(Also see Craigslist Uber Scam #UberScam)

Potential UberX drivers, do not rely on what Uber tells you about how much you will make. The inflated figures Uber bandies about on Craigslist and in its PR about how much you might make are 1) inflated, and 2) before expenses. So you must discount what you make from Uber by 50% to account for Self Employment taxes (remember that you will be paying both the employee and the employer portion of these), fuel, depreciation, maintenance, and income taxes.

And after Uber has been in a city for a while, and after Uber runs its promotional discount during which drivers do not take a hit, Uber will unilaterally cut rates with little advance notice to drivers, and you will then make even less (and if you unwisely used Uber-arranged financing to buy a car, you are really stuck).

Even before your costs and deductions, Uber’s take is more like 25% of the “fare” charged to riders after Uber deducts the “Safe Rides Fee” ($1 per ride) and its 20%. Yet Uber shows the rider the top-line “fare” to the rider and to you as if that is what you earn. It’s not.

Uber’s “Safe Ride Fee” of $1 per ride is shown to the rider as part of the fare, but Uber shows the $1 fee separately when it pays drivers. So Uber makes, at the outset, $1 on every single trip. #UberLies

For example, a $6 “fare” will result in the driver being paid $6 – $1 Safe Rides Fee = $5 – (20%) $1.00 = $4.00. $4.00 / $6 = you making 67% of the “fare”. Uber’s take is more than 30%. (A $10 fare results in the driver being paid $7.20, which means Uber’s take is 28%, not 20%.) And if you think “fares” under $10 are unusual, especially after a rate cut, think again.

Uber gets so much positive press because it is allegedly “high-tech” and “innovative” and “disruptive”. But it is building its valuation on a very shaky foundation of grabbing market share by lowering rates and thus lowering driver quality and increasing driver churn. And many journalists who cover Uber have no clue about and are not interested in the misrepresentations of “income” that Uber uses to recruit drivers. After all, most journalists, like most UberX riders, love riding around for cheap, without wanting to know that UberX driver car equity is helping pay for that cheap ride.

Don’t believe us? Then read the stories linked below and listen to the Columbus, Ohio UberX driver who quit (YouTube at bottom). You have been warned.

See
– Some Uber drivers say company’s promise of big pay day doesn’t match reality, by Luz Lazo
– Uber’s EPIC blunder, on UberPeopel.net
– Beautiful Illusions: The Economics of UberX, by Justin Singer
– Ride-share service Uber drivers say pay is shrinking, by William D’Urso
– Driving in LA since the latest pay cut, on UberPeopel.net
– Uber’s Battle Against Its Drivers Continues, by Olivia Nuzzi
– What Uber Isn’t Telling uberX Drivers, by Nate Boroyan

PS. Are you sure your auto insurance covers you? Are you sure your policy won’t be canceled if your agent finds out?

Uber as a company is very disrespectful of its (mostly brown and black male) drivers. After Uber runs it promotions discounting rates (especially UberX), and stressing that the drivers are not losing anything, at the end of the promo period Uber then announces to its riders that lower rates are here to stay, making the decision unilaterally and with only a few hours advance notice to UberX drivers. The new rate reduction DOES impact drivers as the entire rate reduction comes out of drivers’ pockets. (In some cities that have had recent rate cuts, some UberX drivers did not work the Labor Day weekend to protest those rate cuts.)

Uber has recently pulled this underhanded trick on UberX drivers in Boston, Washington DC, London, Los Angeles, NJ, Tampa, Fresno, and Seattle, among other cities. So, current and potential UberX drivers, be prepared to see Uber unilaterally cut your fares by 15% to 20% while letting riders know how great Uber is for cheap rates, and giving drivers little advance notice of the new “improved” 15% to 20% pay cut.

In response to Uber unilaterally lowering rates, many Uber drivers are now attempting to cause surge pricing.

From Seattle:

Back in June, Uber lowered prices for UberX customers by 20 percent. For two months, the company continued paying its drivers — who earn 80 percent of each fare — as if the discount had not been implemented.

But earlier this month, Uber shifted the discount over to drivers, who are now making less money per ride. [Editor: And you can be sure that Uber did not include any mention in its announcement that the discount was coming out of drivers’ pockets.]

Uber also hides the ball on the fees and costs to drivers (phone deposits, weekly “data” fees, etc.), discloses very little until the last minute, or Uber buries details that make it difficult even for native English speakers to figure out what Uber is charging drivers. Uber is a rich guy shtick, and sneaky in our opinon, and it increasingly looks like it is tricking poor people to ferry wealthier people around via UberX.

