At this very moment Uber the ponzi scheme company is out destroying Taxi markets around the world. Ponzi scheme is a company that announces to double your money in 6months or 1 year. Uber is an ABSOLUTELY FRAUD COMPANY… announcing low prices and yet overcharging its customers… and defrauding its drivers.
UBER is tells its driver to get a minimum Rs8,00,000 (US$11,764) car then UBER pay them at the rate of Rs6 per km!!! … and then from their collection (not profit) take away 25%…WTF??!! 10% of operating cost is the profit what most taxi owners make after investing Rs800,000 now UBER wants to make more than what the taxi owners make without investing anything and also by reducing prices!!!
Passengers (riders) are paying more… while drivers are getting less for eg. people who were paying Rs 150 with local taxi are now paying Rs 500 with Uber while drivers find their income dropping. So where is the cash going?
Uber uses various techniques like reduce driver’s logged in time every hour by 15minutes, squaring-off cash earning against credit and cheating there, take more than 25% as commission, never sticks within 5km radius for ride-request thus creating serious unacounted mileage, manipulates acceptance rate, manipulate surge prices artificially, make drivers drive 250 to 300kms daily, etc.
For example a driver who earned Rs 1,000 after driving 100 kms is earning not 3 times but just a wee little more than the driver who earned Rs3,000 after driving 300kms. They both earned nearly the same amount even after the 2nd driver put in extra amount of work because a large part of the amount gets taken away by the expensive fuel, tyre & brakepad wearing out. So if you consider the extra hours put in by the 2nd driver he in fact earned lesser than the 1st driver.
Today the Uber driver has become just a little better than beggar… a beggar with a Rs 800,000 (US$ 11,764) car!!!
Almost NO Governments ANYWHERE in the world understands the intensity of the situation… Taxi Unions themselves are confused… on one hand there is a set of young UBER drivers are striking work… on the other hand there are older-cabbies who are protesting against the Uber driver.
Unions are confused… its like a house divided. Like a father protesting against his son… and son protesting against an invisible ghost. For heaven sake they have to unite and find a way to fight against the main common enemy – UBER.
UBER LOVES STRIKES!
None realise that Uber loves it when there is a strike around… any strike… so that it can use it as an excuse to surge prices to the maximum.
PAY UP UBER
Actual Cost of any taxi can be divided into 3 parts mentioned below lets call it the FIXED COST. Uber cannot and must not touch this. Any profit it wants to make must be after deducting this fixed cost which comes to approx Rs14.40/km:
1. Vehicle cost Mumbai, India approx Rs 60,833 pm (actual is more):
- Uber generally insists on a better quality car Maruti Dzire/Hyundai Accent costing around Rs 800,000. Life of car is 5yrs in Uber. (divide Rs 800,000/5yrs/12months =Rs 13,333 per month expense).
- Each Uber driver is made to drive around 250kms daily which is approx 10Ltr fuel.
- This needs Rs 700 (10ltr x Rs 70 petrol or Rs 64 for diesel) fuel and Rs 700 maintenance & Service (Rs 1,400 x 25days = Rs35,000).
- Daily car wash cost,because UBER INSISTS the car should be clean both INSIDE & OUTSIDE (Rs 500 x 25) = Rs 12,500 monthly.
- Cost of yearly renewal of Insurance, Licence renewal, Permit renewal (not included).
- Interest on Rs 800,000 car loan is approx Rs 8,000pm (not included).
2. Driver salary:(minimum Rs 15,000 for 12 hrs or Rs 30,000 for 2 shifts)
3. Car Owner Profit: (minimum Rs 15,000)
The bare minimum monthly cash collection of any Car running for UBER should be Rs 90,000 (Rs60K + Rs15K + Rs15K) for driving approx 6,250kms. OR Rs 14.40/km (Rs 90,000/6,250kms). Anything below this is a LOSS!
This means that the driver should get Rs 14.40 for every Km he did for Uber (Rs 90,000/6,250km). Whether UBER is charging its customers Rs 6 or Rs Zero should be none of his concern… at the end of the day UBER has to pay him Rs 14.40 for every km with rider!!! But simple maths says that Uber will have to pay from its pocket (Rs 14.40 for free rides and Rs 8.40 for discounted rides at Rs 6/km).
Uber need not worry of getting drivers on the roads. It is not within its scope of work. Its scope is to get/place ride request and its scope ends there. UBER SHOULD NOT BE ALLOWED TO CHANGE RATES FIXED BY THE GOVERNMENT & Need not worry whether there will be enough taxies on the road that is the problem of the government and it will be decided by the government. Uber don’t try to become THE GOVERNMENT of a country.
UBER says drivers can benefit from reduced fares (now UBER will decide Indian Taxi fares?) by getting more ride-request. But this is physically not possible because it is physically impossible to drive more than 300kms MAXIMUM! Most Taxi drivers average around 250kms and the highest is 300 to 30kms which is achieved after driving recklessly and without sleep for 20hrs a day! So it is impossible for UBER to imply that drivers can increase income by driving 400 to 500kms per day(ie.more rides)!!!
