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Things You Don't Control In Rideshare Series Part 3/3 - The App

 



Summary: Rideshare apps have revolutionized our commute, offering unparalleled convenience and flexibility. However, for drivers, these apps come with challenges and limitations beyond their control. This article, the final part of our series "Things You Don't Control In Rideshare," delves into drivers' complexities and frustrations with the app.


Algorithmic Control



One of the most significant aspects drivers cannot control is the rideshare app's algorithm. This algorithm determines everything from ride assignments to route optimization. Drivers often find themselves at the mercy of an opaque system prioritizing efficiency over fairness.


The algorithm's primary function is to match riders with the nearest available driver. While this might seem straightforward, the reality is more complex. Factors such as surge pricing, passenger ratings, and even the time of day can influence how rides are distributed. A study by MIT highlighted how algorithms can lead to income disparities among drivers, with some receiving more profitable rides than others based on arbitrary criteria (MIT Technology Review; Acemoglu & Restrepo, 2022).


Real Hourly Wages By Gender 


According to the study by MIT Economics Acemoglu & Restrepo (2022), "Since 1980 in the U.S., inflation-adjusted incomes of those with college and postgraduate degrees have risen substantially, while inflation-adjusted earnings of men without high school degrees have dropped by 15 percent" (p. 1).

Here is the chart in the paper that highlights the hourly wage growth by gender and education:


"Since 1980, for instance, they estimate that automation has reduced the wages of men without a high school degree by 8.8 percent and women without a high school degree by 2.3 percent, adjusted for inflation" (MIT Economics; Dizikes, 2022).

My interpretation of this data is that algorithms significantly influence gig workers' outcomes. An interesting point I want to point out is how men with some colleges have experienced lower wages as time has progressed. 


Again, as a driver, you have little say over the algorithm and how you want to interact with that algorithm as a misclassified independent contractor. This one factor can be highly frustrating for drivers who operate the apps and seek to improve economic outcomes. 


Rating System


Another aspect drivers cannot control is the passenger rating system. While ratings aim to maintain quality and safety, they can sometimes be unfairly punitive. A single lousy rating can significantly impact a driver's overall score, affecting their ability to receive rides and potential deactivation.


Ironically, the following Video was posted today from Pedro DoorDash Santiago (Pedro DoorDash Santiago, 2024). 






Drivers often find themselves penalized for factors beyond their control, such as traffic delays or the behavior of previous passengers. Here is a driver who believed Uber & Lyft's rating system needed reforms.



Payment Structures


The payment structure within rideshare apps is another critical area where drivers need more control. Companies often must change their payment models without notice, leaving drivers to adapt to new rules and rates. These changes can significantly impact drivers' earnings.


For example, some drivers report that their overall earnings have declined since the change in payment structure, and they feel that Uber is taking a more significant portion of the fares. Sam Vance, a full-time UberX and Lyft driver in Columbus, Ohio, mentioned that it was easier to estimate earnings based on trip distance and time before the change. He finds the system unpredictable now, stating, "There’s no rhyme or reason to it"(Kerr, 2022).


In the article from Medium, the Uber trip fare Distribution was discussed. Here is a data visualization of the earnings from Sam compared to the fees and Uber earnings : 

Uber claims to take 25% from fares, but data shows otherwise. For a 20.9-mile trip, the customer paid $30, Vance earned $14, and Uber took $13. For an 8.8-mile trip, the customer paid $22, Vance earned $6, and Uber took $9. This chart highlights Uber's higher fare deductions (Kerr, 2022).




Technical Issues


Technical glitches and app malfunctions are other common frustrations for rideshare drivers. These issues range from GPS inaccuracies to app crashes, disrupting rides and affecting earnings. Drivers often bear the brunt of passenger dissatisfaction when technical problems occur, even though they have no control over the app's functionality.


Not too long ago, drivers mentioned that they could not get any money out of their apps after a major holiday event, which was discouraging to drivers (Rideshare Professor, 2023). 



Safety Concerns


The app's design and functionality also play a crucial role in driver safety. Features like real-time tracking and emergency assistance are beneficial but must be more foolproof. Drivers have raised concerns about rideshare companies' lack of immediate support in dangerous situations.


A study released on Monday in the Journal of Urban Health by researchers from CUNY reveals that food delivery gig workers in New York City face significant risks of injury and assault, especially those who rely on gig work as their primary employment. 


The research analyzed survey data from 1,650 delivery workers collected by the New York City Department of Consumer and Worker Protection between October and December 2021 and found that approximately 22% of respondents reported injuries and 21% reported assaults while working. Those using e-bikes or mopeds were more than twice as likely to experience injuries or assaults compared to those delivered by car (CUNY School of Public Health, 2024).


A study by the University of Illinois Chicago and Johns Hopkins University found that a third (33%) of rideshare drivers have been involved in a crash while on the job. The research highlights that cellphone use, driving while distracted, and navigating unfamiliar roads significantly increase the risk of accidents for rideshare drivers. Additionally, dealing with unruly or intoxicated passengers also contributes to these risks. 


The study suggests that rideshare drivers' reliance on their cellphones for job-related information and often working as a second job increases their susceptibility to fatigue and distractions, further heightening the risk of crashes (Shannon et al., 2024).


I've been in about three accidents, and one was almost fatal, so I can say from experience there is a high chance of having an accident while driving and a host of other events


Conclusion


While rideshare apps provide a platform for flexible work, they also impose significant limitations and challenges on drivers. From algorithmic control and the rating system to unpredictable payment structures, technical issues, and safety concerns, there are numerous aspects that drivers cannot control. Understanding these challenges is crucial for drivers and passengers to foster a more empathetic and supportive rideshare environment.





References


Acemoglu, D., & Restrepo, P. (2022). Tasks, automation, and the rise in US wage inequality. Econometrica, 90(5), 1973-2016. https://economics.mit.edu/sites/default/files/2022-

Pedro DoorDash Santiago. (2024, June 20). I was deactivated by DoorDash today. How it happened. [Video]. YouTube. https://www.youtube.com/watch?v=hVaRM7jF_xs

          Dizikes, P. (2022, November 21). Study: Automation drives income inequality. MIT Economics. https://economics.mit.edu/news/study-automation-drives-income-inequality

                     CUNY School of Public Health. (2024, April 29). Study reveals higher injury and assault rates among NYC               food delivery gig workers dependent on the work - CUNY Graduate School of Public Health & Health                   Policy. CUNY Graduate School of Public Health & Health Policy. https://sph.cuny.edu/life-at-                               sph/news/2024/04/29/study-reveals-higher-injury-and-assault-rates-among-nyc-food-delivery-gig-

          Kerr, D. (2022, March 1). Secretive algorithm will now determine Uber driver pay in many cities. The Markup. https://themarkup.org/working-for-an-algorithm/2022/03/01/secretive-algorithm-will-now-determine-uber-driver-pay-in-many-cities

                      nukem384. (2018, August 30). Unfair rating system Uber and Lyft [Video]. YouTube. https://www.youtube.com/watch?v=LcYiVkv8cyg

                       Shannon, B., Friedman, L. S., Hellinger, A., Almberg, K., & Ehsani, J. (2024). Work-related crashes in                     rideshare drivers in the United States. Journal of Safety Research, 89, 13-18.                                                             https://doi.org/10.1016/j.jsr.2024.01.005

        

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