Down the Rabbit Hole of Uber’s Evil Deeds
While gathering the materials to create a re-imagined ridesharing service, I asked a couple of my friends what they would do to fix the logistical and ethical problems that Uber has. To my surprise, most of them didn’t quite understand what I was asking.
“Uber is evil?”
The answer to that is a resounding “yes.”
Here’s why, and here’s a solution.
TL;DR — Uber’s great if you want to increase your carbon footprint, kill people, support indentured servitude, destroy public transit, hate privacy, and overall just want people to suffer.
The Argument
They are making car ownership less necessary!
Not really.
If you look at the graph below, you’ll see that transportation network companies have greatly increased the number of riders. This means that a majority of the vehicle travel that Uber and Lyft have replacing are trips that would have been done by walking or taking public transit.
More cars also means more traffic, and Uber further increases traffic because drivers spend time on the road without passengers when they are picking up, dropping off, and waiting for customers. “Rideshare companies often subsidize drivers to stay on the road even when utilization is low, to ensure that supply is quickly available.” This increases traffic congestion, carbon emissions, and wears out the vehicles.
They are also increasing car sales by convincing poorer demographics to buy cars as an investment, but more on that later.
What about the bikes, aren't they eco friendly?
Uber’s Jump Bikes are are losing money, and at least 20,000 are being scrapped now during a nationwide bike shortage.
They are helping people make money. Bootstraps!
The problem with Uber and other gig economy jobs is that Uber drivers aren’t considered employees, they are contractors.
This allows Uber to avoid paying drivers a minimum wage, giving them employee rights, and benefits while also making drivers highly expendable. Uber does this by claiming that they are an app, not a transportation company. The cars and drivers are customers of the app, not the passenger who has paid for a ride. This also means that the drivers are solely responsible for vehicle maintenance.
To keep the status-quo, Uber actively lobbies against getting their workers classified as employees. As of 2020, Uber and Lyft have spent over 100 million dollars to lobby against the NEW GIG act.
https://finance.yahoo.com/news/uber-lyft-spending-big-bucks-100721856.html
If that isn’t bad enough, they are further exploiting their poorest workers by “facilitating subprime car loans directly for drivers so they can rent a car from Uber in order to drive for Uber — in effect, paying back the company as it pays them.” Uber has incredibly high turnover rates, so this prevents people from quitting, and is very similar to indentured servitude.
Another problem is that an average Uber driver in 2018 made $11.77 an hour, but this number is before car maintenance costs.
Uber drivers do have the freedom of picking their hours, but certain times are optimal while other times can result in the drivers waiting. Still, this freedom is one of the reasons why some Uber drivers prefer to be classified as contractors. But in the meantime, Uber and Lyft are pushing research on self-driving cars, and hope to replace all of their human workers in the future.
Okay, but Uber isn’t killing anyone.
Except it is. It seems like Uber would decrease drunk driving fatalities, but there is no evidence of this, and there has been a slight increase in car accidents and fatalities where Uber has wide-spread adoption, likely caused by the increase in traffic congestion. https://research.chicagobooth.edu/-/media/research/stigler/pdfs/workingpapers/27thecostofconvenience.pdf pg. 3
What about privacy?
Here’s an example. When Uber was hacked in 2016, they tried to give the hackers 100,000 dollars to cover up the incident instead of reporting that sensitive information affecting 57 million people was taken.
They got caught, and ended up paying 148 million dollars in court.
Uber also got a 20,000 dollar fine for using “God View” to track the location of a journalist without her knowledge. They got a slap on the wrist and promised only use “God View” for “legitimate business purposes.”
https://www.theverge.com/2016/1/6/10726004/uber-god-mode-settlement-fine
Uber’s the most valued venture backed tech company in the world!
But it’s far from making any money. In 2018, Uber lost over 3 BILLION dollars. In 2019, Uber lost 8.5 BILLION dollars. Uber Eats is predicted to start making money... in 2024.
Uber’s business model depends on its ability to grow very quickly and take over the market. After that, it’s just a matter of charging more and paying its workers less until there’s no other option.
I’m convinced, what’s a better alternative?
It’s clear that both Uber and Taxis have their respective strengths and weaknesses. But if we don’t do something quickly, taxis aren’t going to be an option anymore.
What we need is a reimagined Taxi Service that gives users what they want, but does it in a more ethical way for its drivers and the cities it operates in while saving the taxi companies that are currently struggling.
First, let’s check the pros and cons of each.
There are some advantages that taxis have over Uber, and those need to be preserved.
Advantage 1. Not App reliant. Taxis don’t have to be called through an app. People without smartphones or have run out of battery can still get a ride.
Advantage 2. Different payment types. There should be a convenient and automatic payment possible through the app, but card scanners and cash should still be an option.
Advantage 3. Privacy. This is an option in a taxi. Information about users, drivers, and locations should never be leaked or even recorded. Users can save their popular destinations, but it is only for them to see.
Advantage 4. Safety. Taxi drivers are professionals, not random people. Their cars are better maintained and inspected.
Here’s my version of a re-imagined Uber.
Step 1. Create a uniform app that taxicab companies submit information to. Each company can be listed with their own profile, phone number, and hours but all of the companies will share a universal app and use location services, so users can see which cabs are busy and where they are located.
But, this app does not have to be the only way to get a cab, taxi services can continue to look for customers in popular spots or receive phone calls.
Step 2. Upfront pricing and the estimated time of arrival for all cars. This is one of the reasons Uber is so convenient, you know exactly how much the trip will cost before getting into the car.
Step 3. Payments can be made through the app, in cash, or in vehicle debit.
Step 4. Taxi services can expand their vehicle types and styles, taxis don’t have to stand out on the street as much anymore, but they do need to be clearly marked somehow for safety and analog customers.
Step 4. The price for the app will be a small percentage <5%. Other ride-sharing services take around 20–30%.
Small taxi services can receive an extended free trial, so that they get proven results from the app before paying for it. This is possible because the labor is being done and managed by independent taxi companies, our service will actually be the App, and we only charge the drivers a small amount for using it.
Unlike Uber which has to manage hiring drivers, customer complaints, and lobbying the government, we would only be responsible for app maintenance and reaching out to new taxi companies.
