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Uber-nomics: Here's what it would cost Uber to pay its drivers as employees

3 pointsby cgoodmacover 9 years ago

3 comments

chealdover 9 years ago
And if Uber drivers were salaried employees, they would be required to drive a larger number of hours per day than they currently do, increasing Uber&#x27;s income-per-driver and decreasing the number of drivers that Uber would employ. According to <a href="http:&#x2F;&#x2F;time.com&#x2F;3678507&#x2F;uber-driver-questions&#x2F;" rel="nofollow">http:&#x2F;&#x2F;time.com&#x2F;3678507&#x2F;uber-driver-questions&#x2F;</a> 51% of drivers drive 15 or fewer hours per week. Only 19% of drivers drive 35+ hours&#x2F;week. If Uber was forced to employ drivers as salaried employees, I&#x27;d expect their driver base to drop to 25-35% of what it is now (and their labor costs with it).<p>Trying to just take Uber&#x27;s current numbers and tack on payroll taxes and insurance is ridiculous. These numbers are nonsense.
nickvover 9 years ago
I&#x27;m confused by the time frame of the 4.1B.<p>Does it mean this year&#x27;s operating cost assuming Uber&#x27;s current state of operation (number of drivers, etc)? Does it assume backpay for drivers who are being reclassified?
ricardobeatover 9 years ago
These calculations are nonsense. If drivers became employees, 100% of the revenue would go to the company, and &quot;mileage reimbursement&quot; would be just part of the operating costs.
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