UBER also promises “promotions” (which are generally fake-promotions and never gives it to the drivers) to make good the loss in income if the drivers promises to 1) Stay logged in for 10hrs 2) do minimum number of rides (then add hidden clauses 3)pick ALL ride-request 4) Acceptance rate has to be above certain limit.) Uber uses these 2 hidden clause to disqualify 99 % of drivers. I believe they pay somebody just to show that they are paying this promotion. This is simple case of DEFRAUDING the driver!!!
On the face of it UBER says it will make good the driver loss of Rs8.40 and that is why they have their so called “promotions”… but UBER doesn’t pay… else the drivers would not have protested!!! Would they?
Banning UBER is not a solution but it will create problems: What can the Government do? Banning it will not work because passengers (riders) will feel cheated and feel that the government is banning UBER for giving low fares. Public will say let other companies also give better service and better fare and let free market play. So banning UBER is not a solution but will create a problem!! So what to do?
WHAT THE GOVERNMENT CAN DO: Use same technology to do better than UBER.
1st Step: The govt can ask Uber to price its Taxi rate 10 % higher than Yellow Taxi or local taxi to safe guard their customers.
If Uber wants to reduce taxi rates then it SHOULD submit to govt its data of how much customer booked taxi, howmuch was collected and how much was paid to driver. To ensure that Uber is paying its driver and not cheating them.
These above 2 lines can solve the problem.
But the Government must create the Government’s version of Taxi-hire application.
- This app should charge a fixed price of Rs 20 (or 1%) as TaxiTax or “GoogleTax” and pay to the local government from where ride is booked for any ride request from the driver.
- Based on this the Govt will know how many rides are happening per day and the earning will also help in governing cost!
- The ride cost should be fixed based on km traveled x Rs 14.40
- Maximum ride-request radius must be maintained within 5kms
- There should be no surge pricing.
- The driver drives in 5km to reach his passenger (rider) so 5kms x Rs14.5/2 = Rs 36 DriveIn Cost.
- A minimum Ride cost of Rs 100 for up to 2kms. Here the driver will get Rs 65 (Rs 14.4 x 2km + Rs 36DriveIn cost) and the govt will get Rs 20 as Tax. Total Rs.80.
- Anything above 2kms eg for a 30kms ride the cost should be Rs Rs 488 (30kms x Rs14.40 +Rs 36+Rs20).
- Charged exact Rs 488 on credit card and rounded to the nearest 10 (Rs 490) for cash booking.
- Rs 56 will be fixed charge for any fare taxi hire (Rs 36+Rs 20)
- Ride Canceling Penalty: Rs 20 will be charged for canceling ride after 5 minutes from rider side and paid to driver for driving-in loss, no tax will be deducted as no service was provided.
- Rs 5 penalty for driver if ride canceled from driver side and paid to Govt.
- The Fixed Cost rate of Rs 14.40 and will vary on the common cost like a) cost of car b)fuel cost (battery cost for electric car) c)minimum wage of driver set by Govt d)minimum profit percent on operating cost for car owner set by govt.
- All taxi drivers should be allowed to use this app.
- OLD taxi drivers can be given training to use this app based technology.
- Taxies above 10 to 15yrs can be encouraged to use electric cars (E2O+ which has 140km mileage) by giving interest free loans by Govt.
- Paid Quick Re-charging infrastructure for Electric cars can be incorporated into all street lamps and certain paid parking areas.
- Pollution tax or Rs 10 can be deducted from Petrol & Diesel Taxies and waived for electric Taxis. This itself can build up an enormous fund to build charging infrastructure.
- Government can also give low interest loan for Electric car (E2O+ which has 140km mileage) which can be quick charged to full in 2hrs. This is enough to earn at least approx about Rs 1000 in one charge per day or Rs 2,000 in 280kms in 16hrs in one day.
- Vehicle & Driver approval: The driver/vehicle & owner should have an option to get easy approval for a small fee of Rs 100 from either Govt Dept like Post Office or from any Private car dealership. This amount will also be like income for that government dept/company.
- If any driver or user gets banned for abuse of system/people he will need to pay penalty and approach the above agency for approval.
- Adhar card/pancard/passport/Country Identity card Number must be the basis of signing in. So that people cannot make multiple and fake accounts.
2nd Step: Training Old Generation Cabbies: It is very much necessary to train old generation of taxi users who got left behind by the smartphones & GPS Navigation. Maybe a separate category of Taxi-tax free Chacha-Taxis can be operated for such old cabbies after getting training. Probably Govt can give them loans to buy bigger Tablet-screens to help them handle new technology better. Most of them are afraid of new technology because they were busy earning money working 20hrs a day. So they could not be with their children or grand-children enough else these kids would have taught them how to use this Smartphone & Navigation technology.
3rd Step: Collect Evidence against Uber: A huge list of fare fraud & driver payment fraud must be established. This can be done by asking the people to whatsup their grievances with clear photo attachments of their complaints along with their details. In case of things get to court this can be held up against UBER.
