Uber Drivers Will Know How Much A Ride is Before the Ride
Syracuse Winter Sunset
Uber Blog #9
Passengers are always surprised that Uber doesn't show the driver more details. In my market, when I accept a ride, I only know a few things:
How many minutes is the pick-up away from me.
How many minutes the ride is, and the compass direction.
The passenger's rating.
If there is a surge, I'll see that two.
The minutes are large numbers, while the rating and surge are minimal. Only after I drop off, the current passenger do I get to see the name of the person I'm picking up.
Worse, I get like 5 seconds to make a decision. The app flashes and rings while I'm taking another passenger. That's a lot of distracting calculating while driving.
When the passenger gets in the car, I learn where I'm going. We only know how much we get paid after the ride is over.
My criteria for accepting a ride is usually 20 combined minutes. I accept 90% of all ride opportunities and cancel about 2% of the time. I'll take big surges regardless of time or decline trips near the end of my day that take me too far from home.
But it looks like things are about to change.
Uber is testing in 24 markets showing drivers the complete trip information, including how much they'll make. This means I should see what passengers always thought we could see. I get to make an accurate decision instead of a calculated guess.
On the one hand, I like it. More information is better. Uber already does this with Uber Eats, and I quickly know if the trip is worth it. I think more drivers will use this information to take only the rides they believe will make money in the short run. There will be drivers that only take long trips with big payouts. Other drivers, like me, will focus on the short trips. We all get to drive the way we want to.
However, Uber pay is a race to the bottom. There are no scenarios where an unskilled position, like driving a car, will increase wages. This isn't unique to Uber or Lyft; this is economics 101. Customers want lower prices, and businesses want profits. Reducing worker pay is the best way to meet those demands.
Rideshare workers shouldn't be offended. In fact, this is common throughout every industry; no worker, no matter how skilled, is immune. Businesses and customers will always seek lower prices through cheaper labor and automation.
This is why workers must use our labor to generate money and then use that money as capital. For example, I invest in Uber; I invest in a lot of businesses.
So yes, I'm curious about this new change. But I don't think it's the game-changer that will dramatically increase our long-term income.