While its success is based principally on attractive pricing and ease of use, Uber’s business model critically depends on a ready supply of available and motivated workers. While there’s no sign that the supply of potential drivers is drying up, yet, the enthusiasm of Uber drivers seems to be eroding.
According to a new survey by Harry Campbell, an Uber driver who blogs as TheRideshareGuy, 38 percent of the company’s drivers were unhappy with their jobs; 37 percent were somewhat satisfied, and only 11 percent were very satisfied. (The remaining 14 percent were ambivalent.)
Campbell notes that even according to Uber’s own numbers, fully half of its drivers quit after just one year.
And then there are the recent driver strikes in New York, San Francisco, and other cities, to protest Uber’s fare cuts.
Unhappy Taskers Could Derail Uber
A disenfranchised labor force hurts Uber two ways.
First, unhappy drivers are a turn-off for customers. Given the choice between riding with an upbeat driver who’s satisfied with his compensation and working conditions or with a grumpy driver who resents his employment situation, riders will naturally opt for the former. Long term, that could stall Uber’s growth and undermine its profits as riders ditch their Uber apps in favor of other services.
RELATED: The Uber Dilemma: To Tip, or Not to Tip
Second, as Uber drivers’ displeasure with their working conditions becomes an increasingly integral part of the Uber story, the supply of would-be drivers will be choked off.
Uber is hardly the only option for those who choose to participate in the gig economy. It’s not even the only ride-share service. There’s Lyft, Uber’s primary competitor but currently a distant second on any key business measure. And there is start-up Juno, a new ride company that plans to beat Uber at its own game by treating its drivers better.
In short, the relationship between Uber and its drivers directly affects the relationship between drivers and Uber customers, which in turn drives Uber’s success and profitability. It could be a virtuous circle, or a vicious one. Nothing less than the company’s future hangs in the balance.
Reader Reality Check
How happy was your last Uber driver?
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After 20 years working in the travel industry, and 15 years writing about it, Tim Winship knows a thing or two about travel. Follow him on Twitter @twinship.
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Many vehicles on the market today are packed with all kinds of new technology designed to make driving safer and more comfortable, but are some of the systems too difficult to easily operate? Are touch displays and touch-sensitive buttons and controls, often hidden in the menu, too hard to reach, and does searching and finding them create a distraction? Does more tech lead to an increased safety risk?
In a big win for Uber, the ride-sharing service today announced a new partnership with American, the world’s largest airline. “The companies will work together to provide customers faster service, better airport navigation, rider promotions and mileage promotions.”
Uber’s policy on tipping is simple and clear: “You don’t need cash when you ride with Uber. Once you arrive at your destination, your fare is automatically charged to your credit card on file – there’s no need to tip.”
A key selling point of rideshare services like Uber and Lyft is their transparency. Users know where their ride is, how soon it will arrive to pick them up, and how much the fare will be to their destination.
No cash, no tip, no hassle… When you arrive at your destination, just hop out—we’ll automatically charge the credit card on file. And there’s no need to tip.
Beginning earlier this month, some Uber customers in Pittsburgh have been treated to a preview of what many expect to be the future of ridesharing. Fourteen self-driving Ford Fusions began ferrying riders within a 12-square-mile section of the city’s downtown.
Perhaps because it’s a new and novel business model, drivers for rideshare companies like Uber and Lyft have come in for considerable scrutiny. Who are these people? Are they safe, responsible, reliable? Am I putting my life at risk when I punch up an Uber ride?
Uber is known, and mostly loved, for its on-demand ridesharing service. Need a lift? Launch the Uber app on your smartphone, and within minutes a car and driver will be idling at the curb, at your service.