On 24/05/2019 16:12, Roland Perry wrote:
In message , at 17:31:04 on Wed, 22
May 2019, JNugent remarked:
On 22/05/2019 10:01, Roland Perry wrote:
on Wed, 22 May 2019, JNugent remarked:
On 21/05/2019 18:01, Roland Perry wrote: JNugent
remarked:
With Uber (which I have used only twice, neither time in the
UK),Â* theÂ* charges are payable to Uber. If UK VAT applies to
theirÂ* chargesÂ* in theÂ* UK, it will have to be paid to Uber,
presumablyÂ* at 20% ofÂ* the charge.Â* How Uber divide up the
charge (ex-VAT) isÂ* up to them,Â* but all of itÂ* will be liable
to the tax if any of itÂ* is.
Â*The theory is that with taxi drivers below the £85k VAT limit,
theyÂ* can't charge their riders VAT.
That's taxi-driving for you.
With Uber, the charge is not paid to the driver (and the drivers
areÂ* not taxi-drivers just as the cars are not taxis). The rider's
soleÂ* contract is with Uber itself.
Â*Unless Uber is an agency and you are booking with the successfully
bidding driver, and as part of the agency agreement Uber pass your
moneyÂ* to them. Separately charging the driver a commission.
You have more or less described what we might call a "traditional
minicab" (traditional since 1960, that is). The driver gets paid by
the passenger and the driver pays a commission or radio circuit rent
to the operator. The operator's turnover consists of the aggregate
of the radio rent commissions paid to them by the drivers.
But it definitely isn't what happens with Uber. There, the passenger
pays Uber, and Uber pays a part of the charge to the driver.
Â*Alternatively, the Uber pays [on paper] the whole charge to the
driver,Â* but registers the fact that a commission is due, and at the
end of theÂ* day (or week or month or whatever their accounting period
is) deductsÂ* one from the other before handing over the *cash*.
Is that what happens?
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).
How Uber allocates their turnover is not relevant to the question of
what their turnover is.
Any business which pays out more than it previously did in wages or
overheads reduces profitability, but turnover only vchanges if turnover
changes.
*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.
Â*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/
That might be how they explain it. It is how a "normal" minicab company
works.
But:
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?
See above.