Oh, and you will probably get more traffic tickets (think “cameras” you don’t know about yet), and those are not deductible.

Contrary to what some people are saying, the aggressive recruiting of Lyft drivers by Uber isn’t good for the UberX drivers in cities where the rates have been unilaterally cut by Uber. Uber needs to aggressively recruit drivers because many UberX drivers are quitting or cutting back to working only the busiest hours after the rate cuts. (The aggressive recruiting of Lyft drivers also has the benefit of hurting one of Uber’s major competitors, which is Lyft.) Uber is in the early stages of burning through drivers (driver churn), but at some point the word will get out and Uber will have to increase UberX rates to attract and keep good drivers.

As rates are dropped by Uber in more markets, the overall quality of Uber drivers, especially UberX drivers, will suffer.

Uber has also encouraged people to finance vehicles to drive for Uber (see “Financing 100,000 Entrepreneurs” by Travis Kalanick, Uber’s CEO). Our guess is that many of the drivers who used Uber-induced financing to buy cars to drive for UberX 1) did not speak or read English that well, 2) relied on the UberX rates at the time, and 3) relied on Uber’s claims of how much money they would make. As a result, our guess is that there are hundreds, if not thousands, of UberX drivers who might have plausible “fraud in the inducement” claims against Uber, Uber’s CEO, and Santander in cities where Uber unilaterally cut rates, making these financed vehicles even less affordable. The discovery process would be interesting….

Our prediction is that unless Uber raises its UberX rates, the only people who will drive for UberX will be people who really have no other options. We also predict that you will start to see more UberX drivers pushing for tips to supplement the “new” rates that result in many UberX drivers making less than minimum wage even before their expenses: fuel, maintenance, depreciation, self employment taxes, state and federal income taxes). (And unlike cab drivers who often get paid in cash and get cash tips that often go unreported at tax time, Uber actively discourages riders from tipping drivers and thus UberX drivers do not get tips from most riders. UberX driver income is reported by Uber on 1099s.) So tip your UberX driver.

Uber does not “talk” with its drivers, at least not most UberX drivers, other than using form replies to emails. And Uber can take days to respond to driver inquiries.

You UberX riders are really the high-tech version of hiring the brown gardener, and you don’t even need a garden! Your own private underpaid driver of color in many cases. And think how you look down on the people who drive a cab or UberX, and also how you complain about them to your friends. It’s easy to love people of color from afar, harder to do it up close…. How does that feel now?

And Uber hiring David Plouffe is just another sign of the political class and (aspiring) crony capitalists working together.

(UberX drivers, maybe you should consider Sidecar, which allows drivers to set their own prices.)

And please, no more email from people who can not read. We are not advocating any kind of regulation, we are telling potential UberX drivers of the pitfalls of driving for Uber and to not believe the stuff Uber is spewing, including its overhyped and misleading Craigslist ads. Rather than send us email, please see this.

For more, see:

#UberXploits Also see @UBER_COMPLAINTS for account photo that is accurate depiction of how Uber seems to feel about and treat its drivers.

#UberLies

UberDrivers on reddit. See
– “Prediction: Uber will continue to lower fare prices (and driver incomes) until drivers either protest or quit”
– Has anyone used the Uber vehicle purchase program? What do you think?
– Just figured out that driving for Uber puts me at huge insurance risk.
– The Anti-Uber Craigslist Posting

UberPeople.net
– Driving in LA since the latest pay cut
– Uber’s Epic Blunder
– Uber’s long term business model…is to add MANYmore drivers…until
– Driving for Uber puts us at huge insurance risk?
– How we can manipulate the surge

DriversNetwork

Truth About Uber

Uberx drivers – Facebook (Ramzi Reguii)

NYC Uber drivers union – Facebook

UberLawsuit, a class action by attorney Shannon Liss-Riordan in Boston. See
– Judge to Uber: Let drivers join class-action lawsuit, by Carolyn Said
– Uber and Lyft Both Sued for Allegedly Ripping Off Drivers, by Sam Biddle
– One Miami UberX Driver Disillusioned by Company’s Promises, by Eli Stiers
– “New lawsuit claims Uber exploits its drivers”
– Drivers: Uber Is Skimming Our Tips, by Josh Harkinson

Uber Isn’t Worth $17 Billion, by Aswath Damodaran

Beautiful Illusions: The Economics of UberX, by Justin Singer

How big of a deal is Uber? by Justin Singer

Uber’s Dirty Trick Campaign Against NYC Competition Came From the Top, by Sam Biddle

