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Home / Business / Uber and Lyft IPO ratings are at risk after wages have been balanced

Uber and Lyft IPO ratings are at risk after wages have been balanced



Uber and Lyft are preparing for some first-class IPOs (19459003), but that does not mean smooth sailing for riders' passengers. The recent review of the amount paid to their drivers threatens to overshadow the public listings as the drivers seeking unions flood.

About Slashes Bonus Pay, Drivers Feel the Pain

A minimum wage is now in place in New York ($ 17 after spending on Uber and Lyft riders), and it seems that momentum is in the US. The biggest fears are that both companies will lower their fares on driver prices in order to earn their media flash profit before the IPO.

We hear that there is something else, especially when driving Uber. There are stories like these that show how a driver uses the platform to earn money for the bank, but more and more about how pay is cut. It seems that recent changes to the driver's bonus structure make life difficult. [1

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Lyft and Uber Cars Unite in Los Angeles [19659003] In Los Angles, the union organization seems inevitable, and The Guardian cites Nicole Moore, who drove for both Uber and Lyft and confirms the fear of the racing driver before the IPO.

"Uber is preparing for its IPO, they really want to look good for their investors and create situations where people on the street can become homeless because they can not pay their rent … That's why we organize. "

Pay is a tricky high wire for the two passengers. Parts giants. LA is the shining jewel of the business as there is a shortage of public transport and a large number of people suffer there. They can not afford to lose support there, but at the same time companies are increasingly under pressure to take social justice initiatives, and they can not slip at a time when PR is crucial.

IPO Valuations Mask Huge Debt

Some motorists fear that Uber should be able to afford to pay more as they are a billionaire company. Well, their rating is that markets are high and people like the concept, not because they make money. You are a massive loser of money and are stacking a lot of debt. Lyft is no different. Higher driver costs seem inevitable. They are already in the red, and an increase in wages would only compound this problem.

  Uber Lyft ipo

Uber and Lyft can not afford to pay more for drivers despite billions of dollars in valuations. | Source: REUTERS / Lucy Nicholson

Rising costs could erode driving edge

Taxi drivers have established strong unions and are an established industry. If you choose a disruptive business, the pain will increase. If your car is mainly there to roll around other people, you're just a taxi using an app. Like taxi drivers, there are high costs and a low profit margin, which in quiet times makes you no money. If you started Uber driving some time ago, it makes sense to lower wages as more drivers are now driving on the roads. Lyft, who comes into action, exaggerates this problem only. Obviously, driver demand for cars is also an important metric, and this could decrease with rising costs.

Ride-share drivers can unite all you like, but if this leads to expense for the drivers, those at the traditional taxi fares they could offer the old-fashioned services the opportunity to make a comeback with minimal investment in better technology. This would further increase competition on the road and further affect the profitability of Uber and Lyft.


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