In recent past there have been 3 evil companies that easily come to mind – Monsanto, Enron & now Uber. Probably UBER is more evil than both Monsanto & Enron combined!!! Read on to find out why…
To put it straight UBER is a ponzi scheme company. Ponzi scheme company is ANY company that pays returns from new capital paid to the operators by new investors, rather than from profit earned through legitimate sources.
Ever heard of a company that promises to double your money in 6mths or 1 yr time? Yeah UBER is exactly that kind of company and its shocking they never got caught!!!
In India it promises to pay its drivers Rs 1,00,000 (approx $1,500) permonth if they work approx 12hrs but pays around Rs40,000 even if they drive 12hrs/250kms every single day and have incurred expenses of Rs 90000. So if this is not a fraud company then what is?
Uber says it charges Rs6 per km… but its passengers after traveling 10kms have to pay Rs215 instead of Rs60. Oh Yes, then Uber say there is many different charges like base fare, per km fare, timebased fare, best of both time & km rate fare, surge fare and you get clubbed on your head with a mix of all the rates added together to get the highest fare prevailing at the moment he booked the cab. If this is not fraud then what is?
Huge windfall income with ZERO investment. Even in Sharemarket you have to buy shares and are thus exposed to the value of shares falling and there is a danger of loss. But with UBER there is ZERO INVESTMENT thus ZERO LOSS and MAXIMUM PROFIT. If this is not fraud then what is?
UBER is not a market disrupter it is a market destroyer. The sooner people & government wake up and smells the coffee the better. Wherever UBER has entered to do business there have been nothing but chaos… Passengers (riders) don’t realise that they are being cheated and overcharged… but the drivers know that the passengers are being cheated and the drivers are finding out that they too are being cheated… even in its home country USA… where drivers have become sick of the world UBER and are protesting against it…
Many people say “I UBER-ed” to office… when in fact they had been “ubered” … ubered in the sense that they had been conned. Instead of Rs 150 ride today they are paying Rs500 & Rs 700 yet the driver never gets even half of this!! UBER is a fraud company and people are being conned all over the world in a way never attempted before!!! Possibly the only exception being East India Company.
Its safe to say UBER is the East India Company (EIC)of this century!!! EIC used and paid the people of a country to destroy their own country completely… and then ruled over it once it was weak. Uber is doing the same thing using the drivers to destroy their own markets… and the drivers do not have another option!!!
When UBER first comes to town (honeymoon period) they are very… generous both to the passengers (called riders here on) and to the drivers. To the riders UBER hands out Santaclause like gifts of free rides – first ride free, weekend free ride, holiday free ride, etc. To the drivers UBER gives rates that are higher than what is existing in the market to keep them happy initially. Refunds are given to the riders & drivers any kind of problems are solved or responded to. Word gets out and many riders & drivers join Uber.
Once many drivers sign-up UBER drops rates by bringing in cheaper service and all hell breaks loose. The drivers feel cheated… the riders feel cheated because many drivers refuse to drive creating surge-like prices and UBER is super happy laughing its way to the bank. UBER also routinely creates fake surge-periods… especially in times when there are quite a few taxies and UBER cabs driving around looking for riders… so how is it Surge?
UBER keeps sending out many fake promotions (the maths of which never makes any sense probably because it never intends to pay the driver because the calculation is not based on existing practices or a percentage of sales/business. The maths is something like this… UBER promises to pay Rs 200 for getting business target of Rs 100. How can any company pay double its income… its like the ponzi scheme.
In the below video…at 4:00 you can see UBER CEO Travis Kalanick getting angry and running away when his UBER driver asks him “why you raising the standards and dropping the prices?… you made me bankrupt… you will not go far with this…”
The low rates are engineered to put local rival companies (most of whom have invested in infrastructure manpower have proper fleets and follow existing labor laws) out of business. It is amazing that Governments of many countries allow such a ponzi company that do not have even one car to manipulate its existing Taxi-market. It is groundbreaking achievement for a company that refuses to even put up a telephone line. Bribing the government and the Taxi unions could be part of the plan. Thats where they spend most of their reinvestment!!!
When people get first hand experience of UBER they are completely in awe of it. First they are gobsmacked by the GPS feedback on the UBER app from Google Map showing where the present UBER car/driver is and what is the Expected Time of Arrival (ETA) . Then they are surprised how easily the driver found their place to pick them up, more so if their address is difficult to explain or if there are no big landmarks that stand out to describe. Now all of this amazing technologically advanced stuff is done by Google Maps Navigation software which is freely available to all and on top of which UBER has gift wraped their Application.
Then they are bowled over how sweetly UBER has told them before their ride that it will overcharge them not Rs 50 or Rs 100 but 200% or 300% because there are more customers to provide service to. See demand-supply is an interesting game especially if the controls of are with you… Since it uses its own servers UBER can create surge situation artificially anywhere
How can Uber take profit on navigation services provided by Google Maps? Since UBER do not have any Navigation Application by itself???!!!
UBER has placed a lot of weird blogs & videos on the Internet promoting the company and its lifestyle. Almost all of the “for UBER” pics and videos are paid pics, blogs & videos or one can say its a third party (drivers & riders) who has been paid to say good things about the company. Yeah UBER promises money for promoting their company in US but never pay all its advertisers… probably it pays some of them. UBER never likes to pay money to anybody neither to its drivers nor to the Government. UBER like all Illuminati companies hate to pay Tax they try to push the responsibility on to the drivers.
But keep in mind almost 99% of the stuff out on the net against UBER are true, because nobody is going to waste their time posting so much lies about any company. To experience how terrible UBER is just go to any complaining Youtube Video and read the comments below… there will be 100s of UBER drivers who complain about many UBER stuff and worst of all about how UBER fakes “surge”.