Is Uber Keeping Riders Safe? by Elyce Kirchner, David Paredes and Scott Pham

A Disruptive Cab Ride to Riches: The Uber Payoff, by Aswath Damodaran

New Jersey Uber Driver Says He Gets ‘Short-Changed In Virtually Every Way Possible’, by Jim Edwards

Potentially fake Uber driver robs woman in Virginia Highland, by WSB TV 2 Atlanta

Uber London – 15% Price Drop for UberX, by uberdriverlondon

Uber Strikes Deal To Lower The Cost Of Car Ownership For Drivers, by Ryan Lawler

This is Uber’s playbook for sabotaging Lyft, by Casey Newton

Uber-Style Talent Poaching Happens in All Industries, by John W. Boudreau

Frustrated Uber drivers take to the streets to protest shrinking fares, by Michael Carney

Uber’s Ratings Terrorize Drivers And Trick Riders. Why Not Fix Them? by Jeff Bercovici

Ouch. My Personality, Reviewed. by Delia Ephron

UberX drivers stage symbolic strike, by Linda Brill

Ten Reasons Why Your Uber Driver Hates You, by kellkontraire

Uber Meets Liberalism Uber Alles, by Steven Hayward

UberX drivers slam new low rates aimed at undercutting taxis, by Dan Rivoli

Lyft says Uber’s recruiting tactics caused drivers to lose money, by Russell Brandom

Uber’s War on Lyft Could Prompt Federal Investigation, by Dustin Volz

Uber Defends Slashing Drivers’ Rates Amid LA Protest, CBS LA

Lyft claims Uber cost its drivers major money with recruitment tactics, by Carmel DeAmicis

A bad sign for the future of Uber? UberX lowers rates 25 percent in LA, by Ben Bergman

UberX vs. Lyft: One Driver’s Perspective, by Dave Chung

Uber ‘brand ambassadors’ using burner phones, credit cards to sabotage Lyft, by Chris Bruce

Lyft Drivers ‘Screwed Over’ By Feud Between Ridesharing Companies, by Cate Cauguiran

UberX drivers honk horns in downtown Seattle to protest low wages, by Taylor Soper

Angry Uber drivers complain about company: ‘We’re treated a little better than slaves’, by Taylor Soper

Sidecar CEO [Sunil Paul] responds to Uber’s questionable recruiting tactics: ‘I can’t say I’m surprised’, by Taylor Soper

Uber Drivers Honking Their Horns in Downtown Seattle to Protest Pay Cut, by Ansel Herz

Ride-share service Uber drivers say pay is shrinking, by William D’Urso

This Is How Virginia Wants To Stop You From Getting Into A Random Car That’s Not Uber, by Jacob Fischler

Battle between Uber and Hillsborough regulators goes public, by Caitlin Johnston

Uber Is Currently Fighting the Battle That Jitneys Lost 100 Years Ago, by Matt Novak

Uber’s Battle Against Its Drivers Continues, by Olivia Nuzzi

We Talked To Uber Drivers — Here’s How Much They Really Make, by Megan Rose Dickey

Taxi Drivers Are Using Apps to Disrupt the Disruptors, by Katy Steinmetz

6 Horrible Things the Sharing Economy Is Being Accused Of, by Brad Tuttle

Uber Drivers Team Up With Teamsters Union, by Dennis Romero
– UBER Drivers in Southern California form Association with Teamsters Local 986

Driving for Uber Sounds Like a Nightmare, by Connor Simpson

Why Uber Driving Is For Introverts, And Other Ridesharing Tales, by John Boitnott

UberX Dodged a Possible Driver Strike—For Now, by Steve Annear

Uber ‘partners’ protest in front of Santa Monica office, by KPCC Staff (Ben Bergman)

Despite backlash, Uber says it’s rapidly expanding, by Dara Kerr

Do UberX Drivers Really Take Home $90K A Year On Average? Not Exactly, by Dan Kedmey

Life as an Uber Driver: It’s Just Not Fare, by David Fagin

Driving for dollars: Thousands sign up to work for UberX and other ride-share services, by Steve Hendrix and Lori Aratani

Uber Drivers Say They Need a Union, by Ansel Herz

How Much Do uberX Drivers Really Make, Anyhow? by David Murphy

How many UberX drivers actually make $70k a year? – Quora

Why cab drivers should love Uber, by Felix Salmon

Local UberX Driver Says Working for Company Is a Rip-Off, by Trevor Bach

UberX drivers turn in company phones, effectively going on strike, by Graham Johnson

