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Uber In Retreat Across Europe
HughPickens.com writes: Mark Scott reports at the NY Times that Uber is rapidly expanding its ride-hailing operations across the globe but some of Uber's fiercest opposition has come in Europe, where the culture clash between the remorseless competition of the US tech industry and the locals' respect for tradition and deference to established interests is especially stark. In Frankfort, Uber shut its office after just 18 months of operation spurred in part by drivers like Hasan Kurt, the owner of a local licensed taxi business, who had refused to work with the American service. Uber antagonized local taxi operators by prioritizing its low-cost service, and then could not persuade enough licensed drivers to sign up, even after it offered to pay for licenses and help with other regulatory costs that totaled as much as $400 for new drivers. "It's not part of the German culture to do something like" what Uber did says Kurt. "We don't like it, the government doesn't like it, and our customers don't like it."
Uber also pulled out of Hamburg and Düsseldorf after less than two years of operating in each of those German cities. In Amsterdam, Uber recently stopped offering UberPop, in Paris and Madrid, Uber has been confronted by often violent opposition from existing taxi operators, while in London, local regulators are mulling changes that could significantly hamper Uber's ambitions there. Uber's aggressive tactics have turned off potential customers like Andreas Müller who tried the company's Frankfurt service after first using Uber on a business trip in Chicago. Müller said he liked the convenience of paying through his smartphone, but soon turned against the company after reading that it had continued operating in violation of court orders and did not directly employ its drivers, who are independent contractors. "That might work in the U.S., but that's not how things are done here in Germany," says Müller. "Everyone must respect the rules."
Uber also pulled out of Hamburg and Düsseldorf after less than two years of operating in each of those German cities. In Amsterdam, Uber recently stopped offering UberPop, in Paris and Madrid, Uber has been confronted by often violent opposition from existing taxi operators, while in London, local regulators are mulling changes that could significantly hamper Uber's ambitions there. Uber's aggressive tactics have turned off potential customers like Andreas Müller who tried the company's Frankfurt service after first using Uber on a business trip in Chicago. Müller said he liked the convenience of paying through his smartphone, but soon turned against the company after reading that it had continued operating in violation of court orders and did not directly employ its drivers, who are independent contractors. "That might work in the U.S., but that's not how things are done here in Germany," says Müller. "Everyone must respect the rules."
Uber is playing by the rules In London which, depending on who you ask, is part of Europe. That said, the city is considering bringing in new rules to prevent Uber from fairly competing with other types of taxi drivers.
I take about 30 or 40 Ubers a year, and every SINGLE Uber driver I have had has been a licensed minicab operator - in other words the same driver I would be getting if I called a phone number and asked for a cab. These guys are experienced and licensed, and prefer Uber because they earn 5-10% more per hour with Uber than they do with their traditional employer.Did I mention that Uber charge 20-30% less than the traditional minicab firms saving me a bunch of money?
So magically, Uber has chopped around 35% off the cost of private road transport in London that was previously going straight into the pockets of some already very wealthy people. Now the worker and the customer get that 35%. So I win, the driver wins, the only people who lose are the cab firm owners who have traditionally been raking the money in at our expense.
If you compare Uber to the Black Cabs in London, things look even better - Uber are around half the price and offer better service, routes and accountability.
Finally, people will moan about "Surge Pricing" - but that with Uber when surge pricing kicks in I can still GET an Uber, I just have to pay a bit more money for it. At the busier times of night, the times when Uber surge pricing kicks in, if I try ordering a regular cab I'm usually told I can't have one or that there is a wait of an hour or more. So Surge pricing gives me MORE options, even though I may decide not to use that option. With traditional providers, I'm walking the 7 miles home at 3am...
Has anyone here met an Uber driver who is making a comfortable living driving for Uber full time? I haven't.
All the drivers I've spoken too are doing it for extra cash or barely scraping by.
This is my problem with Uber and the so-called sharing economy. The future looks like multiple part-time jobs and low pay to me.