Drivers (because they do about 10 to 20 drops per day & about hundreds of rides per week) are able to figure out how UBER is robbing them & the rider but the riders who do maybe 1 or 2 rides a day or week are unable to figure out how UBER is robbing the riders. Even when they do get fleeced the riders do not mind much (agreeing to pay 2x & 3x surge price are example) because they don’t use UBER every single day!
Uber keeps saying lower prices are good because more people will take UBER rides and more riders will translate into increased income. This is true for UBER but not true for the driver because physically the driver has to drive in city traffic, drive within the spee d limit and pick-up and drop about 15 to 20 rides per 16hr day. If rates are lowered from Rs 100per ride to Rs 66 per ride it will take 30 rides (increased expense) for the driver to get the same level of income. Thus he will have to work 20 hrs instead of 16 which again increase his expense on outside food. Thus the whole viscous circle continues pulling the driver more and more into debt.
Note that Uber is charging a VERY HIGH 25% profit for services that are SOLELY based on Navigation services which are provided absolutely free by Google Maps Navigation. Since Uber has not invested in infrastructure (taxi-fleets) nor invested in creating the navigation Maps software they cannot charge 25%. They could have charged 25% if they had provided infrastructure.
Technically a company (Uber) can charge a percentage as profit on its’ operating expenses in a country and not a percentage on the expenses of the car owner!!! Because Taxi Fares are based on the operating expense of the Taxi-owner which usually include:
- Depreciation for car over a period of 5yrs (since Uber prefers below 5yrs old cars)
- Insurance cost
- Petrol/Diesel cost for driving 250kms perday
- Monthly 10,000kmservicing cost+Yearly Tyre+ Brake pads & Battery replacement cost+
- Driver driver salary.
Now let us calculate…
1. Cost of Car: Eg. Maruti Swift Dzire Cost = Rs 750,000
Since UBER do not like cars older than 5yrs and the fact it could run about 250kms every day we will anyhow have to sell off the car after 5yrs. So we will consider a depreciation over 5 yrs.
Thus Rs 750,000/5yrs = 150,000 per year or Rs 12,500 per month
2. Insurance Cost: For Maruti Swift Dzire it is around Rs 12,000 per year
3. Cost of fuel: Now if a diesel car runs 250kms per day it will need minimum of about 10ltrs every day. In Feb 2017 diesel price is Rs 64/L in Mumbai. Thus the car will need Rs 640 worth of fuel daily or (Rs640x30days) Rs 19,200 per month.
4. Cost of Service: At a service cost of 0.75 perkm and 250km daily the monthly mileage should be around 7,500kms monthly x Rs0.75 = Rs 5,625. Add Yearly tyre, brake-pads & battery replaement which will be another Rs 5,000 monthly. Consider a round total of Rs 10,000 per month.
(Total till now Rs 12,500 + Rs 12,000 + Rs19,200 + Rs 10,000 = Rs 53,700)
5. Driver Salary/Food cost: Considering that the car will run 250kms per day it will take a minimum of 12 hrs. To go through this 12 hrs the driver will at least have to take in 2 snacks and if each cost around Rs 300 he will be spending around Rs 600 daily on outside food. This will add to Rs 18,000 per month.
6. Profit: Anything above this would be considered a profit. So if you are paying the Driver Rs 18,000 the cab owner must at least make Rs 20,000 per month… else the whole effort is futile.
Grand Total = Rs 53,700 + Rs18,000 + Rs 20,000 = Rs 91,700 rounded to Rs 92,000 per Month @ 7,600kms. Note almost 60% of it is the cost of maintaining a car that runs 250kms per day.
This is the approximate figure that UBER promises to pay in general… so that the car owner doesn’t feel that he will loose money doing Rs6 per km… but UBER never pays up anything more than what the car owner earns… citing some reason or the other!
This means to run profitably a Taxi the owner needs to earn a minimum of Rs 92,000 after running 7,600 kms which means that he earns at a rate of Rs 12.10 per km. Anything below this will be a loss for him.
The reason UBER is charging Rs 6 per Km is:
a) To destroy the Taxi-market and hoard all the business for itself without putting in as much as a telephone line or even desk…
b) To get all the riders supporting for them. After all UBER has announced dirt cheap rates (which very craftily it has reserved for only certain hours of the day when there is no surge). But if Uber can cheat its employees once UBER has taken over the whole country then they will charge exorbitant rates from its riders and also do away with drivers and use self driving cars. All car manufacturers are today working towards UBER’s self driving cars!!!
Have you ever heard of companies never paying incentives for their employees which they had promised. This is one such company. Below are some of the videos where drivers explain why UBER is utter shit read the post and also read the comments on the postings to see how rotten this UBER company is:
Uber is using Google’s free Navigation Technology not to empower people and provide employment but Uber is using the technology to cheat both riders & drivers and destroy markets and driver’s life in its GREED for profits (which it uses to destroy another market in some new country or place)… and thats why UBER is EVIL.
It is in this aspect that UBER is similar to Monsanto, Enron and East India Company! Pure EVIL… and worst face of captilism!!!
If you dont believe this post then spare a moment and go through the below links:
Indian Uber Drivers complaining:
Uber driver tried suicide: https://www.youtube.com/watch?v=yPMGsPBt8CQ
Freedom Anti-Uber Union: https://www.youtube.com/watch?v=9h6OztR9A4Q
see Uber complaints playlist for more details: https://www.youtube.com/playlist?list=PLbWAsvsip2Rx50OLBhNNAiqEwzUBnDYgE