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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 |
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