Uber is tapping into the too-drunk-to-drive market, user data suggest, by Emily Badger

Too Bad There’s No Regulatory Authority to Protect UberX Drivers, by Goldy

What Uber Isn’t Telling uberX Drivers, by Nate Boroyan

David Plouffe will land in the middle of Uber’s biggest problem to date, by Kevin Robillard

Uber Announces ‘Permanent’ uberX Price Cut, by Nate Boroyan

Uber’s Biggest Danger Is Its Business Model, Not Bad PR, by Marcus Wohlsen

Tip or Bribe? Taxi Drivers Say Illegal Payments to Dispatchers Are Routine, by Jon Brooks

How Many Ride-Share Drivers Are Hiding Status From Insurers? by Jon Brooks

Uber Wants Licensing Application Kept Secret, by Courthouse News Service

Welcome to the Uber Wars, by Andrew Zaleski

Uber asks judge to toss class action lawsuit by claiming it was only lying to passengers, not drivers, by Paul Carr

How a ruling against FedEx could hammer Uber, Lyft, by Patrick Hoge

Beware: Your Uber Ride May Come With A Side Of Oversharing, by Arun Rath with Pooja Bhatia

Discontent rises amongst Uber drivers in India against its global policies, by Harsimran Julka and Aditi Shrivastava

UBER Drivers In Southern California Form Association With Teamsters Local 986, by Joseph DeWolf Sandoval

Uber plays hardball but fails to win the game, by Patrick Hoge

Uber wanted a price war, and now Uber is getting a price war, by Aaron Sankin

Uber continues to screw its “partners,” now by forcing Uber Black drivers accept UberX fares, by Michael Carney

Why is “libertarian” Uber sponsoring San Francisco’s giant police militarization conference? by Paul Carr

If 2 New Yorkers Shared a Cab …, by Kenneth Chang and Joshua A. Krisch

Montgomery County wants answers from Uber, by Bill Turque

Uber and DC Taxicab Commission Battling Again, by Martin Di Caro

The Question of Coverage for Ride Service Drivers, by Ron Lieber

It’s Now Easier than Ever to Become a Rogue Uber Driver, by Nate Boroyan

uberX cuts Fresno prices by 17%, by Hannah Esqueda

Uber, self-driving cars and Google, by Sameer Singh

Some Uber drivers say company’s promise of big pay day doesn’t match reality, by Luz Lazo

Uber Unites Politicians in Hypocrisy, by Andrés Martinez

Police: Uber driver pulled gun, threatened to kill valet, by WSB TV 2 Atlanta

“Disruptive” Technologies, by Ed Wallace

Drivers Are Protesting Outside Uber’s Office In New York, by Steve Kovach

Uber Drivers Allege Unfair Wages, Protest Company’s Rating System, by Jim Nash and Ashley Soley-Cerro

Who is John Galt? Uber, Lyft, Sidecar & the Culture of Deception, The Phantom Cab Driver Phites Back, Ed Healy

Uber sued for allegedly refusing rides to the blind and putting a dog in the trunk, by Gail Sullivan

I quit Uber, here is a Youtube video I made of why and the Email I sent Uber

Fron Chicago Craigslist #UberScam

http://chicago.craigslist.org/chc/res/4655870009.html

Uber scam (All Locations)
Uber scam (all locations)
compensation: You earn to pay for gas.
contract job internship part-time
non-profit organization telecommuting okay

People looking for work , Please do not out of desperation become a Uber Driver. Research the internet. All complaints that Uber drivers share on the internet about Uber is totally true. Lesson learned the hard way. They do not have respect for drivers. They take only rating from clients and can deactivate your account at anytime. Meanwhile, they make money off you while you pay for their app, pay for your gas and incur wear and tear on your car. They will never communicate with you as a driver. So beware.
Remember all those crazy drunk folks at night?
Yes, They listen to these folks saying you are no good although you gave them the best ride quality. DO NOT JOIN UBER. They lie about the 4000 monthly fares. You will never earn that much
They will use you and spit you out. Its totally not worth it for drivers, but if you want to be a client, you can enjoy the app. As a driver, your account will be terminated for no reason after they have charged you enough for their app and have used you to expand their company.
BEWARE OF UBER
Just thought I would help out folks out there and warn them.

Illegal In Houston – Uber And Lyft Run Insurance Scam In Houston,TX
His insurer knows now…