'Uber saw how many in SA desperate for jobs and raised company's cut'

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Bruce Whitfield interviews Douglas MacMillan (Washington Post) and Dr Mathetha Mokonyama (CSIR) about the Uber exposé in the media

Ride-hailing platform Uber is making international headlines again thanks to a joint media investigation into thousands of leaked documents that show how the company viewed its drivers.They show Uber officials, led by then-chief executive Travis Kalanick "carrying out a business plan that proved to gradually undermine their own drivers" writes The Washington Post.

... and they often flouted local laws and customs in order to get into markets where their business model was not necessarily legal. Uber saw that and said 'these drivers aren't going anywhere, so we're in a good position to raise the commission... so Uber went from 20% commission to a 25% cut of every ride... some of the local managers pushed back, saying some of these people are already struggling and this is going to hurt their economics even more.

One driver said that over time when Uber flooded the market with thousands of cars... his daily trips were cut in half... What happens then is drivers end up taking more risks and working longer hours... and some end up driving the more dangerous parts of the city...

 

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