Uber,- Insurance and Integrity Problems

Uber is up to it's old tricks again, advertising 'facts' that are not even close to being 100% factual. In this case Uber claims that they perform background checks that exceed the checks performed by conventional taxi companies, and they also  claim to have 1 million dollar per incident liability insurance. A recent NBC investigative report from a San Francisco TV station exposes the fallacy of these claims.

  It turns out that when you ride in an Uber car, you are typically not covered at all, neither by the drivers personal insurance nor by any insurance whatsoever from Uber. If you incur any injury while riding, or crashing, in an Uber car, you or your family will be stuck paying the entire medical bill yourself. This type of expense, potentially hundreds of thousands of dollars, could of course bankrupt even a well to do person. 

The insurance that private drivers carry does not cover the car, or the driver, if the car is being used professionally to provide transportation for hire. This kind of coverage requires commercial insurance, the type required by law in conventional taxi's and limo services. This commercial insurance is
significantly more costly than standard personal coverage, and to purchase this kind of insurance would render the driving of an Uber car economically unfeasible.

As for Ubers claim regarding extremely thorough criminal background checks, it seems that Uber is not being totally honest with their claims in this area either. They are clearly not more exhaustive than those required for legitimate taxi companies, and there is some question as to whether Uber performs any criminal background checks at all. NBC reports that they found drivers with criminal histories not only in San Francisco, but also in LA and Chicago. These drivers, some of whom were still on probation, had past convictions that include burglary, assault, and drug trafficking charges.  NBC even went as far as to have undercover felons apply for employment, and Uber hired them without question.

 Given these facts, I would not want my wife, child, or other loved ones to ride in an uninsured car
with a convicted felon which may very well be the case with an Uber ride. I'll stick with the traditional taxi companies who are required, by law,  to have proper insurance and also required by law to conduct a thorough background check performed by an accredited agency.

Can You Make Money with Uber ?

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Uber is not all it is Cracked up to be

If you are a professional driver who is considering a job driving with Uber, there are some things you need to know. Do not be fooled by their deceptive and sometimes downright dishonest, claims about the benefits of joining Uber.  Ads in most major cities are claiming incomes of $1000 per week, while in reality Uber drivers are earning less than half that amount even working 50-60 hrs. per week. The Uber concept is good for the consumer, great for Uber, and horrible for the driver.
In an article that appeared recently in Business Insider , the author interviewed several Uber drivers and they uniformly stated that they have never come close to earning what Uber ads claim, and that earnings have been steadily decreasing for some time now because  Uber has flooded the market in most major cities resulting in less than 50% occupancy for most  Uber drivers.  Not a single driver reported making anywhere near $1000 a week after subtracting gas cost and fees paid by the driver, and of course after Uber takes their 20% right off the top. Add to this the wear and tear on your vehicle and it turns out the driving for Uber pays significantly less than driving for a conventional cab company.

Uber also employs a bait and switch tactic when trying to attract new drivers;  In LA, for instance Ubert started out with a $2.50/mile rate that attracted many new drivers, since at $2.50/ mile the drivers could earn a living without working  a ridiculous number of hours. Once the needed drivers were hired, Uber dropped the rate to a measly $1.10 per mile, not enough to make a living no matter how many hours the driver works. The chart below shows how Uber empoloyed the same tactic in NJ:

NEW JERSEY:
Original Price          Summer 2014 Price              Fall 2014 Price
$2.25/mile                 $1.90/mile                    $1.64/mile
$0.30/minute               $0.20/minute                  $0.20/minute
$3.00 base                 $3.00 base                    $2.00
$7.00 minimum              $7.00 minimum                 $6.00 minimum

As this chart shows, Uber started out advertising reasonable rates that would provide a full time driver with a reasonable living, and within the space of a few months dropped the rates so that the same driver working the same hours would make 28% less; Thus a driver making $50,000/yr gross to begin with would make only $36,000/yr after the rates were lowered.

Another move by Uber to attract more business was to cut rates in major markets to well below -market levels, attracting new traffic (which Uber profits from) while forcing  drivers  to drive longer hours at the reduced fares to make the same amount of money.  Once again, Uber wins, the consumer wins, and the drivers lose.

It is also worth noting that Uber discourages tipping, and didn’t even include the tipping option in the app until very recently. That is because tipping doesn’t benefit Uber, and by not encouraging tipping the service appears more economical to the consumer.

