South African Uber drivers strike after price cuts

you don't see anyone complaining when Uber increase prices over peak periods...
 
And our commie government wonders why international investors and companies are not interested in South Africa.
 
blunomore said:
I think the strike was mainly in CT.
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Probably because the demand is currently very seasonal there, and dropping off now. So uber tries to stimulate local demand, but due to poor communications and even worse local understanding of economics, fails
 
Pretty reasonable comment on that article from an Uber car owner -

I own two Uber cars, and this experiment may prove to be a success,but I doubt it.

What irks me the most is Uber's PR spin that our fates are tied together - that lower fares will lead to more customers and more income and everybody will be happy.

More customers will certainly make Uber happy. They will get their 20% from all these new customers without lifting a finger. But a driver's income is not determined by how many customers he can get per day, it's determined by how much money he makes per kilometer. We pay for maintenance and fuel and wear and tear, while Uber has none of those costs.

They see all the new customers and their profit soars.

We see all these new customers who pay less per kilometer (even though the fuel cost of driving each kilometer is going up), so we have to work harder and longer hours to earn what we earned before.
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Mier said:
you don't see anyone complaining when Uber increase prices over peak periods...
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Meh. I think they are overpriced as it is. I'll drive myself, or ring up the company driver to take me where I need to go.
 
Is this an OK analogy using a desk-bound job - your boss comes in and says your hourly rate is being cut by 15% but you can make it back if you work more hours. I'm not sure how to factor in that the extra hours would actually cost you extra money at the same time (the fuel, maintenance the dude mentions).
 
Neoprod said:
Is this an OK analogy using a desk-bound job - your boss comes in and says your hourly rate is being cut by 15% but you can make it back if you work more hours. I'm not sure how to factor in that the extra hours would actually cost you extra money at the same time (the fuel, maintenance the dude mentions).
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Your analogy assumes the uber drivers are emplyees of uber. I thought they were contractors?
 
Neoprod said:
I tried to use an hourly rate to illustrate that they were not employees.
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Fair point. I do however think the distinction between employees of uber or not employees of uber is at the crux of the drivers complaints, and could very well dictate their right to strike, and their future with the company in whatever form that may be.
 
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