Private Reggie wrote:
I can see the attractiveness of PAYG but these companies will sign up an unlimited amount of drivers, they are only interested in the commission.
Good point. Just to clarify I'm talking about the traditional PH/HC companies who charge a fixed weekly rent to its drivers not companies like uber.
I don't see any advantage to a local traditional cab firm signing up unlimited drivers on a PAYG basis, they would get the same commission regardless of how many drivers they have as it's based on number of jobs dispatched. Lets say a company dispatches a 1000 jobs a day and charged 50p to the driver that gets the job, it wouldn't matter that the company has 10 drivers or 100 the company would still get £500 commission for those 1000 jobs. If the company wanted to increase its commission then its incentive would be to increase the job count.
If on the other hand a company is charging a fixed weekly rent then its incentive is to have as many cars on the firm as possible, more cars=more rental income. From a drivers perspective would you rather pay a weekly rent to a firm with lots of cars so the work is spread thinly, or work for a firm that charges you 50p for each job you do ?
This is why the likes of Uber look attractive to drivers, pay a firm £150+ a week (even if you dont' work) for an unknown number of jobs, or only pay Uber if you do a job.
If you make £600 in a week for a company that charges £150 rent that's 25% of your earnings, or commission. If you make £600 in a week driving for Uber how much do they take off you ?
I get where your coming from, I've thought about this previously, my dues are way below the £150 per week used as the example, playing my weekly game where I'm working the system and what the system leads me to as far as jobs go, I can make much more than the £600 per week, our company secretary looked at this and came back with the 8% figure, it's an interesting view and would need to be looked at, driver loyalty during times of demand is a huge concern, any kind of unreliability can seriously damage a companies reputation, I still feel a well run co-op is the way to go.
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