this post was submitted on 02 Jan 2025
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[–] [email protected] 8 points 21 hours ago

How much did the CEO of Uber, Dara Khosrowshahi, earn last year?

[–] hark 8 points 1 day ago

This must be that innovation which is making the world a better place that these tech parasites keep gushing about.

[–] [email protected] 63 points 2 days ago (4 children)

For drivers, the results are unpredictable and too often unfair. Data obtained by the Star shows Uber Eats’ platform can offer two food couriers different wages for the exact same trip.

Labour advocates charge that the app collects data on driver behaviour and can use it to decide who it can pay at a lower rate, allowing the company to pocket the difference and boost its revenue. This concept is widely referred to as algorithmic wage discrimination.

Wild

[–] [email protected] 11 points 1 day ago (1 children)

Wage discrimination sounds like a fancy way of saying wage theft.

[–] [email protected] 1 points 6 hours ago

Yep, it's just when they only do wage theft on the most disadvantaged employees that are the least likely to sue them or quit as a result.

[–] [email protected] 11 points 1 day ago

It shouldn't be a massive surprise. The whole platform exists as a way to circumvent minimum wage laws for drivers while taking a massive slice of restaurant profits.

No hygiene inspections either, half the places listed aren't even restaurants or takeaways, it's just in somebody's house...

[–] [email protected] 16 points 2 days ago (1 children)

Par for the course based on Uber's history. I stopped using them in lieu of a local/community app...which is honestly absolute garbage, but it is essentially completely pass-through and free for my local area restaurants to use.

[–] [email protected] 6 points 1 day ago* (last edited 1 day ago) (1 children)

I maintain that it would be relatively simple to create an open source version of an app/protocol like this that serves people's needs for this exact use case, and if it were designed for any community to use, it could be essentially free as you say and high quality, and be a single point of service for everyone.

If this were done right it could put all these thin platforms out of business and allow delivery drivers to establish fair terms for themselves.

This would be a really good fit for federation I think.

[–] [email protected] 9 points 1 day ago (1 children)

As a software engineer I'm down to help out on this, free of charge.

[–] [email protected] 2 points 23 hours ago

I'm a developer too, and I appreciate the offer very much, but I'm not really in a situation where I could work on something like this. It's just an idea though, anyone could run with it.

[–] veni_vedi_veni 3 points 1 day ago

Time to change your name from Patel to Smith

[–] [email protected] 18 points 1 day ago

I will never use uber so long as I shall live.

[–] [email protected] 184 points 2 days ago (18 children)

I just can't use uber eats. It just feels weird. Like, I am fully capable of getting food myself, I know uber eats, doordash etc, pays shit, delivery folks have to wait at the restaurant if its not ready and then fix it if its not. Get my drink from the fountain if I ordered one. And then, drive all the way to my place. I then receive a cold, tossed meal. It's just depressing all around. I don't get it.

I'll pay for delivery of pizza or even something like jimmy johns who have delivery drivers, but having a third party involved just feels wrong.

[–] AbidanYre 57 points 2 days ago (1 children)

It's also freaking expensive. When I used it occasionally at my last job we'd get reimbursed up to $20. I usually just got the $12 combo and by the time all the fees were added, I still ended up paying $2-3 out of pocket.

[–] WindyRebel 26 points 2 days ago* (last edited 2 days ago)

This is how I felt too. Eventually I just stopped using our corporate Grubhub “perk” because I was still paying for it when the entire idea was supposed to be a meal “on the company” once a week for weekly All-Hands meetings.

Another massive pet peeve that made me stop using these fucking delivery services is many times the restaurants would give you less food than if you went there. Take a place like Red Robin and their basket of fries was basically 25% a basket of fries at a marked up cost because they have to pay fees to these companies and lose money.

Plus they often got orders wrong. Not sure if that was on purpose or what, but I rarely got everything I asked for or the mods correct.

[–] [email protected] 31 points 2 days ago (6 children)

Now see, I kinda had the idea for a syndicated delivery service (not online orders, but the internet would have been used to create the order data that would assign drivers) decades ago. I did some part time work delivering food back in the late 90s/early 2000s, and I always thought it was so inefficient. The place I was at, was very busy, he had a very large delivery area but even so. There would be times he was paying people to sit outside talking shit to eachother in their cars.

