival. The company is all right with common sense, and it is trying to achieve those rules that will be beneficial to it. Not so long ago in Washington a law was signed that allows people to offer transportation for money in private cars. Under the new rules, companies, like Uber, are required to provide $ 1 million of insurance. And the data about the drivers and their vehicles should be checked. Uber happily responded to this experiment, touting it as a possible model for the rest of the country.
Only sexists work in Uber.
This is how criticism is sounded against the top managers of the company. Once in an interview with GQ magazine, Travis Kalanik unsuccessfully joked that he calls the company “Boob-er”, (that is, “Sisechnaya”). This is not left without attention of women. Senior Vice President Emil Michael caused the worst PR scandal in the company for the whole time. He decided to fight critical journalists, allocating funds to publish compromising materials on them. The first victim chosen was Sarah Lacy, editor of PandoDaily, who accused Uber of sexism. The “brotherly” culture of Uber clearly does not keep up with the growth of the company as a major global service. Many women were annoyed by such antics, including Lacy. Due to the allegations of sexism, some have defiantly removed the Uber application on their phone. But the company’s corporate culture does not necessarily extend to the drivers themselves. Their business model keeps away from itself at arm’s length. And drivers are independent contractors. Often these are former taxi drivers, unemployed, half-day actors. It is not necessary for them to believe in the principles of Uber itself. These people just want to earn extra money with their car. And the drivers themselves criticize the service management for the constantly changing conditions of cooperation. And although the top of the company can really show sexism in relation to at least journalists, thousands of servicing drivers are absolutely adequate people.
There is nothing wrong with collecting customer data.
Every time a customer orders a trip to Uber, the company collects a certain amount of data: where to get the person, where it is going, at what time of the day it happens, how much the trip cost. All this information is a valuable asset of the service. This allows you to meet the requests of drivers in advance and manipulate tariffs during peak hours. By themselves, these data seem harmless, especially if the location of any person can already be tracked using his smartphone. But advocates of confidentiality say that the leakage of this information can have consequences. After analyzing the magazine, you can see many trips from one place. So Uber learns about the place of residence of the client.You can find out how often he appears in certain harsh places, whether he goes to a treatment or to a meeting of anonymous alcoholics. The company in its blog said that it tracks the night trips of its customers and predicts their return back in 5-6 hours during the so-called “trips of glory.” This news caused a scandal. The recent antics and statements of the leadership raise questions whether it will be able to manage responsibly with the information that has fallen into their hands or, for the purposes of compromising material, will start using the personal data of its critics, as Emil Michael hinted. Defenders of privacy fear that information can fall into the hands of hackers. As the company expands, it will not only have to convince people to use such services, but also learn how to protect the customer data obtained during the work.