“These are pretty unprecedented practices in terms of the history of capitalism,” one researcher told The Examiner
Marianna Porras said she started driving for Uber in 2017 because, as a single mom, she was attracted by the flexibility it offered in terms of allowing her to make her own schedule.
That’s a fancy way of saying that the companies are determining what they pay drivers for trips based on what they know about the drivers. The companies may offer two drivers who are right next to each other significantly different rates for the exact same trip — a phenomenon drivers have actually documented.
But the companies gradually moved away from that model, first announcing upfront pricing for customers and then, in the fall of 2022, moving to upfront payments for drivers. But such statements appear to be at odds with what CEO Khosrowshahi said earlier this month on a call with investors and analysts after Uber announced its first-ever annual profit since going public. Based on the data it’s collected since it launched upfront pricing, Uber has realized “drivers are quite idiosyncratic in terms of their desire” for the types of trips they want to accept, he said.
Ex // Top Stories Lyft shares surge as driver protest looms The SF company posted better-than-expected financial results after dramatically cutting costs Regardless of whether Uber and Lyft are using individualized or aggregated data on drivers to set their pay rates, they appear to be benefiting from the move to upfront pricing.
Dubal, who interviewed drivers for her research paper, and Katie Wells — a researcher at Georgetown who tracked a group of 40 Uber drivers in Washington, D.C. for five years, starting in 2016 — have also found declining pay rates among the drivers they surveyed and interviewed.
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