Tag: UBER

Uber Clueless

Via TownHall

Uber Clueless

The media’s ignorance about basic economics is galling.

I expect it from politicians. I expect it from The New York Times. But it’s sad to see in the New York Post, my town’s rare alternative to Democrat media.

Recently the tabloid freaked out over higher prices imposed by ride-share companies. “New Yorkers are fed up with forking over excessive amounts for Uber and Lyft rides.”

Excessive? Just what is “excessive?” Who decides?

Prices were already up because gasoline costs more, NYC keeps imposing new taxes and regulations, and the federal government pays so many people not to work that there’s now a shortage of drivers.

That day, unusually high “surge” prices were in effect because there had been a horrible shooting on the subway. Commuters, fearful of another subway shooting, turned to ride-share services.

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Better results start with an independent, global view

Guest Post by Simon Black

Last week when Uber finally went public, the stock set a record for the largest first-day dollar loss in IPO history: over $6 billion vanished from the company’s valuation in a matter of minutes.

But that shouldn’t be surprising since Uber doesn’t actually make a profit.

And the company acknowledged in its IPO filing that it may, in fact, NEVER turn a profit, given that it expects operating costs to “increase significantly in the foreseeable future.”

As we’ve discussed before, Uber is far from alone. Most of the new, high-flying, popular tech companies lose money and burn through their investor’s cash faster than a California wildfire.

Snapchat, Lyft, Tesla, WeWork, etc.

And then there’s Netflix, which is actually in one of the worst financial positions imaginable.

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Proletarianizing the Populace via “Mobility as a Service”

Guest Post by Eric Peters

Toyota just announced it would be “investing” $500 million in Uber, the ride-sharing service, to further development of “autonomous” – that is, automated – vehicles and “mobility as a service.”

The reason Toyota and several other car manufacturers are making these “investments” is for one reason only: They know they cannot continue to sell cars for very much longer because people increasingly cannot afford to own them.

For three reasons.

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Ubering is a Bad Idea

Guest Post by Eric Peters

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How does anyone make money using their car as a taxi?

Well, we’re not supposed to use that word, for openers. It’s ride-sharing. That’s just a dodge, of course. And there’s nothing wrong with dodging laws outlawing the free exchange of goods of services between consenting adults. If I have a car and am willing to use it to drive you where you want to go in return for a fee mutually agreeable to the both of us, where is the crime?

The taxi cartel objects to ride-sharing, of course – because they have legal monopoly on such services. They do not want you cutting in on their overpriced action. Which is why Uber and the others deny they are taxi services.

And in a way, it’s true. But this is precisely why being an Uber (or Lyft) ride-share driver is probably not good for you.

Here’s why – and it has nothing to do with the free exchange aspect. It has everything to do with the wear and tear aspect.

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At Least They Are Looking for Drivers

Guest Post by Eric Peters

Lyft is looking for drivers – a tonic thing to discover at a time when it seems as though every effort is being expended to do away with them.

The ride-hailing company just announced it will be “partnering” with used car dealerships with the aim of helping prospective Lyft drivers find an acceptable car to drive.

Lyft will pay a finder’s fee to these dealerships for successful references – i.e., people who end up becoming Lyft drivers – and help them finance the car, too. This latter will be done via direct garnishing of the driver’s Lyft earnings, which will be transmuted into car payments.

Probably, this will be done on the Payday Loan model – which is based on the Vinnie-in-the-Alley model, which is the loanshark model. Exorbitant interest designed to keep the customer on the hook – and in hock – for as long as possible.

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Viva Uber!

Guest Post by Eric Peters

About four months from now, Americans will go through the sickly, depressing ritual of celebrating the liberties they no longer enjoy. This includes, among an almost infinite number of things now malum prohibitum (that is, illegal, a violation of some law or statute, but entailing no harm done) being free to hire someone to give them a ride at a price mutually agreeable and otherwise acceptable to both parties.

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UBER Court Battle shows how Drivers are Destroying their own Jobs

Guest Post by

UBERThe fascinating aspect of the UBER case in the Ninth Circuit (California) is how driver’s greed cannot see that they are altering the entire basis of UBER and putting the company out of business. Drivers who sued UBER contend they are employees and should be reimbursed for expenses, including gas and vehicle maintenance. The judge is allow them to actually alter the contract. Just unbelievable. The drivers currently pay those costs themselves and altering their status to be an employee has huge problems.

Once the court rules in the driver’s favor, as more-likely-than-not, UBER is finished and should just close its doors. Next will come benefits and if the court rules they are employees, guess what. In will come the Justice Department  and prosecute them for violating Obamacare for any company that has more than 25 “employees” owes huge taxes. Plus, if they are employees, UBER would have to match all their social security payments. Drivers themselves will be targeted by the IRS.

I would simply announce that UBER is closing down and the drivers are out of a job. If the court rules they are employees, the company will not even be able to declare bankruptcy on taxes. They will be royally screwed and the lawyers will most likey destroy another innovation. The lawyers are cleverly taking the idea of a part-time fill-in job to make extra money and using judges to declare they are effectively full time employees. This undermines the entire concept of UBER, but what the hell, the lawyers will get rich putting the company out of business and the drivers out of a job. Total insanity.