I thought it would make sense to have a larger pool of drivers that service multiple restaurants/take-aways. Adding the economies of scale to the problem to ensure that people were being utilised and lowering the cost to each place using the service. Of course also paying some money to the person running the business that brought it all together.

I don't think I ever considered paying less than this guy did (which wasn't a lot, but would likely translate to $5 or so an hour in the 90s/2000s).

One thing I find really interesting about uber eats/door dash (US)/Deliveroo (UK/EU). When you add up their fees, they take a delivery fee from the user, a service fee from the user, an even bigger service fee from the restaurant and pay the lowest possible fee that will keep drivers interested. Yet I always hear the services are losing money too. How is that even possible?

Take deliveroo in the UK. Looking now I can see (I don't live in a city, so most places are some distance away). A place 4.5 miles away is charging £4.29 for delivery. Let's make up an imaginary order:

Order total: £20 (including sales tax/VAT) User's service fee: £2.39 (it seems to be 11% including the VAT with a maximum set of which I am not sure how much) User's delivery fee: £4.29 (including VAT, since they need to charge VAT on a service) Restaurant service fee: £6 (30% on the VAT included total). I am really unsure how this works entirely in terms of tax though... Total for user: £26.68


Total deliveroo service revenue: Net: £10.57 VAT: £2.11 Total: £12.68

Reading between the lines from what I can see delivery riders are paid between £3 and £6 per delivery. Now, in the cities this is probably great. I do wonder how they do it in the towns and villages. When I look at the list of places available to me most are 3 miles or more away, with some up to 6 miles away. I do wonder how £6 compensates someone doing a 10+ mile round trip at times.

But OK the price they pay drivers doesn't include any tax. So it comes from the Net total. This means per delivery in revenue they are always making £4.50 or more per delivery.

Yes, they need to pay support staff, but they are in low cost geographies. Yes, they need to keep development staff and the usual management overhead And yes, they need servers/cloud time to host this stuff.

Looking this up (not sure how good the source is) their revenue in 2023 was £2.7billion, which I believe. However they lost £38million. Where all the costs come from, I am not sure.

I wonder how these numbers compare to US based operators?

[–] spankmonkey 41 points 2 days ago

Yet I always hear the services are losing money too. How is that even possible?

Massive amounts of money spent on advertising to get that sweet sweet venture capital. Leeching as much money as they can out of the business into the pockets of investors and C suite parasites. Paying lawyers to fight lawsuits due to skirting laws.

Just capitalism things.

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[–] phoneymouse 16 points 2 days ago* (last edited 2 days ago) (2 children)

Also, they handle multiple orders. So, by the time you get your food it’s lukewarm at best, but likely cold and soggy.

Last time I checked out of curiosity, this Mexican place near me sells burritos for $12. After fees and tips, it would’ve been $28 on Uber Eats. It’s just not worth it to me to pay extra, when I can easily drive the 10 minutes myself.

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[–] [email protected] 8 points 2 days ago

The worst are the places that say they have delivery, take you through the whole checkout process on their own site, and then sends you a link to track your order on door dash or something.

LOOKING AT YOU LITTLE CESARS

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[–] [email protected] 28 points 2 days ago* (last edited 2 days ago) (2 children)

I hear the smallest violin Everytime I hear about UberEATS executive complain about the company not being profitable.

I know GrubHub is bad too but I typically only pay a small fee of 3$ for their service and a tip of 20% to the driver.

Yet UberEATS usually includes a $10-15 UberEATS fee which the employee sees none of. Yet "oh no UberEATS is not profitable, oh no my 3rd yacht isn't big enough"

[–] Squizzy 3 points 20 hours ago

Tipping culture caused this mess, meritocracy bullshit

[–] Raiderkev 8 points 2 days ago (1 children)

I only use eats if there's a solid promo, and then I pick up the food myself. They don't get the fee, I don't have to tip, and I get the deal. A lot of time the price per item is cheaper on pickup too. Their fees are absolutely ridiculous, and they are just a middleman. They for sure are losing money on me.

