My tweets

Apr. 20th, 2014 07:01 am
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Date: 2014-04-21 06:46 pm (UTC)
From: [identity profile] minnehaha.livejournal.com
I am pretty sure that cabbies won't respond by cutting their own pay, so I am confused by that. I see the barriers to entry for being an Uber driver as much lower than those steps needed to become a cab driver. All the fare money goes to the driver (not split with the cab company). It might pay better to be an Uber driver, especially if you maximize for driving during demand pricing.

It's true that social change and industry change have consequences and that real people are hurt and angered by those effects on them. But this change, a new job supplanting an old job but using the same skills as the previous incarnation of the job: I need to know more about the actual economics here to feel concern for whether or not this change is one to be anxious over (and to thereafter "vote" with my spending).

K.

Date: 2014-04-21 07:05 pm (UTC)
From: [identity profile] lollardfish.livejournal.com
Yeah, I could be wrong. What I mean is whether the taxi industry adjusts in such a way as to make taxis cheaper and taking it out of driver pay.

There's also the question of regulation. A lot of the expenses come from regulation, but then in theory you get a safe, clean, reliable taxi ride - as opposed to some random person's car (complaints about sexual harassment from uber are here (http://www.thedailybeast.com/articles/2014/03/28/uber-s-biggest-problem-isn-t-surge-pricing-what-if-it-s-sexual-harassment-by-drivers.html), but it's not like there aren't stories about harassment from cab drivers too).

I dunno. I worry about the part-time economy.

Date: 2014-04-22 02:52 pm (UTC)
From: [identity profile] minnehaha.livejournal.com
I cry foul with much of that anti-Uber rant.

I can't tell you about St. Louis, but in general the economics for cab drivers is pretty terrible. Profits always flow to the most constrained part of the supply chain, which in the taxi business is generally the companies with the city licenses. Cab drivers pay gross fees to those companies to lease their taxis for the day, and then do their best to make the day profitable.

Companies like Uber and Lyft put more money into the drivers' pockets, because they take a much smaller cut of the fare. In Boston there are four different levels of Uber: Uber-X (anyone with a car), taxis who are on the Uber system, "black cars" (limos on the Uber system), and SUVs. I generally take Uber-X, and the cars are *always* cleaner and nicer than taxis. The drivers are better able to navigate the city, using their GPSs and not relying on memory. (I had a lousy taxi experience today. The driver had no idea how to find the address I wanted, and I was stuck doing the navigation from my phone. That never happens with Uber.)

The drivers are working class, mostly immigrants, some students, and more women than in taxis, trying to make a living too. They're happy being able to be on the system without having to commit to nasty hours or giving a big cut to the cab companies.

One Uber driver I met in San Francisco really liked the fact that he can operate in different cities. He was planning on spending the summer in Austin, and working from there.

No, Uber hasn't pulled the racism out of the taxi business. Yes, Uber needs to work out insurance (although I believe they have in some cities for Uber-X). But I think pulling the intermediaries out of the taxi business is a good thing in general.

I'd be curious if the author of that essay is just a taxi driver, or if he owns a taxi company.

B

Date: 2014-04-22 06:23 pm (UTC)
From: [identity profile] lollardfish.livejournal.com
Interesting. I'd definitely like to to see comparative salary information. I'm still seeing this is part of the drive towards contingency work in America, which isn't always a bad thing, but usually is.

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