Problems in the current ride-sharing ecosystem
Both riders and drivers have numerous concerns with today's ride sharing model. The vision of Sled is to use decentralization to empower main actors of the platform.
Concerns of drivers
Instability & Lack of Control
High Commissions
Ride sharing companies use algorithms to reduce price aggressively to stay ahead of competion. These companies charge 25% - 30% per ride and the drivers make the remaining. This means a driver makes an average 20$ an hour with urban cities being outliers where the drivers make roughly 30$ an hour. Remember that this does not consider charges for fuel, insurance and maintainence fees.
Impact of Customer Ratings
Ride sharing algorithms decide the number of rides sent the drivers way based on the ratings provided by the customer which the driver cannot control or dispute in any manner.
Rely on Surge pricing
Surge pricing is unpredictable both on when its available and how much a driver can make. Drivers cannot solemnly rely on surge pricing to get more bang for their work.
Operational costs
Vehicle maintenance and Fuel
Drivers bear the cost of fuel, car maintenance, repairs etc. At this point an ride sharing driver is just making money close to minimum wage.
Insurance costs
Ride sharing drivers need comprehensive insurance which is more expensive than standard auto insurance due to the basic fact that higher risk is involved given the nature of the job.
Depreciation of Vehicle
Intense use of vehicles for ride sharing leads to rapid depreciation of the vehicle which impacts long-term viability for drivers.
Lack of benefits and protection
No Employee Benefits
As independent contractors, ride sharing drivers don’t receive benefits like health insurance, paid leave, or retirement plans, which are typically provided to full-time employees.
Lack of Job Security
There's no guaranteed income or job security. Drivers can be deactivated from the platform based on ratings or violations of terms of service.
Absence of Collective Bargaining
Since drivers are classified as independent contractors, they generally lack collective bargaining power to negotiate better pay or working conditions.
Some examples of what's happening today
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