[–] Wrench 1 points 1 day ago

Best to just call it in. Even for pick up, all these online providers take a huge cut, eating the profit margin from the people actually making the food you like.

I try to only use online orders for restaurants that have their own website cart. I do sometimes resort to the big ones when I'm busy / lazy, but I make a point to try to make sure the actual restaurant gets my money, because I want them to survive and keep making me tasty food.

[–] [email protected] 51 points 2 days ago (1 children)

Had a colleague that did it as a side gig and no matter how many times I told him to do it, he always refused to do the calculation to figure out how much he was making after expenses.

[–] billwashere 18 points 2 days ago (1 children)

Living in denial is the only reason we aren’t already eating the rich.

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[–] [email protected] 27 points 2 days ago (3 children)

Uber eats is such a scam. When these new VC companies come on the block offering things that are to good to be true I am constantly saying "we shouldn't support this unsustainable vc funded business, once they have market share they will have killed the competition and then they will raise their prices"

So many places used to deliver at reasonable prices but after years of uber delivering at way cheaper rates they stopped. Now uber delivers at $10 more.

[–] Buddahriffic 9 points 2 days ago (1 children)

Yeah I liked the idea of Uber at first because taxis have been shitty for a long time and Uber was shaking up that industry.

But then I learned that Uber wasn't making money and immediately realized that they were just looking better than taxis for as long as they needed to to drive them out of business so they can be even worse, while providing even less than taxis companies do. At least taxi companies have a relationship with their drivers while Uber was just a platform for connecting anonymous riders with almost as anonymous drivers and handling the financial aspect of it (so that they control it all as middlemen with control of the wallet).

So now I just use taxi services when I need a ride (while cursing the state of mass transit in North America and GM plus corrupt politicians for their role in making this like this).

Similar story with hotels/airbnb, though they've made it even worse because they are affecting the housing market itself rather than just the luxury service of staying somewhere while away from home.

[–] [email protected] 4 points 1 day ago

Many reports of landlords evicting their tenants so they could turn their homes into airbnbs... Disgusting

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[–] [email protected] 28 points 2 days ago (2 children)

The awful part is, even without tipping the driver the food is drastically more expensive. The restaurant takes an extra cut, The delivery service takes an extra cut. This person's delivering your food practically for free and the meal is already sit down restaurant price.

[–] [email protected] 2 points 1 day ago (1 children)

My wife and I ran the numbers and, in our area, Uber Eats was pulling in about 1/4 to 1/3 the cost of the meal between charges to the restaurant and the customer. We were discussing opening a non-profit delivery service in our area. Turns out it's pretty hard to do.

[–] [email protected] 1 points 1 day ago

Oh yeah, they're going to want to see some serious reason why you shouldn't be paying tax.

It's a lot easier to start an SCorp or an LLC in the US. Starting the corporation's not horribly expensive either

Since you're not selling the product, you probably just need to pay the tax on The money they pay you to do the pickup. You need to start it more like a postmates where they ask you to go pick up the order they placed at some shop. But then I suspect you would have timing issues if you have a limited staff. You couldn't just place the order and then wait a unlimited amount of time for it to show up.

Then there's that daunting problem of when the store screws up the order. Because they always screw up the order.

But you're still going to have to deal with labor laws, You're going to need bonding, a CPA, advertising, presumably a web presence and software maybe across platform cell phone app. These are all things that get easier as the company gets bigger but are rather daunting it small scale.

I guess it's kind of a tough business to break into. Owning my own car, I could place an order, drive to McDonald's pick up the food and come back for pennies. Obviously that 30 minutes is my time but it's time I would spend not making money else wise. Because I'm already spending a couple hundred a month on a car, it's not worth very much for me to pay someone to bring me food. But at a livable wage, plus someone else's maintenance, that's probably $7 to $10, assuming there's a limited number of orders they can pick up at once in a small area.

[–] chuckleslord 19 points 2 days ago (4 children)

Just one note, restaurant prices go up because uber eats charges a percentage based fee for each menu item. So, restaurants need to up the prices on the app just to make the same amount of money. Just some good ol' under-the-table fuckery courtesy of Silicon Valley bastards.

