07-21-2015, 03:27 PM
(07-21-2015, 02:51 PM)plam Wrote: I think a lot of taxi drivers here don't own their taxis (and I understand that this varies depending on the city).As I understand it they rent cars from the taxi company for something like $100/day. They're also responsible for gas. They pay for that out of fares. I don't know if they keep all of their fare income or have to pay the taxicos a commission as well.
A Star article I posted a couple of pages ago says Uber drivers get about 75% to 80% of the fare revenue Uber collects on their behalf. Uber doesn't collect tips. I don't know if drivers make anything from tips on the side.
I would think that it would be cheaper for a taxi driver to provide their own car for Uber than pay $100/day to the taxicos. Covering that initial $100 every days seems tough. It's the first several fares. That's why I wonder why taxi drivers aren't switching in droves. But it's also likely I don't understand the numbers (or the politics) well enough.
Incidentally Uber has been accused of sharp, perhaps even illegal, business practices in thwarting competing online services like Lyft. If they're willing to do that then why wouldn't they reduce the commissions they pay to bona fide taxi drivers in order to steal them from taxicos?