Question

In: Operations Management

How well does Uber treat its drivers? From a driver's standpoint, is it better to drive...

How well does Uber treat its drivers? From a driver's standpoint, is it better to drive for Uber or is better to drive for a taxi/limo service? Is it economically more attractive to drive for Uber? What would you imagine are the biggest complaints drivers have about driving for Uber? What would you imagine are the most appreciated benefits? What is the profile of a typical Uber driver, and how does it compare to the profile of the typical taxi or limo driver?

Solutions

Expert Solution

The drivers are not employees but subcontractors of Uber. According to the feedback of many drivers, Uber treats its drviers terribly. According to New York times, Uber uses psychological tricks to push its driver's buttons by manipulating them to work for longer hours. But there are quite a few drivers who are in favour of driving for Uber.

It is better to drive for Uber as one can fix his/her own schedule and work independently whereas drivers of taxis on average have to work for more hours. In addition, payments of Uber are quite more during surge hours.

According to National Bureau of Economic Research, Uber drivers earn more when compared to taxi drivers. The difference is considerable higher in cities like San Francisco and New York.

The biggest complaints of Uber drivers are ineffective rating system, unpaid downtime, miscellaneous expenses, competitive nature of ride sharing and an ineffective rating system.

The most appreciated benefits of driving for Uber are flexibility in schedule, few barriers to entry and surge pricing.

At least 51% drivers of Uber never worked as drivers previously. Aroung 14% Uber drivers are female which is higer than 8% taxi drivers who are female. At least 48% of Uber drivers have a college degree whereas most of taxi drivers have entry level education. More number of taxi drivers are married when compared to Uber drivers.


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