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Old May 24th 19, 03:49 PM posted to uk.transport.london
Roland Perry Roland Perry is offline
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First recorded activity at LondonBanter: Aug 2003
Posts: 10,125
Default Uber and the VAT man

In message , at 15:40:11 on Fri, 24 May
2019, Recliner remarked:
My impression is that Uber's accounting model is open and available and
matches what I suggested. All of the turnover, irepective of how it is
subsequently disbursed to the accounts of drivers or to any other
recipient, is Uber's turnover.


Does that mean Uber gets all of the "surge pricing", or does some get
fed through to the driver? From driver anecdotes I think they do get a
wedge (because they arrange their shifts to be available at such times).


Yes, the surge pricing is designed to encourage more drivers to be
available to cope with increased demand. So the drivers certainly get a big
chunk of the higher price, perhaps even more than of the normal charge.
After all, if Uber is simply a matching service, its costs don't double if
demands are higher.

As an aside, we know Uber subsidises drivers in some cases, paying them
more than it collects from the customers. I think this again suggests that
the drivers are closer to being employees than independent contractors
merely linked through Uber's matching service.


Now that model *would* break the "driver gets passenger payment less
25%" model. Unless it's done via some kind of defined top-up, or
'guaranteed minimum' payment; in which case the driver might still get
the 75%, but plus a separate incentive payment from Uber.

There's also something complicated going on when Uber hands out "free
trip vouchers" to passengers, so the passenger isn't paying any cash.
But that could be rolled into such a minimum payment scheme.

*All* of the money is therefore part of Uber's turnover. And that's
before a penny of it reaches the driver, the driver merely being one
of Uber's overheads.
As this is a railway group, is the turnover of a booking site like
Trainline the whole of the fares they sell, or just the what? 9%
commission they get paid.

Uber do not get paid a commission of any percentage whatsoever. They
pay their drivers a commission / proportion / share of the turnover.


This page says they take 25% commission:

https://www.uber.com/en-GH/drive/resources/payments/

The only money the driver receives is from Uber. Even a tip if the
passenger decides to add one to Uber's charges.


Less perhaps a small handling fee from Uber - the 25% mentioned above?


From what I've read, Uber passes on the whole tip to the driver.


And so they should. Although a small fee to reflect the extra credit
card commission wouldn't be outrageous.
--
Roland Perry