Peter Thiel: Uber is ‘most ethically challenged company in Silicon Valley’ – Nov. 18, 2014

Uber has the power and the money to be the biggest success story in the history of business . . .

Peter Thiel: Uber is ‘most ethically challenged company in Silicon Valley’ – Nov. 18, 2014

Our subject story discusses how Uber has been pushing the envelope ethically in their business practices adversely effecting the Drivers that provide the services to the public.

But, this is not the way it needs to be for Uber to be an excellent success story for all concerned. Uber is a financially secure business that will remain such so long as they have employees and contractor drivers that are happy with their positions and pay within Uber. When Uber started their push for rideshare services to fill the need for transport of persons at a lower price than local taxi services the public was very much behind Uber hoping to see their success. But Uber’s price war with Lyft and others has done nothing to benefit drivers who now barely make enough income to pay their expenses.

Uber recently had become the hope and dream for many of the people that sought the “American Dream” of success and people flocked to join Uber hoping to ride that success and pull themselves out of the financial crises that has held many in it’s grasp since 2009. Uber’s promise of earnings of $5,000.00 per month as a full time San Francisco Driver has had entrepreneurs investing in new cars and trying to attain that earnings level for months, while Uber in it’s price war with rival rideshare services has left many a driver unable to meet their expenses providing the services.

The other issue, which effects most of the rideshare services is a faulty rating system that allows Uber Drivers to be terminated from Uber employ by people unqualified to rate the driver’s performance. Many drivers have found themselves no longer a Uber Driver without any recourse and/or specific reason for their termination except that the driver had an inadequate driver rating. All riders have the ability to adversely effect the driver’s rating, including those that are not even capable of driving themselves, people under the influence, rival company personnel, and even adversarial taxi services can get a driver kicked off the job and the driver cannot do a thing about it, challenge, or defend against it.

It appears as though most of the rideshare companies fail to realize that their price war is not necessary. Uber will always have a competitor, monopolies are illegal and even if not stupid in today’s market, and all that is necessary is a lower price than taxi services as all of the rideshare companies provide a far superior ride than any of the local taxi services. 

The thing most costly to the rideshare services in this situation, is loss of driver loyalty. The primary success achieved by any of the rideshare services is provided to the Riders by the Drivers. The success of any of the rideshare companies id dependent on the Drivers doing the best job transporting Riders. Nobody wants to have their pay cut, suffer the abuse of lack of support, nor have to listen to negative talk of their employer, especially when you are doing your job and doing it well. This is the issue facing many of the rideshare drivers that is leaving them untrusting the rideshare companies.

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