Make no mistake – in Uber’s world, drivers have the upper hand. In order for Uber to make money, it needs to put passengers in drivers’ cars. In order to attract those passengers, it needs to ensure wait times are low. How can Uber reduce wait times? Recruit drivers, recruit drivers, recruit drivers. The more drivers that are on the road, the more revenue Uber can potentially collect.
That’s why this ad from the classifieds section of a Taiwan newspaper ought to raise eyebrows. It shows how the company hustles behind the scenes, all over the world, to put more driver partners on the road.
In the ad, local livery company Pro Leasing & Rental (puluoqiche zurengongsi) calls for job seekers to consider signing up to become an Uber partner. If a candidate doesn’t personally own a car, drivers will qualify for daily insurance beginning at NT$ 800 (about US$26) for use of a company Camry and NT$ 1300 (about US$40) for use of a Lexus. If drivers do own their own cars, they’ll receive a bonus of NTD 3000 (about US$100). In addition, drivers who don’t yet own a livery license will be eligible to receive an NT$ 2000 subsidy for the certification test.
In the yellow highlighted line, the rental car company states that it is a legally registered “Class B” rental car firm, which ensures that drivers won’t be fined NT$ 15,000 for unlawfully operating a livery vehicle. According to the website of a local trade association for rental cars, Class B rental car firms require capital investments of NT$ 5 million (about US$160,000) and at least ten vehicles. In the red-text bullet point item, the ad states that the first ten candidates to sign up within a promotional period ending in late October will be eligible for “savings” worth NT$ 20,000 (about US$650), presumably towards additional licensing and test fees.
See: How Uber’s trek across the US will set the course for its run in Asia
Why would a rental car firm publish this ad instead of Uber itself? It’s possible livery firms that have hooked up their drivers with Uber (and split fares between the company, the driver, and Uber) have found Uber so helpful in providing additional business that they’re willing to shoulder ad costs and bonus incentives. It’s also possible that Uber is paying for the ad and the recruitment bonuses itself. Maybe both companies are in it together. But given Uber’s aggressive (though not unethical) tactics when it comes to recruiting drivers in the US, it’s not unreasonable to assume that some of that US$ 1.2 billion in funding is trickling all the way down to newspaper ads in Taiwan.
(We extend a hat-tip to Fox Hsiao for spotting)
Editing by Terence Lee
This classified ad from a Taiwanese newspaper shows just how badly Uber needs drivers
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