Tuesday, July 28, 2015

Uber: The Best Option for Workers and Consumers

By John McDonald of CEI. Excerpts:
"The reason that Uber has grown 400 percent from 2013 to 2014 is not just because it provides consumers with cheaper and easier alternate to the traditional taxicab, but it also offers drivers a flexible and easy way to earn some extra income. Indeed, most Uber drivers use the ride share service as a part-time job for supplemental income; only 19 percent of Uber drivers spend more than 35 hours on the road.

One of Uber’s most attractive aspects of is the flexible hours and the freedom it provides. Uber drivers can work whenever they want using their own car. Some taxi drivers rent a car from the taxi company for a fee of $75 to $100 per day. On average, Uber drivers make $19.04 per hour, while taxi drivers make a measly median wage of $10.97 per hour.

Another key advantage is that Uber has the ability to maintain the quality of customers the drivers will serve. Each Uber customer has a personal profile on the Uber app and drivers rate their customers, just like riders rate their drivers. Uber drivers have a better workplace environment because of this feature."

"for most Uber drivers, the service provides a secondary income, meaning that many have health insurance through a full-time job (86 percent of full-time jobs in the private sector provide health insurance). Even for those for whom Uber is a primary source of income, it’s a freely chosen alternative;"

"a 2014 CEI study shows that unionization actually lowers workers’ wages by about 15 percent."

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