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[–] [email protected] 56 points 2 days ago* (last edited 1 day ago) (6 children)

I've never delivered for Uber Eats specifically, but I don't know how they managed less than $2 an hour without doing obviously impractical things like trying to deliver at off hours, or in a poor area for it. I average about $27/hour. This is however, with GrubHub that has a wait list for drivers and they deliberately don't overcrowd regions. Area really has a lot to do with it. I can imagine that if Uber doesn't cap the amount of drivers in an area, a full on city is probably the worst example of a place to try it. I know that DoorDash is the same way in Atlanta, and the few times I have tried there, it wasn't worth the trip. One thing you learn very fast through observations is that the "hot zones" mentioned in the article don't matter. All they mean is that someone ordered from a place there before the map refreshed.

I guess my point here, is that the pay isn't necessarily shit. You have to put in some leg work and learn the best areas around you as well as the times to work.

I do have a lot to say about doing this line of work with over 1k deliveries done across 3 apps, but it is kind of out of the scope of this comment unless someone asks.

Editing to add because people asked:

To address some comments here; I already had an LLC, and insured my car through that which made it cheaper. No, the driver doesn't get basically nothing if you don't tip. It's around $1/mile driven with an order (sorry, but I'm not up to doing the approximate .625 km/mile conversions here). I hate to say it, but if you are doing this even as a side job, you need to find overly gentrified suburbs, or a town that has almost nothing as far as restaurants go. I happen to be in a sweet spot between the two. My "assigned area" is Woodstock, GA but that still covers all the way up to Jasper. Woodstock is the overly gentrified suburb, and Jasper has almost nothing.


A discussion of the apps I've delivered for

  • DoorDash: Extremely low barrier to entry. Good to start with. However, if you don't do 100 deliveries in your first month it falls apart (trust me, that's more than you realize). You will need to schedule everything and it is extremely competitive and low pay since DoorDash focuses more on fast food.
  • InstaCart: You're entering waiting list territory here. My wait time was 3 months. It seems fantastic at first until you have to do an order that the customer will pick up. Do not accept these orders, because you will not only have to shop for potentially 40+ items, you will also have to do a large bagging job.... for maybe $15 that takes you an hour. The key with InstaCart is to do the smallest (in terms of distance) delivery orders.
  • GrubHub: This is what I currently do. I had to wait 7 months. Because of marketing stuff, it focuses on sit down restaurant orders. This means the pay for the driver is much higher (not only tips, the orders tend to be high cost by themselves, also the $1/mile driven with an order thing still applies). The giant benefit for driving for GrubHub is that it is unique in that as a driver it is almost like being a taxi driver. You can turn on the meter whenever. You are, however, limited to an area (and that is, as I stated earlier, the most important thing).

Is it worth it?

Many have noted the operational costs. With the mileage deduction of ¢60 per mile for tax purposes, it adds up a lot. Remember that you make roughly $1/mile driven with an order. I net around $19/hour with expenses, including tax. For me, that very much makes it worth the time. There are roughly 7 hours a day for my area that are worth driving for. 11 AM-1 PM, and 5-9 PM. Expenses included, I can make around $500 on weekends. I do, however, own a compact car with very good mileage. That's an extra $2000/mo. So, yes, if you really do the leg work it is worth it. You can not, as shown in this article, show up with a bike in a major city and every hope to make money. Bare minimum, you'd need a car.


Tips Vs. Bids

I've seen comments here saying that your tip is not a tip, but a bid. This is partially true. I do need to reiterate that I've not done much of this work in a full fledged city (Atlanta being the only one I've covered). Your tip is not a bid. What happens is that your order (if just plain unprofitable) gets bounced from driver to driver. Your "tip" never has to escalate. What happens is that the pay from whatever service escalates. Say, someone makes an order and the total the potential driver might make is $10. If one driver declines, it gets passed to the next "best driver" - so on an so forth. Each time the pay from the company initially providing the service increases. There is no increased cost to the customer. This is why there is no reason, as a driver, one should never accept a low offer. That's how the bids work. It isn't from customer tips. There tends to be, however, a charge that will get you priority as a customer. Usually, drivers will have more than one order. You can pay to not get the meme of "lol took 20 mins over time, cold, and thrown around."


