As Uber stock began trading Friday on the New York Stock Exchange, many individuals and groups to make millions, and in some cases billions of dollars. These include Travis Kalanick, the company co-founder and former CEO, who owns 117 million shares of Uber, the venture capitalist Matt Cohler, which has 150 million shares, and the government of Saudi Arabia, whose bottom sovereign owns 72 million shares, addition Thursday praised his offer to $45 per share, compared to the lower end of the expected range, but a figure that would still be the company’s value to over 82 billion $, one of the frothiest deals in a full-time foam. From noon Friday at just over $44 Uber trading is a stock after a morning of rocky opening, although they remain more hours left in the trading day. Whether a group is not a lot of use Uber-IPO: counted his driver to 3.9 million at the end of last year. In fact, they are likely to decrease their pay for the next year to see how companies strive harder to become profitable, while the public pressure by the shareholder for the first time above. the pilot incentives, such as higher wages for certain hours of work, it could be on the chopping block. Frustrated with what they say, the conditions were still before offering some deterioration Uber driver went on strike just before the IPO. “I’m not against people making money if they invested,” a San Francisco-pilot, Derrick Baker, he said at the time he intended to join before the strike. “But even if you do not give us a piece of cake, at least it gives the back money they have taken from us.” Baker is estimated now makes $200 in a round of 10 hours before expenses like gas and insurance. But when it began two years running, he has made 50 percent more than in the same period of time. pays on a base rate drivers, varying between places, and they pay and how far they go in every long run. It also provides driver bonus money concluded for a fixed number of moves in times of high demand. Before the IPO, and before the strike was announced, said Uber it would be a pilot longtime a “one-time award cash driver” offers between $100 and $10,000, depending on how many trips have completed them. The company says it plans to make a total of about $300-1100000 driver qualification worldwide. (Who has not said how many people earned the money, go for the company, but the turnover is extremely high, probably represents so that 1.1 million a small fraction of all the driver.) A-appeased, drivers the United States and Chile, Scotland, London, France, Kenya, Australia and elsewhere turned off their Uber applications. Some went offline for no more than two hours, others for up to 24 hours. This type of driver discontent could threaten the future Uber. The company is in the pre-IPO documents acknowledged that, if it does not move the driver can, platforms are becoming less attractive for customers and the company will post poor financial results. A few sentences later, the company said it has already experienced the driver dissatisfaction, and as a driver reduced incentives to improve its financial performance, “we expect that drivers discontent is rising in general.” The Uber-IPO will make some people billionaires while potentially paying for one down the leadership is symptomatic of the growing inequality in the US economy today. In this regard the IPO, as the global economy, people with places of full-time work are always better off financially to do while everyone else makes it worse. An oversupply of people for jobs in the economy work in concert in the competition made it difficult to keep it for the workers for wages or higher performance. “We are living in this time of rising inequality, and Uber is strange in this position and challenging within the company a lot of that with themselves,” says Paul Oyer, an economics professor at the Stanford Graduate School of Business. These differences are particularly strong in the cities of San Francisco, where IPO minting new millionaires technology every month so that the rocket as the price of housing and other necessities. Software employees represent more than 50 percent of people in 2018 Real Estate in San Francisco for the purchase, according to Compass real estate companies. have seen at work in the highest income households on the rise in income of San Francisco by 48 percent since 1989, has been living in the most disadvantaged families, according to the California Budget and Policy Center drop of five percent of income. This is made more difficult for low-income residents Uber as a pilot in the occupied zone. Lauren Swiger, who also designed the Wednesday protest, driving for Uber for more than four years. The rent has tripled in that time; She now pays $4,150 for a home in Oakland with three bedrooms. If the start Swiger units for the first time, made $30 an hour or before costs. Now she fights to clear $15 an hour, before costs, he said. This Convention completes its work as a massage therapist, but says Uber driver to ensure a minimum wage and the wages you want transparency. “Their business model is based all exploitation of workers,” he says. Swiger want to stay in the Bay because his daughter is about to graduate from high school area and who do not want to interrupt their life on the move again, but wonders how long she will be able to stay. Uber and other technology companies are also billions of dollars in automotive technology of self-driving merger, make people redundant, although you probably will not be performed for a long period of time. But Uber drivers like Baker and Swiger have limited collective performance than traditional workers. They are considered entrepreneurs, not employees, and therefore not protected by unions. And despite the historically low unemployment rate in the country, housing has a pool with no apparent background of potential drivers to further reduce their bargaining power. About seven percent of the workforce is unemployed, working part-time for economic reasons, or only slightly related to the workforce. The number of people working part-time but would prefer full-time jobs, about 40 percent above normal economic expansion would be expected at this point, the Federal Reserve Bank of San Francisco has estimated. Some people involuntarily working part-time because the automation and globalization have wiped out many jobs of the middle class, pushing these workers down to the part-time service jobs, according to Mark Muro, a senior fellow at the Brookings Institution . Others work part time involuntarily because wage growth has been stubbornly slow in this economic recovery, and people need more income to supplement their other jobs. “There’s a large enough pool of people who voluntarily or involuntarily part of the Uber labor pool,” says Wall. Despite this, access to employment, some Wall Street analysts are skeptical that a public Uber achieve profitability. As for the rides, the company has grown exponentially, with the completion of 10 billion drivers travel in September 2018, double that of a year earlier. But Uber lost a full $1.8 billion in 2018 to spend money to expand to include new countries, buy competitors, and add new tasks, including food and Uber Uber goods, which coincides with loads of goods truck driver be moved. It made me to maintain strong incentives to entice users away from competitors like Lyft, and the driver offering on the platform. But the IPO Friday may require a new strategy. “Once Uber is public, will demonstrate some type of path to profitability,” Tom White, analyst says the D.A. Davidson. “It will be to navigate a difficult problem, because one of the biggest lever is to reduce incentives.” Capturing the bumpy road ahead, Uber drivers had to meet in New measures in the post-Kalanick. In June 2017, it launched a campaign “180 Days of Change” which are sold by that way the drivers to improve driving conditions asked for advice in the app to purchase, access 24/7 phone and receive notifications when they go to him for a long trip. The drivers have $1.2 billion alone since the company introduced earned in rollover tips in-app, Uber said. “The drivers at the heart of our service─we not come without them─and thousands of people in the work Uber to succeed each day focuses on how to make their experience better, on and off the road,” he said in a statement Uber, But some drivers are clearly angry – and more than a bit ‘nervous about their future. “In my head, greatest technology has to pay for the big tech boom,” says Swiger. “It ‘was just a clean economy.” Increase the original version of this story misrepresentation Uber amount of money was provided in the IPO, May 10 correction. It ‘been up to $10 billion, does not expect to raise more than $90 billion.
Tech > That strike before Uber IPO Exposes American Inequality