Friction with driver’s in Uber’s operating model:

Drivers are one of the major stakeholders in UBER/Ola’s operating model.

The operating model is designed to bring the drivers and customers on a platform to create
value for both the participants. But the friction arises in cases where uber doesn’t give due
importance to their drivers. Some of the points are explained below:
1. Uber drivers are not employees of Uber and there exists no service contracts between
them. This gives options and opportunities to uber to not extend any benefits to the
driver and Uber is not bound by any contract when it is considered to the drivers. Uber
tends to take undue advantage of this in order to raise commission and bring practices
not favourable to the drivers.
2. The percentage share of profit per ride that is 20% is taken by Uber is set according to
the terms by UBER and drivers do not have any say in it. Uber is trying to make these
margins even thinner. Rest all other costs are borne by the driver itself.
3. The ratings are in some cases too harsh on part of the drivers where they do not have
any opportunity to justify it or put their case forward wherein the ratings hamper their
future rides and commissions.
4. In case of UBERPool it is a hassle for the drivers to go to long distance for rides which
are not exactly on their routes and also this does not benefit the drivers in any case.
Drivers are not very positive about pool services where multiple pool rides are clubbed
together.
5. Harsh action for drivers cancelling their rides which can even be due to some
unavoidable circumstances.