The Ways You Can Stick It To A Bad Delivery Person

  • Rate them low. Seriously. It's based on an average. 1 ⭐ out of 5 can very easily get them fired. Most services require at least a 4.2 average, or they will be terminated. You need to be willing to do that, though. That's it. You can fire people almost on the spot for slow, cold, incorrect, or undelivered food. And, honestly - you should. There are those of us that give a shit.
[–] Evotech 28 points 2 days ago (1 children)

27 an hour after expenses?

[–] [email protected] 14 points 2 days ago* (last edited 2 days ago)

Considering that the average pay for doordash workers are usually between 15 to 20 an hour, I'm guessing that 27 an hour is before taking out for expenses.

27 an hour becomes 22.8/h after taxes (assuming you are in a state with no state income tax) minus whatever paid for fuel expenses, and that's before you take into consideration the wear and tear on the vehicle and unless you are flying under the radar(bad idea they'll refuse your claim or even drop you) the increase Insurance costs for using the vehicle commercially

[–] [email protected] 13 points 2 days ago

This was in Toronto, and to call the ebike courier job market here "oversaturated" would be an understatement.

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[–] [email protected] 44 points 2 days ago* (last edited 2 days ago) (11 children)

I was going to do it as a side hustle, but then I found out that I would have to change the type of car insurance I have, and my rate would go up. If I didn’t and had an accident while delivering, my insurance company would 100% deny all claims - assuming they found out I guess. I wasn’t willing to risk it , and the higher premium cost made it unprofitable.

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[–] Buffalox 52 points 2 days ago* (last edited 2 days ago) (11 children)

What a sad country, where people have to accept being paid so little.
I've been arguing for decades that EU needs to tax imports from USA, because USA is using social dumping to compete unfairly.
The US minimum wage is not a living wage, and employers can even go below that if they can claim tips are part of the wage. And they don't even provide healthcare for all. This is causing extreme poverty unbecoming of a developed country, and is social dumping.

USA has created a system where employers are not paying the actual cost of labor. By tilting the power balance to vastly favor employers, and fail to regulate against abuse.

Apparently this is in Canada, which surprises me a little, I thought they were better regulated. This gig economy shit should clearly be illegal, and workers should be paid a reasonable living wage.

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[–] [email protected] 30 points 2 days ago* (last edited 2 days ago)

Well this is a more or less solved problem in BC:

https://www.moneysense.ca/earn/careers/gig-worker-rights-in-canada/

The gig worker min wage is 20% more than min wage to account for the "non-engaged time".

[–] [email protected] 14 points 2 days ago (5 children)

I was just commenting on a thread about public transportation (there's none where live) and someone commented that they're moving to micro transportation by just buying a $3 Uber every time they need to go somewhere. Even if uber is only taking $1 of that, $2 isn't paying someone to drive you somewhere. Uber drivers should make at least $30/hr.

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[–] jordanlund 22 points 2 days ago

I think the trick is you'll never make it just driving for one service, you have to do Uber Eats, DoorDash, Grubhub, maybe even Instacart as well if you want to do it for a living.

Just like the people who drive for both Uber and Lyft.

[–] spankmonkey 24 points 2 days ago

Food delivery only made sense as an operating cost of the business, so third party delivery would have only made sense as something that the businesses subsidized. It also only makes sense if it is structured around the busy times of day as well.

I worked in a few businesses in the late 90s that offered delivery. In every case the delivery drivers were basically kitchen staff who went on deliveries OR the business itself was primarily delivery based in the first place and they still had the drivers do some other work around the place during downtime between meals. Both approaches spread the cost of the employees over more than the literal time delivering, because otherwise the cost per hour would be ridiculous. They also delivered food that held up to delivery times, so the food waiting 10-15 minutes before being delivered wasn't an issue.

There was a reason that pizza places and Chinese restaurants frequently had delivery even in smaller towns while things like McDonald's did not. The food held up to delivery and was frequently of a volume that made the restaurant subsidizing the cost of delivery feasible.

[–] PedroMaldonado 7 points 2 days ago

Buddy, I cant use that service in any good concience...

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