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I just can't use uber eats. It just feels weird. Like, I am fully capable of getting food myself, I know uber eats, doordash etc, pays shit, delivery folks have to wait at the restaurant if its not ready and then fix it if its not. Get my drink from the fountain if I ordered one. And then, drive all the way to my place. I then receive a cold, tossed meal. It's just depressing all around. I don't get it.
I'll pay for delivery of pizza or even something like jimmy johns who have delivery drivers, but having a third party involved just feels wrong.
Now see, I kinda had the idea for a syndicated delivery service (not online orders, but the internet would have been used to create the order data that would assign drivers) decades ago. I did some part time work delivering food back in the late 90s/early 2000s, and I always thought it was so inefficient. The place I was at, was very busy, he had a very large delivery area but even so. There would be times he was paying people to sit outside talking shit to eachother in their cars.
I thought it would make sense to have a larger pool of drivers that service multiple restaurants/take-aways. Adding the economies of scale to the problem to ensure that people were being utilised and lowering the cost to each place using the service. Of course also paying some money to the person running the business that brought it all together.
I don't think I ever considered paying less than this guy did (which wasn't a lot, but would likely translate to $5 or so an hour in the 90s/2000s).
One thing I find really interesting about uber eats/door dash (US)/Deliveroo (UK/EU). When you add up their fees, they take a delivery fee from the user, a service fee from the user, an even bigger service fee from the restaurant and pay the lowest possible fee that will keep drivers interested. Yet I always hear the services are losing money too. How is that even possible?
Take deliveroo in the UK. Looking now I can see (I don't live in a city, so most places are some distance away). A place 4.5 miles away is charging £4.29 for delivery. Let's make up an imaginary order:
Order total: £20 (including sales tax/VAT) User's service fee: £2.39 (it seems to be 11% including the VAT with a maximum set of which I am not sure how much) User's delivery fee: £4.29 (including VAT, since they need to charge VAT on a service) Restaurant service fee: £6 (30% on the VAT included total). I am really unsure how this works entirely in terms of tax though... Total for user: £26.68
Total deliveroo service revenue: Net: £10.57 VAT: £2.11 Total: £12.68
Reading between the lines from what I can see delivery riders are paid between £3 and £6 per delivery. Now, in the cities this is probably great. I do wonder how they do it in the towns and villages. When I look at the list of places available to me most are 3 miles or more away, with some up to 6 miles away. I do wonder how £6 compensates someone doing a 10+ mile round trip at times.
But OK the price they pay drivers doesn't include any tax. So it comes from the Net total. This means per delivery in revenue they are always making £4.50 or more per delivery.
Yes, they need to pay support staff, but they are in low cost geographies. Yes, they need to keep development staff and the usual management overhead And yes, they need servers/cloud time to host this stuff.
Looking this up (not sure how good the source is) their revenue in 2023 was £2.7billion, which I believe. However they lost £38million. Where all the costs come from, I am not sure.
I wonder how these numbers compare to US based operators?
What a sad country, where people have to accept being paid so little.
I've been arguing for decades that EU needs to tax imports from USA, because USA is using social dumping to compete unfairly.
The US minimum wage is not a living wage, and employers can even go below that if they can claim tips are part of the wage. And they don't even provide healthcare for all. This is causing extreme poverty unbecoming of a developed country, and is social dumping.
USA has created a system where employers are not paying the actual cost of labor. By tilting the power balance to vastly favor employers, and fail to regulate against abuse.
Apparently this is in Canada, which surprises me a little, I thought they were better regulated. This gig economy shit should clearly be illegal, and workers should be paid a reasonable living wage.
Well this is a more or less solved problem in BC:
https://www.moneysense.ca/earn/careers/gig-worker-rights-in-canada/
The gig worker min wage is 20% more than min wage to account for the "non-engaged time".
We don't have to use that service. Who's with me?
I use it, I just tip way more than anyone else in my area tips. Mostly out of guilt, partially out of solidarity for the working person. I like to think my order at bumps that avg hourly rate up at bit.
This just makes your house a target for robbery because the criminals who deliver on the side will think you have lots of money
I think the problem is: what they call a "Tip" is more like a "Bid"/"Offer". People see "Tip" and thus believe its optional, I mean it technically is optional, but the base pay is like $2.50 so its customarily required. I think for even the shortest delivery of a place 10 minutes away with a 2 mile distance is supposed to tip at least $5. and if the delivery is done in 30 minutes, that's an effective wage of $15/hour, that is, if they get orders back-to-back.
Customers don't understand how this works and puts $0 as the "Tip", buts its really a "Bid", effectively making anyone who is willing to accept the order, to work below minimum wage. And also new drivers doesn't understand how this works and acceepts orders without a good enough "Bid", effectively working below minimum wage.
I mean, why even call it a "Tip" if its customarily required, just change the base pay to $7.50 (which I'm sure those companies will charge the customer for it, but anyways...). So for an order that takes 30 minutes, its an effective wage of $15/hour, assuming they get orders back-to-back. Much less confusion amongst both customers and drivers.
“Minimum wage and the idea that hard work should lead to economic security, can be — and are being — destroyed by these A.I. systems.”
Not A.I, just a terrible system that incentivises (and even demands for public companies) abusive behaviour.