Probably the best indicator of how Uber views their drivers is the fact that they try to convince their drivers that all of their sleight of hand concerning rates, fares, and commissions is actually in the driver’s best interests. Not only do they brazenly exploit the very drivers who have made them rich, but they treat them as if they are ignorant fools who will believe the wild claims that Uber has been making a standard component of their business model. Compare this shady way of doing things with the legal, moral, and business philosophy of the traditional cab company or limo service, and I think you will agree that there really is no comparison at all.

This is also true when it comes to vehicle maintenance and replacement costs since with the legal cab company the driver does not incur any repair or replacement bills like the Uber driver will encounter as his car ages rapidly from the grueling regimen a commercial car endures. The expense of having to purchase a replacement vehicle is enough to put most single car Uber drivers out of business, or at best deeply in the red for a considerable time.

After taking all of these  factors into consideration, it becomes clear that driving for Uber has absolutely no advantages over driving for a traditional, legal, cab company. The cab company’s rate ( currently around $2.40/mile in most urban markets) is not going to fluctuate wildly. This provides the driver with a stable income allowing them to make future financial plans with a reasonable amount of confidence that their incomes will remain stable moving forward. The cab company is unlikely to flood the market with excessive cars/drivers as has been the case with UBer in several locations. The bottom line is that Uber does not live up to it’s claims and there is more money and more security driving for a legitimate, legal cab company.

Request your local Uber drivers in Tampa, Miami, Orlando, St. Petersburg, Clearwater, Sarasota, Jacksonville, Ocala, Naples, Gainesville, Tallahassee, Fort Lauderdale, Cape Coral  and ask how much money they really make......

Why would I visit Saint Petersburg ? dream vacation

By Angela Doherty 
If  you are like me and looking to escape the rain, winter, or find a white sand beach to stretch out on, your search might quite naturally lead you to the warm climes of Florida, the Sunshine State. I was looking for a sunny, warm slice of heaven, with a great mix of outdoor recreation, culture, dining and shopping and I think I have found it in St. Petersburg. Here’s what I've found out about this great city.

With on average 361 sunshine days per year, St. Petersburg is not called “The Sunshine City” for nothing. Situated on the west side of Tampa Bay, a trip to St Pete could not be complete without a day on the beach. And with over 240 miles of shoreline including a number of keys, islands, bayous and some of the best beaches in the country (including Fort De Soto beach, twice ranked number one in the country in 2005 and 2008) you are spoiled for choice in St. Pete.   I think a day on the beach, lazing under the palms or swimming in the crystal waters of the Gulf of Mexico on the beaches of Treasure Island is the first order of business for any visitor to the city. However, if it is action you are after, diving, snorkeling, fishing and canoeing are just some of the choices available to you in, on and around the waters of the city.

When you are sick of the beaches, it’s time to head across town and Beach Dr and the waterfront where you can find amazing dining, overlooking the marina and the gorgeous Tampa Bay. I think I’ll start with drinks at the famous Fresco’s and head down Central Ave and the surrounding streets to find some great food, live music and dance spots to enjoy the long, hot nights of St. Pete. The city is also home to over 2 dozen art galleries, and if you time your visit right, on the second Saturday of each month, the Downtown Arts Association hosts a Gallery Walk around a number of downtown galleries and studios. St. Pete also plays host to a series of festivals and cultural celebrations all year round, for everyone from the foodies at the “A Taste of Pinellas” festival in May, to the Tampa Bay Blues Festival in April and every March, downtown is transformed into an Indy Car track for the Honda Grad Prix! And of course, if you are looking for sport, Tropicana field, home of the Tampa Bay Rays, is also within easy reach of downtown.

Shopping in St. Pete, like the rest of the city’s activities, is also all about choice. Check out the Saturday Morning Market, down by the Marina, for fresh local produce and goods. Or, if you are looking for something a little more up market, the BayWalk shopping complex is located downtown, along with a host of artisan shops and studios.

Now where to stay… Well. Let’s be honest, there are so many choices from the 5-star resorts of Clearwater and downtown to the hostels and camping grounds at Fort De Soto Park, there is something for every budget. And one of the best things about St Pete is that it is compact, making travel around it easy either through the public system, or by cab, where your friendly cabbie can suggest more things for you to do in the Sunshine City. I’m looking forward to my trip to St. Petersburg, time to stop dreaming about it!