| Uber is making it harder and harder to get on board with the idea that it's not an employer. Leveling out people's pay over multiple trips or retroactively adjusting the reward per job sure sounds like an employer having very strong control over the work conditions and compensation. And this almost brings back echoes of Doordash (?) when it was caught taking drivers' tips so that their pay was reduced to the minimum hourly promised "wage". It's like Uber are trying to shoot themselves in the foot with all the cost squeezing and profit seeking at the same time they're in a fundamental legal fight defining what they are. You would think they would go in the opposite direction and pay people such good rates during this controversy, you could hold that up and say, "see? People are clearly much better under this system". But I guess not. On a separate note, I will say that this is pretty expected in terms of how software errors go. Of course programmers at a company will be checking quite diligently that they're not overpaying through their algorithms. But underpaying? Only those who can't easily check your code are harmed by that one. It is a rare company that spends money and resources on verifying from their users' point of view that they're being delivered what was promised -- unless that company actively cares about the user. |
I don't think they have a choice. UberEats is fundamentally unprofitable. If it was run profitably, the high(er) prices would drive a large portion of their customers away and into the arms of other "startups" willing to run at a loss or towards picking up the food themselves. Plus Uber can't pretend to be an early-stage startup anymore and their constant quarterly losses are starting to add up.
I'm still not convinced this new food delivery industry is viable without constant cash injections.