DEMAND US$ 1 billion in damages to make good the losses suffered by Indian Taxi industry due to UBER DEFRAUDING drivers and pay it to the drivers/car-owners!!!
4th Step: Press Charges against UBER & Demand hundreds of millions in US$ for practicing unethical prices & wages, putting unwanted stress on taxi-riders, destroying local taxi-industry, encouraging speeding & ruining lives of car owners: Overcharged Passengers (riders) will have to be refunded by Uber. Underpaid drivers have to be paid by UBER. Straight, simple, clear. Drivers have taken loan and invested to buy car to put in business with Uber and then Uber evades paying them for rides/business done by saying… you will get only half your income and the other half is “incentive” which you failed to get…sorry you didn’t press the button in time when we pinged you!!
Uber cuts taxi-fares by 50% and then takes 25% which results in 75% loss in the income of Taxi Drivers… and a 50% to 75% increase in UBER profits as it is able to capture new markets/passengers due to predatory pricing.
- Stop Uber from predatory pricing or pricing its fare below Rs 14.40/km.
- Uber may reduce fares ONLY for Taxi Cabs owned by their company. Whatever fares it charges it has to pay its drivers (without ANY conditions) Rs 14.40/km driven with passengers (riders).
- Uber cannot decide to lower the FIXED COST (Vehicle cost +Driver Salary + Car Owner profit). It can increase it.
- Any profit Uber wants will be only after deducting the Fixed Cost.
- Uber should be instructed to reduce its own profit from 25% to 1% because Uber truly believes reducing profit will get more rides… and more rides will convert to increased profits!!! So let them enjoy (as per their logic) increased collection with lower percentage!
- If UBER wants to stay a tech company they cannot charge 25% on the carowner/drivers expenses but they may charge 25% over and above ONLY the expenses of its office & server running cost.
Uber has only right to charge 1%, WITHOUT deciding on price
The truth is Uber has only right to charge 1% (including google tax), without deciding on price. It says it is a tech company so let it stay a tech company and dont try to dictate the service rates of a whole country’s Taxi-Industry.
- Uber should not be let away for saying “drive for 10hrs and earn Rs4,000” and then use other clauses to disqualify a driver who drove 10hrs/250kms for Uber by saying he did not accept ALL request. If a driver has driven a certain amount he has to be paid a certain amount, because this is supposed to cover the driver’s loss for low fares. This is NOT BONUS!!! If UBER did not get ride-request its not the driver’s problem. Neither should have UBER ask him to be online for 10hrs (wait in his car with the engine & AC on and it also implies don’t take a lunch/food/toilet break during those hrs) if it was not sure of getting rides. Many car owners are attaching their car with UBER after seeing/hearing about this fake promises.
- People have invested Rs 800,000 because of THE PROMISES UBER has made so it better deliver on it… dont escape UBER by saying “sorry… you did not qualify“! Business is not done by saying “you did not qualify“.
- UBER must be made to pay the approx 1,000 crores rupee it evaded paying its drivers (at the rate of 14.40 per km or at the Government fixed rate) instead of what it paid for every singe ride).
- If a driver does 10 rides it has to pay him for 10 rides Uber should not disqualify saying he had to do it within certain (surge) times because the act of getting required rides, the nature of slow traffic during peak hrs is not within the driver’s scope to resolve!!!
- Uber cannot push a driver to do 10 rides and do it in peak hours because this would be pushing the driver to commit rash driving or overspeeding between and even during rides!
- Uber must pay the driver his ride cost irrespective he does 1 ride or 100 rides at Rs 14.40/km (or the Govt fixed rates).
- Any promotion MUST be linked to business achieved not based on Ponzi scheme!!! It should be money-in-money-out straight forward calculation.
- The overcharged passenger problems may be ignored because since government agreed to surge pricing any overcharged rides will be clubbed under surge pricing by Uber and possibly nothing can be done about it. But there is enough the government can do if it takes up the driver underpayment problems.
- UBER must be made an example of foreign Companies taking Indian people for fools and trying to profiteering on low technology and corrupt governance!!!
UBER CEO Travis Kalanick had protested against Donald Trump for political reasons and resigned from Trump’s group trying to shame Mr Trump. So there will be a little less protest from American President Mr Trump, probably he might even be happy in his heart.
BUT to do all this the Government has to prove its honest intension & credibility by setting up a Taxi-Hire App. The people who are used to take taxi-hire via smart phone must have a government option that is as good as UBER if not better.
Lets make Delhi Govt’s Universal Taxi-hire app that will pay to the local government in any State or Country a Tax on the profit whenever any booking is made from that territory. This will be a better universal option than UBER!!!
see Uber complaints playlist for more details: https://www.youtube.com/playlist?list=PLbWAsvsip2Rx50OLBhNNAiqEwzUBnDYgE
Uber Customer Complaints: https://www.consumercomplaints.in/uber-india-b111481