←back to thread

Uber loses licence to operate in London, will still operate while appealing

(www.bbc.com)
256 points reubensutton | 1 comments | 25 Nov 19 10:19 UTC | HN request time: 0s | source
Show context
thinkindie ◴[25 Nov 19 14:49 UTC] No.21628527[source]▶
have you ever wondered what makes services like Uber affordable? 1) underpaid drivers 2) VC money dropped into an otherwise unsustainable business

I'm pretty sure Uber will raise prices the moment it kills the competition

replies(5): >>21628583 #>>21628645 #>>21628683 #>>21628694 #>>21630014 #
ApolloFortyNine ◴[25 Nov 19 15:05 UTC] No.21628683[source]▶
> underpaid drivers

This is and always will be a matter of opinion.

Uber is not putting a gun to anyone's head. If it's not profitable for you to drive, you don't have to.

replies(5): >>21628785 #>>21628846 #>>21629074 #>>21629235 #>>21629286 #
criddell ◴[25 Nov 19 15:17 UTC] No.21628785[source]▶
Since drivers can't set their own rates, I've always felt the government should regulate the split. Uber's portion should be capped at something like 5%. The marginal cost for them to connect a driver to a rider is close to 0 so even 5% feels very generous.
replies(4): >>21628953 #>>21629173 #>>21629479 #>>21629878 #
jamiequint ◴[25 Nov 19 16:40 UTC] No.21629878{3}[source]▶
Say we implemented this scenario, can we walk though what would happen next:

- What do you expect would happen to Uber prices?

- How do you expect that change would affect overall demand for the service?

- From there, how do you expect this change of demand (if any) would affect the take-home pay of the drivers?

replies(1): >>21630663 #
1. criddell ◴[25 Nov 19 17:44 UTC] No.21630663{4}[source]▶
> What do you expect would happen to Uber prices?

That would depend on how much money Softbank has left to invest. Prices might go up.

> How do you expect that change would affect overall demand for the service?

Uber's great advantage is that the quality of service is better than the alternatives. If drivers can make more money, more drivers might sign up and wait times would drop. A better experience means the service will be used even more.

> From there, how do you expect this change of demand (if any) would affect the take-home pay of the drivers?

There are two parts to this. First Uber should have to make sure no driver ever makes less than minimum wage. If a driver starts the app to announce their availability and has the app running for four hours, they are entitled to a minimum of four hours of pay.

The second part is that I think getting 95% of the fare would mean drivers take-home pay is generally higher than it is today. If Uber wants to make more money by raising the rate, then drivers automatically get a pay increase as well and that seems fair.