Uber Has Reduced the Value of Licenses as Drivers Do Not Need Licenses to Enter the Market
Uber has reduced the value of licenses as drivers do not need licenses to enter the market
For example, In New York, the price of individual licenses dropped from $1 million in 2013 to $700,000-$800,000 in 2015, while in Chicago, they decreased by 33.3%. The asymmetry over the regulatory requirements (buy a taxi license vs. become an Uber driver for free) to enter the business creates unfair competition.
Ride-sharing service increase traffic congestion, emissions
According to the Business Insider, more people are choosing ride-hailing services like Uber — the number of users increased by 37% from 1.9 billion to 2.61 billion total people between 2016 and 2017, which makes traffic worse, contrary to their claims. Ride-hailing services have caused an overall 160% increase in driving on city streets.
Ubers alternative to traditional transport causes driver earning decrease below minimum wage.
As contract workers, Uber drivers cannot receive the benefits of official employees. They have to pay for gas, car maintenance, or other insurance fees. As stated by The Economic Policy Institute, “Uber drivers earn less than what 90 percent of workers earn,” and their hourly compensation “falls below the mandated minimum wage in 9 of 20 major markets.”
A 2018 report from economists at UC Berkeley and the New School found that 40% of ride-hailing drivers “have incomes so low they qualify for Medicaid and another 16 percent have no health insurance; 18 percent qualify for federal supplemental nutrition assistance”.
Uber drivers are paid $14.73 per hour average, their annual salary of close to $20,000 after accounting for costs incurred, which right at the poverty threshold for a family of three.